Advertising - PTU (Punjab Technical University)

Self Learning Material

Advertising

(MAJMC105)

Course: MA Journalism & Mass Communication

(Semester-1)

Distance Education Programme

I.K. Gujral Punjab Technical University

Jalandhar

Syllabus

MAJMC105-ADVERTISING

Unit I

Evolution and growth of advertising

Definitions of advertising

Relevance of advertising in the marketing mix

Unit II

Classification of advertising

Various media for advertising

National and global advertising scene

Socio-economic effects of advertising

Unit III

Ad agency management (account planning, account management, servicing, creative, contents,

advertising appeals, media planning, campaign planning, HRD,etc.)

Defining consumer behavior

Unit IV

Basic knowledge of apex bodies in advertising AAAI, ASCI etc., their code of conduct.

Internet advertising

Advertising as tool of Corporate Communication.

Advertising Appeals

Books Recommended:

1. Advertising, Dr. C.N. Santakki, 1994, Kalyani Publishers, New Delhi.

2. Advertising Principles & Practice, Chunawala, 1999, Himalaya Publishers, New Delhi.

3. Handbook of Public Relations in India, D.S.Mehta, 1998, Allied Publishers, New

Delhi.

4. Advertising by Wright, Winter, Zeigler

5. Creative Advertising by Moriarty, Sandra E.

6. Advertising Principles & Practice by Chunawala and Sethia, K.C.

7. Advertising Writing by Kaith, Hafer W., White Fordo E.

8. Principles of Advertising by Monle Lee, Johnson, Viva Books Pvt. Ltd.

9. Advertising Management by David A. Parker, Rajiv Batra, Practice Hall M 97, Connaught

Circus, New Delhi.

10. Reading in Advertising Management by Bellur V.V. Himalaya Publishing House, Bombay.

Table of Contents

Chapter No. Title Written By Page No.

1 Concept Definition & Scope of

Advertising

Ms. Priyanka Singh, PIM,

Kapurthala

1

2 Evolution of Advertising


Kapurthala

20

3 Classification of Advertising


Kapurthala

31

4 Socio & Economic Effects of

Advertising


Kapurthala

47

5 National & Global Advertising Scene Ms. Kritika Sharma, PIM,

Kapurthala

59

6 Relevance of Advertising in Marketing

Mix

Ms. Kritika Sharma, PIM,

Kapurthala

73

7 Consumer Behaviour: An Introduction Ms. Kritika Sharma, PIM,

Kapurthala

86

8 Advertising as a tool of Corporate

Communication

Mr. Balpreet Singh, PIM,

Kapurthala

101

9 Advertising Agency Management Ms. Priyanka Kaushik, PIM,

Kapurthala

116

10 Advertising Creativity Ms. Priyanka Kaushik, PIM,

Kapurthala

131

11 Advertising Campaign planning &

Media Planning

Ms. Priyanka Kaushik, PIM,

Kapurthala

144

12 Apex Bodies in Advertising Ms. Priyanka Kaushik, PIM,

Kapurthala

160

13 Print Media as a Media of Advertising Mr. Deepak, PIT,

Kapurthala

171

14 Electronic Media as a Media of

Advertising

Mr. Deepak, PIT,

Kapurthala

191

15 Out-of-Home Tools as media of

Advertising

Mr. Deepak, PIT,

Kapurthala

207

16 Internet Advertising Mr. Deepak, PIT,

Kapurthala

226

Reviewed by:

Dr. Ranbir Singh, Assistant Professor

IKG Punjab Technical University, Jalandhar

© IK Gujral Punjab Technical University Jalandhar

All rights reserved with IK Gujral Punjab Technical University Jalandhar

Lesson 1

Concept, Definition and Scope of Advertising

Structure:

1.1 Introduction

1.2 Objectives

1.3 Concept

1.3.1 Objectives of advertisement

1.3.2 Features of advertising

1.3.3 Advantages of advertising

1.3.4 Role of advertising

1.3.5 Five M‘s of advertisement

1.4 Definition

1.5 Scope of advertising

1.6 Summary

1.7 Key Words

1.8 Answers to Check your Progress

1.9 Test/Model Questions

1.10 References and suggested readings

1.1 Introduction

Daily we come across many posters, hoardings, pamphlets, and TV ads that promote something or

other. This is a classic example of advertisement. So in formal language we can define advertisement

in the following way:

Marketing, any public notice, as a printed display in a newspaper, short film on television,

announcement on radio, etc, designed to sell goods, publicize an event, etc. Shortened forms: ad or

advert.

You can easily guess the importance of advertisement in our daily lives. This is one marketing strategy

that can easily over power your mind and make a want or a desire as important as a need. For example

you may need a pen to write your exam, but you may want a Reynolds or a Parker. Thus the

advertisement you see on TV easily molds your decision and makes you chose a product irrespective

of the fact that you need it or not. You are exposed to a variety of advertisements day in and day out.

They are splashed on to your subconscious via a newspapers, hoardings, radio advertisements and

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also the biggest platform .i.e. television. To understand how the world of advertisement works we have

to first focus on what is advertisement, what are its concepts, objectives and what constitute the

functions of advertising. We will also discuss the classification of advertising in an elaborate manner.

1.2 Objectives

After reading this lesson, you will be able to learn and understand about:

define the term advertising;

explain the objectives of advertising;

Concept of advertisement

outline the scope of advertising as seen in daily life;

1.3 Concept:

So when we talk about advertisement the first thing that comes to our mind is selling or marketing. But

this is an informal way of defining it, however in formal terms this word has its roots in ancient times.

The word advertising is a Latin word which means ―to turn attention of people to a specific thing.‖

According to Oxford Dictionary the word ‗to advertise‘ means ‗to make generally or publicly known‘,

describe publicly with a view to increasing sales.

Advertising is thus, one of the most widely used mass communication tool, which is essentially in

paid form either by a firm or by an individual. This has more than just profit as an important

considering factor. Advertisement is also an important medium to mold the attitude of a consumer and

make it consumer friendly.

Thus it is a form of marketing communication used to encourage, persuade, or manipulate an audience

(viewers, readers or listeners; sometimes a specific group) to take or continue to take some action.

Most commonly, the desired result is to drive consumer behavior with respect to a commercial

offering.

Advertising presents a picture of a strong chain of command and communication in which the provider

and provided work as two sides of a same coin and give way to a cause and effect relationship. Any

advertisement would be successful only if it upholds the ideas, commodities and services of a

recognized advertiser, which provides as a communication link between the producer and the potential

buyers. The product which provides better usage to a consumer has a better chance of providing profits

to a respective company.

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1.3.1 Objectives of advertisement

The purpose of advertising is to sell or market something .It can be a product, a service or an idea. This

is only possible if the seller or an advertiser focuses on strong communication between goods and

clients and thereby increasing their awareness. Though to layman its objectives will be limited to

making profits and increasing sales but the objective of any advertisement campaign can be further

highlighted as under:

To make an immediate sale.

To build primary demand.

To introduce a price deal.

To build brand recognition or brand insistence.

To help salesman by building an awareness of a product among retailers.

To create a reputation for service, reliability or research strength.

To increase market share.

1.3.2 Features of Advertising

The nine important features of advertising are as follows:

1. Provides information : We all know that the basic purpose of advertising is to provide

information about products or services to prospective buyers. These can be details of products,

such as features, uses, prices, benefits, manufacturer's name, and instructions to be followed

while using the product and these should be explained and highlighted honestly. The

In our daily lives we go through numerous examples in which we witness the active

role of advertising in molding our views about a particular products or services. May it

be a shampoo being promoted by an Ex Miss World or a health drink providing

attractive gifts to the young ones, or simply a bathing soap. Knowingly and

unknowingly we become a part of a multimillion dollar industry called Advertisement.

The basic objective behind every advertisement is to provide information about the

product, its features, its benefits to the consumer thereby focusing exclusively on why

you should buy that product. Now this is what we mean by the concept of advertising.

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advertising message and brand name are also given. This information supplied helps educate

and guide the consumers in making correct selection of goods by them.

2. Paid communication : Any advertiser who wants to market the product has to pay to the

media for giving publicity to the product or service. He pays for the advertisement, and

naturally; he decides the size, slogan, etc. given in the advertisement. Obviously, if you want to

market a hair color to an international client, you would have to hire big celebrities to model

for your product.(Take the example of L'Oreal Hair Colors). Advertising is a form of paid

communication.

3. Non-personal presentation : Advertising is non-personal in character as against salesmanship,

which is personal (face to face communication) in character. It is true that even in

advertisement we use a sales strategy which is used in face to face communication (Example

the advertisements of various toilet cleaners that you see daily). But, in advertising, the

message is given to all and not to one specific individual. This rule is applicable to all

advertising-media, including press. However, even in advertising target consumers or target

market can be selected for making an advertising appeal.

4. Publicity : If you want to make something public, you have to advertise it. Thus this is what

advertising does. Advertising gives publicity to goods, services and ideas. It is basically for

giving information to consumers. It can be related to the features and benefits of goods and

services of different types. Advertising gives new ideas to consumers as its contents are

meaningful. The aim is to make the ideas popular and thereby to promote sales. For example,

advertising on family planning, family welfare, and life insurance is useful for placing new

ideas before the people.

5. Basically for persuasion : If you want to sell something, you will have to convince the target

consumer as to why your product is worth buying. Advertising aims at persuasion of potential

customers. It helps attracts attention towards a product, creates a desire to have it, and finally

induces consumers to visit the market and purchase the same. Advertising has a psychological

impact on consumers. It influences the buying decisions of consumers. For example you have a

football match and you want shoes. Now whether you want to buy Nike or Adidas depends on

your personal choice. But that personal choice is based on what you see on TV.

6. Target oriented : It is possible to make intensive advertising by selecting a specific-market or

specific-segment of consumers (e.g. children, housewives, etc.) for advertising. This selection

of a specific market is called target market. Advertising becomes effective and result-oriented

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when it is target oriented. The waste in advertising can be minimized through such a target

oriented advertising.

7. Art, science and profession : It is now universally accepted that advertising is an art, science

and a profession. It is an art as it needs creativity for raising its effectiveness. Advertising is a

science as it has its principles and rules. Advertising is now treated as a profession with its

professional bodies and code of conduct for members. Advertising agencies and space brokers

function as professionals in the field of advertising.

8. Element of marketing mix : The marketing mix is a business tool used in marketing and by

marketers . The marketing mix is often crucial when determining a product or brand's offer,

and is often associated with the four P's: price, product, promotion, and place Advertising is

an important element of a marketing mix It supports the sales promotion efforts of the

manufacturer and makes positive contribution in sales promotion provided other elements in

the marketing-mix are reasonably favorable. This is natural as advertising alone is not adequate

for promoting sales. Many companies now spend huge funds on advertising and public

relations. Thus when an advertiser decides to advertise any product or service, the basics to

consider is promotion technique, the place of target and the price limit.

9. Creativity : Creativity is a life blood of marketing. Advertising is a method of presenting a

product in an artistic, attractive and agreeable manner. This is possible through the element of

creativity, which is the essence of advertising. What is required these days is to add meaning to

any advertisement yet keep it as creative as possible. The best example can be the "Zoozoos" in

Vodafone advertisement. Without creativity, advertising will be like a body without a soul. It

is therefore known as the essence of advertising. A creative Add will stick to the minds of

people longer.

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http://en.wikipedia.org/wiki/Marketing

Check Your Progress 1:

Q1. Which of the following is not an objective of advertising?

a) Immediate sale

b) Price deal

c) Brand recognition

d) Acquire market share

e) All are key objectives

Q2. Why advertisement is a paid communication?

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1.3.3 Advantages of Advertising

The advantages of advertisement stretch far to the advertiser, manufacturers, sellers and the customer.

However these can be divided into two main groups. One group denotes benefits to manufactures and

other group denotes benefit to consumers. Now we should always keep in mind that the consumer and

manufacturers are codependent. Let's find out how each of them gets benefited by advertising.

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The advantages of advertising for manufacturers:

1. Large-scale production & marketing : Advertising is useful as a sales promotion technique.

It gives information to consumers and encourages them to purchase more. It does not only

introduces a product to customers but also creates a desire in their mind to buy it.

Manufacturers expand their production base due to higher market demand created through

these advertisement.

2. Introduction of new products : Advertising facilitates the introduction of new products by

creating a bridge between the manufacturer/ advertiser and the customer. Due to advertising,

information about new products is given to the prospects. This creates demand and the

manufacturer is able to sell new products along with the existing ones.

3. Creates new demand : Visual treat is always inviting. What we find attractive we buy. It is

human tendency to go after something new. Advertising spreads information and encourages

consumers to purchase new products. Such advertising leads to the creation of new demand.

Various concessions that are offered to consumers further enhances the market demand and

customer response is crucial in this case. This gives positive response from the consumers.

Thus, advertising creates new demand from non-users.

4. Effective personal selling : Advertising creates a proper background for personal selling. It

gives advance information to the prospects. They visit the shop in order to purchase a particular

Advantages of Advertisement

Advantages for

Manufacturers

Advantages for Consumer

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product which they know through advertising media. The job of a salesman becomes easy as

consumers develop affinity to specific products. In brief, it supports and supplements personal

selling.

5. Builds brand image : We all go after brands. These brands are made popular through

advertising and they build company image. A strong image would mean more, loyal and

satisfied customer. If advertisement is focusing on providing good quality it will have a direct

effect on the brand image. As a result, consumers develop loyalty towards a specific brand.

Advertising builds brand image and this develops consumer loyalty towards a specific brand.

6. Reduces cost of production : Advertising creates demand and promotes sales. This enables a

manufacturer to conduct production on a large scale. This leads to reduction in the cost of

production and distribution. As a result, the profit margin of the manufacturer increases.

7. Facing competition : A manufacturer can face market competition effectively and can make

his products popular through advertising. He can remove misunderstanding among consumers

about his products through appropriate advertising. example recent Pepsodent advertisement in

which the company claims to provide better quality than rival brand Colgate.

8. Sales promotion : A manufacturer can make his sales promotion campaign successful by using

the support of advertising. He can prepare proper background for the success of such an ad-

campaign as it facilitates direct communication with consumers.

9. Goodwill builder : A manufacturer can build up goodwill and good image in the business

world and also among the consumers through advertising. The social welfare programs and

community service activities can be given wide publicity through advertising. Even the

progress of the Organisation can be brought to the notice of the public through it.

The advantages of advertising for consumers:

1. Information and guidance : Consumers get information and guidance from advertising. They

can study the advertisements of competitors and select the products which are profitable to

them. This avoids their cheating and exploitation at the hands of middlemen.

2. Acts as reminder : Advertising acts as a reminder to consumers. They remember what is

urgently required to be purchased through advertising.

3. Attracts consumers : Advertising leads to competition among manufacturers and retailers.

They have to offer something special in order to attract consumers. Such attraction offers

benefits to consumers. For example, manufacturers have to bring down the price in order to

attract customers. They have to supply quality goods in order to attract more customers. All

this is beneficial to consumers in terms of price and quality of goods.

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4. Effective product use : Consumers get information about uses or benefits of different products

through advertising. They also get guidance as regards the right manner of using the product.

This avoids possible damage of the product purchased. Even the product can be used for

different purposes because of the information supplied through advertisements.

5. Removes misunderstanding : Advertising helps consumers in removing their

misunderstanding about certain products. They change their attitudes towards products and

services due to it.


Q1. State the following as true or false:

a) Advertising is non-personal presentation.

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b) Advertising does not provide publicity to products and ideas.

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c) Advertising aims at persuasion of potential customers.

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d) Advertising is an art only.

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e) Advertising is not an element of marketing mix.

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1.3.4. Role of Advertising

The following points suggest the role of advertising in selling sales promotion of consumer durables.

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1. Advertising is useful for giving information and guidance to prospective buyers of consumer

durables by giving the details of special features, benefits, price discount, and other

concessions offered, etc. to the purchasers.

2. Effective advertising of consumer durable creates a proper background for personal selling

thereby creating an attraction in the minds of consumers leading them to buy the product.

3. Here, the salesman can use his skills and see that the article is purchased by his visitors.

4. Advertising of consumer products enables a manufacturer to face market competition

effectively.

5. Advertising of consumer durable during the festival period acts as a reminder to consumers.

They remember to purchase a useful product on the Eve of the festival. This technique

facilitates a sales promotion during the festival period.

Thus advertisement plays a very important role by, providing information and guidance to consumers

and finally for sales promotion.

1.3.5 Five M's of advertisement

1)Mission : This refers to the purpose or objective behind advertising. Whether an advertisement is

solely for commercial purpose or has some social message would also affect the mission. An

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advertisement dealing with a cold drink or a fashion product will have a different bearing than an

advertisement dealing with saving wildlife or educating a girl child.

2) Money :

This refers to the finance provided for advertising purpose (advertising budget). It means the

budget allocation made by the company for advertising. Money provided is a limiting factor

as effectiveness of advertising, media used, coverage of advertising, etc. are related to the

funds provided for advertising purpose. Advertising is costly and companies have to spend

crores of rupees for this purpose. Advertising should be always within the limits of funds

provided. Naturally, decisions on an advertising package should be adjusted as per the budget

allocation for advertising.

It may be noted that consumer products like tooth paste or chocolate are highly competitive

with many substitutes easily available in the market. Naturally, extensive advertising on TV,

newspapers, radio, etc. is required. These media are costly. Naturally, the manufacturing or

marketing company will have to provide huge money for advertising purpose.

3) Message :

a. Message is provided through the text of advertisement. It is given through written

words, pictures, slogans and so on and it is hinted at providing the information,

guidance and motivation to the prospective buyers. Attractive and meaningful messages

give positive results, and the advertising becomes result-oriented. The services of

creative writers, artists, etc. are used for giving an appealing message to the consumers.

Here, the advertiser has to decide the message to be given, the media to be used for

communicating the message, the extent of creativity, the specific customer group

selected for giving the message and so on. The message is also related to the decisions

taken as regards a mission, and money provided for advertising.

b. For advertising consumer product like chocolate, the message is important. The buyers

are mainly children and others of lower age groups or for the benefit (pleasure and

satisfaction) of younger generation. The advertising message should be simple and

easily understandable with the help of picture or slogan. It should be also attractive

and agreeable to younger generation. The pictures or slogans used should be short

and impressive.

4) Media :

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The advertiser has to take a decision about the media to be used for an advertising

purpose. Media differ as regards cost, coverage, effectiveness, etc. The selection of

media depends on the budget provided, products to be advertised, and features of

prospective buyers, so on. Wrong decision on media may make advertising ineffective

and money spent will be wasted. This suggests that media should be selected properly,

and decision in this regard is important and critical.

5) Measure :

Measure relates to the effectiveness of advertising. An advertiser will like to evaluate advertisement in

order to judge its effectiveness. An ineffective advertisement, need to be modified or withdrawn. This

is necessary for avoiding expenditure on the advertisement which is not purposeful or is not likely to

give positive results. A well measured advertisement is more likely to be cost-effective, efficient and

beneficial to both the manufacturer and customer.

In brief, like other areas of marketing management, decision-making is necessary in advertising. This

relates to Five Ms - mission, money, message, media and measurement.

1.4 Definition:

a) Codes of the Advertising Standards Council of India ASCI defined Advertisement as:

'Advertisement' is a paid form of communication, addressed to the public on a section of it, the purpose

of which is to influence the options of behaviour of those to whom it is addressed. Any communication

which in the normal course would be recognised as an advertisement by the general public would be

included in his definition even if it is carried free of charge for any reason. Thus an advertisement is

any document which announces or proclaims to the public the production, quality, availability or the

like of something. As the advertisement is also a speech, though categorized as commercial, the

publisher and printer or editor of the published material, whether it is commercial speech or news story

or editorial matter, will be held liable for any kind of illegality. No one can incite through

advertisement, another to commit offence, or publish defamatory material or obscene picture or

comments, which undermine the respect for judiciary etc.

b) A notice or announcement in a public medium promoting a product, service, or event or publicizing

a job vacancy.

c)Paid, non-personal, public communication about causes, goods and services, ideas, organizations,

people, and places, through means such as direct mail, telephone, print, radio, television, and internet.

An integral part of marketing, advertisements are public notices designed to inform and motivate.

Their objective is to change the thinking pattern (or buying behavior) of the recipient, so that he or she

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http://www.businessdictionary.com/definition/mean.html

http://www.businessdictionary.com/definition/objective.html

http://www.businessdictionary.com/definition/change.html

http://www.businessdictionary.com/definition/pattern.html

is persuaded to take the action desired by the advertiser. When aired on radio or television, an

advertisement is called a commercial. According to the Canadian-US advertising pioneer, John E.

Kennedy (1864-1928), an advertisement is "salesmanship in print."

d) Advertising is a means of communication 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, as defined by the Advertising Association of the UK.


Q1. List down the various advantages of advertising

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http://www.businessdictionary.com/definition/action.html

http://www.businessdictionary.com/definition/call.html

http://www.businessdictionary.com/definition/advertiser.html

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1.5 Scope of advertising:

Can you imagine the world without advertisement? Of course not. The moment you step out you see

the hoardings and others advertisement modes being frequently used (may it be political or otherwise).

Print and visual media thrives on the pillars of advertisement. Thus when it comes to the scope of

advertisement we can easily judge that it not only limited to big business houses but has become an

integral part of our day to day lives. So let us now get a deeper glimpse as to what constitute the scope

of advertisement.

Broadly we can bifurcate the scope of advertisement into four main categories and these are asunder.

I. Social Scope

Our society is vastly molded by the advertisements that we see or hear daily. Whether you

recognize it or not we are a society that is influenced by external sources and one such is

advertisement. The social scope can be understood by giving the examples of various

awareness campaigns like anti drug addiction, against female foeticide, population control. For

example "Jago Grahak Jago", "School Chalen Hum" advertisement.

II. Economic Scope

Nobody runs a business for charity. Profit is the main reason and it can only be attained if our

target audience is happy with the products or services we provide. As already explained it is a

cause and effect criteria. We create a cause where by the effect is a happy consumer and

increase in business. For example these days people are exceedingly health conscious and

run after size zero figure. So to cater to this need the companies have started new brands of fat

free Biscuits and goodies. This can been seen in the advertisements of products like Sugar free,

Britannia Farm light and other products. These advertisement make claim in which they satisfy

taste and health issues. Thus these companies are making huge profits.

III. Political Scope

As you must have seen in recent elections, how various advertisement media were vigorously

used to influence a potential voter. These were used not only to grab votes for a particular party

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but also to motivate first time voters to exercise the right to vote. Thus this clearly proves that

advertisement is not only confined to a commercial stratum but extends its branches to a much

larger field. For example famously proclaimed political agenda "ab ki baar Modi sarkaar"

and "acha samey anne wala hai"

IV. Individual Scope

Every advertisement is used to highlight the individual features of a particular brand and all

these features have a direct and indirect effect on the brand following. If a person like

Aishwarya is promoting a hair color it is likely to be purchased by more people than any other

competing brand. The prevailing notion of celebrity endorsement is the biggest example of an

advertisement promotion the individuality of a brand by targeting the consumer preferences for

the brand and the promoters of the brand thereby leading to the formation of a high brand

equity.

V. Environment scope:

Our environment is in dire need for conservation and this thing is duly recognised by various

companies and NGOs. The best example can be of eco tourism and environmental friendly

products. For example recent Levis advertisement that says "eight bottles one jean", "save

the tiger".

Scope of advertisement as a marketing tool:

In the above points we have studied the scope of advertisement a concept. As we know that

advertisement is one of the most important tools, let us throw some light on its scope as an important

marketing tool:

1) Effectiveness of messages:

Advertising carries a message of the product. The message may be visual (or) oral. It is designed in a

systematic manner to influence the prospective customer and formulated on the basis of need,

environment and objective. Is should be a true representative of the product. The terminology used in

advertising may be new, but must prove effective in the attainment of the objectives. The existing

messages on similar products are evaluated before new and effective advertising messages are

launched. Thus, the success of advertising depends upon the effectiveness of the message.

2) Appropriate media:

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The selection of a medium should be made (i) on the basis of the type of customer to be approached;

and (b) the capacity of the organisation to bear the cost. The print media, such as newspapers,

magazine, and posters have been the traditional media of advertising. But the electronic media., i.e.,

the radio and television have become the popular media of advertisement in recent years; but their

costs are very high and cannot be borne by small firms.

3) Merchandise:

Advertising covers the attributes of the products. The merchandise, i.e., the product (or) service to be

sold, has its own distinct advantages. The advertiser should concentrate in explaining the distinctive

features of his products and avoid criticizing similar products of the competitors. The outstanding

qualities of his product should be assessed and exposed with emphasis.

4) Advertising functions:

Advertising is an important tool that is used to create demand and promote the marketing system

thereby helping the middlemen in creating goodwill among the customers and thus building up the

image of the organisation. New products are advertised to make the public aware of their special

qualities and price. The marketing system may be moulded for the benefit of manufacturers through

advertisement. By assessing the demands of the customers, researchers adopt appropriate

advertisement strategies so that new products are made known to customers, and thus enabling the

market for them to expand. When the potential customers realize that the attributes and price of new

products are suitable, the demand for the new products will be more than for the existing products.

Middlemen are also benefited through advertising. When goods are advertised, customers are made

aware of the products and traders have no difficulty in pushing up their sales. Sometimes, the

advertiser indicates the place of sales and customers try to buy good at that place. Advertising has

become more economical than the other forms of promotion. It builds up the image of the producer.

Sometimes, the producer becomes synonymous with the brand itself.

5) Responsibility of advertiser:

The advertiser is considered a core institution of society. She/he helps people understand the merits

and demerits of his product. Any negligence on the part of the advertiser can destroy not only their

respective image but also deter the goodwill of the company and the product or brand. The advertisers

have a great social responsibility to create a sound social and economic system. You must have seen

that after any advertisement of mutual funds a discretionary message is given. This shows that the

advertiser is socially responsible.

6) Fulfillment of objectives:

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Advertising has certain objective. They are increased sales, creation of awareness and interest,

sustaining the already established product, introducing a new product, helping middlemen and helping

the public at large. These objectives are fulfilled by advertisers.

7) Generates various activities:

Advertising assists in the performance of certain activities by the advertiser. The activities included

under advertising are mass communication, carrying message, creating an impression and building an

image. Many companies like TATA, and Levis present a strong message in their advertisements.

8) Advertising as art and science:

Advertising is considered to be an art as well as a science because it has some of the characteristic of

both. It is an art because the advertiser employs his creative abilities to devise effective ways of

communication. Use of modern techniques and professionalism are essential factors in advertising.

Exports make advertising and topically relevant. Advertising is also a science because it is based on

certain socio-psychological factors which influence marketing decisions. Cause and effort

relationships are made use of in advertising. If more scientific methods are employed, advertising

would be very relevant to its objectives. The results and performance of advertising are measurable.

Art of advertising can be tested on scientific principles. Advertising has now become a tool for solving

even several political and economic problems.

EXHIBIT:

The broad classification based on media is as follows.

Audio advertising It is done through radio, P A systems, auto-rickshaw promotions, and

four-wheeler promotions etc.

Visual advertising It is done through PoP displays, without text catalogues, leaflets, cloth

banners, brochures, electronic hoardings, simple hoardings, running hoardings etc.

Audio-visual It is done through cinema slides, movies, video clips, TV advertisements,

cable TV advertisements etc.

Written advertising It is done through letters, fax messages, leaflets with text, brochures,

articles and documents, space marketing features in newspapers etc.

Internet advertising The world wide web is used extensively to promote products and

services of all genres. For example Bharat Matrimony, www.teleshop.com,

www.asianskyshop.com etc.

Verbal advertising Verbal tools are used to advertise thoughts, products, and services

during conferences, seminars, and group discussion sessions. Kinesics also plays an

important role in this context. Page 17 of 241

1.6 Summary

In this chapter we have learnt about the concept, role, function and scope of advertisement.

Advertisement is not just a simple selling technique but it carries various functions which provide

benefits not only to the customers but also cater to the need to make profit by the manufacturers and

companies. Advertisers also carry a responsibility towards the society and this can be fulfilled by the

messages in the advertisement .i.e. "Jago Grahak Jago", "Save the tiger" and so on. These advertisers

can further add a new edge to the advertisements by good and modern techniques and computer

graphics, example Zoozoo's by Vodafone.

1.7 Key Words

Advertisement: It is a form of marketing communication used to persuade an audience

group to take some action.

ASCI: Advertising Standards Council of India

Media: It represents the medium to be used for advertising the product or service

Marketing mix: It is a marketing tool comprising of four P‘s i.e. product, price, place and

promotion.

Merchandise: It includes the product or service to be sold.

Audio advertising It is done through radio, P A systems, auto-rickshaw promotions, and

four-wheeler promotions etc.

Visual advertising It is done through PoP displays, without text catalogues, leaflets, cloth


Audio-visual It is done through cinema slides, movies, video clips, TV advertisements,

cable TV advertisements etc.

Written advertising It is done through letters, fax messages, leaflets with text, brochures,


Internet advertising The world wide web is used extensively to promote products and

services of all genres. For example Bharat Matrimony, www.teleshop.com,

www.asianskyshop.com etc.

Verbal advertising Verbal tools are used to advertise thoughts, products, and services

during conferences, seminars, and group discussion sessions. Kinesics also plays an

important role in this context

1.8 Answers to check your progress

Check your progress 1: 1. E; 2. Base your answer on section 1.3.2

Check your progress 2: 1 a) True; b) False; c) True; d) False; e) False

Check your progress 3: 1. Base your answer on section 1.3.3

Check your progress 4: 1. B); 2. D)

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1) ―Advertising is a non-personal communication‖. Why is it non personal?

2) Write about the various types of advertising with suitable example.

3) Why does a company or a manufacturer promotes surrogate advertising to popularize a

product?

4) Do you think advertising is important for development of a society? Justify your answer.

5) Enumerate the objectives of advertising in your own words.

1.10 References and suggested Readings

Advertising – Franc Jefkins, Mc Millan, New Delhi

Advertising – B. N. Ahuja, Surjeet, New Delhi

Advertising Management - Rajeev Batra, JohnGMyres, David A Aaker

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Lesson 2

Evolution of advertising

Structure:

2.1 Introduction

2.2 Objectives

2.3 The Evolution of advertising strategy

2.3.1 Advertisement in 19th

century

2.3.2 Advertisement in 20th

century

2.4 Changing role of advertisement

2.4.1 Role of TV in the changing face of advertisement

2.5 Online advertising vs. offline advertising and 21st century advertisement

2.6 Summary

2.7 Key Words



2.10 References and suggested readings

2.1 Introduction:

Advertising is more complicated than it used to be. In the innocent days of the 70‘s and 80‘s you could

easily reach large audiences, both locally and nationally, through traditional advertising. Those days

are long gone and an examination of the advertising playing field looks like a big pile of

incomprehensible choice.

There are four very influential inventions that have shaped the media and thus the advertising industry

- the printing press, radio, television and the Internet. Let us discuss them in detail in this chapter.

2.2 Objective:

After going through this chapter, you will be able to:

Describe the evolution of advertising

Explain the changing role of media in the field of advertising

Understand the various advertising strategies in different centuries

2.3 The evolution of advertising strategy :

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To thrive in today's competitive business it is very important to stay ahead of the competitors and that

means creating a space in the market that no competitor can encroach. This can be done if the

customers and consumers (the main source of profit) are satisfied and happy with the product and

service that you are providing. Obviously you would use a medium to keep in touch with the potential

buyer/customer/consumer and what better medium than advertisement. But you should also keep in

mind that market conditions and preferences of buyers are very volatile and keep changing with the

new products and expectations. Thus the way a product is advertised also needs to be updated and

made catchy.

The printing press made the wide broadcasting of information with words on paper possible, mainly

advertisements in newspapers and magazines. Selling material had to be created and advertising

agencies were born.

The first advertising agency, Volney B. Palmer, was opened in Philadelphia in 1841. By 1861 there

were 20 advertising agencies in New York City alone. Among them was J. Walter Thompson, today

the oldest American advertising agency in continuous existence. Radio became a commercial medium

in the 1920s.

For the first time, advertising could be heard, not just seen. Soap operas, music, and serial adventures

populated the new medium, and as radios appeared in virtually every home in America, sales of

products advertised on the air soared. Advertisers rushed to write catchy advertising jingles, an art

form that still has its place in the advertising stock of today.

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Q1What was the name of the first advertisement agency?

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

Q2. Where was the first advertisement agency opened?

______________________________________________________________________________

_____________________________________________________________________________

Q3. Which is the oldest American advertisement agency in continuous existence?

______________________________________________________________________________

______________________________________________________________________________

2.3.1 Advertisement in 19th century:

In the 19th century new technologies were developed and brand-new methods invented. As a result a

surplus of production was formed. Warehouses of many factories were overflowing. In this way it was

necessary to create useful advertisements, which would cover all large spaces, utilizing a large variety

of mass media sources. The first advertising agent who created such a network was Volney Palmer.

In 1841 he proclaimed himself as an advertising agent in Philadelphia and then created similar offices

in Boston and New York. About 20% of the commission for media brokers was paid to the publishers.

Texts of ads were offered by the head of the company or its representative. People who wanted to put

their ads in the newspaper paid him a commission. Such activities became very popular during the

second part of 19th

century in all European countries.

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Significant advances in advertising development were made by American brokers. In the early 1850’s,

John Wanamaker caused a revolution in the retail trade. He created a price lists for a variety of

goods and returned the money if the commodity was not of the promised quality. As a result, he gained

a lot of profit by using this strategy and he then opened a network of consumer goods shops. The

reason of such great success was professional advertising.

In 1880 D. E. Powers started to develop advertisements using brand-new information. This strategy

had become very popular in American trade circles and by the 20th century advertising had become a

form of science.

Thus it won't be wrong to state that in the 1880s a new era of advertising began which gave way to

new and improved products and customer relationship with the company. This can be attributed to the

following reasons:

New methods of manufacturing led to greatly increased output and decreased the costs for the

producers of consumer goods.

The products now could be packaged at the plant.

It gave way to a more specialiased network.

The telegraph network was in place and the continent has been crisscrossed by a network of

railroad

All these were assumptions that now allowed nation-wide distribution and nation-wide

advertising. This state supported the growth of advertising agencies and dictated their activities.

Medium of Advertisement:

Did you know:

The most widely advertised consumer products at this time had been patent medicines.

In 1893 more than half of over a hundred firms spending more than fifty thousand dollars annually on

advertising were patent medicine manufacturers. But only 20 years later, most of these firms were no patent

medicine manufacturers anymore but manufacturers of food, soap, cosmetics and automobiles. These firms

began to market their packaged goods under brand names. Some of the first brands were firms like Ivory,

Colgate, Wrigley and Coca Cola.

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During 19th

century the majority of advertisements were published in the newspapers and advertising

leaflets. Although newspapers were a prerogative of well-off class of community but the situation

began to change in the early 1860‘s when people got the opportunity of receiving publications by post.

First magazine advertisements appeared in The Southern Messenger. For a few years the editor of this

magazine was Edgar Po. Many of the magazines that began to publish advertisements as the separate

charter in the 19th

century have continued doing it nowadays. Such editions are Cosmopolitan, Ladies’

Home Journal, Readers Digest and some others.

But there was a sharp decline in the advertisement due to the following reasons.

Despite of the popular brands of newspapers the majority of information in the advertisements

was unreliable and untrue.

Moreover advertisements sometimes were immoral and absurd. For example in the countryside

of one American city advertisement was placed in the monument of a non-existent person and

it stated: ―This person killed himself with the handgun with Colt system‖. Then ―publishers‖

enumerated the value of this handgun. As the result of such inhuman actions people stopped

trusting advertisements and began to consider advertising as something negative.

There were no fixed standards of do's and don'ts as far as advertising a product of service was

concerned.

Advertisement was at its budding time and thus there was talk social and corporate

responsibilities.

2.3.2 Advertisement in 20th century:

Advertising increased dramatically in the United States as industrialization expanded the supply of

manufactured products. In order to profit from this higher rate of production, industry needed to recruit

workers as consumers of factory products. It did so through the invention of mass marketing designed

to influence the population's economic behavior on a larger scale. In the 1910s and 1920s, advertisers

in the U.S. adopted the doctrine that human instincts could be targeted and harnessed – "sublimated"

into the desire to purchase commodities. Edward Bernays, a nephew of Sigmund Freud, became

associated with the method and is now often considered the founder of modern advertising.

There was a drastic change in the advertisement used and the way they marketed the products and

services in this century. Here are some reasons:

Increased competition

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http://en.wikipedia.org/wiki/Sublimation_%28psychology%29

http://en.wikipedia.org/wiki/Edward_Bernays

http://en.wikipedia.org/wiki/Sigmund_Freud

Increased customer awareness

Specialization in products and services leading to division and bifurcation of these products

and services. Example separate washing powder for woolens and cottons etc.

Advertising agencies today are highly specialized companies which employ a large number of

people in a variety of business and creative skills, including advertising and marketing

specialists, designers, copy writers, artists, economists, psychologists, researchers, media

analysts, product testers, librarians, accountants, bookkeepers, and mathematicians. This

business sector makes billions of dollars each year, depending on the economical growth and

development of a country but also enhancing exactly this.

Using TV, radio, newspapers or magazines and Radio. In the 1920s advertisers and their agents

had come to realize radio's possibilities as it could convey their message directly to the

consumer who would not need to purchase a publication or even need to be literate. In the

1950s television was introduced and quickly developed into THE advertising-media. In the

1950‘s common income from the advertising industry rose to $ 10 billion a year. In 1980‘s this

index was $ 100 billion!

Introduction of women in the advertising business had a marked effect on the purchasing of

products and services. At the turn of the 20th century, but, since women were responsible for

most of the purchasing done in their household, advertisers and agencies recognized the value

of women's insight during the creative process. In fact, the first American advertising to use a

sexual sell was created by a woman – for a soap product. Although tame by today's standards,

the advertisement featured a couple with the message "The skin you love to touch".

Did you know:

The first radio-advertisement was broadcast in 1922 in New York on the WEAF radio station.

The tobacco industry was one of the firsts to make use of mass production, with the

introduction of the Bonsack machine to roll cigarettes. The Bonsack machine allowed the

production of cigarettes for a mass markets, and the tobacco industry needed to match such an

increase in supply with the creation of a demand from the masses through advertising. The

tobacco companies pioneered the new advertising techniques when they hired Bernays to

create positive associations with tobacco smoking.

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http://en.wikipedia.org/wiki/Creativity

http://en.wikipedia.org/wiki/Sex_in_advertising

http://en.wikipedia.org/wiki/Mass_production

http://en.wikipedia.org/wiki/Bonsack_machine

2.4 Changing role of advertisement

Till now we studied how advertisement evolved from being a mere paper work to hi-tech video. But

these changes are more intricate than they look and need a more in-depth analysis for understanding

that how and why the advertisement scenario evolved. Let us study some reasons.

Creative Planning

After World War II, most of the globe went through several decades of seemingly boundless economic

expansion. People had ever more money to spend and business expanded to satisfy the demand. It was

the dawn of the branding age and marketers strove to make their products popular with consumers

hungry to join the consumer culture.

Communications Planning

In the 80‘s and 90‘s, cable and satellite technology transformed the media landscape and fragmented

audiences. No longer could you be sure that your target consumer would see your message no matter

how big the idea was. In the new environment, media agencies moved upstream and communications

planning was born. The central strategic question became ―where is our consumer?‖ When you can‘t

reach everyone, you need to target your messaging, before you can target your message.

Strategic Marketing Planning

The current marketplace requires us not only to choose the best communication channel to reach our

consumer, but also to focus on what we want our marketing to achieve. Raising awareness will do little

if we are not converting awareness to sales, just as increasing market share

alone is a short sighted strategy if our competitor has built a strong community of consumer advocates.

The New Creativity

Most of all, the new marketplace requires a new notion of creativity. Big ideas aren‘t enough anymore.

Creativity needs to be integrated across a variety of platforms by people with a diverse set of skills.

Today‘s marketing problems need to be solved by cross functional teams that are often ad hoc and

diffuse with weak operational interfaces

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2.4.1 Role of TV in the changing face of advertisement

Then television changed everything. Although TV was invented in the 1920s, it didn't become a mass

commercial medium until the 1950s when the prices of television sets began to approach affordability.

Print and radio had to take a back seat because, for the first time, commercials were broadcast with

sight, sound and motion.

The effect of the television on the advertising industry and the way products were sold was

remarkable. Advertising agencies not only had to learn how to produce these mini movies in units of

30 and 60 seconds, they had to learn to effectively segment the audience and deliver the right

commercial message to the right group of consumers.

Cable television was the next great innovation, offering a greater variety of channels with more

specific program offerings. That allowed advertisers to narrowcast. Before the advent of cable

television, the networks attempted to reach demographics by airing at different times throughout the

broadcast period. Soap operas were broadcast during the day to reach women, news in the evening to

reach an older target audience.

Cable television, on the other hand, brought with it channels like MTV that catered to young music

lovers, ESPN, for (typically) male sports fans, and the Food Network, for people who love cooking (or

at least love to watch others cook). These new advertising channels were delightful for advertisers who

wished to target certain audiences with specific interests, though less so for the networks who saw

their share of ad revenue dwindle.

2.5 Online advertising vs. offline advertising and 21st century advertisement

Group Activity:

Take a company of your choice. Note down important strategies used in these companies to

enhance their marketing skills. Then sit in a group of four and frame a strategic plan that you

will use to market a product.

Page 27 of 241

With the dawn of the age of computer advertisement took a whole new form and became more

technologically advanced. In simple language it is just a click away from potential buyers and target

market. It has taken a new avatar which is known as online advertisement. Let us study about it in

detail:

Online Advertising

To use the term online advertising or ―new-media advertising‖ makes it sound so simple. Yet it is

complicated and constantly evolving. What you have figured out today will most likely be ineffective,

outdated, or highly evolved a year from today. Google rules the roost with its pay-per-click Adwords

model. Even though paid search advertising is up, I think that will change over the next year.

Independent social networks like Facebook and LinkedIn will gain importance and spending share

because of their ability to target more specifically by lifestyle and demographic.

Pay Per Click Advertising

Pay per click (PPC), also called cost per click, is an internet advertising model used to direct traffic to

websites, in which advertisers pay the publisher (typically a website owner) when the ad is clicked. It

is defined simply as ―the amount spent to get an advertisement clicked.‖ To do well with pay-per-click

advertising you have to be on your game and constantly pay attention. You also need a website that is

built to convert pay-per-click traffic into customers. So before you launch a campaign, invest time and

money into a website and landing pages that naturally lead visitors into a sales funnel. I also

recommend spending some time educating yourself or hire a company that specializes in paid search

advertising.

Social Network Advertising

As for advertising on social networks I‘ve personally achieved mixed results and nothing that could be

considered gangbusters. That doesn‘t mean it won‘t work for you. Facebook has a simple, easy-to-

understand advertising interface and allows you to control your budget. You can experiment with a

limited budget and test response rates. But just as in paid search advertising, have a landing site that is

built to convert visitors into prospects. Some common techniques are to use Facebook advertising to

gain Facebook page likes, or obtain email addresses through newsletter subscriptions.

Free Online Advertising

More effective, are Google‘s free tools such as Google Places and getting listed in Google‘s local 7-

pack. We can attract more website traffic through local search results and do it with less money. With

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a few tweaks to the website and an update to his Google Places page, one local client shot to the top of

local search results for sprinkler repair. His phone has been ringing all summer.

Offline Advertising

Also known as traditional advertising, we will hear many marketers declare its death. This is not so, of

course. Things rarely die, they evolve. personally use traditional advertising for local clients with

excellent results, specifically for brand enhancement. So where is Traditional advertising evolving?

Television and Cable

I believe we are moving toward an on-demand entertainment model where we won‘t be bound by

network/provider schedules. Anything you want to see, you will be able to see when you want to see it,

and where you want to see it. I don‘t know what that means for the visual media such as broadcast TV

and Cable. With the advent of DVR and on-demand entertainment, local advertising will mostly go

away in the visual media. You may see broadcast and cable go to a programming schedule of teasers

or promos on air, while making their money via subscriptions and forced advertising through internet

delivery of some sort. This is pretty bad news for local television stations and cable outlets who have

little to no local programming to re-sell. Radio Local radio stations will not be immune to on-demand

entertainment. When internet access becomes widely available in cars and every entertainment device,

listeners will be able to call up any song or program they want to hear at any time. Local radio stations

will have to evolve, or surrender even more of their small piece of the advertising pie.

Outdoor Billboards

The industry is positively evolving. You will see more digital billboards pop up in your community.

For location and event advertising billboards can be a good choice. But the drawback for billboards is

that they can be very expensive to gain significant market reach.

Direct Mail

It‘s relatively inexpensive, plus we can somewhat control who receives your message, and when and

where they receive it. Use a commercial mailing house to help you find the right mailing list and

reduce your postage costs.

2.6 Summary:

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In this chapter we have learnt as to how the advertisement industry evolved from being a mere

newspaper and pamphlets to hi-tech computerised business that seems to have enveloped the buyers. It

has been affected by the increasing purchasing power, specialization and more availability of varied

product which further increase the competition. To meet this demand the companies and big business

invest in huge amount in the advertisement. 21st century especially saw an increase of online

advertisement.

2.7 Key Words

Pay per click advertising: It is an internet advertising model, used to direct traffic to

websites.

Social Network Advertising: It is used to describe the forms of online advertising that

focus on social networking sites.


Check your progress 1: 1. Volney B. Palmer; 2. Philadelphia; 3. J. Walter Thompson


What are the reasons for changes in the medium of advertisement particularly in and after 20th

century?

Explain in detail the materials required for making an advertisement effective.

2.10 References and Suggested readings

Advertising and Promotions: An Integrated Brand Approach by CN Sontakki

Belch, George E. and Belch, Michael A. ―Advertising and Promotion‖, Tata McGraw Hill, 6th

Edition.

Guinn, Allen, Chris T., Semenik, Richard J. ―Advertising & Integrated Brand Promotion‖,

Thomson – South Western, 4th Edition.

Batra, Rajeev, Mayers, John G., and Aaker, David A. ―Advertising Management‖, Pearson

Education, 5th Edition.

Strategy and Cases‖, Pearson Education; 5th Edition.

http://eccsf.ulbsibiu.ro/RePEc/blg/journl/5321terchila.pdf

http://en.wikipedia.org/wiki/Advertising#History

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Lesson 3

Classification of advertising

Structure:

3.1. Introduction

3.2. Objectives

3.3. What is advertising all about?

3.4. Importance of advertisement

3.5. Functions of Advertisement

3.6. Classification of advertising

3.7. Basis of classification of advertising

3.8. Summary

3.9. Key Words

3.10. Answers to Check your Progress

3.11. Test/Model Questions

3.12. References and suggested readings

3.1 Introduction:

Advertising is the promotion of a company‘s products and services though different mediums to

increase the sales of the product and services. It works by making the customer aware of the

product and by focusing on customer‘s need to buy the product. Globally, advertising has

become an essential part of the corporate world. Therefore, companies allot a huge part of their

revenues to the advertising budget. Advertising also serves to build a brand of the product which

goes a long way to make effective sales.

3.2 Objectives

After going through this lesson, you will be able to:

Understand the different basis for classification of advertisements

Explain the importance and significance of advertising

Describe the functions of different types of advertisements

3.3 What is advertising all about?

Advertising is the best way to communicate to the customers. Advertising helps informs the

customers about the brands available in the market and the variety of products useful to them.

Advertising is for everybody including kids, young and old. It is done using various media types,

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with different techniques and methods most suited.

Let us take a look on the main objectives and importance of advertising.

Four main Objectives of advertising are:

i. Trial

ii. Continuity

iii. Brand switch

iv. Switching back

Let‘s take a look on these various types of objectives.

1. Trial: the companies which are in their introduction stage generally work for this

objective. The trial objective is the one which involves convincing the customers to buy

the new product introduced in the market. Here, the advertisers use flashy and attractive

ads to make customers take a look on the products and purchase for trials.

2. Continuity: this objective is concerned about keeping the existing customers to stick on

to the product. The advertisers here generally keep on bringing something new in the

product and the advertisement so that the existing customers keep buying their products.

3. Brand switch: this objective is basically for those companies who want to attract the

customers of the competitors. Here, the advertisers try to convince the customers to

switch from the existing brand they are using to their product.

4. Switching back: this objective is for the companies who want their previous customers

back, who have switched to their competitors. The advertisers use different ways to

attract the customers back like discount sale, new advertise, some reworking done on

packaging, etc.

Basically, advertising is a very artistic way of communicating with the customers. The main

characteristics one should have to get on their objectives are great communication skills and very

good convincing power.

3.4 Importance of Advertising

Advertising plays a very important role in today‘s age of competition. Advertising is one thing

which has become a necessity for everybody in today‘s day to day life, be it the producer, the

traders, or the customer. Advertising is an important part. Lets have a look on how and where is

advertising important:

1. Advertising is important for the customers

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Just imagine television or a newspaper or a radio channel without an advertisement! No,

no one can any day imagine this. Advertising plays a very important role in customers

life. Customers are the people who buy the product only after they are made aware of the

products available in the market. If the product is not advertised, no customer will come

to know what products are available and will not buy the product even if the product was

for their benefit. One more thing is that advertising helps people find the best products for

themselves, their kids, and their family. When they come to know about the range of

products, they are able to compare the products and buy so that they get what they desire

after spending their valuable money. Thus, advertising is important for the customers.

2. Advertising is important for the seller and companies producing the products

Yes, advertising plays very important role for the producers and the sellers of the

products, because

Advertising helps increasing sales

Advertising helps producers or the companies to know their competitors and plan

accordingly to meet up the level of competition.

Advertising helps creating goodwill for the company and gains customer loyalty

after reaching a mature age.

The demand for the product keeps on coming with the help of advertising and

demand and supply become a never ending process.

3. Advertising is important for the society

Advertising helps educating people. There are some social issues also which advertising

deals with like child labour, liquor consumption, girl child killing, smoking, family

planning education, etc. thus, advertising plays a very important role in society.

Check your Progress 1:

Q1: Which of the following is not an objective of advertising?

a) Trial

b) Continuity

c) Brand Switch

d) All of the above

___________________________________________________________________________

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Q2: What is the significance of advertising?

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

___________________________________________________________________________

3.5 Functions of Ads

There are many functions of advertisement and they differ depending on the target market and

the kind of business environment they correspond to. Let us study them one by one.

1. To distinguish product from competitors' products

There are so many products of same category in the market and they compete with each other,

advertising performs the function of distinguishing advertiser's product from competitors.

2. To communicate product information

Product related information required to be communicated to the targeted customers, and

advertisement performs this function. A very recent example could be taken of various mutual

funds advertisement that you see in day to day life. You must have seen a warning disclaimer

towards the end of such ads.

3. To urge product use

Effective advertisement can create the urge within audience for a product. For example Harpic

and other toilet cleaner advertisements make sure that they insist on the health standard in order

to persuade the audience to use the product.

4. To expand product distribution

When the market demand of a particular product increases, the number of retailer and distributor

involved in sale of that product also increases, hence product distribution get expanded.

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5. To increase brand preference

There are various products of different bands are available, the brand which is effectively and

frequently advertised is preferred most. You must have seen a recent Pepsodent ad in which it

says that it is better than Colgate.

6. To reduce overall sale cost

Advertising increases the primary demand in the market. When demand is there and the product

is available, automatically the overall cost will decrease, simultaneously the cost of sales like

distribution cost, promotional cost also get decreased

3.6 Classification of Advertising:

There are several branches or types of advertising which can be used by the companies. Let

us discuss them in detail.

http://www.managementstudyguide.com/classification-of-advertising.htm

1. Print Advertising - The print media has been used for advertising since long. The newspapers

and magazines are quite popular modes of advertising for different companies all over the world.

Using the print media, the companies can also promote their products through brochures and

fliers. The newspaper and magazines sell the advertising space and the cost depends on several

factors. The quantity of space, the page of the publication, and the type of paper decide the cost

of the advertisement. So an ad on the front page would be costlier than on inside pages. Similarly

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an ad in the glossy supplement of the paper would be more expensive than in a mediocre quality

paper.

Print advertising is a widely used form of advertising. These advertisements appear in

newspapers or magazines and are sometimes included as brochures or fliers. Anything

written in the print media to grab the attention of the specific target audience comes under the

purview of print advertising. People who read newspapers or other publications have a tendency

to browse the print ads that they come across. The decision to buy the product might not be

instantaneous, but it does settle down in their subconscious mind. Next time they see the product

in the market, they are tempted to buy it.

Print advertisements are only effective when people see them. When people browse through

newspapers and publications, these advertisements should grab the attention of the potential

customer. Therefore, these advertisements should be created in such a manner that they can hold

the attention of the customer to some extent. Usually a team of individuals is required in order to

design the advertisements

The newspaper or magazine ad should be such that it should compel people to spend

money on the products. This is just what the advertising team does. To create such an ad, the

team members work on a concept and develop the wordings and images of the ad. These

wordings and images are then brought together to form the final ad. Then there are people who

deal with the placement of the ad. They have to make sure that if the client has paid for premium

place, they get the desired exposure. For example, an ad on the first page will get instant

attention of the reader than the ad on the subsequent pages. Likewise, an ad which occupies

greater space is likely to get more attention. All these factors have to be looked into while

designing the ad.

The sales team of the publication makes sure that it gets ads regularly. In fact, these ads are a

major source of income for the publication and hence it is expected that there should be a

constant flow of the ads. The sales team does just that.

Mailers are another type of print ads. These can range from well-designed postcards to simple

paper leaflets. These are usually delivered by the postal workers in people‘s mailboxes. The

problem with these mailers is that they get least attention and are usually considered as junk and

thrown away even without reading. To reduce this occurrence, companies sometimes make use

of fliers. These are paper ads which are handed over to individuals in person. The logic is that if

the ad is given to people personally, they will pay more attention to it, which is actually true to

some extent.

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Though print advertising is still very popular, it does take a hit from time to time. For example,

during the recession phase, when people‘s budgets were tight, they did not resort to print ads. In

addition, with the advent of Internet, the print ads in the publications have gone down because

Internet has a wider reach online. To overcome this scenario, new strategies have to be

developed by advertisers and the print media. Globally, advertisers keep on developing strategies

which benefit the business of print publications. Therefore, it can be said that print advertising is

here to stay.

2. Broadcast Advertising - This type of advertising is very popular all around the world. It

consists of television, radio, or Internet advertising. The ads on the television have a large

audience and are very popular. The cost of the advertisement depends on the length of the ad and

the time at which the ad would be appearing. For example, the prime time ads would be more

costly than the regular ones. Radio advertising is not what it used to be after the advent of

television and Internet, but still there is specific audience for the radio ads too. The radio jingles

are quite popular in sections of society and help to sell the products.

The broadcast media like radio and television reaches a wider audience as opposed to the print

media. The radio and television commercials fall under the category of mass marketing as the

national as well as global audience can be reached through it.

The role of broadcast advertising is to persuade consumers about the benefits of the product. It is

considered as a very effective medium of advertising. The cost of advertising on this channel

depends on the time of the commercial and the specific time at which it is aired. For example, the

cost of an ad in the premium slot will be greater than in any other slot.

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Radio AD: A radio ad must be aired several times before it actually sinks in the minds of

the consumers. Thus the frequency of the ad is important. The voice talent in the

commercial should be taken keeping in mind the type of audience and the type of

commercial.

Television Ad: The television advertising is usually considered the advertising for the

corporate giant, though even the small businesses can benefit from it. A strong audio and

video combination is a must for the success of the commercial. But it is also important

that the audio and video should function well without each other. For example, if a

person is not viewing the TV but just listening to it, she/he should get the idea and vice

versa.

It is extremely important that whatever has been advertised in the commercial is true.

Most of the radio and television advertisements are paid though there are some public

service ads which can be aired for free. The advertisers usually have to pay for the spot

which lasts for 30 seconds. In rare cases, this spot can increase to 60 seconds too.

Online Ad: These days radio and television ads are prepared by advertising agencies for

their clients. Internet or online advertising uses the Internet or the World Wide Web for

the purpose of attracting consumers to buy their product and services. Examples of such

advertising include ads on search engine result pages, rich media ads, banner ads, social

network advertising, and email marketing and so on.

Online advertising has its benefits, one of them being immediate publishing of the commercial

and the availability of the commercial to a global audience. But along with the benefits come the

disadvantages too. These days, advertisers put distracting flashing banners or send across email

spam messages to the people on a mass scale. This can annoy the consumers and even the real

ads might get ignored in the process. Therefore, ethics in advertising is very important for it to be

successful.

Whatever be the mode of advertising, broadcast advertising is an inherent part of any advertising

campaign these days.

3. Outdoor Advertising - Outdoor advertising makes use of different tools to gain customer‘s

attention. The billboards, kiosks, and events and tradeshows are an effective way to convey

the message of the company. The billboards are present all around the city but the content

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should be such that it attracts the attention of the customer. The kiosks are an easy outlet of the

products and serve as information outlets for the people too. Organizing events such as trade

fairs and exhibitions for promotion of the product or service also in a way advertises the product.

Therefore, outdoor advertising is an effective advertising tool.

Apart from the billboards, there are several other forms in which outdoor advertising can take

place. For example, beverage companies make use of sporting events and arenas to showcase

their products. For example, Coca Cola was one of the FIFA World Cup sponsors. Other places

where you can see outdoor advertising are:

taxicabs

buses

railways

subways and walls on which murals are painted

All these forms of outdoor advertising are very popular and extremely cost effective.

4. Covert Advertising - This is a unique way of advertising in which the product or the message

is subtly included in a movie or TV serial. There is no actual ad, just the mention of the product

in the movie. For example, Tom Cruise used the Nokia phone in the movie Minority Report.

5 Public Service Advertising - As evident from the title itself, such advertising is for the public

causes. There are a host of important matters such as AIDS, political integrity, energy

conservation, illiteracy, poverty and so on all of which need more awareness as far as general

public is concerned. This type of advertising has gained much importance in recent times and is

an effective tool to convey the message.

As opposed to covert advertising, public service advertising aims at spreading

awareness about issues that are relevant to public interest. Such ads may quote a

political viewpoint, a philosophy, or a religious concept. Such humanitarian ads are

usually broadcasted on the radio or television, though they can also appear in newspapers

and magazines. For example "Save the tiger", "Anganwaadi advertisements" etc.

Public Service Advertising should carry a short and to the point message. The

advertisement should be made keeping the target audience in mind. As it is not about

buying a product but a change in the attitude altogether, the advertisements have to be

amply clear and the message should prompt the people to take a step forward. If the shift

in the mindsets of people does not happen, then the ad is not conveying the message

properly. For this reason, the PSA‘s are often dramatic and expressive.

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To conclude, one can say that outdoor advertising, if used wisely is very powerful and cost-

effective way of advertising.

However there are other forms of classifications in which we can divide advertisements. Let us

study these as well in detail.

Check your progress II:

Match the following:

1. Print advertising a. These are a type of print ads and range from well-designed

postcards to simple paper leaflets

2. Mailers b. Outdoor advertising communicates the message to the

general public through highway billboards, transit posters and

so on.

3. Outdoor advertising c. It is the form of advertising in which the product or message

is included in the movie or TV serial.

a. Covert advertising d. Communicating in the print media to grab the attention of

the specific target audience comes under the purview of print

advertising.

3.7 Basis of classification of Advertising - We have to keep in mind that advertisement is a

rather wide term and it depends on the target market and also on the producers, marketers and the

amount they can invest. Hence other than the way it has been classified above and advertising

can also be classified on the basis of Function, Region, Target Market, Company demand,

Desired response, and Media.

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Lets study each of these parameters in detail.

A) Classification on the basis of function

Advertisement informs the customers about a product

Advertisement persuades the consumers to buy a products

Advertisement reminds existing customers about the presence of the product in the

market

Let us discuss some important types of advertising based on the functional aspect of advertising.

Informative advertising: This type of advertising informs the customers about the products,

services, or ideas of the firm or organization. Example mutual funds and other shares.

Persuasive advertising: This type of advertising persuades or motivates the prospective buyers

to take quick actions to buy the products or services of the firm. Example: ―Buy one, get one

free‖.

classification of Advertisement

FunctionRegion Target Market

Company demand

Desired Response Media

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Reminder advertising: This genre of advertising reminds the existing customers to become

medium or heavy users of the products or services of the firm that have been purchased by them

at least once. This type of advertising exercise helps in keeping the brand name and uses of the

products in the minds of the existing customers. Polio vaccination advertisements can be

categorised in this as well as Informative advertising as well.

B) Classification on the basis of region

Advertisements can also be classified on the basis of the region, say:

Global advertising: It is executed by a firm in its global market niches. Reputed global

magazines like Time, Far Eastern Economic Review, Span, Fortune, Futurist, Popular Science.

Cable TV channels are also used to advertise the products throughout world. Supermodels and

cinema stars are used to promote high-end products Examples: Sony, Philips, Pepsi, Coca Cola,

etc.

National advertising: It is executed by a firm at the national level. It is done to increase the

demand of its products and services throughout the country. Examples: BPL (Believe in the

best). Whirlpool Refrigerator (Fast Forward Ice Simple) etc.

Regional advertising: If the manufacturer confines his advertising to a single region of the

country, its promotional exercise is called Regional Advertising. This can be done by the

manufacturer, wholesaler, or retailer of the firm. Examples: Advertisements of regional

newspapers covering those states or districts where these newspapers are circulated. Eg. The

Assam Tribune (only for the NE region) etc.

Local advertising: When advertising is done only for one area or city, it is called Local

Advertising. Some professionals also call it Retail Advertising. It is sometime done by the

retailer to persuade the customer to come to his store regularly and not for any particular brand.

Examples: Advertisements of Ooo la la, Gupshup (Local FM channels) etc.

C) Classification on the basis of target market

Depending upon the types of people who would receive the messages of advertisements, we can

classify advertising into four subcategories:

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Consumer product advertising: This is done to impress the ultimate consumer. An ultimate

consumer is a person who buys the product or service for his personal use. This type of

advertising is done by the manufacturer or dealer of the product or service. Examples:

Advertisements of Intel, Kuttons (shirt), Lakme (cosmetics) etc.

Industrial product advertising: This is also called Business-to-Business Advertising. This is

done by the industrial manufacturer or his distributor and is so designed that it increases the

demand of industrial product or services manufactured by the manufacturer. It is directed

towards the industrial customer.

Trade advertising: This is done by the manufacturer to persuade wholesalers and retailers to

sell his goods. Different media are chosen by each manufacturer according to his product type,

nature of distribution channel, and resources at his command. Hence, it is designed for those

wholesalers and retailers who can promote and sell the product.

Professional advertising: This is executed by manufacturers and distributors to influence the

professionals of a particular trade or business stream. These professionals recommend or

prescribe the products of these manufacturers to the ultimate buyer. Manufacturers of these

products try to reach these professionals under well-prepared programmes. Doctors, engineers,

teachers, purchase professionals, civil contractors architects are the prime targets of such

manufacturers.

Financial advertising: Banks, financial institutions, and corporate firms issue advertisements to

collect funds from markets. They publish prospectuses and application forms and place them at

those points where the prospective investors can easily spot them.

D) Classification on the basis of desired responses

An ad can either elicit an immediate response from the target customer, or create a favourable

image in the mind of that customer. The objectives, in both cases, are different. Thus, we have

two types of advertising under this classification.

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Direct action advertising: This is done to get immediate responses from customers. Examples:

Season's sale, purchase coupons in a magazine.

Indirect action advertising: This type of advertising exercise is carried out to make a positive

effect on the mind of the reader or viewer. After getting the advertisement he does not rush to

buy the product but he develops a favourable image of the brand in his mind.

Surrogate advertising: This is a new category of advertising. In this type of promotional effort,

the marketer promotes a different product. For example: the promotion of Bagpiper soda. The

firm is promoting Bagpiper Whisky, but intentionally shows soda. They know that the audience

is quite well aware about the product and they know this fact when the actor states, "Khoob

Jamega Rang Jab Mil Baithenge Teen Yaar ... Aap ... Main, Aur Bagpiper").

E) Classification on the basis of the media used in advertisement

The broad classification based on media is as follows:

Audio advertising: It is done through radio, P A systems, auto-rickshaw promotions, and four-

wheeler promotions etc.

Visual advertising: It is done through PoP displays, without text catalogues, leaflets, cloth


Audio-visual: It is done through cinema slides, movies, video clips, TV advertisements, cable

TV advertisements etc.

Written advertising: It is done through letters, fax messages, leaflets with text, brochures,


Internet advertising: The world wide web is used extensively to promote products and services

of all genres. For example Bharat Matrimony, www.teleshop.com, www.asianskyshop.com etc.

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Verbal advertising: Verbal tools are used to advertise thoughts, products, and services during

conferences, seminars, and group discussion sessions. Kinesics also plays an important role in

this context.

3.8 Summary:

In this chapter you have learnt about the various classification of advertisement. When we

classify advertisement we have to take into consideration various parameters that are financial,

target market, competition and needs of the consumer or customer. We have seen that there are

numerous ways of advertising your product, but the basic point that you need to consider as a

marketer is the planning and implementation part for the entire marketing outcome.

3.9 Key Words

Advertising: It is promotion of the product or services of a company through various

means.

Print advertising: Communicating in the print media to grab the attention of the specific

target audience comes under the purview of print advertising.

Mailers: These are a type of print ads and range from well-designed postcards to simple

paper leaflets.

Broadcast Advertising: It consists of television, radio or internet advertising.

Outdoor advertising: Outdoor advertising communicates the message to the general

public through highway billboards, transit posters and so on.

Covert advertising: It is the form of advertising in which the product or message is

included in the movie or TV serial.


Check your Progress I: 1. D; 2. Base your answer on section 3.3 and 3.4

Check your Progress II: 1. D; 2. A; 3. B; 4. C


What do you mean by advertising? Why is it important? Do you feel that it has a

significant role to play in the current marketing scenario?

What are the different bases that you can use for classification of advertisements?

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What are the different classifications of advertising?

3.12 References and Suggested readings




http://www.enotesmba.com/2012/06/mba-notes-functions-and-classifications.html

http://www.managementstudyguide.com/classification-of-advertising.htm

http://kalyan-city.blogspot.com/2013/08/eleven-major-functions-of-advertising.html

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Lesson 4

Social Economic Effects of Advertising

Structure:

4.1 Introduction

4.2 Objectives

4.3 Parties to advertising

4.4 Economic role of advertising

4.5 Social role of advertising

4.6 Children and advertising

4.7 Global Perspective

4.8 The Defense of advertising

4.9 Social Responsibility of Advertising

4.10 Summary

4.11 Key Words


4.13 Test/ Model Questions

4.14 References and Suggested Readings

4.1 Introduction

Advertising, in a broad sense, has been part of economies since at least the beginnings of trade.

Merchants have always sorted out the advantages of their goods in the marketplace. The oldest

known written advertisement is a 3000-year-old Babylonian tablet requesting the return of a

slave. Shop signs and broadsides affixed to walls, posts or trees were common advertising

devices in all civilizations prior to newspapers. The invention of printing by movable type

ushered in a new age of commercial communication. The first printed advertisement in English

appeared in 1477, the year after William Caxton set up his first press in England. By the middle

of the seventeenth century, British newspapers had adopted advertising as an intrinsic part of

their contents. The first daily newspaper in the American colonies devoted as many as ten of its

sixteen newspaper columns to advertising. The styles and objectives of these ads stood as models

-- in English-speaking countries, at least -- for the first period of the modern era of advertising.

―Every coin has two sides‖

Advertising is praised but also criticized by critics in their own ways. Advertising has many

positive impacts along with its negative pictures. As the President of American Association of

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Advertising Agencies, John O‘ Toole has described advertise is something else. It is not related

to studies, but it educates. It is not a journalist but gives all information. And it is not an

entertaining device but entertains everyone.

Now let‘s go through the economic and social aspects of advertising.

4.2 Objectives:

In this lesson, you will learn:

The social and economic effects of advertisement

How an advertising firm should be socially responsible

Various criticism levied against advertisement.

4.3 Parties to advertising

Over all advertising chart showing who all are involved:

4.4 Economic role of Advertising

Value of Products:

The advertised products are not always the best products in the market. There are some

unadvertised products also present which are good enough. But advertising helps increase value

for the products by showing the positive image of the product which in turn helps convincing

customers to buy it. Advertising educates consumers about the uses of the products hence

increasing its value in minds of the consumers. For e.g. mobile phones were first considered as

necessity but nowadays the cell phones come with number of features which makes them mode

of convenience for consumers.

Effect on Prices:

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Some advertised products do cost more than unadvertised products but the vice versa is also true.

But if there is more competition in the market for those products, the prices have to come down,

for e.g., canned juices from various brands. Thus some professional like chartered accountants

and doctors are not allowed to advertise.

Effect on business cycle:

Advertising no doubt helps in employing more number of people. It increases the pay rolls of

people working in this field. It helps collecting more revenues for sellers which they use for

betterment of product and services. But there are some bad effects of advertisements on business

cycle also. Sometimes, consumer may find the foreign product better than going for the national

brand. This will definitely effect the production which may in turn affect the GDP of the country.

The economic aspects are supported by the Abundance Principle which says producing more

products and services than the consumption rate which helps firstly keeping consumers informed

about the options they have and secondly helps sellers for playing in healthy and competitive

atmosphere with their self interest.


Q1. Which of the following is not a party to advertising?

a) Client

b) Agency

c) Communication agencies

d) Banker

4.5 Social role of Advertising:

There are some positive and some negative aspects of advertising on the social ground. They are

as follows.

Dishonesty in Advertising:

The relation between the buyers and sellers is maintained if the buyers are satisfied with what

they saw in advertise and what they got after buying that product. If seller shows a false or

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deceptive image and an exaggerated image of the product in the advertisement, then the relation

between the seller and buyers can‘t be healthy. These problems can be overcome if the seller

keep their ads clean and displays right image of the product.

The Hidden Advertising:

Capturing the Minds of the consumers is the main intention of these ads. The ads are made in

such a way that the consumers don‘t even realizes that the ad has made an impact on their minds

and this results in buying the product which they don‘t even need. But ―All ads don‘t impress all

consumers at all times‖, because majority of consumers buy products on basis of the price and

needs.

Effect on Our Value System:

The advertisers use puffing tactics, endorsements from celebrities, and play emotionally, which

makes ads so powerful that the consumers like helpless preys buy those products.

These ads make poor people buy products which they can‘t afford, people picking up bad habits

like smoking and drinking, and buy products just because their favorite actor endorsed that

product. This affects in increased the cost of whole society and loss of values of our own selves.

Offensiveness:

Some ads are so offensive that they are not acceptable by the buyers. For example, the ads of

denim jeans showed girls wearing very less clothes and making a sex appeal. These kinds of ads

are irrelevant to the actual product. Btu then there is some ads which are educative also and now

accepted by people. Earlier ads giving information about birth control pills was considered

offensive but now the same ads are considered educative and important.

But at the last, there are some great positive aspects which help

Development of society and growth of technologies

Employment

Gives choices to buyers with self interest

Welcomes healthy competition

Improving standard of living.

Give information on social, economical and health issues.

4.6 Children and Advertising

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Due to their lack of experience, young children have less resistance to advertising, and it may be

especially harmful because of their inability to distinguish it from other programming. But the

frame of reference for judgements of "reality" or "fantasy" can shift.

Children asked whether a "realistic" drama about a school was "real", replied that it was not,

"because it was not like their school". The considerable similarity of the television portrayal to

their own experience, but with discrepancies, had actually increased the children's perception of

it as "unreal".

Another problematic area is advertising's tendency to view only positive aspects, avoiding

ugliness, pain, and other negative dimensions of real life. In this it differs from education, other

contents of mass media, and similar, more balanced modes of presentation.

The content of advertising has long been subjected to much criticism. This was discussed earlier,

and is accentuated in its impact on children. Stereotyping and raising children's expectations

higher than can be fulfilled might be stressed. So might the way advertising plays on existing

fears and constructs irrational fears. These visions of advertising see it as a malignant, rather than

a benign influence, as pervasive and often as immoral.

Television, in general, has also changed the image of the child in modern society, and advertising

may amplify that change. In earlier times, children were regarded as "sweet" and "different",

incapable of adult responses.

Now there is a tendency to portray them as "kids", streetwise, amusing, interested in excitement

and fast action. Kids really know more than we give them credit for and should not be talked

down to. If that stereotype comes to affect adult-child interactions, little leeway would seem to

be allowed for either discipline or education.

From another perspective, children are4.4 seen as living in an "age of innocence" -- trusting,

naive, uncritical. Adults who act upon this stereotype are likely to regard television as

unmitigated evil, seducing and taking advantage of the innocent and defenseless.


Q1. What is the social and economic role played by advertisement?

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4.7 The Global Perspective

One more negative scholarly view of advertising is that there may be no use in studying

the social and cultural effects of advertising alone. They are part of a larger system in which

large conglomerates control our culture. One of their tools is advertising. This view certainly is

correct in insisting that advertising must be studied in its proper context and as one influence

interacting with many others.

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Advertising is a product of industrialized society. Since a coherent and viable economy,

today, is largely dependent on mass industrialization, advertising will continue to be a factor in

our lives.

Effects as "By-products": But advertising is what we see and hear all day long. All

conceivable media are filled with it. The study of the social and cultural effects of commercial

advertising is in itself a negative one. Social and cultural effects are not the intended effects of

advertising, because it is not designed to change social behavior or cultures.

Advertising functions only to sell products or ideas. Therefore, it is not surprising that

this topic is not dealt with much in advertising textbooks, which stress "how-to-advertise". Social

and cultural effects are by-products of advertising, but they are central to the interest of those

who are fearful that advertising has too much influence on our view of the world. And it does.

Exactly how advertising works on consumer's minds is still a matter for continuing research, but

that it works cannot be denied.

The Distorting Mirror: Defenders of advertising say that advertising only mirrors culture

in order to create sales appeal. But the mirror is distorted. Every critic on the subject describes

the way in which the mirror selectively uses only parts of culture, linking values and symbols to

commercial products. Advertising is so all-encompassing that this clearly faulty mirror has

become an authority on what the culture "should" be. The mirror tells us about an ideal life,

toward which we all should strive using the products recommended.

The rationale for dealing separately with American or Western advertising and

advertising in the rest of the world is that advertising has become such and integral part of

Western culture. Also, American society has become the model for that way to advertise all over

the world. When operating globally companies advertise in non-western parts of the world using

the same Western mirror for their advertising, though they will sometimes use indigenous

models as well.

Global Frustration: This makes the mirror even more biased. By showing Western

advertising in non-Western countries, the ideal Western lifestyle and culture are proclaimed. The

critics of "cultural imperialism" say that this leads to cultural alienation. Advertisers say that it

does not make sense not to target indigenous culture because in that way they will lose sales,

whereas sales are their ultimate goal.

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But Western advertising can and does lead to frustration. Criticisms of advertising are

less criticisms of capitalism than of its result: consumerism. People do not need all the products

shown in order to be happy. We can do without the "materialism" which is used so often to

stereotypically describe American society, but which in fact describes most of the Western

industrialized world.

4.8 The Defense of Advertising

Industry has laid itself open to criticism in the past by not assigning a high enough priority to

ethical considerations. Such criticisms are mainly:

"Show Window": This highlights one of advertisings' most important functions as making the

products of industry visible to the public. It is the most visible activity of business, its show

window. By showing people their products, producers are making claims for them, but also they

are inviting public criticism and attack if their products do not live up to their promised benefits.

For this reason, proponents say it is safer to buy advertised products than unadvertised

competing products. The makers of the advertised product put their brand names and reputations

on the line. They will try harder than others to fulfill their claims and maintain their good

reputations.

"Manipulation": According to the critics, "Advertising manipulates us to buy things we don't

need by playing on our emotions. The persuasive techniques are so powerful that consumers are

helpless to defend themselves". The defense says that advertising cannot make us buy things we

do not need; that people who say the opposite have little respect for consumers' common sense

and their ability to make decisions; that many advertised products fail; that subliminal

advertising, which has inspired many fears among critics, has never been proven effective; and

that some products are successful even without advertising. In short, advertising's influence has

been exaggerated. People are sceptical and do not pay that much attention to advertising.

"Artificial Needs": To the complaint that, "Advertising creates artificial needs", the defense says

that if there is no need for a product then people will not buy it. Advertising does not create

needs; it helps the consumer decide which among the various brands to purchase. Marketers have

found that the way to advertise and sell products is to satisfy genuine needs and wants, rather

than to invent needs.

"Too Much": Many complain that there is too much advertising, but the defense says we will

just have to put up with it, because the dominant economic system demands a high level of mass

distribution of products. Advertising volume will stay high because mass distribution supports

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our free enterprise system. It is the price we have to pay for free television, freedom of the press

and our high standard of living.

"Offensive": It must be acknowledged that many find advertising to be ineffective and in bad

taste. What is "offensive" is often subjective, determined by time and culture. Many things hat

used to be offensive in the past are no longer so. Liquor ads can be offensive for some, while

others take them for granted. Often the products themselves are not offensive, but the advertising

offends in order to gain attention. Benetton, a clothing manufacturer, in 1991 literally plastered

Europe with billboards showing nothing but a blood-soaked newborn baby, with no further

comment and no evident relation to the product. The same company simultaneously staged a

similar, "distraction marketing" magazine ad campaign in the United States -- arguing that it

wanted to stir up discussion of controversial issues. One of the ads featured a nun kissing a

priest; another portrayed a dying AIDS victim, a corpse in a pool of blood on a street, etc.

However, if a campaign does not in some way attract people, it is the standard opinion of

advertising experts that it will fail. The audience has the veto and can ignore the offending

advertisements. But advertisers are aware of what the general public finds distasteful and, for the

most part, try to avoid it, the Benetton example apparently notwithstanding.

"Stereotypes": It must be admitted that advertising does perpetuate stereotypes, as many critics

claim. However, great changes have occurred in this regard in recent years. Advertisers have

become sensitive to stereotyping population groups, because these groups constitute business for

them, just as much as other groups. Minority advertising has become niche-making, instead of

the use of stereotypes. The image of women in ads also has changed significantly so that men

and women are portrayed equally. This is due not to feminist pressures, according to the defense,

but more to changes in the marketplace which make the exploitative representation of women

counterproductive.

"Deceptive": To the complaint that "Advertising is deceptive", it must be said that continued

deception would be self-defeating because it causes consumers to turn against a product.

`Puffery' -- "the best", "greatest", "premier" -- if sometimes believed is therefore deceptive, but

there is little evidence that deceptive advertising helps sales. It is in the interest of the advertiser

to stay honest.

"Adds to the Cost": In Spain, it was said that a car of the Seat Audi Volkswagen Company

would cost, theoretically, 100,000 pesetas less if the cost of advertising were omitted. Consumers

might cry, "We are paying to have something sold to us.!" But the defense says this is not true

because advertising makes possible mass production, which in turn reduces prices through the

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economy of scale. There are many other factors in the cost of an automobile which are equally

intangible, but of acknowledged importance: aesthetics, psychological satisfaction, etc.

4.9 Social responsibility of advertising:

Truth in Advertising

Truthfulness is the first requirement for any socially responsible advertising. However, this

requirement is not as straightforward as it may appear. Factual information can be presented in

such a way as to deceive the viewer, while an image can be manipulated yet still create an

accurate final impression. For example, if an advertisement says a certain product is inexpensive

without revealing that it will wear out very quickly, then the information is factually accurate yet

deceptive. Any customer buying the product would be likely to end up spending more money

rather than saving, because it would have to be replaced so soon. Another ad might use camera

tricks to create the visual impression of a juicy steak, because the unmanipulated image of the

steak would look dry and unappealing. If the steaks being advertised are actually juicy, the ad is

not deceptive even though the image is manipulated.

Messaging

Socially responsible advertising should not promote or contribute to anything damaging to

society. If an advertisement makes use of racial or sexist stereotypes, shows irresponsible

parenting practices, encourages irresponsible use of alcohol or sexual behaviors, or attempts to

emotionally manipulate a vulnerable audience such as children, then many would consider it to

be socially irresponsible. Of course, most of these standards are a matter of opinion. Any

advertising message could be considered emotionally manipulative depending on how you look

at it, so in practice it comes down to a subjective assessment of what is appropriate and what is

not. There is always a risk that your ad campaign could unintentionally offend customers.

CSR

Corporate social responsibility marketing is the practice of combining a company's charitable

activities with its marketing campaigns. Instead of just writing a check to a selected charity, the

company would tie the amount of the donation directly to sales, and would make the fundraising

campaign the focus of its advertising. Corporate social responsibility can benefit the company in

more than one way. It can improve the public perception of the company, increase sales and

improve employee morale.

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Avoiding Public Cynicism

While donating money to charity is a positive activity for its own sake, corporate social

responsibility marketing can backfire on a company if it is perceived as cynical by the public.

For instance, if overuse of your product is associated with higher cancer rates and you run an ad

campaign for cancer awareness, then some people might see the campaign as deceptive and

unethical. The same thing can happen if your ad campaign raises money for environmental

causes by selling a product with high carbon emissions or excessive packaging. Before you make

social responsibility the theme of your advertising, you should first make sure there is no

contradiction between your message and your business practices.

Check your progress 3:

Match the following:

1. Show Window a. playing with emotions and compelling the customers to buy

things they don‘t want

2. Artificial needs b. something that is unethical

3. Manipulation c. there is too much advertising

4. Offensive d. the way to advertise and sell products is to satisfy genuine needs

and wants, rather than to invent needs.

5. Too Much e. making the products of industry visible to the public

6. Deceptive f. Advertisers have become sensitive to stereotyping population

groups

7. Stereotypes g. continued deception would be self-defeating because it causes

consumers to turn against a product.

4.10 Summary

Thus we have learnt in this chapter that advertisement is one of the most important tool to shape

the mind of a potential buyer. It has it's pro and cons and it is a responsibility of an advertiser to

be just and honest with the public that put confidence in the company and a brand.

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4.11 Key Words

• Advertiser: He is the person who demands an advertisement.

• Cynicism: A situation of pessimism whereby your actions are taken against you.


Check your progress 1: 1. D

Check your progress 2: base your answer on section 4.4, 4.5 and 4.6

Check your progress 3: 1. E; 2. D; 3. A; 4. B; 5. C; 6. G; 7. F


What do you understand by the socio-economic implications of advertisement for the

society?

Explain the role of marketing communication in promoting advertisements?

Is advertising a boon or bane? Give your opinion for the same.

Do you think that marketers need to be socially responsible? If yes, what are the key

social responsibilities for advertisers?





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Lesson 5

National and Global Advertising Scene

Structure:

5.1 Introduction

5.2 Objectives

5.3 Current Scenario of Advertising in India

5.4 Changing Scenario of Indian Advertisements

5.5 Global Advertising – A Glimpse

5.6 Recent Trends in Advertising

5.7 Summary

5.8 Key Words



511 References and Suggested Readings

5.1 Introduction

Advertising strategy has taken a substantial leap beyond just salesmanship of a product in print.

It offers 360 degree coverage to almost every field of our lives whether it is a direct or indirect

influence. Every time you turn it you get a diverse outlook appealing, varied and genuine. The

skill of persuading in advertising is unleashed b ut advertising has always been practiced

keeping in line with the changing times. It is largely dependent on human inferential abilities.

Hence the main goal is not just to inform or persuade but also to establish collaborative personal

cohesive association with the consumers as consumers have been seeing visible and tangible

improvement in their lives each passing year. Over a period of time, advertising is experiencing

transformations with multi facet approach.

5.2 Objectives


Describe the current scenario of advertising in India and also understand the changing

role of advertising as a tool of marketing

Explain the global dimensions of advertising in context of the various Global advertising

strategies.

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5.3 Current Scenario of Advertising in India

The concept of advertising is undergoing a paradigm shift in recent times. We can see that in

most of the advertisements today, companies rely on using female models for promoting their

products. In the advertisement world, advertisers have picked up women for advertising of

consumer commodities. Women are used in TV commercials as weapon of persuasion.

Women in many cultures make the majority of consumption decisions; hence they are important

target of these advertisers. So the advertisers find it easier to sell the product by using the same

gender. But most of these ads hardly need women as models. For example, there is no need to

ask females to do an ad for a men‘s shaving cream. The list is uncountable. Most of the

companies want to attract the consumers by using the physical look of the models. They have

created a world of fantasy. And we are drawn towards that world without realizing much about

the realities of life. We try to imitate whatever is shown on the Television. The media must play

the role of a watchdog in such a situation.

In the global business context, marketing through advertising is considered to be one of the most

significant variables. As far as the influence on the society is concerned, it is next to movies.

Advertising is the most influential medium and an important part is attributed to the mass media,

particularly to electronic media. The dominant position of media in daily life confirms its role in

business of advertising. The connotations that are formed by media are not fixed, but they differ

according to ethnic, historic and societal framework of the people concerned. The common man

judges the products on the basis of the understanding his society and culture has inculcated into

them.

Symbolism is one of the key characteristics of advertisement and it can be noted that a change

has occurred in this condition.

5.4 Changing Scenario of Indian Advertisements

It can be seen in the current times that many brand and business owners are making an increased

use of outdoor media for advertising their products. In other words, they are presenting any

brand or business message through an out of home channel. This is emerging as one of the most

History bears testimony to the fact that the great Romans practiced

advertising. Their surnames indicated their occupation. The potentialities of

advertising multiplied when manual press was invented in the 15th century.

After that the demand has been increasing.

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common practices and is popularly known as outdoor advertising. A big leap has been seen in

the outdoor advertising in India and its various avenues. Outdoor Advertising in Delhi, Mumbai,

Bangalore, Ahmedabad etc. are increasing at a rapid pace. Delhi has become one of the major

hubs of advertising in India. Delhi Advertising avenues such as Billboard Advertising, Airport

Advertising, Mall Advertising, and Metro Advertising- all these provide promotion solutions for

various local, national and Global brands. In the following paragraphs, let us have a brief look at

the current scenario of outdoor advertising in India.

More Brands are adopting Out of Home (OOH) media: Of late, it has been observed

that more brand owners have adopted outdoor advertising means to promote and position

their brands in the market. OOH domain is growing fast at various avenues such as

airports, metro stations, shopping malls, outdoors etc. The rising number of brands in the

market, the increase in spending capacity of customers, the mushrooming market- are

three main factors that have so far provided a boom in OOH sector in India.

Rich means, affluent techniques of brand promotion: Another much observed feature

about outdoor advertising practices in India is the implementation of rich tools and

techniques to promote brands. Contemporary outdoor campaigns are also enriched by the

introduction of digitalized media. Conventional OOH practices such as ordinary billboard

advertising campaigns, wall paintings or poster ads are replaced by digitalized billboards

and hoardings. Providing rich interactivity between customers and brands, modern OOH

campaigns speak volume about the advertised brands all through rich and influential

channels of brand communication.

Seamless brand communication: Today seamless brand communication is possible to

OOH media. Advertisers can keep talking with target customers relentlessly through the

various OOH channels. Be it at cinema theatres, shopping malls, eating outlets,

entertainment houses and highways or simply at the community gate, outdoor advertising

practices ensure that customers‘ are continuously encouraged to try out their products by

providing repeated and seamless brand messages.

Outdoor advertising industry is yet to undergo many remarkable changes in the near future. And

it is also expected that its importance is going to rise further. For established as well as emerging

brands, outdoor media is the right means of communicating their ad messages to customers.

Evaluating the manifold utilities, every brand owner should adopt OOH techniques and tools of

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promoting their brands in the market. Be it a billboard ad or a kiosk ad, any OOH ad display

influences the passing attention of those customers who are on the go.

The last 10-15 years have witnessed some great work by the Indian advertising industry

that has also been recognized at Cannes.

The popularity of Internet based Social Networking Websites and the advancement in

technology has led to the emergence of digital advertising.

The Indian entertainment and media sector is one of the fastest growing sectors in the

economy, and its segments have all witnessed tremendous double digit growth in the last

few years.

India has already become a favourite market for these big corporations. The television &

entertainment have grown largely in the past few years.

The market is currently in favour of Internet based advertising which has projected a

growth of 32 % in the next 5 years. This has happened on account of the increasing use of

Internet and modern technology.

The ad spend in internet advertising was around 5 billion in the year 2008 and presently it

has increased to over 15 billion. The estimated advertising spend was around 15 billion in

the year 2008. This is expected to rise to around 25 Billion by the end of 2012.

The current scenario is that there has been an increase in fragmentation of the audience/

consumers and the media. OOH or Out of Home advertising has shown an immense rise

in popularity and acceptance by advertising agencies.

The amount of competition & the consumers expectations, lifestyle has changed drastically. The

global consumer spending has rose. The Indian family has evolved and so has his buying

capacity and purchase behaviour. Hence, the current scenario is that a large amount of research is

done on the consumers and the related media forms which they use. A large amount of

qualitative research is the backbone for a unique advertising message that would make a brand

stand out in the competition.

5.5 Global Advertising – A Glimpse

1. Definition of Global Advertising

Global advertising entails dissemination of a commercial message to target audiences in

more than one country. Target audiences differ from country to country in terms of how they

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perceive or interpret symbols or stimuli, respond to humor or emotional appeals, as well as in

levels of literacy and languages spoken. Global advertising can, therefore, be viewed as a

communication process that takes place in multiple cultures that differ in terms of values,

communication styles, and consumption patterns. Global advertising is also a business activity

involving advertisers and the advertising agencies that create ads and buy media in different

countries. The sum total of these activities constitutes a worldwide industry that is growing in

importance. Global advertising is also a major force that both reflects social values, and

propagates certain values worldwide.

Check Your Progress I

Q1: Define outdoor advertising.

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Q2. What do you understand by global advertising? Is it different from ordinary advertising?

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2. Global Advertising as a Communication Process

In Global markets the process of communicating to a target audience is more complex

because communication takes place across multiple contexts, which differ in terms of language,

literacy, and other cultural factors. In addition, media differ in their effectiveness in carrying

different appeals. A message may, therefore, not get through to the audience because of people's

inability to understand it (due to literacy problems), because they misinterpret the message by

attaching different meanings to the words or symbols used, or because they do not respond to the

message due to a lack of income to purchase the advertised product. Media limitations also play

a role in the failure of a communication to reach its intended audience.

Fig: Process of Communication in Global Marketing

The process of communication in Global markets involves a number of steps.

The advertiser determines the appropriate message for the target audience.

Determining appropriate message for target audience

Encoding the message

Communicating the message

through media channels

Decoding the message

Feedback

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The message is encoded so that it will be clearly understood in different cultural contexts.

The message is then sent through media channels to the audience who then;

Decodes and;

Reacts to the message.

At each stage in the process, cultural barriers may hamper effective transmission of the message

and result in miscommunication.

Points to be noted:

In encoding a verbal message, care needs to be taken in translation. Numerous examples exist

of translation problems with colloquial phrases. For example, when the American Dairy

Association entered Mexico with its "Got Milk?" campaign, the Spanish translation read "Are

You Lactating?" Low levels of literacy may result in the need to use visual symbols. Here

again, pitfalls can arise due to differences in color association or perception. In many tropical

countries, green is associated with danger and has negative connotations. Red, on the other

hand, is associated with weddings and happiness in China. Appeals to humor or sex also need

to be treated with considerable care as their expression and effectiveness varies from one

culture to another. The dry British sense of humor does not always translate effectively even to

other English-speaking countries.

In addition to encoding the message so that it attracts the attention of the target audience and is

interpreted correctly, advertisers need to select media channels that reach the intended target

audience. For example,

Use of TV advertising may only reach a relatively select audience in certain countries.

Equally, print media will not be effective where there are low levels of literacy.

Certain media may also be more effective in certain cultures. For example, radio

advertising has substantial appeal in South America where popular music is a key aspect

of the local culture.

The cultural context also impacts the effectiveness of communication. In "high context" cultures,

such as the collectivist Asian cultures of Japan and China, the context in which information is

embedded is as important as what is said. In ―low context‖ cultures, which include most Western

societies, the information is contained in the verbal messages. In these cultures, it is important to

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provide adequate information relating to the product or service in order to satisfy their need for

content. Conversely, people in high context cultures are often more effectively reached by image

or mood appeals, and rely on personal networks for information and content. Awareness of these

differences in communication styles is essential to ensure effective communication.

Check Your Progress II

Q1: Arrange the following in the correct manner.

a) Feedback

b) Encoding the message

c) Determining the appropriate message

d) Decoding the message

e) Communicating the message through media channels

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3. Global Advertising as a Business Practice

Global advertising can also be viewed as a business activity through which a firm

attempts to inform target audiences in multiple countries about itself and its product or service

offerings. In some cases the advertising message relates to the firm and its activities, i.e. its

corporate image. In other cases, the message relates to a specific product or service marketed by

the firm. In either case, the firm will use the services of an advertising agency to determine the

appropriate message, advertising copy and make the media placement.

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If the purpose of advertising is to develop a strong corporate or global image, a uniform

global campaign is more likely to be used.

When, on the other hand, the objective is to launch a new product or brand, or to more

clearly differentiate the product or brand from other competing brands or products, local

campaigns tailored to local markets are more typical.

A global campaign offers a number of advantages.

In the first place, it can be an important means of building a strong and coherent global

image for the firm and/or its products worldwide. Use of the same image in different

countries builds familiarity and generates synergies across world markets.

It allows utilization of good ideas and creative talent (both of which are scarce

commodities) on a worldwide basis.

In addition, use of a single campaign provides substantial cost savings in copy

development and production costs.

While use of uniform advertising appeals offers a number of advantages, differences in customer

perceptions and response patterns across countries and cultures, as well as media availability and

government regulation are major barriers to use of a standardized campaign. Even though

technological developments allow adaptation of advertising appeals to different languages (for

example, TV can have audio channels in two languages, Internet messages can be automatically

translated), development of visual and verbal copy that works effectively in multiple countries

poses major creative challenges.

The organizational structure of the firm often plays a key role in the choice of global vs.

locally adapted campaigns. If Global operations are organized on a country-by-country or

geographic basis and operate as local profit centers with local advertising budgets, pressures

exist for use of local advertising campaigns. If, on the other hand, the company is organized by

product divisions, with centralized advertising budgets at corporate or regional headquarters, use

of regional or global advertising campaigns is more likely.

4. Global Advertising as a Social Force

In the view of the advertiser the primary objective of advertising is to sell products or

services. In achieving this primary goal, there are often profound secondary consequences.

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Advertising exerts a formative influence whose character is both persuasive and pervasive.

Through the selective reinforcement of certain social roles, language and values, it acts as an

important force fashioning the cognitions and attitudes that underlie behaviour not only in the

market place, but also in all aspects of life. In an Global setting, advertising has an important

social influence in a number of ways:

Much Global advertising is designed to promote and introduce new products from one

society into another. Often this results in radical change in life-styles, behavior patterns

of a society, stimulating for example the adoption of fast food, casual attire or hygiene

and beauty products.

Global advertising also encourages desire for products from other countries; it creates

expectations about "the good life", and establishes new models of consumption.

Advertising is thus a potent force for change, while selectively reinforcing certain values,

life-styles and role models.

Often the symbols, ideals and mores that Global advertising portrays and promotes are those of

Western society and culture. Through the reach of advertising, brands such as Levi's, Nike,

Marlboro and McDonalds are known by and have become objects of desire for teens and young

adults throughout the world.

Consequently, a criticism frequently levied at Global advertising is that it promulgates

Western values and mores, notably from the US, in other countries. This is viewed particularly

negatively in societies with strong religious or moral values, which run counter to those of the

West. Equally, in some countries such as France, there is a strong negative reaction to the

imposition of US culture, values and use of English in advertising. Promotion of tobacco

products by US and UK companies in countries where there is no legislation regulating or

banning cigarette advertising has also been criticized.

At the same time, Global advertising also acts as an integrating force across national

boundaries. It disseminates messages using universal symbols and slogans, and establishes a

common mode of communication among target audiences in different parts of the world. At the

same time, multicultural values are reinforced by advertisers, who adopt images incorporating

peoples of different nations and diverse cultural backgrounds, as, for example, the Colors of

Benneton campaign or the British Airways "Peoples of the World" campaign. The impact of

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such campaigns is further reinforced by the growth of global media such as Star TV, CNN, MTV

or print media that target global audiences worldwide.

Consequently, while, on the one hand, Global advertising can be viewed as a colonizing force

propagating Western values and mores throughout the world, it is also an important force

integrating societies and establishing common bonds, universal symbols and models of

communication among peoples in different parts of the globe.

5.6 Recent Trends in Advertising

Spin the globe in 2014 and you'll see positive signs for advertising across the planet. Ad

spending finally is on track to increase in all regions, and the pace of global spending is picking

up. Here are 10 points to keep in mind about the worldwide ad market.

Global ad spending is gaining momentum. Worldwide spending will rise a robust 5.3%

in 2014 and 5.8% in 2015 and 2016, up from 3.6% in 2013. Put another way, the ad

market next year will essentially match its pre-recession growth rate (5.4% in 2007).

Global spending is at an all-time high. Ad spending in 2013 will top $500 billion for

the first time. That's $90 for each person living in the markets tracked by

ZenithOptimedia.

U.S. spending remains below pre-recession levels. The U.S. won't pass its 2007 ad-

spending peak (about $178 billion) until 2015. But U.S. ad growth is accelerating;

ZenithOptimedia predicts a 4.7% increase in 2014, the fastest growth since 2004. It

expects a 4.6% increase in 2015 and 4.1% in 2016.

Worldwide Ad Spending by Medium: The internet in 2013 passed newspapers to

become the world's second-largest ad medium, behind TV, according to

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ZenithOptimedia. The internet now captures one in five ad dollar

GRAPHICS SHOW PORTION OF WORLDWIDE MAJOR-MEDIA SPENDING THAT

WENT INTO EACH MEDIUM IN 2005 AND 2013. SOURCE: ZENITHOPTIMEDIA

All regions are rising. Latin America has been the fastest-growing region in ad spending

since 2010 and will keep that lead position through 2016. Latin America growth will

accelerate each year from 2013 (8.1%) through 2016 (12.7%). Spending in Asia Pacific

will score solid single-digit gains in the range of 6% to 7% through 2016. Western

Europe will see modest growth of 1.9% in 2014 and 2.3% in both 2015 and 2016

following declines in 2012 and 2013.

The internet is now the world's second-largest ad medium. It rocketed past

newspapers in 2013 into the No. 2 spot, behind TV. As recently as 2005, the internet

ranked sixth in global ad media, behind TV, newspapers, magazines, radio and outdoor.

The internet in 2013 captured 20.6% of 2013 global ad spending (21.7% in the U.S.). In

2016, ZenithOptimedia expects the internet to account for 26.6% of global spending

(30.7% in the U.S.).

China remains a hot spot. Ad spending grew and will keep growing in the range of 10%

each year from 2012 through 2016. China is the No. 3 ad market (behind the U.S. and

Japan) and in 2013 had the fastest growth among the world's 10 largest ad markets. The

most China-centric advertisers among Ad Age's 100 Largest Global Marketers: fast-food

seller Yum Brands (KFC), which placed 32.8% of its 2012 measured-media spending in

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China; energy-drink marketer Red Bull (27.5%); and watchmaker Swatch Group

(24.1%).

BRIC bloc is ascending. Russia in 2015 will become one of the 10 largest ad markets,

joining China and Brazil. In India, currently the No. 14 market, ad spending will grow

39% in 2016 vs. 2013, making India one of the 10 fastest-growing countries for

advertising.

U.S. is home to 41 of the 100 Largest Global Marketers. Europe is headquarters for

36; Asia, 23. Among the 100 marketers, 94 advertised in the U.S. Six firms had no 2012

measured-media spending in the U.S.: two telecoms (France's Orange and the U.K.'s

Vodafone, which is selling its 45% stake in Verizon Wireless to Verizon

Communications); two French automakers (PSA Peugeot Citroën and Renault); France's

Carrefour, one of the world's biggest retailers; and Hong Kong's Hutchison Whampoa,

which owns telecom ventures, ports and other holdings.

Tech spending is soaring. Consumer electronics and technology is the fastest-growing

ad category among the Global 100, with a 9.6% increase in 2012 measured-media

spending. Leading the charge: Samsung Electronics, whose measured spending surged

55.1%, the highest growth among the Global 100.

Personal care cleans up. It's the world's biggest ad category among the 100 Largest

Global Marketers. Personal-care marketers make up about a fourth of 2012's Global 100

spending. The three biggest global advertisers have the world in lather: Procter & Gamble

Co., Unilever and L'Oréal.

5.7 Summary

Advertising strategy has taken a substantial leap beyond just salesmanship of a product in print.

It offers 360 degree coverage to almost every field of our lives whether it is a direct or indirect

influence. Every time you turn it you get a diverse outlook appealing, varied and genuine. The

skill of persuading in advertising is unleashed but advertising has always been practiced keeping

in line with the changing times. Over a period of time, advertising is experiencing

transformations with multi facet approach.

5.8 Key Words

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Global Advertising: Global advertising involves dissemination of a commercial message

to target audiences in more than one country.

OOH media: It represents Out of Home media, wherein outdoor advertising is used to

promote a brand or a product.

BRIC: Brazil, Russia, India and China


Check your progress I: 1. Base your answer on section 5.4; 2. Base your answer on section 5.5

Check your progress II: 1. C, b, e, d, a


Describe in detail the changing role of advertising in India.

What is global advertising? What are the key areas of concern for global advertising?

Explain in detail the current global advertising scenario.

Describe global advertising as a social force?


De Mooij, M. 1998, Global Marketing and Advertising: Understanding Cultural

Paradoxes. Sage Publications, Thousand Oaks, CA.

Douglas, S.P. and Craig, C.S. 1995, Global Marketing Strategy. McGraw Hill, New

York.

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Lesson 6

Advertising in Marketing Mix

Structure

6.1 Introduction

6.2 Objective

6.3 Marketing Mix

6.4 Advertising as an element of Promotional Mix

6.5 Advertising as an element of Marketing Mix.

6.6 The Advertising Business and New Media

6.7 Summary



6.10 References

6.1 Introduction

Advertisement, it’s not an unknown word. Till now you must have understood the basic of

what do you mean by advertisement. But just to brush up your memory let us again study

it briefly. Advertising is marketing communication with current and potential customers and

consumers, done through paid mass media marketing services. The channels of marketing

communication can be TV, radio, Internet, billboards, etc. But for understanding the role of

advertising in marketing mix, first you should have a brief understanding of what exactly is

meant by marketing mix.

6.2 Objective

After reading this lesson, you will be able to learn:

What is the meaning of marketing mix?

What is promotional mix?

How is advertisement related to promotional and marketing mix?

6.3 Marketing Mix:

The marketing mix is a business tool used in marketing and by marketers. The marketing mix is

often crucial when determining a product or brand's offer. Thus in simple language it is a mixture

of four basic pillars and these are the four P's:

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price,

product,

promotion, and

Place.

When a manufacturer produces and packages a product, there is the need to price the product, set

up the places which will serve as a distribution network to move the product and make it

accessible to the final consumer.

Under the old marketing model, we sold what we made or produced. Under the new model, we

must sell what the customer wants. The Marketing Mix looked at the 4Ps of marketing - product,

price, place and promotion. Whether you are thinking of setting up, starting or expanding your

business or selling any product or service, these four elements should be top-of-mind all the

time:

1. THE PRODUCT: Exactly what product or service are you going to sell to this market?

Define it in terms of what it does for your customer. How does it help your customer to

achieve, avoid or preserve something? You must be clear about the benefit you offer and

how the customer‘s life or work will be improved if he or she buys what you sell.

2. THE PRICE: Exactly how much are you going to charge for your product or service,

and on what basis? How are you going to price it to sell at retail? How are you going to

price it at wholesale? How are you going to charge for volume discounts? Is your price

correct based on your costs and the prices of your competitors?

3. THE PLACE: Where are you going to sell this product at this price? Are you going to

sell directly from your own company or through wholesalers, retailers, direct mail,

catalogs or the Internet?

4. THE PROMOTION: Promotion includes every aspect of advertising, brochures,

packaging, salespeople and sales methodology. How are you going to promote, advertise

and sell this product at this price at this location? What will be the process from the first

contact with a prospect through to the completed sale?

Creative marketing with the 4Ps dictates constantly questioning existing situations and looking

for ways to enhance your marketing mix - deleting existing products or services, selling them at

a different price, offering them in different places or promoting them differently. However, it

does not require abandoning your core marketing concepts.

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In recent years, there have been attempts to develop a package (mix) that will not only satisfy the

needs of the customer, but simultaneously maximize the performance of the organization. This

model suggests the expansion of the marketing mix to 5Ps to include People or Personnel.

However, this mix does nothing to address the ―uncontrollable‖ factors affecting your marketing.

Controllable factors vs. uncontrollable facts can be defined as:

Controllable - The 4Ps representing the elements of marketing we can control internally.

They depend upon such ―givens‖ as your budget, personnel, creativity, etc.

Uncontrollable - The current economic environment including such elements as

consumer confidence, degree of unemployment, new technologies, the threat of

displacement, competitors, government regulations or changing consumer preferences.

Check your progress I

Q1: what are the components of marketing mix?

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Q2: Distinguish between controllable and uncontrollable factors in marketing mix.

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Many marketing specialists are now seeing the 4Ps as too product-oriented and have adopted the

4Cs marketing mix. This model looks at the marketing from the customer‘s point of view.

1. Place becomes Convenience

2. Price becomes Cost to the user

3. Promotion becomes Communication

4. Product becomes Customer needs and wants

These C‘s reflect a more client-oriented marketing philosophy. They provide useful reminders -

for example that you need to bear in mind the convenience of the client when deciding where to

offer a service. To apply the 4Cs approach to marketing you must consider the impact of the

―uncontrollable‖ elements on your marketing mix. The 4Cs explicitly require you to think like a

customer.

However, without the fourth activity or fourth ‗P‘, the marketing mix will not be complete. The

fourth ‗P‘, thus promotion is an advertising function which is used to raise awareness of the

value of product to the target audience to convince them of the ability of the product to satisfy

their needs or want. This makes advertising key in the marketing mix because without

advertising the role of promoting value of the product, thus raising awareness to the target

audience will not be met.

Check your Progress II

Q: Match the following:

1. Place a. Communication

2. Price b. Convenience

3. Promotion c. Customer needs and wants

4. Product d. Cost to the user

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In the discussion of the role of advertising in the marketing mix, the role can clearly be said to

be the communication function of the marketing mix.

6.4 Advertising as an element of promotional mix:

After having read Marketing mix let us study as to what is meant by Promotional Mix. There are

five main aspects of a promotional mix. These are:

Advertising - Presentation and promotion of ideas, goods, or services by an identified

sponsor. Examples: Print ads, radio, television, billboard, direct mail, brochures and

catalogs, signs, in-store displays, posters, motion pictures, Web pages, banner ads, and

emails.

Personal selling - A process of helping and persuading one or more prospects to

purchase a good or service or to act on any idea through the use of an oral presentation.

Examples: Sales presentations, sales meetings, sales training and incentive programs for

intermediary salespeople, samples, and telemarketing. Can be face-to-face selling or via

telephone.

Sales Promotion - Media and non-media marketing communication are employed for a

pre-determined, limited time to increase consumer demand, stimulate market demand or

improve product availability. Examples: Coupons, sweepstakes, contests, product

samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and

exhibitions.

Public relations - Paid intimate stimulation of supply for a product, service, or business

unit by planting significant news about it or a favorable presentation of it in the media.

Examples: Newspaper and magazine articles/reports, TVs and radio presentations,

charitable contributions, speeches, issue advertising, and seminars.

Direct Marketing is a channel-agnostic form of advertising that allows businesses and

nonprofits to communicate straight to the customer, with advertising techniques such as

mobile messaging, email, interactive consumer websites, online display ads, fliers,

catalog distribution, promotional letters, and outdoor advertising.

Think Hard:

If you want to run a successful business how would you advertise keeping in mind the marketing

situation. Sit with a group of four and make a business plan to implement it.

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Check your progress III

Q1: What are the five aspects of promotion mix?

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Corporate image Corporate image may also be considered as the sixth aspect of promotion mix.

The image of an organization is a crucial point in marketing. If the reputation of a company is

bad, consumers are less willing to buy a product or use a service from this company as they

would have been, if the company had a good image. Sponsorship is sometimes added as a

seventh aspect.

Thus entire marketing scenario revolves around these parameters. For clear comprehension it‘s

important for you to study its details.

As explained earlier in the chapter, marketing mix consist of four important variables of

marketing, i.e. 4Ps-Product, Price, Promotion and Place. But, should also keep in mind, that

apart from the traditional 4Ps, there are also other variables, i.e. Packaging, Posting, and Pace.

We all know that when a company pays to have a message that defines its goods or services

delivered or communicated to as many people as possible, they are said to be advertising.

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Effective advertising illustrates the product's value and gives consumers a reason to take

action and/or buy. There are a variety of ways to promote a product. These methods are

collectively referred to as Marketing Communications (MarCom) Matrix. These include:

Direct marketing,

Public relations/publicity,

New media,

Advertising.

Thus an effective and efficient advertisement stands on the balanced pillars of good marketing

and promotional strategy.

6.5 Advertising is an element of marketing.

1. Advertising and Product: A product is normally a set of physical elements, such as quality,

shape, size, colour and other features. The product may be of very high quality .At times, the

product is so designed that it requires careful handling and operations. Buyers must be informed

and educated on the various aspects of the product. This can be effectively done through

advertising. Thus, advertising plays the role of information and education.

2. Advertising and Price: The price is the exchange value of the product. A marketer may bring

out a very high quality product with additional features as compared to competitors. In such a

case, price would be definitely high. But buyers may not be willing to pay a high price would be

definitely high. But buyers may not be willing to pay a high price. Here comes advertising.

Advertising can convince buyers regarding the superiority of the brand and thus its value for

money. This can be done by associating the product with prestigious people, situations, or

events. Alternatively when a firm offers a low price products the job of advertising needs to

stress the price advantage by using hard hitting copy. It is not just enough to convince, but it is

desirable to persuade the buyer. Thus advertising plays the role of conviction and persuasion.

3. Advertising and Place: Place refers to physical distribution and the stores where the goods

are available Marketer should see to it that the goods are available at the convenient place and

that too at the right time when the buyers need it. To facilitate effective distribution and

expansion of market, advertising is of great significance. Thus advertising do help in effective

distribution and market expansion.

Can you answer?

What do you mean by Promotional Mix and how can you relate it with Advertising?

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4. Advertising and Promotion: Promotion consists of advertising, publicity, personal selling

and sales promotion technique. Businessmen today have to face a lot of competition. Every seller

needs effective promotion to survive and succeed in this competitive business world.

Advertising can play a significant role to put forward the claim of seller, and to counter the

claims of competitor. Through effective advertising, sellers can face competition and also help to

develop brand image and brand loyalty.

5. Advertising and Pace: Pace refers to the speed in marketing decisions and actions. It involves

among other things the launch of new products or brand variations at greater speed than before.

As and when new brands are launched, advertising plays an important role of informing,

educating and persuading the customers to buy the product.

6. Advertising and Packaging: The main purpose of packaging is protection of the product

during transit, and preservation of quality and quantity. Now a day, marketers take lot of efforts

to develop and design attractive packages as they carry advertising value. A creatively design

package attract the attention of the customers. It also carries an assurance of quality and creates

confidence in the minds of customers to buy the product.

7. Advertising and Positioning: Product positioning aims at creating and maintaining a distinct

image of the brands in the minds of the customers. Through advertising the marketer can convey

the positioning of the brand and accordingly can influence the buying decision of the target

audience.

6.5 The Anatomy of an Advertising Campaign

Keep in Mind:

It is through advertising that a marketer hopes to communicate a message to a

targeted consumer group. This is done by including print, electronic (radio and

television), the Internet and mobile phones.

The media plan, developed simultaneously with the creative strategy, schedules how

and when consumers see advertisements.

Effective advertising not only illustrates the product's value but also gives consumers

a reason and confidence in the product and service so that he/she can buy and/or

avail it.

A target audience is defined through information gathered from focus groups,

demographics and by understanding how certain consumer groups think.

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Developing a brand character statement sets the tone of the campaign and defines what

the targeted consumer group should do or feel when they are exposed to it. The strategy

the plan is actually implemented.

A target group or audience is defined through information gathered from focus groups,

demographics and by psycho-graphics, i.e. statistics illustrating how a certain group

thinks and ultimately buys.

The product's pros and cons are identified so that benefits are sold. How the product

differs from its competition or its Unique Selling Position (USP) is also established.

Facts, statistics, consumer images and scenarios are used to corroborate a campaign's

premise. Terms like "the best," "new" and "traditional" position the product within the

marketplace.

A campaign must fit the image of the marketer to ensure that its public perception

remains intact. It must offer a rationale or "reason why" a product is able to deliver on its

claim. Its "aperture," or the proper timing and placement of an ad, can maximize a

campaign's success.

6.5.1 Developing a Media Plan

The media plan is an integral part of the advertising campaign and is developed simultaneously

with the creative strategy. The standard media plan has four stages:

1. Stating objectives like reach or the number of different persons exposed, frequency of

times the consumer is exposed to a message, and timing of media assertions over the

course of the campaign.

2. Assessing how a particular message and target audience relates to different types of

media by analyzing the research findings provided by the media type.

3. Implementation of media choices dictated by available budget or media types most likely

to deliver the best results. The placement of advertisements along with their size and

positioning are based upon data associated with the targeted consumer group.

4. The media budget is included in the actual advertising budget.

6.6 The Advertising Business and New Media

Advertising is often the only method of communication businesses use to speak to prospective

consumers. Advertisements must reflect prevailing ideas by tapping into the social, cultural and

moral pressures. If you want to win over the potential customers you should be careful not to

promote your product in any way that can directly or indirectly hurt the sentiments of the people.

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The product or service that is being advertised must be in consistent with the way of life and

attitude prevalent in the society.

Emerging advertising agencies often structure their business model to society's ever changing

ideals. For example due to latest trends of fast and packed for many industrial giants are

targeting this need of the society and invading the market with ready to cook food.

Current technology is forcing advertisers to move away from outdated structure and practices.

The growth of interactivity and open sourcing has placed power in the hands of the consumer,

giving them control over what they want to see and when they want to see it. Thus this is the

prime reason that the advertisement that is hinting at children has more jingles and fairytale

undertone. Any advertisement that is hinted at beauty usually has a famous model or an actor

selling the product. Now days we see that men are also interested in grooming themselves and

thus as a result we have creams and shampoos catering to their needs.

Another important factor to keep in mind is that, advertising's value is based upon how often it is

viewed, used or shared. If the message is reaching more people, it is achieving the desired

results. New media accelerates the process. No longer is a product limited by the scope and time-

frame of a conventional advertising campaign. If an advertisement is interesting, entertaining or

helpful, the message goes "viral" via social-networking websites and blogs. For example Zoozoo

of Vodafone.

The once passive consumer has become a part of the process; an active advertising channel who

impacts brands and how a product is perceived. You can go to any web site you will be

confronted by millions of popup windows that are selling a product or a service. Your service

and desired product is just a click away. Thus a customer seems to have a direct access.

Gathering information from above Paragraph can you answer following questions?

Role of changing scenario in advertisement give proper example

Why do the advertisers need to change their advertising ways as per the needs of the

target audience?

Do you think today’s consumer is no more passive and has acquired a more active role.

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The above diagram presents an over view as to how is advertisement machinery integrated with

various aspects of marketing and promotional needs. Thus it explains that any idea that is to be

catered by any advertisement company has to be supported by the solid pillars of the following:

How well it is publicised.

What and how are promotional techniques implemented and used.

How well is the event marketing handled. That is to say how the various aspect of

targeting any potential buyer or customer are hinted.

In case of direct marketing, what is the scope of investments and what is the expected

return on these investments that can be monetary as well as human.

Thus an idea is like a small sees that grows into a tree with the help of all the above ingredients.

These should be used in a proper balance so that the investments and time is not wasted. The

image of a company and a brand name is depended on the market image and market image is

highlighted and created by a good advertisement.

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https://www.boundless.com/marketing/integrated-marketing-communication/the-promotion-mix/advertising/images/mar-com-matrix/

http://extension.umd.edu/agmarketing/marketing-101/marketing-mix-4ps-and-4cs

6.7 Summary:

In this chapter you have learnt about the role that advertisement plays in marketing mix and

promotional mix. Thus when we talk about using advertisement as an integral part of marketing

and promotion we have to be careful that it is well coordinated and unified. It is very important

that all the parameters of a society, business and competitive aspect are taken into consideration.


Check your progress I: 1. Product mix; price mix; place mix; and promotion mix; 2. Base your

answer on section 6.3

Check your progress II: 1. B; 2. D; 3. A; 4. C

Check your progress III: 1. Advertising; personal selling; sales promotion; public relations;

direct marketing

6.9 Test/Model questions

What do you mean by Marketing Mix?

What do you mean by Promotional Mix?

How can advertisement be used in Marketing Mix?

What is the use of Advertisement in Promotional Mix?

6.10 References and Suggested Readings:

http://extension.umd.edu/agmarketing/marketing-101/marketing-mix-4ps-and-4cs

https://www.boundless.com/marketing/integrated-marketing-communication/the-

promotion-mix/advertising/

http://mgmtfunda.com/role-of-advertising-in-marketing-mix/#

What do you mean by Event Marketing?

Let’s take an example. You must have visited many malls where during festivals small events are

organised and the participants are random people who at that time are present in the mall.

Then the winners are given prizes and those prizes are the things that the advertisers want to

advertise. Thus you see that this is how an event is use to advertised a new product. Now

suppose the winner is a girl who won a new cream. Now when she will use this cream there are

chances that she will like it and thus she will recommend that cream to her friends and thus the

marketing is done.

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http://www.biz-development.com/Marketing/5.7.Marketing-Mix-Promotion.html

https://www.boundless.com/marketing/integrated-marketing-communication/the-

promotion-mix/advertising/

http://en.wikipedia.org/wiki/Promotional_mix

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Lesson 7

Consumer behaviour:

Structure:

7.1 Introduction

7.2 Objectives

7.3 Definition

7.4 Types of Consumers

7.5 Factors that Influence Consumer Behavior

7.5.1 Cultural Factors

7.5.2 Social Factors

7.5.3 Personal Factors

7.5.4 Psychological Factors

7.6 Summary




7.1 Introduction

When we talk about behaviour we talk about mannerism, our way of speaking, living and so on. In

simple language it means the way one conducts oneself . Hence when we talk about consumer

behaviour , we study the various behaviour patterns of a consumer or a buyer that contribute in his/her

decision making about purchasing. Thus consumer behaviour is the study of individuals, groups, or

organizations and the processes they use to select, secure, and dispose of products, services,

experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and

society. The elements that contribute in this decision making are:

Psychological

Sociological

Economic

Demographic

Individual or personal preferences

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Thus if we want to understand the consumer behavioural pattern we have to study three main

questions:

why consumers make the purchases that they make?

what factors influence consumer purchases?

the changing factors in our society.

7.2 Objectives


understand the concept of consumer behaviour

describe the different types of consumers

explain the various factors that influence consumer behaviour

7.3 Definition:

Let us define consumer behaviour for a better understanding.

The term consumer behaviour is defined as the behaviour that consumer display in searching

for, purchasing using, evaluating and disposing of products and services that they expect will

satisfy their needs.

Consumer behavior include mental activity, emotional and physical that people use during

selection, purchase, use and dispose of products and services that satisfy their needs and

desires

(Kotler, 1999)

Consumer behaviour focuses on how individuals make decisions to spend their available

resources (time, money, effort) on consumption-related items that includes what they buy, why

they buy, when they buy it, where they buy it, how often they buy it, how often they use it,

how they evaluate it after the purchase and the impact of such evaluations on future purchases,

and how they dispose of it.

7.4 Types of Consumers

Two different kinds of consuming entities: the personal consumer and the organizational consumer.

Personal Consumer Buys goods and services for his or her own use, for the use of the

household or as a gift for a friend. The products are bought for final use by individuals, who

are referred to as end users or ultimate consumers.

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Organizational Consumer Includes profit and non-profit businesses, government agencies

(local, state, national) and institutional (e.g. schools, hospitals, and prisons), all of which buy

products, equipment, and services in order to run their organizations.

Other than this there are Five basic types of consumers:

The open consumer

This is a huge personality trai-t you're not currently looking at. Openness is a person's appreciation for

things like emotion and unusual ideas and experiences. These people tend to be more creative, original,

and hold uncommon beliefs. On the contrary, people who are defined as "closed" tend to prefer routine

and don't like change.

The conscientious consumer

Is your audience made up of high achievers and people with discipline? If so, your audience has a high

level of conscientiousness. These people are self-starters, and are not prone to spontaneous acts. If you

have a conscientiousness audience, these people are usually not susceptible to impulse buys.

No one knows more about the inner workings of the consumer mind than Dan Hill, president of

Sensory Logic. He speaks with iMedia about why "The Big Five" factors should be kept in mind when

marketers are analyzing the effectiveness of their campaigns on an audience.

The extroverted consumer

If your audience is social and full of energy, you have an extroverted crowd on your hands. These

people are enthusiastic and have a higher than normal need to interact with the outside world.

Brands with identities centered around energy need to capture these individuals. They are your most

likely bet for creating brand loyalists.

The agreeable consumer

These consumers do not like to make waves. They tend to be very concerned for the preservation of

social harmony. At their core, agreeable consumers want to get along with everyone. They are not

necessarily pushovers but can be persuaded to shift beliefs for the betterment of social peace. On the

flip side, consumers who are disagreeable put their interests above social harmony.

The neurotic consumer

These consumers are emotionally unstable and tend to expect the worst in a situation. If you have a

neurotic audience, they probably don't trust your brand. They harbor feelings of anger, depression, and

high levels of anxiety. These consumers are also more stressed out than the rest of us, and it's usually

mental. Negative emotions tend to linger for a long time in these consumers. On the other end of the

spectrum, consumers who are not neurotic are calmer and less paranoid about imminent threat.

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Thus we can say that, consumer behavior involves the psychological processes that consumers go

through in recognizing needs, finding ways to solve these needs, making purchase decisions (e.g.,

whether or not to purchase a product and, if so, which brand and where), interpret information, make

plans, and implement these plans (e.g., by engaging in comparison shopping or actually purchasing a

product).

Check your progress I

Q1: what are the different types of consumers?

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7.5 Factors that influence consumer behaviour:

Here is a diagrammatic presentation of the various factors that influence the purchasing needs of a

consumer.

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Source: http://www.marketing91.com/factors-affecting-consumer-buying-behavior/

Let us study these in detail:

7.5.1 Cultural factors

Cultural factors are coming from the different components related to culture or cultural environment

from which the consumer belongs.

Culture and societal environment:

Culture is crucial when it comes to understanding the needs and behaviors of an individual.

Throughout his existence, an individual will be influenced by his family, his friends, his cultural

environment or society that will ―teach‖ him values, preferences as well as common behaviors to their

own culture.

For a brand, it is important to understand and take into account the cultural factors inherent to each

market or to each situation in order to adapt its product and its marketing strategy. As these will play a

role in the perception, habits, behavior or expectations of consumers.

For example, in the West, it is common to invite colleagues or friends at home for a drink or dinner. In

Japan, on the contrary, invite someone home does not usually fit into the local customs. It is preferable

to do that this kind of outing with friends or colleagues in restaurant.

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A significant specificity to take into account for the brands in markets such as savory snacking or

sodas and alcoholic beverages. Usage and consumption moments are not the same in all regions of the

world.

While if a Japanese offer you a gift, the courtesy is to offer him an equivalent gift in return.

McDonald‘s is a brilliant example of adaptation to the specificities of each culture and each market.

Well aware of the importance to have an offer with specific products to meet the needs and tastes of

consumers from different cultures, the fast-food giant has for example: a McBaguette in France (with

french baguette and Dijon mustard), a Chicken Maharaja Mac and a Masala Grill Chicken in India

(with Indian spices) as well as a Mega Teriyaki Burger (with teriyaki sauce) or Gurakoro (with

macaroni gratin and croquettes) in Japan.

While all the ingredients used by McDonald‘s in arabic and muslim countries are certified halal. The

fast food chain not offering, of course, any product with bacon or pork.

Sub-cultures :

A society is composed of several sub-cultures in which people can identify. Subcultures are groups of

people who share the same values based on a common experience or a similar lifestyle in general.

Subcultures are the nationalities, religions, ethnic groups, age groups, gender of the individual, etc.

The subcultures are often considered by the brands for the segmentation of a market in order to adapt a

product or a communication strategy to the values or the specific needs of this segment.

For example in recent years, the segment of ―ethnic‖ cosmetics has greatly expanded. These are

products more suited to non-Caucasian populations and to types of skin pigmentation for African,

Arab or Indian populations for example.

Brands often communicate in different ways, sometimes even create specific products (sometimes

without significant intrinsic difference) for the same type of product in order to specifically target an

age group, a gender or a specific sub-culture. Consumers are usually more receptive to products and

marketing strategies that specifically target them. For example you will not see the advertisement of

any fairness product in western countries as it would be considered racist.

Social classes:

Social classes are defined as groups more or less homogenous and ranked against each other according

to a form of social hierarchy. Even if it‘s very large groups, we usually find similar values, lifestyles,

interests and behaviors in individuals belonging to the same social class.

We often assume three general categories among social classes : lower class, middle class and upper

class.

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People from different social classes tend to have different desires and consumption patterns.

Disparities resulting from the difference in their purchasing power, but not only. According to some

researchers, behavior and buying habits would also be a way of identification and belonging to its

social class.

Beyond a common foundation to the whole population and taking into account that many

counterexample naturally exist, they usually do not always buy the same products, do not choose the

same kind of vacation, do not always watch the same TV shows, do not always read the same

magazines, do not have the same hobbies and do not always go in the same types of retailers and

stores.

For example, consumers from the middle class and upper class generally consume more balanced and

healthy food products than those from the lower class.

They don‘t go in the same stores either. If some retailers are, of course, patronized by everyone, some

are more specifically targeted to upper classes such as The Fresh Market, Whole Foods Market,

Barneys New York or Nordstrom. While others, such as discount supermarkets, attract more

consumers from the lower class.

Some studies have also suggested that the social perception of a brand or a retailer is playing a role in

the behavior and purchasing decisions of consumers.

In addition, the consumer buying behavior may also change according to social class. A consumer

from the lower class will be more focused on price. While a shopper from the upper class will be more

attracted to elements such as quality, innovation, features, or even the ―social benefit‖ that he can

obtain from the product.

Cultural trends:

Cultural trends or ―Bandwagon effect‖ are defined as trends widely followed by people and which are

amplified by their mere popularity and by conformity or compliance with social pressure. The more

people follow a trend, the more others will want to follow it.

They affect behavior and shopping habits of consumers and may be related to the release of new

products or become a source of innovation for brands.

By social pressure, desire to conformity or belonging to a group, desire to ―follow fashion trends‖ or

simply due to the high visibility provided by media, consumers will be influenced, consciously or

unconsciously, by these trends.

For example, Facebook has become a cultural trend. The social network has widely grew to the point

of becoming a must have, especially among young people. It is the same with the growth of the tablet

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market. Tablets such as iPad or Galaxy Tab have become a global cultural trend leading many

consumers to buy one. Even if they had never specially felt the need before.

7.5.2 Social factors

Social factors are among the factors influencing consumer behavior significantly. They fall into three

categories: reference groups, family and social roles and status.

Reference groups and membership groups :

The membership groups of an individual are social groups to which he belongs and which will

influence him. The membership groups are usually related to its social origin, age, place of residence,

work, hobbies, leisure, etc..

The influence level may vary depending on individuals and groups. But is generally observed common

consumption trends among the members of a same group.

The understanding of the specific features (mindset, values, lifestyle, etc..) of each group allows

brands to better target their advertising message.

Because the individual can also be influenced by a group to which he doesn‘t belong yet but wishes to

be part of. This is called an aspirational group. This group will have a direct influence on the consumer

who, wishing to belong to this group and look like its members, will try to buy the same products.

For example, even if he doesn‘t need it yet, a surfing beginner may want to buy ―advanced‖ brands or

products used by experienced surfers (aspirational group) in order to get closer to this group. While a

teen may want the shoe model or smartphone used by the group of ―popular guys‖ from his high

school (aspirational group) in order to be accepted by this group.

Some brands have understood this very well and communicate, implicitly or not, on the ―social

benefit‖ provided by their products.

Within a reference group that influence the consumer buying behavior, several roles have been

identified:

The initiator: the person who suggests buying a product or service

The influencer: the person whose point of view or advice will influence the buying decision. It

may be a person outside the group (singer, athlete, actor, etc..) but on which group members

rely on.

The decision-maker: the person who will choose which product to buy. In general, it‘s the

consumer but in some cases it may be another person. For example, the ―leader‖ of a soccer

supporters‘ group (membership group) that will define, for the whole group, which supporter‘s

scarf buy and bear during the next game.

The buyer: the person who will buy the product. Generally, this will be the final consumer.

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Many brands look to target opinion leaders (initiator or influencer) to spread the use and purchase of

their product in a social group. Either through an internal person of the group when it comes to a small

social group. Or through a sponsorship or a partnership with a reference leader (celebrity, actor,

musician, athlete, etc..) for larger groups.


Q: Match the following:

1. The initiator a. Person who buys the product

2. The influencer b. Person who suggests buying a product or

service

3. The decision maker c. Person whose view point influences the

buying decision

4. The buyer d. Person who chooses which product to buy

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Family:

The family is maybe the most influencing factor for an individual. It forms an environment of

socialization in which an individual will evolve, shape his personality, acquire values. But also

develop attitudes and opinions on various subjects such as politics, society, social relations or himself

and his desires. But also on his consumer habits, his perception of brands and the products he buys.

Perceptions and family habits generally have a strong influence on the consumer buying behavior.

People will tend to keep the same as those acquired with their families.

For example, if you have never drunk Coke during your childhood and your parents have described it

as a product ―full of sugar and not good for health‖. There is far less chance that you are going to buy

it when you will grow up that someone who drinks Coke since childhood.

That‘s why it‘s important for brands to be seen as a family brand in order to become a consumer habit

for parents and children when they will become adults.

Social roles and status:

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The position of an individual within his family, his work, his country club, his group of friends, etc..

can be defined in terms of role and social status. A social role is a set of attitudes and activities that an

individual is supposed to have and do according to his profession and his position at work, his position

in the family, his gender, etc.. – and expectations of the people around him.

Social status meanwhile reflects the rank and the importance of this role in society or in social groups.

Some are more valued than others.

The social role and status profoundly influences the consumer behavior and his purchasing decisions.

Especially for all the ―visible‖ products from other people.

For example, a consumer may buy a Ferrari or a Porsche for the quality of the car but also for the

external signs of social success that this kind of cars represents. Moreover, it is likely that a CEO

driving a small car like a Ford Fiesta or a Volkswagen Golf would be taken less seriously by its

customers and business partners than if he is driving a german luxury car.

And this kind of behaviors and influences can be found at every level and for every role and social

status.

Again, many brands have understood it by creating an image associated with their products reflecting

an important social role or status.

7.5.3 Personal factors:

Decisions and buying behavior are obviously also influenced by the characteristics of each consumer.

Age and way of life:

A consumer does not buy the same products or services at 20 or 70 years. His lifestyle, values,

environment, activities, hobbies and consumer habits evolve throughout his life.

For example, during his life, a consumer could change his diet from unhealthy products (fast food,

ready meals, etc..) to a healthier diet, during mid-life with family before needing to follow a little later

a low cholesterol diet to avoid health problems.

The factors influencing the buying decision process may also change. For example, the ―social value‖

of a brand generally play a more important role in the decision for a consumer at 25 than at 65 years.

The family life cycle of the individual will also have an influence on his values, lifestyles and buying

behavior depending whether he‘s single, in a relationship, in a relationship with kids, etc.. As well as

the region of the country and the kind of city where he lives (large city, small town, countryside, etc..).

For a brand or a retailer, it may be interesting to identify, understand, measure and analyze what are

the criteria and personal factors that influence the shopping behavior of their customers in order to

adapt.

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For example, it is more than possible that consumers living in New York do not have the same

behavior and purchasing habits than the ones in Nebraska. For a retailer, have a deep understanding

and adapt to these differences will be a real asset to increase sales.

Purchasing power and revenue:

The purchasing power of an individual will have, of course, a decisive influence on his behavior and

purchasing decisions based on his income and his capital. This obviously affects what he can afford,

his perspective on money and the level of importance of price in his purchasing decisions. But it also

plays a role in the kind of retailers where he goes or the kind of brands he buys.

Lifestyle:

The lifestyle of an individual includes all of its activities, interests, values and opinions. The lifestyle

of a consumer will influence on his behavior and purchasing decisions. For example, a consumer with

a healthy and balanced lifestyle will prefer to eat organic products and go to specific grocery stores,

will do some jogging regularly (and therefore will buy shoes, clothes and specific products), etc..

Personality and self-concept:

Personality is the set of traits and specific characteristics of each individual. It is the product of the

interaction of psychological and physiological characteristics of the individual and results in constant

behaviors. It materializes into some traits such as confidence, sociability, autonomy, charisma,

ambition, openness to others, shyness, curiosity, adaptability, etc.

While the self-concept is the image that the individual has – or would like to have – of him and he

conveys to his entourage. These two concepts greatly influence the individual in his choices and his

way of being in everyday life. And therefore also his shopping behavior and purchasing habits as

consumer.

In order to attract more customers, many brands are trying to develop an image and a personality that

conveys the traits and values - real or desired – of consumers they are targeting.

For example, since its launch, Apple cultivates an image of innovation, creativity, boldness and

singularity which is able to attract consumers who identify to these values and who feel valued – in

their self-concept – by buying a product from Apple.

Because consumers do not just buy products based on their needs or for their intrinsic features but they

are also looking for products that are consistent and reinforce the image they have of themselves or

they would like to have.

The more a product or brand can convey a positive and favorable self-image to the consumer, the more

it will be appreciated and regularly purchased.

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7.5.4 Psychological factors

Among the factors influencing consumer behavior, psychological factors can be divided into 4

categories: motivation, perception, learning as well as beliefs and attitudes.

Motivation:

Motivation is what will drive consumers to develop a purchasing behavior. It is the expression of a

need is which became pressing enough to lead the consumer to want to satisfy it. It is usually working

at a subconscious level and is often difficult to measure.

Motivation is directly related to the need and is expressed in the same type of classification as defined

in the stages of the consumer buying decision process.

To increase sales and encourage consumers to purchase, brands should try to create, make conscious or

reinforce a need in the consumer‘s mind so that he develops a purchase motivation. He will be much

more interested in considering and buy their products.

They must also, according to research, the type of product they sell and the consumers they target, pick

out the motivation and the need to which their product respond in order to make them appear as the

solution to the consumers‘ need.

Perception:

Perception is the process through which an individual selects, organizes and interprets the information

he receives in order to do something that makes sense. The perception of a situation at a given time

may decide if and how the person will act.

Depending to his experiences, beliefs and personal characteristics, an individual will have a different

perception from another.

The perception mechanism of an individual is organized around three processes:

Selective Attention: The individual focuses only on a few details or stimulus to which he is

subjected. The type of information or stimuli to which an individual is more sensitive depends

on the person.

For brands and advertisers successfully capture and retain the attention of consumers is increasingly

difficult. For example, many users no longer pay any attention, unconsciously, to banner ads on the

Internet. This kind of process is called Banner Blindness.

The attention level also varies depending on the activity of the individual and the number of other

stimuli in the environment. For example, an individual who is bored during a subway trip will be much

more attentive to a new ad displayed in the tube. It is a new stimuli that breaks the trip routine for him.

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Consumers will also be much more attentive to stimuli related to a need. For example, a consumer who

wishes to buy a new car will pay more attention to car manufacturers‘ ads. While neglecting those for

computers.

Selective Distortion: In many situations, two people are not going to interpret an information

or a stimulus in the same way. Each individual will have a different perception based on his

experience, state of mind, beliefs and attitudes. Selective distortion leads people to interpret

situations in order to make them consistent with their beliefs and values.

For brands, it means that the message they communicate will never be perceived exactly in the same

way by consumers. And that everyone may have a different perception of it. That‘s why it‘s important

to regularly ask consumers in order to know their actual brand perception.

Selective distortion often benefits to strong and popular brands. Studies have shown that the perception

and brand image plays a key role in the way consumers perceived and judged the product.

Similarly, consumers will tend to appreciate even less a product if it comes from a brand for which

they have a negative perception.

Selective Retention: People do not retain all the information and stimuli they have been

exposed to. Selective retention means what the individual will store and retain from a given

situation or a particular stimulus. As for selective distortion, individuals tend to memorize

information that will fit with their existing beliefs and perceptions.

For example, consumers will remember especially the benefits of a brand or product they like and will

―forget‖ the drawbacks or competing products‘ advantages.

Selective retention is also what explains why brands and advertisers use so much repetition in their

advertising campaigns and why they are so broadcasted. So that the selective retention can help the

brand to become a ―top of mind‖ brand in the consumer‘s mind.

Check your progress III

Q1: The perception of an individual is based on the following three processes, namely __________?

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

__________________________________________________________________________________

Learning:

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Learning is through action. When we act, we learn. It implies a change in the behavior resulting from

the experience. The learning changes the behavior of an individual as he acquires information and

experience.

For example, if you are sick after drinking milk, you had a negative experience, you associate the milk

with this state of discomfort and you ―learn‖ that you should not drink milk. Therefore, you don‘t buy

milk anymore.

Rather, if you had a good experience with the product, you will have much more desire to buy it again

next time.

The learning theories can be used in marketing by brands. As the theory of operant conditioning which

states that you can build a good image and high demand for a product by associating it with a positive

reinforcement (or rather a bad image with a negative reinforcement).

Beliefs and attitudes:

A belief is a conviction that an individual has on something. Through the experience he acquires, his

learning and his external influences (family, friends, etc..), he will develop beliefs that will influence

his buying behavior.

While an attitude can be defined as a feeling, an assessment of an object or idea and the predisposition

to act in a certain way toward that object. Attitudes allow the individual to develop a coherent behavior

against a class of similar objects or ideas. Beliefs as well as attitudes are generally well-anchored in the

individual‘s mind and are difficult to change. For many people, their beliefs and attitudes are part of

their personality and of who they are.

However, it is important to understand, identify and analyze the positive attitudes and beliefs but also

the negative ones that consumers can have on a brand or product. To change the brand‘s marketing

message or adjust its positioning in order to get consumers to change their brand perception.

Thus these are the basic factors that directly and indirectly influence the buying needs of an individual.

7.6 Summary

Consumer behaviour is the study of individuals, groups, or organizations and the processes they use to

select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts

that these processes have on the consumer and society.


Check your progress I: 1. Personal consumers; organizational consumers; open consumers;

conscientious consumers; extroverted consumer; agreeable consumer; neurotic consumer

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Check your progress II: 1. B; 2. C; 3. D; 4. A

Check your progress III: 1. Selective attention; selective distortion and selective retention


What do you mean by consumer behaviour? Discuss the various types of consumers in detail.

Throw light on the various factors that influence consumer behaviour.

Discuss in detail the role of various personal characteristics that influence consumer behaviour.

7.9 References an Suggested Readings

1. Schiffman, I. G. and Kanuk, L. L. Consumer Behaviour, New Delhi, Pearson Eductaion, 2007.

2. Blackwell, Roger D., Miniard, Paul W., and Engel James F. Consumer Behaviour, Cengage,

2006.

3. Solomon, Michael R. Consumer Behaviour, New Delhi, Pearson Education, 2003.

4. Assael, Henry Consumer Behaviour and Marketing Action, Cengage, 2006

5. Loudon, David L. and Della Bitta, Albert J., Consumer Behavior, Tata McGraw-Hill,

Fourteenth Edition, 2002.

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Chapter 8

Advertising as a Tool of Corporate Communication

Structure:

8.0 Introduction

8.2 Meaning of Corporate Communication

8.3 Objectives of Corporate Advertising

8.4 Types of Corporate Advertising

8.5 Advantages and Disadvantages of Corporate Advertising

8.6 Measuring the Effectiveness of Corporate Advertising

8.7 Summary

8.8 Key Words

8.9 Check your progress – 1


8.11 Self Assessment Questions

8.12 References

8.13 Suggested readings

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Advertising as a Tool of Corporate Communication

8.1 Introduction

It is a widespread belief in management that in today‘s society it is the shareholders, investors,

customers, employees, other related parties in the companies environment which decides the

future of an organization. With the ever increasing globalization and recent financial crises this

belief is gaining further strength. All top management team members like CEOs, senior

executives of Multinational Corporations view protection of companies reputation to be critical

and one of the most important strategic objectives. This objective of building, maintaining and

protecting the company‘s reputation is actually the core task of corporate communication

practitioners. Though, there is a high need of corporate communication but then also most of the

companies are unable to utilize it in an effective manner. As a result most of such companies,

communication practitioners feel undervalued; their strategic input into decision-making is

compromised and senior managers and CEOs feel powerless because they simply do not

understand the events that are taking place in the company‘s environment and how these events

can affect the company‘s operations and profits. Therefore there is lot more to gain when

communication practitioners and senior executives are able to recognize and diagnose

communication-related management problems and understand appropriate strategies and courses

of action for dealing with these. Such an understanding is not only essential but it is also

empowering to the effective functioning of corporate communication. It allows communication

practitioners and senior executives to understand and take charge of events that fall within the

responsibility of corporate communication; to determine which events are outside their control,

and to identify opportunities for communicating and engaging with stakeholders of the

organization.

The primary goal of this chapter is to give readers a sense of how corporate communication is

used and managed strategically as a way of guiding how organizations can communicate with

their stakeholders. In this chapter, I will start by describing corporate communication and will

introduce the corporate advertisement its Scope, Objectives and what are the different techniques

used for the effective corporate communication. Good things will thus come to those who wait,

and read.

______________________________________________________________________________

_______

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8.2 Meaning of Corporate Communication

Until 1970,s many practitioners were used to relate corporate communications with ‗Public

Relations‘ as a result of which it Public relations was regarded as a function consisted of

communications with the Press. When other internal as well as external stakeholders demanded

for more disclosure of information about the company, practitioners subsequently stated looking

for something more than Public Relations which satisfies the needs of these internal as well as

external stakeholders. This is when the roots of the new corporate communication function

started to take hold. An important characteristic of the new function is that it focuses on the

organization as a whole and on the important task of how an organization presents itself to all its

key stakeholders, both internal and external.

Van Riel defines corporate communication as ‗an instrument of management by means of which

all consciously used forms of internal and external communication are harmonized as effectively

and efficiently as possible‘, with the overall objective of creating ‗a favorable basis for

relationships with groups upon which the company is dependent‘

In other words, it is the messages issued by a corporate organization, body, or institute to its

audiences, such as employees, media, channel partners and the general public. Organizations aim

to communicate the same message to all its stakeholders, to transmit coherence, credibility and

ethic. Corporate Communications help organizations explain their mission, combine its many

visions and values into a cohesive message to stakeholders. The concept of corporate

communication could be seen as an integrative communication structure linking stakeholders to

the organization.

Both of the above definitions are stressing on the strategic message to be delivered to the

stockholders about the corporate so that a transparent and favorable relationship between them is

made.

The responsibilities of corporate communication are:

to flesh out the profile of the "company behind the brand" (corporate branding)

to minimize discrepancies between the company's desired identity and brand features

to delegate tasks in communication to formulate and execute effective procedures

to make decisions on communication matters

to mobilize internal and external support for corporate objectives

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to coordinate with international business firms

Check your progress – 1

Fill in the blanks:

1. The objective of _______________________ is to create a favorable basis for

relationships with groups upon which the company is dependent.

2. Corporate communication is the ________________ delivered to the stakeholders about

the corporate.

With the origin of Corporate Communication as a new function a specialized discipline

‗Corporate Advertising‘ has also developed.

Corporate Advertising as a basic tool of Public Relations is that broad area of non-product

advertising aim specifically at enhancing company‘s image and increasing lacking awareness.

It can be defined as ―paid use of media that seeks to benefit the image of the corporation as a

whole rather than its product or services alone‖ Corporate Advertising is a promotional strategy

that is designed to not only interest consumers in products and services offered by an

organization, but also to cultivate a positive reputation among consumers and other stakeholders

on which a business depends. The focus of Corporate Advertising is on the company itself, with

the attention to the products produced by the organization being a byproduct of the advertising

effort. Different Corporate advertisements used by various organizations are:

1. Corporate ad looking like a product ad which encourages people to trust and enjoy dealing

with the company.

2. Social service ad to establish reputation.

3. Corporate ad to convey specific information to the public & at the same time to promote the

organization.

4. Product ad taking corporate like to give added value to the product.

5. Institutional ad devoted to building customer attitudes relating to the organization. The basic

objective is to promote patronage or favour on the basis of these attitudes.

6. Public issue & financial ads for information as well as for direct campaigns.

Government advertising in another field for image advertising that has developed over the years.

The government advertising is all pervasive, reaching into all lives in all directions & entering

into all activities today the government employs advertising to encourage purchase of its bonds

& financial instruments, to get votes for the party to make government decisions understandable

and acceptable, to publicise development work, & any other activity which has a bearing on the

public.

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Such advertisements are issued at the municipal, state & central level. Indeed the government has

found advertising as the most powerful instrument of communication & it is making conscious

efforts to build in own kind of corporate image

Corporate Advertising is said to be one of the more controversial forms of advertising because of

following reasons:

1. Consumers are not interested in this form of advertising- AGallup and Robinson

study reported in Advertising Age found consumers were 35 percent less interested in

corporate ads than in product-oriented advertising.28 This may be because consumers do

not understand the reasons behind such ads. Of course, much of this confusion results

from ads that are not very good from a communications standpoint.

2. It’s a costly form of self-indulgence - Firms have been accused of engaging in

corporate image advertising only to satisfy the egos of top management. This argument

stems from the fact that corporate ads are not easy to write. The message to be

communicated is not as precise and specific as one designed to position a product, so the

top managers often dictate the content of the ad, and the copy reflects their ideas and

images of the corporation.

3. The firm must be in trouble.- Some critics believe the only time firms engage in

corporate advertising is when they are in trouble—either in a financial sense or in the

public eye—and are advertising to attempt to remedy the problem. There are a number of

forms of corporate advertising, each with its own objectives. These critics argue that

these objectives have become important only because the firm has not been managed

properly.

4. Corporate advertising is a waste of money- Given that the ads do not directly appeal to

anyone, are not understood, and do not promote anything specific, critics say the monies

could be better spent in other areas. Again, much of this argument has its foundation in

the fact that corporate image ads are often intangible. They typically do not ask directly

for a purchase; they do not ask for investors. Rather, they present a position or try to

create an image. Because they are not specific, many critics believe their purpose is lost

on the audience and these ads are not a wise investment of the firm‘s resources.

Despite these criticisms and others, corporate advertising has increased in use. It‘s been

estimated that more than 7 percent of all advertising dollars spent are for corporate advertising,

meaning billions of dollars are spent on this form of communication. While corporate advertising

has generally been regarded as the domain of companies such as USX, Phillips Petroleum,

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Aventis, and Deutsche Telekom (that is, companies that primarily sell directly to the consumer

market), this is no longer the case.

Beatrice Foods, BASF, and Procter & Gamble are just a few consumer-product companies

running corporate image ads, and Lucent Technologies, Microsoft, and Pfizer have also

increased expenditures in this area. Since the term corporate advertising tends to be used as a

catchall for any type of advertising run for the direct benefit of the corporation rather than its

products or services, much advertising falls into this category. For purposes of this text (and to

attempt to bring some perspective to the term), we use it to describe any type of advertising

designed to promote the organization itself rather than its products or services.

______________________________________________________________________________

_______

8.3 OBJECTIVES OF CORPORATE ADVERTISING

The prime objective of the corporate advertising is to create a positive image and increase

awareness of the organization in the society but it also has following objectives:

1. Create a good citizen image through consistent & dedicated effort.

2. Convey the organizations commitment to the concerned publics as well as to the masses &

eliminate prejudices, if any held by opinion leaders in particular & by the public in general.

3. Boost both employee management relation & employee morale enabling all members of the

internal public to discover a new vitality.

4. Raise money from the public which gives rise to demand for resplendent images like

financial reliability, leadership, strength & competence.

5. On the marketing front it is easier & cheaper to sell product or services with less marketing

budget.

______________________________________________________________________________

_______

8.4 Types of Corporate Advertising

Marketers seek attainment of corporate advertising‘s objectives by implementing image,

advocacy, or cause-related advertising. Each form is designed to achieve specific goals.

1. Image Advertising: One form of corporate advertising is devoted to promoting the

organization‘s overall image. Image advertising may accomplish a number of

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objectives, including creating goodwill both internally and externally, creating a position

for the company, and generating resources, both human and financial. A number of

methods are used:

i) General image or positioning ads - These ads are often designed to create an image

of the firm in the public mind. A number of companies have created new names—for

example, Accenture, Verizon, and Allianz—in an attempt to create a new image.

Other companies and organizations have used image advertising to attempt to change

an existing image. The American Medical Association (AMA), responding to its less-

than-positive image among many Americans who perceived doctors negatively, ran a

series of ads portraying doctors in a more sensitive light. It spent over $1.75 million

to highlight the caring, sharing, and sensitive side of AMA members. Penthouse

magazine attempted to change its image with advertisers by running ads in trade

magazines that showed Penthouse was not just a magazine with pictures of nude

females. The ad for America‘s pharmaceutical companies casts the industry in a very

favorable light. In 2002 Philip Morris Company, Inc., shareholders voted to change

the company‘s name to Altria Group, Inc. Altria is derived from the Latin word

meaning to ―reach higher.‖ Philip Morris CEO, Geoffrey Bible, said that the name

was being changed to reflect the fact that the company was no longer just a cigarette

company and that the new name better reflects its diversity. Others contend the move

was an attempt to disassociate itself from the negative image of cigarettes.

ii) Sponsorships – A firm often runs corporate image advertising on TV programs or

specials. For example, the Hallmark or IBM specials and documentaries on network

TV and Mobil and Gulf Oil program sponsorships on public TV are designed to

promote the corporation as a good citizen. By associating itself with high-quality or

educational programming, the firm hopes for a carryover effect that benefits its own

image. Other examples of sponsorships include those run by Outback Steak House

(LUPUS), Providian Financial (children and youth), McDonald‘s (UNICEF), and GM

(Make-A-Wish). Visa considers sponsorships an important part of its integrated

marketing communications. It has sponsored the Olympics, the U.S. decathlon team,

U.S. basketball‘s dream team, the U.S. Gymnastics Federation, the U.S. Open Tennis

Championships, and Major League Baseball‘s All-Star game. According to John

Bennett, senior VP for international marketing communications, the sponsorships are

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designed to fulfill specific business objectives while providing support for the

recipients.

iii) Recruiting - This is used when the prime objective is to attract employment

applications. Recruitment advertising, also known as Recruitment Communications

and Recruitment Agency, includes all communications used by an organization to

attract talent to work within it. Recruitment advertisements may be the first

impression of a company for many people, and the first impression the firm makes

goes a long way to determining interest in the job opening being advertised.

Recruitment advertisements typically have a uniform layout and contain the following

elements:

the job title heading and location

an explanatory paragraph describing the company, including the Employer Brand

a description of the position

entry qualifications

the remuneration package (not always provided by the employer)

further details and from where application forms may be sought

iv) Generating financial support - Some corporate advertising is designed to generate

investments in the corporation. By creating a more favorable image, the firm makes

itself attractive to potential stock purchasers and investors. More investments mean

more working capital, more monies for research and development, and so on. In this

instance, corporate image advertising is almost attempting to make a sale; the product

is the firm. While there is no concrete evidence that corporate image advertising leads

directly to increased investment, at least one study shows a correlation between the

price of stock and the amount of corporate advertising done. Firms that spend more

on corporate advertising also tend to have higher priced stocks (though a direct

relationship is very difficult to substantiate). This thing called image is not uni-

dimensional. Many factors affect it. A study conducted by Harris Interactive and the

Reputation Institute showed that companies are ranked differently on key corporate

attributes including emotional appeal, social responsibility, workplace environment,

and vision and leadership.

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2. Event Sponsorships: As we noted in the last section, corporate sponsorships of charities

and causes has become a popular form of public relations. While some companies sponsor

specific events and/or causes with primarily traditional public relations objectives in mind, a

separate and more marketing-oriented use of sponsorships is also on the increase. Such event

sponsorships take on a variety of forms, anything from golf apparel and equipment to

concerts, stadiums, and college football bowl games is now a candidate for corporate

sponsorship. Sometimes, however, this can prove to be a risky venture, Companies spent

over $9.5 billion on event sponsorships in 2002, with sports receiving the majority of event

sponsorship monies. Among the most popular sporting events for sponsorship are auto

racing, golf and tennis tournaments, and running events. Professional sports leagues and

teams as well as Olympic teams and competitions also receive large amounts of sponsorship

money. Bicycle racing, beach volleyball, skiing, and various water sports are also attracting

corporate sponsorship. Traditionally, tobacco, beer, and car companies have been among the

largest sports event sponsors. Now a number of other companies have become involved in

event sponsorships, including beverage companies, airlines, telecommunications and

financial services companies, and high-tech firms. Many marketers are attracted to event

sponsorship because it gets their company and/or product names in front of consumers. By

choosing the right events for sponsorship, companies can get visibility among their target

market. For example, RJR Nabisco was heavily involved in sponsoring auto racing under its

Winston and Camel cigarette brands. The company‘s market research showed that racing

fans fit the demographic profile of users of these brands and consumers would purchase a

product that sponsored their favorite sport. For tobacco companies, which are prohibited

from advertising on radio and TV, event sponsorship is also a way to have their brand names

seen on TV. President Clinton issued an executive order in 1996 that would have prohibited

any form of advertising of tobacco sponsorships at sporting events after 1998. The tobacco

companies appealed this order in the courts on the grounds that to prohibit advertising a legal

product violates free speech. In 2000, the Supreme Court struck down the law, although a

settlement did place further restrictions on such sponsorships. A number of international

sports are currently considering such bans. Many companies are attracted to event

sponsorships because effective IMC programs can be built around them and promotional

tie-ins can be made to local, regional, national, and even international markets. Companies

are finding event sponsorships an excellent platform from which to build equity and gain

affinity with target audiences as well as a good public relations tool. Most companies focus

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their marketing efforts on specific market segments and are always looking for ways to reach

these target audiences. Many marketers are finding that sales promotion tools such as event

sponsorships, contests and sweepstakes, and sampling are very effective ways to reach

specific geographic, demographic, psychographic, and ethnic markets. Event sponsorship has

become a good sales promotion tool for reaching specific target markets. Golf tournaments

are a popular event for sponsorship by marketers of luxury automobiles and other upscale

products and services. The golf audience is affluent and highly educated, and marketers

believe that golfers care passionately about the game, leading them to form emotional

attachments to brands they associate with the sport. Marketers can also turn their

sponsorships into effective integrated marketing opportunities. For example, Cadillac is an

umbrella sponsor of the Senior PGA Tour, which fits well with its attempt to target age 40-

plus professionals with incomes exceeding $60,000. On-site signage and vehicle displays are

part of the sponsorship deal. The Team Cadillac golfers, including such notables as Lee

Trevino and Arnold Palmer, wear the automaker‘s logo during tournaments and also help in

public relations by giving media interviews and representing Cadillac at tie-in events. In the

weeks preceding an event, dealers send out as many as 20,000 direct-mail pieces to owners

and prospects inviting them to visit a dealership for a test drive and to pick up tournament

tickets and hospitality passes. Response to the direct-mail offerings averages 16 percent.

Cadillac also gets automotive advertising exclusivity on the ESPN telecasts and often airs

commercials featuring the Team Cadillac members. Cadillac attributes $250 million in

vehicle sales directly to its involvement with the tour since 1990. The dollar figure comes

from tracking sales to prospects who respond to Cadillac‘s direct-marketing programs built

around the tournament.

3. Advocacy Advertising: A third major form of corporate advertising addresses social,

business, or environmental issues. Such advocacy advertising is concerned with propagating

ideas and elucidating controversial social issues of public importance in a manner that

supports the interests of the sponsor. While still portraying an image for the company or

organization, advocacy advertising does so indirectly, by adopting a position on a particular

issue rather than promoting the organization itself. Advocacy advertising has increased in use

over the past few years and has also met with increased criticism. The ads may be sponsored

by a firm or by a trade association and are designed to tell readers how the firm operates or

management‘s position on a particular issue. Sometimes the advertising is a response to

negative publicity or to the firm‘s inability to place an important message through public

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relations channels. Sometimes the firm just wants to get certain ideas accepted or have

society understand its concerns. Advocacy advertising has been criticized by a number of

sources (including consumer advocate Ralph Nader). Critics contend that companies with

large advertising budgets purchase too much ad space and time and that advocacy ads may be

misleading, but the checks and balances of regular product advertising also operate in this

area. For example, an ad run by the seven regional Bell operating companies that addressed

the threat of Japanese technologies in the telecommunications industry was perceived by

some members of Congress (the group the ads were designed to influence) as Japan-bashing

and offensive. When the ad backfired, the campaign was immediately halted and the agency

that developed it was fired. The ultimate judge, of course, is always the reader.

4. Cause-Related Advertising : An increasingly popular method of image building is cause-

related marketing, in which companies link with charities or nonprofit organizations as

contributing sponsors. The company benefits from favorable publicity, while the charity

receives much-needed funds. Spending on cause-related marketing has increased more than

300 percent since 1990, reaching $828 million in 2002. Proponents of cause marketing say

that association with a cause may differentiate one brand or store from another, increase

consumer acceptance of price increases, generate favorable publicity, and even win over

skeptical officials who may have an impact on the company. Cause-marketing relationships

can take a variety of forms. Making outright donations to a nonprofit cause, having

companies volunteer for the cause, donating materials or supplies, running public service

announcements, or even providing event refreshments are some of the ways companies get

involved. While companies receive public relations benefits from their association with

causes, with 80 percent of consumers saying they have a more positive impression of

companies that support a cause, they sometimes receive financial rewards as well. Visa‘s

―Reading is Fundamental‖ campaign led to a 17 percent increase in sales, BMW saw sales

increase when it sponsored a program to eradicate breast cancer, and Wendy‘s International

in Denver saw sales increase by more than 33 percent when a portion of purchases was

contributed to Denver‘s Mercy Medical Center. At the same time, not all cause marketing is

a guarantee of success. Cause marketing requires more than just associating with a social

issue, and it takes time and effort. Companies have gotten into trouble by misleading

consumers about their relationships, and others wasted money by hooking up with a cause

that offered little synergism. One survey showed that over 300 companies had associated

themselves with breast cancer concerns, with most becoming lost in sponsorship clutter.

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Others have simply picked the wrong cause—finding that their customers and potential

customers either have little interest in or don‘t like the cause. In some cases, cause marketing

is considered nothing more than shock advertising. Finally, the results of cause-marketing

efforts can sometimes be hard to quantify

Check your progress - 2

State TRUE or FALSE

1. Corporate advertising is the non-paid form of advertising

2. The main aim of the corporate advertising is to promote the products of the company

3. Recruitment advertising is a part of corporate advertising

______________________________________________________________________________

_______

8.5 Advantages and Disadvantages of Corporate Advertising

A number of reasons for the increased popularity of corporate advertising become evident when

you examine the advantages of this form of communication:

1. It is an excellent vehicle for positioning the firm. Firms, like products, need to establish an

image or position in the marketplace. Corporate image ads are one way to accomplish this

objective. A well-positioned product is much more likely to achieve success than is one with

a vague or no image. The same holds true of the firm. Stop and think for a moment about the

image that comes to mind when you hear the name IBM, Apple, Johnson & Johnson, or

Procter & Gamble. Now what comes to mind when you hear Unisys, USX, or Navistar? How

many consumer brands can you name that fall under ConAgra‘s corporate umbrella? (Swiss

Miss, Wesson, La Choy, and many others.) While we are not saying these latter companies

are not successful—because they certainly are—we are suggesting their corporate identities

(or positions) are not as well entrenched as the identities of those first cited. Companies with

strong positive corporate images have an advantage over competitors that may be enhanced

when they promote the company overall.

2. It takes advantage of the benefits derived from public relations. As the PR efforts of

firms have increased, the attention paid to these events by the media has lessened (not

because they are of any less value, but because there are more events to cover). The net result

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is that when a company engages in a public relations effort, there is no guarantee it will

receive press coverage and publicity. Corporate image advertising gets the message out, and

though consumers may not perceive it as positively as information from an objective source,

the fact remains that it can communicate what has been done.

3. It reaches a select target market. Corporate image advertising should not be targeted to the

general public. It is often targeted to investors and managers of other firms rather than to the

general public. It doesn‘t matter if the general public does not appreciate this form of

communication, as long as the target market does. In this respect, this form of advertising

may be accomplishing its objectives.

Some of the disadvantages of corporate advertising are as following:

1. Questionable effectiveness. There is no strong evidence to support the belief that corporate

advertising works. Many doubt the data cited earlier that demonstrated a correlation between

stock prices and corporate image advertising. Astudy by Bozell & Jacobs Advertising of

16,000 ads concluded that corporate advertising contributed to only 4 percent of the

variability in the company‘s stock price, compared with a 55 percent effect attributable to

financial factors. A second study also casts doubts on earlier studies that concluded that

corporate advertising worked.

2. Constitutionality and/or ethics. Some critics contend that since larger firms have more

money, they can control public opinion unfairly. This point was resolved in the courts in

favor of the advertisers. Nevertheless, many consumers still see such advertising as unfair

and immediately take a negative view of the sponsor.

______________________________________________________________________________

8.6 Measuring the Effectiveness of Corporate Advertising

As you can tell from our discussion of the controversy surrounding corporate advertising, there

need to be methods for evaluating whether or not such advertising is effective:

1. Attitude surveys. One way to determine the effectiveness of corporate advertising is

conducting attitude surveys to gain insights into both the public‘s and investors‘ reactions to

ads. The Phase II study conducted by market research firm Yankelovich, Skelly & White is

one of the best-known applications of this measurement method. The firm measured recall

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and attitudes toward corporate advertisers and found that corporate advertising is more

efficient in building recall for a company name than is product advertising alone. Frequent

corporate advertisers rated better on virtually all attitude measures than those with low

corporate ad budgets.

2. Studies relating corporate advertising and stock prices. The Bozell & Jacobs study is one

of many that have examined the effect of various elements of corporate advertising (position

in the magazine, source effects, etc.) on stock prices. These studies have yielded conflicting

conclusions, indicating that while the model for such measures seems logical,

methodological problems may account for at least some of the discrepancies.

3. Focus group research. Focus groups have been used to find out what investors want to see

in ads and how they react after the ads are developed. As with product-oriented advertising,

this method has limitations, although it does allow for some effective measurements. While

the effectiveness of corporate advertising has been measured by some of the methods used to

measure product-specific advertising, research in this area has not kept pace with that of the

consumer market. (One study reported that only 35 of the Fortune 500 companies ever

attempted to measure performance of their annual reports. The most commonly offered

reason for this lack of effort is that corporate ads are often the responsibility of those in the

highest management positions in the firm, and these parties do not wish to be held

accountable. Interestingly, those who should be most concerned with accountability are the

most likely to shun this responsibility!

______________________________________________________________________________

______

8.7 Summary:

Corporate communication is one of the strategic decisions taken by the top level management as

it creates a relation between company and its stakeholders about the image of the company.

Earlier Public Relation was used instead of Corporate Communication but with growth in

informational needs corporate communication developed as a special function. As a result

corporate advertising also came into light. Corporate Advertising is that broad area of non-

product advertising aim specifically at enhancing company‘s image and increasing awareness.

The various types of corporate advertising used are Image Advertising, Event sponsorship,

Advocacy advertising and Cause related Advertising. Corporate advertising is considered to be

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the one of the best methods to position the corporate image and targeting the stakeholders

effectively

______________________________________________________________________________

8.8 Key Words

Stakeholders : a person with an interest or concern in the business

Brand : a type of product manufactured by a particular company under a particular name

Corporate : relating to a large company or group or a corporate company or group

Answers to check your progress questions:


1. Corporate communication

2. Message

8.10 Check your progress - 2

1. FALSE

2. FALSE

3. TRUE

8.11 SELF ASSESSMENT QUESTIONS

1. What are corporate communications

2. Define the term corporate Advertising and state its objectives

3. What are the different types of advertising techniques used by companies

4. State advantages and disadvantages of Corporate Advertising

8.12 References

Joep Cornelissen, Corporate Communications: Theory and Practice. Sage publications

George E. Belch & Michael A. Belch, Advertising and Promotion. The McGraw−Hill.

8.13 Further Readings

Christensen, Lars Thøger, Morsing, Mette and Cheney, George (2008), Corporate

Communications: Convention, Complexity and Critique. London: Sage.

Fombrun, Charles and Van Riel, Cees (2004), Fame and Fortune: How Successful

Companies Build Winning Reputations. London: FT Prentice Hall

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Lesson 9

Advertising Agency Management

Structure:

9.1 Objectives

9.2 Advertising Agency

9.3 Functions of Advertising agency

9.4 Types of Advertising Agency

9.5 Agency Departments

9.6 Advertising agency Management

9.7 Summary

9.8 Glossary


9.10 References

9.11 Suggested Readings

9.12 Terminal and Model Questions

9.1 Objectives:

After reading this chapter you will be able to :

Conceptualize the term advertising agency.

Learn the functions of advertising agency.

Understand the types of advertising agency.

Know the role of agency departments.

9.2 Advertising Agency:

An advertising agency or ad agency is a service business dedicated to creating, planning and

handling advertising (and sometimes other forms of promotion) for its clients.

An advertising agency or ad agency is a service provider that works for clients to create an

effective and goal oriented advertising campaign aimed at representing the company positively in

the eyes of its target customers. Ad agencies can specialize in specific areas, such as interactive

advertising, or they can be a full-service agency that creates advertising materials like brochures,

catalogs, direct mail, print ads, radio and TV commercials, sales letters etc.

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Most agencies are their own independent company that handle many types of clients and their

different advertising needs. Some agencies are in-house agencies, meaning their one and only

client is the company that owns them.

Typical employees found at an ad agency include the agency president, creative director, account

executives, copywriters, graphic designers and a media director.

Some agencies also work with freelance copywriters and/or freelance graphic designers

and/or who usually do not work on-site.

9.3 Functions of Advertising Agency:

Advertising agency is an independent service-rendering organization. It delivers various services

and performs many functions for its clients, who are advertisers. It is mainly involved in

activities like planning, preparing and placing of ads in media. It also performs non-advertising

functions for them. It offers them advisory and creative services. It does so to make a profit.

Now let's discuss above main functions of an advertising agency.

1. Attracting clients

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

always tries to attract clients usually by giving ads in trade journals. It also seeks their attention

by offering them various services. It offers expert, cheap and quick services. It maintains good

relations with them. It tries to give them full satisfaction. It strives harder to attain their goodwill

and customer-loyalty.

DEFINITION:

According to American Association of Advertising, “An advertising agency is an

independent organization of creative people and business people who specialize in

developing and preparing market plans, advertisements, and other promotional tools.‖

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2. Research function

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

It collects following information about a product under its research function:

Features, quality, advantages and limitations of a product,

Present and future market possibilities,

Competition in the market,

Situation in the market,

Distribution methods,

Buyers' preferences, so on.

Ad agency analyses (studies) all this collected information properly and draws conclusions for its

research. It helps in planning an advertising campaign, selecting proper media and creation

function.

3. Advertising planning

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

function of an ad agency. It is done when its research function is completed. That is, after

analyzing the client's product, its competitors, market conditions, etc. It is done by experts who

use their professional experience to make a result-oriented advertising-plan. After making the

advertising plan, it is shown to the client. If the client likes and approves it, then the plan is

executed (put into action).

4. Creative function

Advertising agency put the advertising-plan into action under its creative function. Creation of

ads is the most important function of an ad agency. Generally, it involves activities like:

Copy writing,

Drawing photographs,

Making illustrations, layouts, an effective ad message, etc.

These jobs are done by experts like copy writers, artists, designers, etc. These people are highly

skilled and creative. They make an advertisement more appealing. Attractive ads help to increase

the sales of the product. The ad agency must always use fresh ideas for creating ads. It must

neither use old tactics nor copy the ad-campaign of other products.

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http://kalyan-city.blogspot.com/2010/11/what-is-market-types-and-classification.html

Source: kalyan-city.blogspot.com

5. Media selection

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

advertisement effectively. Media selection is a highly specialized function of an ad agency. It

must select the most suitable media for its client's ad. It must choose media, which has a

potential to give best results for the lowest cost. It must select more than one media for the ad.

For example, an advertisement can be put on television, the Internet, newspapers, magazines, etc.

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

6. Advertising budget

Advertising agency helps an advertiser to prepare his ad budget. It helps him to use his budget

economically and make the best use of it. Without a proper advertising budget, there is a risk of

client's funds getting wasted or lost. If an advertiser suffers a loss, he may not bring new

projects. As a result, there is a possibility of losing a potential client that can bring more

business to an ad agency.

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7. Coordination

Advertising agency brings a good coordination between the advertiser, itself, media and

distributors. This is a very important function. If coordination is proper, it will increase the sales

of the product.

8. Sales promotion

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

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

9. Marketing research

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

marketing research for them.

10. Non-advertising functions

Advertising agency also performs many non-advertising functions:

It fixes the prices of the product,

It determines the discounts,

It designs the product,

It also designs its package, trade marks, labels, etc.

These non-advertising services help an advertiser to increase its sales.

11. Public relations

Advertising agency does the public relations (PR) work for its clients. It increases the goodwill

between its clients and other parties like consumers, employees, middlemen, shareholders, etc. It

also maintains good relations between the client and media owner.

Check your Progress I

i) Which function gathers information related to the client's product:

i) Research Function

ii) Creative function

iii) Media selection

iv) Sales Promotion

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ii) Advertising agency also performs non-advertising functions.

a) True

b) False

iii) Which agency has the basic interest in the creation of advertisement or branding.

a) Full Service agency

b) Specialized agency

c) Creative agency

d) None of the above

9.4 Types of Advertising Agency:

Ad agencies come in all sizes and include everything from one or two-person shops, small to

medium sized agencies such as Traction, large independents such as SMART and multi –

national, multi agency conglomerates such as Omnicorn Group, WPP Group, Publicis,

Interpublic Group of Companies and Havas.

1. Full Service Agencies:

These agencies are involved in planning, creating, producing advertisements, performing

research and selecting media. Some full service agencies also provide non-advertising related

services including strategic market planning, direct market promotion programs, interactive

marketing and web site design, and public relations. The importance of the various functions

provided by a full service agency will depend upon the client.

There are some large full service agencies run their own marketing research departments. There

are also many professional services with local and national networks which work closely with

the agencies, do commissioned research in specific geographic areas, income levels,

consumption patterns, product groups, etc.

A full service agency is one that provide a direct relation to the copyright, artwork, ad

production, media planning etc.

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2. Creative agencies

Creative agencies specialize in "creative" or design-based business models and are also known as

a "creative boutique". Their basic interest is in the creation of the advertisement or branding.

Other ("full-service") agencies offer design in conjunction with media buying. Media

agencies concentrate on media buying. The client who chooses to use a design only based

advertising agency must assume some of the advertising purchasing. These are activities that are

routinely handled by an agency with a media buying option.

3. Specialized agencies

These agencies specialized in a particular activity of the whole communication process. They

may specialize in certain functions (copy, art, media), audiences (minority youth) or industries

(health, computers) or in a marketing communication area (direct marketing, sales promotion,

public relation). These type of agencies may serve one client only.

4.In-house advertising agencies

An In-House agency is a team within a company that focuses on selling the company's product;

they will handle all aspects of brand.

5. Digital agencies

These agencies formerly known as interactive agencies or new media agencies. Interactive

agencies may differentiate themselves by offering a mix of web design / web

development, search engine marketing, internet advertising/marketing, or e-business/e-

commerce consulting. Interactive agencies rose to prominence before traditional advertising

agencies fully embraced the Internet. Offering a wide range of services, some of the interactive

agencies grew very rapidly, although some have downsized just as rapidly due to changing

market conditions. Today, the most successful interactive agencies are defined as companies that

provide specialized advertising and marketing services for the digital space.

The digital space is defined as any multimedia-enabled electronic channel that an advertiser's

message can be seen, heard from and understood. The "digital space" translates to the Internet,

kiosks, CD-ROMs, DVDs, and lifestyle devices (iPod, PSP, and mobile). Interactive agencies

function similarly to advertising agencies, although they focus solely on interactive advertising

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services. They deliver services such as strategy, creative, design, video, development,

programming (Flash and otherwise), deployment, management, and fulfillment reporting. Often,

interactive agencies provide: digital lead generation, digital brand development, interactive

marketing and communications strategy, rich media campaigns, interactive video brand

experiences, Web 2.0 website design and development, e-learning Tools, email marketing,

SEO/SEM services, PPC campaign management, content management services, web application

development, and overall data mining, and ROI assessment. There are 4 elements for digital

media - Digital media Planning, Social Media, Web design and applications and Digital PR.

6. Search engine agencies

Search engine agencies are also known as SEO agencies. Lately, pay per click (PPC) and search

engine optimization (SEO) firms have been classified by some as "agencies" because they create

media and implement media purchases of text-based (or image-based, in some instances of

search marketing) ads. This relatively young industry has been slow to adopt the term "agency",

however with the creation of ads (either text or image) and media purchases (largely for PPC and

contextual advertising), these search agencies are technically known as advertising or media

agencies. However, SEO (or Organic Search) has traditionally sat separately, usually as a service

offered by web development companies. With the increasing reliance of successful SEO on fresh

and engaging website content, there are fewer SEO specialist agencies around, this service is

increasingly forming part of full service, PR and social media agency offerings.

7. Social media agencies

Social media agencies specialize in promotion of brands in the various social media platforms

like blogs, social networking sites, Q&A sites, discussion forums, and microblogs. The three key

services of social media agencies are:

Social media marketing

Online reputation management

8. Healthcare communications agencies

Healthcare communications agencies specialize in strategic communications and marketing

services for the Healthcare and Life Science industries. These agencies distinguish themselves

through an understanding of the strict labelling and marketing guidelines mandated by the U.S.

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Food and Drug Administration (FDA) and industry group guidelines, notably ADVAMED

and PHARMA.

9. Medical education agencies

Medical education agencies specialize in creating educational content for the healthcare and life

science industries. These agencies typically specialize in one of two areas:

Promotional education – education and training materials tied to the promotion of a given

product or therapy

Continuing medical education – accredited education and training materials created for

continuing physician and medical professional education

10. Other agencies

There are some other agencies like enterprise technology agencies which provide a specialized

subset of services offered by some interactive agencies: Web 2.0 website design and

development, content management systems, web application development, and other intuitive

technology solutions for the web, mobile devices and emerging digital platforms.

The student-run advertising agency model, which mainly operates out of university classrooms

or as a student groups, provides free advertising services to clients in exchange for the

educational opportunity.

9.5 Agency Departments

1. Creative department

The people who create the actual ads form the core of an advertising agency. Modern advertising

agencies usually form their copywriters and art directors into creative teams. Creative teams may

be permanent partnerships or formed on a project-by-project basis. The art director and

copywriter report to a creative director, usually a creative employee with several years of

experience. Although copywriters have the word "write" in their job title, and art directors have

the word "art", one does not necessarily write the words and the other draw the pictures; they

both generate creative ideas to represent the proposition (the advertisement or campaign's key

message). Once they receive the creative brief from their account team, the creative team will

conceptualise ideas to take to their creative director for feedback. This can often be a back and

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forth process, occurring several times before several ads are set to present to the client. Creative

departments frequently work with outside design or production studios to develop and implement

their ideas. Creative departments may employ production artists as entry-level positions, as well

as for operations and maintenance.

2. Account services

Agencies appoint account executives to liaise with the clients. The account executives need to be

sufficiently aware of the client's needs and desires that can be instructed to the agency's

personnel and should get approval from the clients on the agency's recommendations to the

clients. Creativity and marketing expertise are the needed area of the client service people. They

work closely with the specialists in each field. The account manager will develop a creative

brief, usually about a page that gives direction to the creative team. The creative brief often

includes information about the target audience and their attitudes and behaviours. The creative

team will take the brief and, aware of their parameters; develop original copy and graphics

depending on media strategy.

3. Media buying

The media services department's employees are the people who have contacts with the suppliers

of various creative media. For example, they will be able to advise upon and negotiate with

printers if an agency is producing flyers for a client. However, when dealing with the major

media (broadcast media, outdoor, and the press), this work is usually outsourced to a media

agency which can advise on media planning and is normally large enough to negotiate prices

down further than a single agency or client can. They can often be restrained by the client's

budget, in which, the media strategy will inform the creative team what media platform they'll be

developing the ad for.

Modern agencies might also have a media planning department integrated, which does all the

spot's planning and placements.

4. Production

Without the production department, the ads created by the copywriter and art director would be

nothing more than words and pictures on paper. The production department, in essence, ensures

the TV commercial or print ad, etc., gets produced. They are responsible for contracting external

vendors (directors and production companies in the case of TV commercials; photographers and

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design studios in the case of the print advertising or direct mailers). Producers are involved in

every aspect of a project, from the initial creative briefing through execution and delivery. In

some agencies, senior producers are known as "executive producers" or "content architects".

5. Other departments and personnel

In small agencies, employees may do both creative and account service work. Larger agencies

attract people who specialize in one or the other, and indeed include a number of people in

specialized positions: production work, Internet advertising, planning, or research, for example.

An often forgotten, but integral, department within an advertising agency is traffic. The traffic

department regulates the flow of work in the agency. It is typically headed by a traffic manager

(or system administrator). Traffic increases an agency's efficiency and profitability through the

reduction of false job starts, inappropriate job initiation, incomplete information sharing, over-

and under-cost estimation and the need for media extensions. For example, In small agencies

without a dedicated traffic manager, one employee may be responsible for managing workflow,

gathering cost estimates and answering the phone. Large agencies may have a traffic department

of five or more employees.

Large advertising agencies may also have other departments common to large companies and

professional services firms, such as in-house legal, business development, accounting and human

resources departments.

6. Interns in advertising

Advertising interns are typically university juniors and seniors who are interested in and may

have an aptitude for advertising. Internships at advertising agencies most commonly fall into one

of five areas of expertise: account services, interactive, media, public relations and traffic. Art

students working on the creative side can find internships as an assistant art director or assistant

copywriter.

An internship program in account services usually involves fundamental work within account

management as well as offering exposure to other facets of the agency. The primary

responsibility of this position is to assist account managers. Functions of the account

management intern may include:

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Research and analysis: Gathering information regarding industry, competition, customer

product or service; as well as presenting findings in verbal/written form with

recommendations

Involvement in internal meetings and, when appropriate, client meetings

Assisting account services in the management of creative projects

Interns often take part in the internal creative process, where they may be charged with creating

and managing a website as well as developing an advertising campaign. Hands on projects such

as these help interns learn how strategy and well-developed marketing are essential to a sound

advertising and communications plan.

During their internship, the intern will experience the development of an ad, brochure and

broadcast or communications project from beginning to end. During the internship, the intern

should be exposed to as much as possible within the agency and advertising process.

9.6 Advertising Agency Management:

Effective advertising agency management is essential to stay ahead of competitors because

advertising industry is competitive and demanding. So there are some strategies on how to

manage an advertising agency.

1. Develop a strong mission statement:

Manage an advertising agency using a strong mission statement that stresses the importance of

excellence and meeting client goals according to industry standards and trends. Emphasize this

mission to employees so it influences every task they complete.

2. Focus on client satisfaction:

An advertising agency can‘t be successful without satisfied clients, so maintain this as a primary

management goal. Meeting the needs of individual clients requires an ad agency and its staff to

pay attention to client concerns and give each project individual attention according to the size

and nature of the project.

3. Educate employees continuously:

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Manage ad agency staff successfully by encouraging them to continuously expand their skill set

within the industry by taking courses and completing further advertising education. Sign up for

regular seminar sessions, like the ones offered by Fortune and Forbes, that offer news and

education about advertising industry trends and changes.

4. Recruit new talent:

Recruitment of new talent helps the advertising agency in getting fresh ideas for the development

of new advertisements so that maximum market can be attracted.

5. Recent college graduates will provide a fresh perspective on the advertising industry:

Manage an ad agency by establishing an internship program with colleges and universities that

offer advertising or business degrees, so an ad agency can recruit fresh talent for your staff.

6. Consider freelancers:

Freelance advertising designers can bring new talent to an ad agency for specific projects

Working with freelance staff can open an ad agency upto dealing with new markets and clients.

7. Stay informed about the industry:

Sign up for regular newsletters that contain information about news and trends related to the

advertising industry and an ad agency management.

Check your Progress II:

i) ............................... agencies formerly known as interactive agencies or new media

agencies.

ii) .................................................. of new talent helps the advertising agency in getting fresh

ideas for the development of new advertisements

iii) ......................................... advertising designers can bring new talent to an ad agency for

specific projects.

9.6 Summary

An advertising agency or ad agency or advert agency is a service based business dedicated to

creating, planning, and handling advertising) for its clients. An ad agency is independent from

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the client and provides an outside point of view to the effort of selling the client's products or

services. An agency can also handle overall marketing and branding strategies and sales

promotion for its clients. Ad agencies come in all sizes and include everything from one or two-

person shops (which rely mostly on freelance talent to perform most functions, small to medium

sized agencies. There are some advertising departments which helps in coordinating all the

functions of advertisement.

9.7 Glossary

1. Advertise - To communicate information through print and digital media about a

company's product or service. The information is usually targetted to those the company

believes have the most interest in the product or service.

2. Agency - An advertising company that represents other companies by providing

advertising related services such as planning, creating, buying and tracking an

advertisement on behalf of their client.

3. Advertising – A paid, mediated, form of communication from an identifiable source,

designed to persuade the receiver to take some action, now or in the future.

4. Boutique – An agency that provides a limited service, such as one that does creative

work but does not provide media planning, reswarch etc. Usually, this refers to a relatively

small company.

5. Creatives – The art directors and copywriters in an ad agency

6. Full Service agency – An agency that handles all aspects of advertising process, including

planning, design, production, and placement.

7. House agency – An advertising agency owned and operated by an advertiser, which handles

the advertiser‘s account.

8. Marketing Research – The systematic gathering, recording, analyzing and use of data relating

to the transfer and sale of goods and services from producer to consumer.


Answers to check Progress I:

i) Research function

ii) True

iii) Creative Agency

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Answers to check Progress II:

i) Digital

ii) Recruitment

iii) Freelance

9.9 References

Advertising Principles and Practice, by William Wells, John Burnett and Sandra

Moriarty, Pearson.

Advertising Management, by Rajeev Batra, John G. Myers and David A. Aaker,

Pearson.

http://en.wikipedia.org/wiki/Advertising_agency

http://www.wikihow.com/Manage-an-Ad-Agency

http://www.knowthis.com/advertising/advertising-agency-functions

http://www.aai.ie/resources/uploads/Glossary_of_Advertising_Terms.pdf

http://www.adglossary.com/


Ogilvy On Advertising by David Ogilvy

Advertising and Promotion : An Integrated Marketing Communications Perspective 9th Edition by Michael A. Belch, Keyoor Purani, George E. Belch, McGraw Hill.

The Advertising Agency Business by Eugene Hameroff, McGraw Hill Professional.

9.11 Terminal Questions

1. Define advertising agency. What are the major functions of an advertising agency?

2. Which department helps the agency in the creation of an advertisement? How?

3. List some different types of advertising agency. Explain in brief the role of advertising

agencies.

4. Discuss in detail the various departments of an advertising agency and their functions.

5. How an advertising agency can manage itself? Explain.

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http://en.wikipedia.org/wiki/Advertising_agency

http://www.wikihow.com/Manage-an-Ad-Agency

http://www.knowthis.com/advertising/advertising-agency-functions

http://www.aai.ie/resources/uploads/Glossary_of_Advertising_Terms.pdf

http://www.adglossary.com/

http://www.kqzyfj.com/click-5235187-10876509?url=http%3A%2F%2Fwww.booksamillion.com%2Fp%2FOgilvy-Advertising%2FDavid-Ogilvy%2F9780394729039&cjsku=9780394729039

http://www.flipkart.com/author/michael-a-belch

http://www.flipkart.com/author/keyoor-purani

http://www.flipkart.com/author/george-e-belch

Chapter – 10

Advertising Creativity

Structure:

10.1 Objectives

10.2 Introduction

10.3 Advertising Creativity

10.4 Creative thinking

10.5 Creativity Strategy

10.6 Importance of Creativity in advertising

10.7 Summary

10.8 Glossary


10.10 References



10.1 Objectives

After studying this chapter you will be able to:

Conceptualise creativity in advertising.

Know the role of creativity in advertising.

Describe the key creative strategic approaches.

Understand the role of creative person in advertising.

10.2 Introduction

To be creative an ad must make a relevant connection with its audience and present a selling idea

in an unexpected way. There is both a science and an art and an art a big idea is a creative

concept that makes the message attention getting and memorable. According to Webster‘s

dictionary to ‗create‘ means: to bring into existence, to invets with a new form, to produce

through imaginative skill. The encyclopedia Britannica uses a similar definition: the ability to

make or otherwise bring into existence something new, whether a new solution to a problem, a

new method or device, or a new artistic object or form. The two primary determinants of

creativity are: There must be something new, imaginative, different, or unique- this component is

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generally referred to as ‗divergence‘. Second, the divergent thing produced must solve a problem

or have some type of ‗relevance‘.

10.3 Advertising Creativity

Behind every effective advertisement there is a big idea, i.e. a creative concept that implements

the advertising strategy so that the message is both attention getting and memorable. This is the

―art‖ side of creative advertising. In getting the great idea, sometimes the visual idea comes first;

sometimes it‘s the words. The important thing is that they work together to complete the thought.

According to advertising legend James Webb Young, a founder of the Young & Rubicam

agency, an idea is a new combination of thoughts. Young in his book on creative thinking,

claims that ―the ability to make new combinations is heightened by an ability to see

relationships.‖ An idea, then, is a thought that comes from placing two previously unrelated

concepts together.

But what makes an idea creative? Any idea can seem creative to you if you have never thought

of it before, but the essence of a creative idea is that no one else has thought of it either. In an

industry that prides itself on creativity, copycat advertising- that is, using an idea that someone

else has originated – is a concern.

Fact I:

Advertising expert John Eighmy estimates that about 50 percent of the advertising in the

United States falls into this category.

Ad creativity versus personal creativity

People are creative when they produce ideas, solutions, inventions, or products that are divergent

and relevant. This means that an ad that is creative to one group (e.g. senior citizens) may not be

considered to be creative by another group (e.g. teenagers). Ultimately, ads are products of

people, just like ideas and inventions. Accordingly, the concepts of divergence and relevance can

be applied to anything people create including advertisements. This is important because three

different types of creativity are related to advertising. First, there is the creative team who

develop and implement the creative strategy and actually produce the ad. Second, there is the

level of creativity that the ad is perceived to possess by the target market. Third, there is the level

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of creativity in the audience members who are exposed to the ad. The term ‗personal creativity‘

will refer to the divergence/relevance of creative talent (e.g. creative directors, copywriters, etc.);

‗ad creativity‘ will refer to the divergence/relevance of an ad (or campaign) as perceived by the

target market; and ‗consumer creativity‘ will refer to the divergence/relevance of the audience

members exposed to the ad.

To create an original and unexpected idea various techniques should be followed. Like an

unexpected twist in an advertisement e.g., an ad for Amazon.com used the headline, ―460

books for Marxists, Including 33 on Grucho. Secondly, an unexpected association, an ad

for Compaq used a visual of a chained butterfly to illustrate the lack of freedom in

competitor‘s computer workstations. Use of catchy phrases also helps the advertising

agency to attract lot of audiences.

Use of analogy and metaphor like Harley Davidson compared the legendary sound of it

motorcycles to the taste of a thick, juicy steak. Familiar and strange ads also attract lot of people.

Put the familiarity in an unexpected situation: UPS showed a tiny model of its familiar brown

truck moving through a computer card.

Creative Leap

A big idea that expresses an original advertising thought involves a mind-shift. Instead of seeing

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the obvious, a creative idea looks at something in a different way, from a different angle.

Advertising giant Otto Kleppner defined creative leap as finding the brilliant creative concept. It

is a process of jumping from the strategy statement to an original idea that conveys the strategy

in an interesting way. Since the creative leap means moving from the safety of a predictable

strategy statement to an unusual idea that hasn‘t been tried before, this leap is often referred to as

the creative risk: If it hasn‘t been tried before, then it‘s a gamble. All creative ideas in advertising

involve this element of risk, and that is why copy-testing is used to test the idea before it runs, to

try to determine whether it works.

10.4 Elements of Creativity:

I) Creative Thinking

Creativity is a special form of problem solving and everyone is born with some talent in that

area. In advertising, as in all areas of business, creativity is not limited to the writers and art

directors. Media planners and market researchers are just as creative in searching for new ideas

and innovative solutions. The most common techniques that creative thinkers use to stimulate

new ideas are free association, divergent thinking, analogies and metaphors, and right brain

thinking.

1. Free Association: In free association you can think of a word and then describe everything that

comes into your mind when you imagine that word.

2. Divergent thinking: Divergent thinking is the heart of creative thinking uses exploration to

search for all possible alternatives.

3. Analogies and Metaphors: Analogies and metaphors are used to see new patterns of

relationships.

4. Right brain thinking: Intuitive, non-verbal, and emotion based thinking in contrast to left brain

thinking, which is logical and controls speech and writing. A left brain - dominant person is

presumed to be logical, orderly and verbal. A right brain dominant person is tends to deal in

expressive images, emotion, intuition and complex, interrelated ideas that must be understood as

a whole rather than as pieces.

Creative Aerobics:

Creative aerobics is a thought-starter process that works well in advertising because it uses

both the head and the heart, which we refer to in strategy development as rational and

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emotional appeals.

II) Creative Roles

All agencies have copywriters and art directors who are responsible for developing the creative

concept and crafting the execution of the advertising idea. They often work in teams, are hired

and fired as a teams, and may work together successfully for a number of years. Broadcast

producers can also be part of the team for television commercials. The creative director manages

the creative process and plays an important role in focusing the strategy of ads and making sure

the creative concept is strategically on target. As advertising creativity is a product of teamwork,

copywriters and art directors work together to generate concept, word and picture ideas. Their

writing or design specialities come into play in the execution of the idea.

III) The Creative Person

Creative people are found in business, science, engineering, advertising, and many other fields.

But in advertising, creativity is both a job description and a goal. Creative advertising people

may be crazy, weird, off-the wall and unconventional, but they can‘t be strange. Coming up with

a great idea that is also on strategy is an emotional high.

Fact II

According to Research by the Center for Studies in Creativity and the Creative Education Foundation,

both in Buffalo, New York, has found the most people can sharpen their skills and develop their

creative potential.

Research indicates that creative people tend to be independent, assertive, self-sufficient, persistent,

and self-disciplines, with a high tolerance for ambiguity. They are also risk takers with powerful egos

that are internally driven. They don‘t care much about group standards and opinions and typically

have inborn scepticism and strong curiosity.

The characteristics of creative people who do well in advertising:

1. Problem solving: Creative problem solvers are alert, watchful, and observant and reach

conclusions through intuition rather than through logic. They also tend to have a mental

playfulness that allows them to make original associations.

2. The Ability to visualize: Most of the information we accumulate comes through sight, so the

ability to manipulate visual images is crucial for good copywriters, as well as designers. They

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can see products, people, and scenes in the mind‘s eye, as well as visualize a mental picture of

the finished ad while it is still in the talking, or idea, state.

3. Openness to new experiences: Over the course of a lifetime, openness to experience may

give you many adventures from which to draw. Those experiences would give a novelist more

characters to write about, a painter more scenes to paint, and the creative team more angles from

which to tackle an advertising problem.

4. Conceptual thinking: It‘s easy to see how people who are open to experience might develop

innovative advertisements and commercials because they are more imaginative.

Creative Idea Example:

Microsoft ―Butterfly Campaign‖ was the award winning creative idea.

Highly Creative People

Henry Ford

Father of the Model T

Steve Jobs

Co-Founder of Apple

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Rajiv Rao

Conceived the Zoozoo idea

Lucille Ball

I Love Lucy celebrity

IV) Creative Process

The Creative Process has six phases:

Phase 1- Immersion: Read, research, and learn everything you can about the problem.

Phase 2- Ideation: Look at the problem from every angle ; develop ideas; generate as many

alternatives as possible.

Phase 3 - Brainfog: You may hit a blank wall and want to give up.

Phase 4- Incubation: Try to put your conscious mind to rest to let you subconscious take over.

Phase 5- Illumination: There is that unexpected moment when the idea comes, often when your

mind is relaxed and you‘re doing something else.

Phase 6- Evaluation: Does it work? Is it on strategy?


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i) In .......................................... you can think of a word and then describe everything that

comes into your mind when you imagine that word.

ii) At the phase of .............................................. you read, research and learn everything you can

about the problem.

10.5 Creative Strategy

The art and science of advertising come together in the phrase creative strategy. A big idea must

be both creative (original, different, novel, unexpected) and strategic (right for the product and

target; meets the advertising objectives).

A creative strategy defines the important strategic choices required to develop a marketing

message. The creative strategy (often called a copy or advertising strategy) defines what you will

say about your product or service. It explains how you want consumers to think about your

Brand. The creative strategy guides and directs the development of current and future sales

messages, brochures, and advertising. A written creative strategy becomes a potent management

tool for directing the activities of advertising agencies. It clearly articulates how the product or

service will be presented to customers and positioned versus competitors.

People who create advertisements also make a distinction between creative strategy and creative

executions. Creative strategy, or message strategy, is what the advertisement says and execution

is how it is said.

Components of a Creative strategy:

1. Overall Objective: The purpose for making the communication; the problem to be solved;

what action or change you want to result from the communication.

So, to plan creative strategies it is important to set the message objective of that particular idea

you (advertiser) have. The advertising objectives that relate to the six facets of effectiveness are:

Perception: Create attention, awareness, interest, recognition and recall.

Cognitive: Deliver information and understanding.

Affective: Touch emotions and create feelings.

Persuasion: Change attitudes, create conviction and preference.

Transformation: Establish brand identity and associations.

Behaviour: Stimulate trial, purchase, repurchase, or some other form of action.

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2. Target audience: To whom you wish to communicate your message. Knowing this group

defines what information to convey, how to say it, and how to deliver it.

3. Promise: A single idea that explains why the target audience should take the action you

desire. This one idea should summarize the benefit the target audience can expect to receive.

4. Support: Facts and perceptions that make the promise believable.

5. Positioning: Explain how your product or services is different from competitors and how you

want the target audience to think about your brand in comparison with other brands.

6. Tone: Emotional guideline that helps select vocabulary and style of presentation.

10.5 Importance of Creativity in advertising

Creativity in advertising is very important for an organization. There are several reasons that

why people see the ads which have high creativity. It means that creativity in advertisements

leads to:

1. Attraction of customers: Customers got easily attracted to those ads which have high

creativity. For example: Mentos khao, dimmag ki baati jalao is a very effective advertisement

which attracts lot of people just because of its unique tagline.

2. Breaking the clutter: As we all know that in every era of marketing, there is an intense

competition. Advertising is plagued by ad clutter. So to overcome that competition advertising

agencies are making ads which are totally different from competitors. For example: in Cadbury

Dairy Milk advertisement Amitabh Bacchan walking into the Cadbury factory takes a complete

look on the manufacturing process and gives his assurance and approval to eat chocolate.

3. Differentiation: Differentiation among advertisements among ads is very essential to make

attentive the general public. For example: Idea No Ullu Banawing song which is promotional

advertisement song of Idea Cellular for promoting Idea Internet service in India. This song is

focusing on for the victim of overcharging taxiwalas, rumour mongers, yarn spinners or white

liars

4. Persuasion: Persuasive advertising is designed to affect attitudes and create belief. Strategies

that are particularly goo are testimonials and messages that generate word of mouth about the

product. A referral from someone who is not affiliated with the product will have more

persuasiveness than an ad that everyone knows is paid for by its sponsor. Persuasion sometimes

uses the psychological appeal of the product to the consumer as the focus of a message strategy.

An appeal connects with some emotion that makes the product particularly attractive or

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interesting, such as security, esteem, fear, sex, and sensory pleasure. Although emotion is at the

base of most appeals, in some situations appeals can also be logical, such as saving money for

retirement. Appeals generally pinpoint the anticipated response of the audience to the product

and the message. For example: if the price is emphasized in the ad, then the appeal is value,

economy or savings. If the product saves time or effort, then the appeal is convenience.

5. Transformation of a Product into a Brand: The transformative power of branding, where

the brand takes on character and meaning, is one of advertising‘s most important functions.

Image advertising is used to create a representation in a consumer‘s mind. The image takes on a

particular meaning based on the ideas, feelings, and attitudes that a consumer has about a

product, as well as the consumer‘s past experiences with the product and its advertising.

Advertising‘s role is to provide the cue that makes these meanings and experiences come

together as a coherent image of the brand.

10.6 Types of Creative Strategies

1. Head and Heart Strategies: There are two basic approaches sometimes referred to as head

and heart strategies. There are three types of effects, think (cognitive) and feel (affective) drive

the do, or action decision. The think and feel dimensions are sometimes referred to as rational

and emotional, or what we are calling the head and heart factors.

2. Hard- and Soft-Sell strategies: Related to head and heart strategies are hard-and soft-sell

approaches. A hard sell is an informational message that is designed to touch the mind and create

a response based on logic. The assumption is that the target audience wants information and will

make a rational product decision. The approach emphasizes tangible product features and

benefits. A soft sell uses emotional appeals or images to create a response based on attitudes,

moods, dreams, and feelings. The assumption with soft sell strategies is that the target audience

has little interest in an information search and will respond more favorably to a message that

touches their emotions or presents an attractive brand image.

3. Lectures and Dramas: Most advertising messages use a combination of two basic library

techniques to reach the head and heart of the consumer, lectures and dramas. A lecture is a

serious instruction given verbally. The speaker presents evidence and uses a technique such as an

argument to persuade the audience. The advantages of lectures are many: They are not expensive

to produce and are compact and efficient. A lecture can deliver a dozen selling points in seconds,

get right to the point, and make the point explicitly. In advertising we use the phrase ―a talking

head‖ to refer to an announcer who delivers a lecture about a product. This can also be a

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celebrity spokesperson or an authority figure, such as a doctor or scientist. Drama relies on the

viewer to make inferences. Through drama, advertisers tell stories about their products; the

characters speak to each other, not to the audience. Like fairy tales, movies, novels, parables and

myths, advertising dramas are essentially stories about how the world works. They can be funny

as well as serious. Viewers can learn from these commercial dramas by inferring lessons from

them and by applying those lessons to their everyday lives. When a drama rings true, viewers

join in, draw conclusions from it, and apply those conclusions to their product decisions.


a) Which advertising is designed to affect attitudes and create belief?

b) A lecture is a ……………………. instruction given verbally.

c A soft sell uses ………………………….. appeals or images to create a response based on

attitudes, moods, dreams, and feelings.

10.7 Summary

To be creative and ad must be make a relevant connection with its audience and present a selling

idea in an unexpected way. There is both a science (the way a message is persuasive, convincing

and relevant) and an art (the way a message is an unexpected idea). A Big Idea is a creative

concept that makes the message attention getting and memorable. Creative people tend to be

independent, assertive, self-sufficient, persistent and self-disciplined, with a high tolerance for

ambiguity. They are also risk takers with powerful egos that are internally driven. They don‘t

care much about group standards and opinions and typically have inborn scepticism and strong

curiosity. They are good problem solvers with an ability to visualize and do conceptual thinking.

They are open to new experiences. A typical creative process involves immersing yourself in

back-ground research, developing alternatives through ideation, brainfog here you hit the wall

and can‘t come up with anything, and illumination where you get the great idea. Creative

strategies are often expressed as appeals to the head, the heart or both. The six facets of creative

strategy are perception, cognitive, affective, persuasion, transformation, and behaviour. These

can be rephrased as awareness, information, emotion, persuasion, brand image, and action

strategies.

From the advertising strategy comes the problem statement, the objectives, the target maekt, and

the positioning strategy. The message strategy, selling premise and suggestions about the ad‘s

execution, such as tone of voice.

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10.8 Glossary

1. Clutter: the excessive number of messages delivered to a target audience.

2. Copywriter: the person who writes the text for an ad.

3. Cognition: How consumers respond to information, learn and understand.

4. Brainstorming: A creative thinking technique using free association in a group environment

to stimulate inspiration.

5. Big Idea: A creative idea that expresses an original advertising thought.

6. Advertiser: A person or organization that initiates the advertising process.

7. Association: the process used to link a product with a positive experience, personality or

lifestyle.

8. Creative Brief: The document that outlines the key strategy decisions and details the key

execution elements

9. Creative Concept: A big idea that is original, supports the ad strategy, and dramatizes the

selling point.

10. Creative Director: The person responsible for managing the work of the creative team.

11. Creative strategy: the determination of the right message for a particular target audience, a

message approach that delivers the advertising objectives.

12. Image advertising: A type of advertising that creates a unique brand meaning.

13. Media Strategy: The decisions media planners make to deliver the most effective media mix

that will reach the target audience and satisfy the media objectives

14. Objective: The goal or task an individual or business wants to accomplish.


Answers to Check your Progress I:

i) Free association

ii) Immersion

Answers to Check your Progress I:

a) Persuasive advertising

b) Serious

c) Emotional

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10.10 References

Advertising Principles and Practice, by John Burnett and Sandra Moriarty, Pearson.

Advertising Management, by Rajeev Batra, John G. Myers and David A. Aaker, Pearson.

http://hbr.org/2013/06/creativity-in-advertising-when-it-works-and-when-it-doesnt/ar/3

http://muse.jhu.edu/journals/advertising_and_society_review/v011/11.4.o-barr01.html



How to Write an Inspired Creative Brief by Howard Ibach

Creative Advertising, by Mario Pricken


1. What is a big idea and what are its characteristics?

2. List five characteristics of creative people. How do you rate yourself on those factors?

3. Describe the six steps in the creative process.

4. Why creativity is important in advertising?

5. What are the key creative strategies adopted in advertising?

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http://hbr.org/2013/06/creativity-in-advertising-when-it-works-and-when-it-doesnt/ar/3

http://muse.jhu.edu/journals/advertising_and_society_review/v011/11.4.o-barr01.html


http://www.tkqlhce.com/click-5235187-10876509?url=http%3A%2F%2Fwww.booksamillion.com%2Fp%2FHow-Write-Inspired-Creative-Brief%2FHoward-Ibach%2F9781440158278&cjsku=9781440158278

Chapter 11

Advertising Campaign Planning and Media Planning

Structure:

11.1 Objectives

11.2 Campaign Planning

11.3 Media Planning

11.4 Components of a Media Plan

11.5 Logical Progression of steps in Media Planning

11.6 Summary

11.7 Glossary

11.8 References


11.10 Terminal Questions

11.1 Objectives

After reading this chapter you will be able to :

Outline the basic media concepts used by planners and buyers.

Describe the type of information compiled by media researchers.

Analyze how media planners set media objectives.

List the key media strategy decisions.

Understand the concept campaign planning.

11.2 Campaign Planning

Campaign plan is a plan to achieve an objective, usually of a large-scale over an extended

period of time. It usually coordinates many activities and uses of resources involving multiple

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organizations. A campaign plan could also have subordinate objectives or intermediate

milestones and is often broken down by phases. They often begin with an assessment of the

situation to put the plan in context. Campaign plans are often created in business marketing ,

political campaigning and military campaigning.

Campaign:

A campaign can be defined as a uni-focus, short term communication program,

making use of various mass media, aimed at a defined target audience.

In an advertising campaign, strategy is considered the most important part of the

campaign. The pre campaign decisions were taken and included in the strategy.

Since the campaign are cost intensive, it is important to plan to precision to achieve

the desired response.

An advertising campaign is a series of advertisement messages that share a single idea and

theme which make up an Integrated Marketing Communication (IMC). Advertising campaigns

appear in different media across a specific time frame of frequent flyers points.

The critical part of making an advertising campaign is determining a campaign theme as it sets

the tone for the individual advertisements and other forms of marketing communications that

will be used. The campaign theme is the central message that will be communicated in

the promotional activities. The campaign themes are usually developed with the intention of

being used for a substantial period but many of them are short lived due to factors such as being

ineffective or market conditions and/or competition in the marketplace and marketing mix..

Campaign planning is done by various means like television advertisement, family in

advertisement, mobile campaign and radio advertisement.

1. Television Advertisement: A commercial advertisement on television (usually abbreviated to

TV commercial, ad, ad-film, and known in UK as advert, or TV advert) is a span of television

programming produced and paid for by an organization, which conveys a message, typically to

market a product or service. Advertising revenue provides a significant portion of the funding for

most privately owned television networks. The vast majority of television advertisements today

consist of brief advertising spots, ranging in length from a few seconds to several minutes.

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Advertisements of this sort have been used to promote a wide variety of goods, services and

ideas since the dawn of television.

The viewership of television programming, as measured by companies such as Nielsen Media

Research, is often used as a metric for television advertisement placement, and consequently, for

the rates charged to advertisers to air within a given network, television program, or time of day

(called a "daypart").

Fact I:

In many countries, including the United States, television campaign advertisements are

considered indispensable for a political campaign. In other countries, such as France, political

advertising on television is heavily restricted, while some countries, such as Norway ,

completely ban political ads.

But in country like India, political campaigns of different parties are fully broadcasted on

TV as an ad.

Television advertising involves two main tasks:

1.) Creating a television advertisement that meets broadcast standards, and

2.) Placing the advertisement on television via a targeted air time media buy that reaches the

desired customer.

To accomplish these tasks, it is important to choose a television production company and

advertising agency with pertinent expertise in these two arenas, and it is preferable to choose an

agency that both produces advertisements and places air time, because expertise in broadcast

quality production and broadcast standards is vital to gaining the advertisement's acceptance by

the networks. Many television advertisements feature songs or melodies ("jingles") or slogans

designed to be striking and memorable, which may remain in the minds of television viewers

long after the span of the advertising campaign. Some of these ad jingles or catch-phrases may

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take on lives of their own, spawning gags that appear in films, television shows,

magazines, comics, or literature.

Advertising agencies often use humour as a tool in their creative marketing campaigns. In fact,

many psychological studies have attempted to demonstrate the effects of humour and their

relationship to empowering advertising persuasion.

Animation is often used in advertisements. The pictures can vary from hand-drawn traditional

animation to computer animation. By using animated characters, an advertisement may have a

certain appeal that is difficult to achieve with actors or mere product displays. Animation also

proofs the advertisement from changes in fashion that would date it.

A still from an animated TV Advertisement

2. Family in Advertising: The image of the family in advertising has become a prominent

symbol in advertising and is utilized in marketing campaigns to increase profits. Different

members of the family are portrayed in different ways within advertising and such portrayals

often reflect the traditional roles of each member during the time in history in which the

advertisement is presented.

'Family' is a popular symbol in commercial advertising that is commonly used to persuade

audiences into consuming one's business' goods or services over a competitor. Consequently, the

symbol of family as used in advertisements is functional – it both increases profit and builds a

positive reputation among customers.

The family symbol functions on three levels of persuasion: social, psychological, and personal.

Social persuasion appeals to one‘s role in a group and corresponding expectations; it appeals

to reference groups, social class, culture, and subculture. The family symbol is socially

persuasive in that it appeals to one‘s role within the family and their corresponding expectations.

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One does not only feel a social or external pressure to fulfil roles and expectations of being a

good parent, sibling, or child, however.

Psychological persuasion in advertisements appeals to one's motives, attitudes and

personalities. The family symbol is psychologically persuasive in that it appeals to the emotional

attachments between spouses, siblings, or parent-child relationships. To continue the above

example, the mother not only wants to purchase a product that purportedly limits irritation or

harm for her child due to her social role and expectations, but also because she feels an

emotional attachment to her child.

Personal persuasion appeals to one‘s demographic identity or consumer behaviours. The family

symbol is personally persuasive because families make buying decisions together as a unit.

Furthermore, one person in a family may make the majority of the buying decisions. To target

that person in advertising, referencing their location within the family and their responsibility to

make purchasing decisions for the family, will be more profitable than targeting others. For an

example of personal persuasion, the McDonald's corporation in India has had great marketing

success in designating themselves as the "McDonalds Family Restaurant".

Some Ads in which families are present:

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3. Radio Advertisement: Commercial radio stations make most of their revenue selling

"airtime" to advertisers. Of total media expenditures, radio accounts for 6.9%. Radio

advertisements or "spots" are available when a business or service provides valuable

consideration, usually cash, in exchange for the station airing their spot or mentioning them on

air. There is a broad range of choices for type and length of radio commercials. With changes in

the radio industry and better production technologies, the mode of commercial presentation has

changed, and commercial advertisements can take on a wide range of forms. The two primary

types of radio ads are "live reads" and ―produced spots‖.

i) Live read refers to when a DJ reads an advertiser's spot on the air, delivered from a script, fact

sheet or personal knowledge. It can also refer to when the DJ "endorses" the advertiser's goods or

services. The Radio Advertising Bureau defines an endorsement as: "A commercial in which the

program personality personally recommends an advertiser's product or service, often done live

during the program."

ii) Produced spots appear to be more common. A spot is 'produced' if the radio station or

an advertising agency records it for the client. Produced commercial formats include: straight

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read with sound effects or background music, dialogue, monologue (where the voice talent

portrays a character, as opposed to an announcer), jingles, and combinations of these. Studies

show that the quality of the commercials is as important to listeners, generally, as the number of

ads they hear.

4. Mobile Campaign: A mobile campaign is a campaign, usually marketing, advertising,

or public relations-related, through which organizations contact their audience through SMS (text

messaging). This form of campaigning allows organizations to reach out and establish

relationships with an audience in a more individualized, intimate way. The foundational function

of mobile campaigns is regularly referred to as mobile marketing. A campaign‘s goal can have

varied consumer consumption objectives including flashing (showing an image), informing

(informational text / product info) or engaging (response or click required). Mobile campaigns

have developed from the periphery of advertising to being an integral part of an

effective marketing strategy.

A good example of one of the first mobile campaigns is the viewer voting system employed

in American Idol. Using the American Idol example, the primary campaign was television, and

the engagement was mobile, ―watch this show, and text to vote‖. Later on, In India this campaign

was adopted by so many reality shows like Indian Idol, Dance India Dance, Jhalak Dikhla Jaa,,

Big Boss etc.

Fact III:

Using the American Idol example, the primary campaign was television and the engagement

was mobile, ―watch this show, and text to vote‖. In 2012, there were over 131 million votes

in a single night, setting the world mobile voting record. With over 90% of Americans having

cell phones, and there being over 6.8 billion cell phones in circulation globally versus 2.4

billion with internet access, mobile campaigns are evolving to be the way of the future in

Fact II:

Studies show that the first or second commercial to air during a commercial break has higher

recall than those airing later in the set.

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advertising and consumer engagement.

As advertisers enhance existing strategies to reach potential customers, technological advances

create new ways for consumers and corporations to interact. New technologies are being

developed to maximize the effectiveness of one‘s mobile device as a personal marketing

platform including the facilitation of the GPS enabled smart-phone to provide location-based

services and nearby coupons. Elements of mobile campaigns can be distributed by

advertisements in apps, text messages or emails and can include a combination of the following:

Text to Vote; Text to Win; Click to Call; Click to order brochures; Click to receive mobile

coupons; Click to buy; Click to download content: Click to enter branded mobile websites; Click

to forward content and Click / text to donate.

Check Your Progress I:

i) IMC stands for................................................................................................

ii) ................................ persuasion appeals to one’s demographic identity or consumer behaviours.

iii) A spot is ............................................ if the radio station or an advertising agency records it for the

client.

11.2 Media Planning

The media plan is a written document that summarizes the objectives and strategies pertinent to

the placement of a company‘s advertising messages. The goal of a media plan is to find the most

effective ways to deliver messages at every important contact point, the point where a consumer

has an opportunity to connect with a brand and respond in some way to a brand message.

Media planning is generally the task of a media agency and entails finding media platforms for

a client's brand or product to use. The job of media planning is to determine the best combination

of media to achieve the marketing campaign objectives.

In the process of planning, the media planner needs to answer questions such as:

How many of the audience can be reached through the various media?

On which media (and ad vehicles) should the ads be placed?

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How frequent should the ads be placed?

How much money should be spent in each medium?

Choosing which media or type of advertising to use is sometimes tricky for small firms with

limited budgets and know-how. Large-market television and newspapers are often too expensive

for a company that services only a small area (although local newspapers can be used).

Magazines, unless local, usually cover too much territory to be cost-efficient for a small firm,

although some national publications offer regional or city editions. Metropolitan radio stations

present the same problems as TV and metro newspapers; however, in smaller markets, the local

radio station and newspaper may sufficiently cover a small firm's audience.

10.4 Components of a Media Plan

Some people believe that media decisions are the hub in the advertising wheel, the central point

where al campaign elements are joined. Not only are media decisions central to advertising

planning, but media research is central to media planning. That realization stems from the sheer

volume of data and information that media planners must gather, sort, and analyze before media

decision making can begin, which are discussed below.

1. Client Information: the client is a good source for various types of information media

planner‘s use in their work, such as targeted markets, previous promotions and their

performance, product sales and distribution patterns, brand plans, and most importantly, the

budget. Sales geography is a critical set of information. Although companies may distribute

goods and services in many cities and states, sales are seldom consistent across all areas, no

matter how popular the brand. Sales differences affect the decision about which markets the

advertiser should reach for the campaign and how many rupees are allocated to each geographic

region.

2. Market Research: Also valuable to media planners i independently gathered information about

market and product categories. This information is usually organized by product category

(detergents, cereals, snacks) and cross tabulated by audience groups and their consumption

patterns. Accessed online, this wealth of information can be searched and compared across

thousands of categories, brands and audience groups..

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Marketing Communication

Plan and Strategies

Direct

Marketing Plan

Advertsing Plan Sales Promotion Plan Marketing Public

Relations Plan

Others

Media Planning

Media Buying

Evaluation

Message Planning

Target and Media

Research

Media Objectives

Media Mix Selection

Scheduling and

Budgeting

Media Tactics

Monitoring

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3. Competitive advertising: In crowded product categories (household products, food and

durable goods) few advertisers ignore competitors advertising activity. In such situations media

planners make scheduling decisions based on the amount of competitive traffic. The objective is

to find media where the advertiser‘s voice is not drowned out by competitor‘s voices. This

concept is called share of voice, which measures the percentage of total advertising spending by

one brand in a product category relative to the competition; it gives media planners an idea of

how much their advertising will stand out.

4. Media Information: The various media all provide information about the size and makeup of

their audiences. Although useful, this information is also suspect because it is assembled to make

the best possible case for advertising in that medium. For that reason outside research sources,

such as media rep companies and the Nielsen reports are also used.Nielsen Media Research

Audits national and local television and Arbitron measures radio. Other services, such as the

Audit Bureau of circulation (ABS), Simmons, and Mediamark Research (MRI) monitor print

audiences and Media Metrix measures Internet Audiences. All of these provide extensive

information on viewers, listeners and readers- both the size of the audience, as well their profiles.

5. Consumer Information: Consumer information is useful in planning media strategies. For

example, media planners use such services as the Nielsen‘s ClusterPlus system, Claritas PRIZM

system and supermarket scanner data to locate the target audience within media markets.

Questions to be asked while Media Planning:

Define the marketing problem. Where is the business coming from and where is the

potential for increased business? Does the ad need to reach everybody or only a select

group of consumers? How often is the product used? How much product loyalty exists?

Translate the marketing requirements into media objectives. Must the ad reach people in

a wide area? Then mass media, like newspaper and radio, might work. If the target

market is a select group in a defined geographic area, then direct mail could be best.

Define a media solution by formulating media strategies. For example, the rule of thumb

is that a print ad must run three times before it gets noticed. Radio advertising is most

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effective when run at certain times of the day or around certain programs, depending on

what market is being reached.

Factors to be considered while comparing advertising media

There are number of factors responsible which helps the advertisers to select the media. The

factors are as following:

Reach - expressed as a percentage, reach is the number of individuals (or homes) to expose

the product to through media scheduled over a period of time.

Frequency - using specific media, how many times, on average, should the individuals in the

target audience be exposed to the advertising message? It takes an average of three or more

exposures to an advertising message before consumers take action.

Cost per thousand - How much will it cost to reach a thousand prospective customers (a

method used in comparing print media. To determine a publication's cost per thousand, also

known as CPM, divide the cost of the advertising by the publication's circulation in

thousands.

Cost per point - how much will it cost to buy one rating point the your target audience, a

method used in comparing broadcast media. One rating point equals 1 percent of the target

audience. Divide the cost of the schedule being considered by the number of rating points it

delivers.

Impact - does the medium in question offer full opportunities for appealing to the

appropriate senses, such as sight and hearing, in its graphic design and production quality?

Selectivity - to what degree can the message be restricted to those people who are known to

be the most logical prospects?

11.5 Logical Progression of Steps in Media Planning

The goal of media planning is to link media buying decisions with marketing objectives. If

advertisers and an ad agencies neglect marketing objectives when buying commercial time,

money is spent effectively. Media buying should be the end result of a logical sequence of steps

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that begins with an assessment of the advertisers marketing problems, a set of marketing

objectives that address the problems identified, a profile of the consumer target, and a media mix

and creative theme that will deliver the targeted consumer.

The following sequence of steps that should be involved with media planning.

1. Marketing Objectives: A number of marketing goals for a given brand, presumably based on

best opportunity for sale or solving other marketing problems. For example: Increase brand share

of market by 5 percent over last year, nationally.

2. Marketing strategies: A number of broadly conceived marketing decisions, organized into a

unified plan of action aimed at attaining marketing objectives. For example: Concentrate on

winning customers from competitors by using ads that show ways in which our brand is better

than theirs.

3. Media Objectives: A number of media goals, all related in some way to helping attain market

objectives, or related to marketing strategy. For example: Plan media selections to deliver at least

80 percent of both our and competitors target markets (targets are defined demographically).

4. Media strategies: A number of broadly conceived media decisions, organized into a unified

plan of action aimed at attaining media goals. For example: Frequency goal: 4.5 use network TV,

day and late fringe, spot TV in to 30 markets. Use 30‘s. Buy 600 gross ratings points in spot

markets.

5. Decision Implementation & Strategies (Tactics): A number of very specific decisions that

implement the media strategy. In many instances, these decisions serve as a basis for media

buying. For example: Eliminate newspapers, spot radio, spot TV, and billboards from

consideration. Use network TV or magazines. Find which gives 80 percent net reach of target at

lowest cost per thousand.

6. Media Buying: Actual purchasing decisions involving the selection and use of media. For

example: Make purchase of best alternative media according to the specifications laid down in

strategy and tactical plans, and according to any other specifications (e.g creative requirement).

Check Your Progress II:

i) Reach is expressed as a ............................. .

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ii) Give one word: A goal or task a media plan should accomplish.

11.6 Summary

Media aperture is a concept that says advertising should be delivered and is most effective when

people are receptive to the product information. Media research is a step in the media planning

process that involves collecting audience data about the marketplace, consumers, and various

media vehicles that might be used to reach the target audience. A situation analysis is constructed

based on client, market research, competitive advertising, media vehicles, and consumer

information. Media planners consider three critical elements in setting specific media objectives:

the degree of exposure (impressions), the number of different people exposed to the message

(reach), and the amount of repetition needed to reach those people make an impression on them

(frequency).Media strategies are designed to find media opportunities that will deliver on the

media objectives and reach the appropriate target audience. The key strategies include

geographical selection; media mix selection, cost efficiency decisions and scheduling and

budgeting decisions. Media buyers have inside information about the media industries that they

feed back into the planning. Their responsibilities as buyers include selecting media vehicles,

negotiating the rates, handling the billing and payment, and monitoring the effectiveness of the

media buy.

11.7 Glossary

1. Media: the channels of communication that carry the ad message to target audiences

2. Media buying services Service providers that specialize in the purchase of media for their

clients.

3. Media Kit: also called as a press kit, a packet or folder that contains all the important

information for members of the press.

4. Media objective: A goal or task a media plan should accomplish.

5. Media planning: A decision process leading to the use of advertising time and space to assist

in the achievement of marketing objectives.

6. Media Relations: Relationships with media contacts.

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7. Media reps: Media salespeople who sell media time and space for a variety of media outlets.

8. Media salespersons: People who work for a specific medium and call on media planners and

buyers in agencies to sell space or time in that medium.

9. Media Strategy: The decisions media planners make to deliver the most effective media mix

that will reach the target audience and satisfy the media objectives.

10. Media vehicle: a single program, magazine or radio station.

11.8 Answers to Check Your Progress


i) Integrated Marketing Communiaction

ii) Personal

ii) Produced


i) Percentage

ii) Media Objective

11.9 References:

Advertising Principles and Practice, by William Wells, John Burnett and Sandra Moriarty,

Pearson.

Advertising Management, by Rajeev Batra, John G. Myers and David A. Aaker, Pearson.

http://www.slideshare.net/MadhviKukreja/campaign-planning

http://www.adweek.com/news-gallery/advertising-branding/10-winners-adweeks2013-media-

plan-year-151913#intro

http://www.sitescout.com/support/campaign-planning/

http://kenazz.com/chc-ad/chc-ad-media-2.pdf

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http://www.slideshare.net/MadhviKukreja/campaign-planning

http://www.adweek.com/news-gallery/advertising-branding/10-winners-adweeks2013-media-plan-year-151913#intro

http://www.adweek.com/news-gallery/advertising-branding/10-winners-adweeks2013-media-plan-year-151913#intro

http://www.sitescout.com/support/campaign-planning/

http://kenazz.com/chc-ad/chc-ad-media-2.pdf

http://transition.fcc.gov/Bureaus/Mass_Media/Informal/ad-study/appendix-a.pdf



Advertising and Promotion : An Integrated Marketing Communications Perspective 9th

Edition by Michael A. Belch, Keyoor Purani, George E. Belch, McGraw Hill.

The Advertising Agency Business by Eugene Hameroff, McGraw Hill Professional.

11.11 Terminal Questions:

1. What is campaign planning? Explain.

2. What are the various means through which campaigns should be advertsised?

3. List some Indian examples of Campaign Advertising.

4. What are the five sources of information compiled by media researchers, and how are they

used in media planning?

5. Give some examples of strategic decisions that deliver the reach and frequency objectives.

6. How do consumer media use geography and consumption patterns affect a media plan?

7. What are the functions of a media buyer?

Page 159 of 241

http://transition.fcc.gov/Bureaus/Mass_Media/Informal/ad-study/appendix-a.pdf


http://www.flipkart.com/author/michael-a-belch

http://www.flipkart.com/author/keyoor-purani

http://www.flipkart.com/author/george-e-belch

Chapter 12

Apex Bodies in Advertising

Structure:

12.1 Objectives

12.2 Introduction

12.3 Advertising Agencies Association of India (AAAI)

12.4 Advertising Standards Council of India (ASCI)

12.5 Broadcast Audience Research Council (BARC)

12.6 Indian Society of Advertisers (ISA)

12.7 Summary

12.8 Glossary


12.10 References



12.1 Objectives

After studying this chapter you will be able to:

Know the role of apex bodies in advertising..

Understand the regulations made for advertising agencies..

Identify the need for these regulatory bodies.

Know the contributions of advertising agencies which are underthe control of these

bodies.

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12.2 Introduction

A regulatory body is like a professional body but it is not a membership organisation and

its primary activity is to protect the public. Unlike professional bodies, it is established on

the basis of legal mandate.

Regulatory bodies exercise a regulatory function, that is: imposing requirements, restrictions and

conditions, setting standards in relation to any activity, and securing compliance, or enforcement.

There are so many national and international regulatory bodies who control the activities of

advertising agencies. For example: Advertising Agencies Association of India, Advertising

Standards Council of India, Advertising standards Authority (UK), Advertising Association

(UK), Broadcast Audience Research Council (India), Indian Society of Advertisers (ISA) etc.

12.3 Advertising Agencies Association of India

Like other countries around the world, India too has a self-regulatory organization (SRO)

for advertising content – The Advertising Standards Council of India, ASCI founded in 1985.

The three main constituents of advertising industry viz advertisers, advertising agencies and

media came together to form this independent NGO. The aim of ASCI is to maintain and

enhance the public's confidence in advertising. Their mandate is that all advertising material

must be truthful, legal and honest, decent and not objectify women, safe for consumers -

especially children and last but not the least, fair to their competitors.

Advertising Agencies Association of India (AAAI) was registered on September 21, 1945, as a

society in Calcutta. 4 agencies from Calcutta – D J Keymer, General Advertising Agency, J

Walter Thomson Co. and Press Syndicate – and 3 agencies from Bombay – Adarts, Lintas and

National Advertising Service – were the signatories in the registrar‘s office doing the honours.

Initially the registered office of the Association was located at 37, Chowringhee, Calcutta.

Calcutta, under the British Raj, was a vibrant commercial city. In 1961, the AAAI office was

shifted to Bombay.

The Government also had a healthy respect for AAAI and always consulted it in matters of

consequence. For example, it was at AAAI instance that the Government permitted foreign

equity holding in ad agencies in the late 80‘s.

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Whenever required, AAAI has stepped in to protect its business interests to regulate orderliness

in the industry. It has been instrumental in restoring the 15% commission/trade discount for

Government business in Government owned media, or in lobbying for removal of tax on

advertising way back in 1965 and subsequently in 1978 and 1983, or during the most recent

Fringe Benefit Tax where advertising and promotion was included as Fringe Benefit!

AAAI‘s contribution in regulating the industry is no less significant. In 1987 when TV sponsored

programmes became a reality, it determined how the income should be shared between the

placing agency and the creative agency. In 1988 and again in 1990, AAAI was actively involved

in determining the procedures and policies of the electronic media i.e Doordarshan.

In 1983, AAAI was involved in a serious dialogue with Indian Newspaper Society (INS) when

the credit period was proposed to be reduced from 75 to 45 days. Finally we agreed on 60 days,

with the rider that "no changes would be made in the Accreditation Rules without mutual

consultation and consent" of INS and AAAI. In 1991, when the proposal came to reduce this 60

days to 45 days, it was persuasively defended. Since then INS and AAAI meet regularly with

respect to matters that concern both bodies.

AAAI has been behind the National Readership Survey as a joint industry initiative in

collaboration with INS and ABC. Having felt the need for a self-regulating body in Advertising,

AAAI was highly supportive to the formation of Advertising Standards Council of India

(ASCI).

Similarly, AAAI encouraged the formation of Indian Broadcasting Foundation so that it could

address the needs of TV channels. About 4 years back, AAAI signed a unique Agreement with

IBF, which codified the working relationship between the members of IBF and AAAI in the

matter of placing and paying for the ads. This initiative has been a resounding success for both

sides.

AAAI enjoys a healthy relationship with Indian Society of Advertisers (ISA). Time and again,

AAAI has been called upon by its members to resolve disputes with advertisers for which formal

Arbitration proceedings have been conducted. AAAI also assists our members to collect payment

from defaulting advertisers. AAAI, over the last six decades, has stood by its members and have

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protected their business interests, be it in dialogue with Government, media bodies or

advertisers; AAAI has regulated its members in the orderly conduct of their business affairs,

whenever the need arose; And last, but not the least, AAAI provided a platform for training of

advertising professionals, recognition of creative work through its coveted Triple-A Awards and

honouring outstanding advertising men through its AAAI-Premnarayen Award.

12.4 Advertisers Standards Council of India (ASCI)

Advertising Standards Council of India (ASCI) is a self-regulatory voluntary organization of the

advertising industry. Like other countries around the world, India too has a self-regulatory

organization (SRO) for advertising content – The Advertising Standards Council of India, ASCI

founded in 1985. The three main constituents of advertising industry viz advertisers, advertising

agencies and media came together to form this independent NGO. The aim of ASCI is to

maintain and enhance the public's confidence in advertising. Their mandate is that all advertising

material must be truthful, legal and honest, decent and not objectify women, safe for consumers -

especially children and last but not the least, fair to their competitors.

Member of ASCI

ASCI‘s team consists of the Board of Governors the Consumer Complaints Council (CCC) and

its Secretariat. ASCI has 12 members in its the Board of Governors, four each representing the

key sectors such as Advertisers, advertising agencies, media and allied professions such as

market research, consulting, business education etc. The CCC currently has about 21 members: 9

are from within the industry and 12 are from the civil society like well-known doctors, lawyers,

journalists, academicians, consumer activists, etc. The CCC‘s decision on complaint against any

ad is final. ASCI also has its own independent Secretariat of 5 members which is headed by the

Secretary General.

There is no other non governmental body in India which regulates the advertising content that is

released in India. If an ad that is released in India seems objectionable, a person can write to

ASCI with their complaint. This complaint will be deliberated on by the CCC after providing due

process to advertiser to defend the ad against the complaint and depending on whether the ad is

in alignment with the ASCI code and law of the land, the complaint is upheld or not upheld and

if upheld then the ad is voluntarily either withdrawn or modified.

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http://en.wikipedia.org/wiki/Advertising

In 2007, the Government of India amended the Cable TV Network Rules‘ Advertising Code by

which ads which violate ASCI code cannot be permitted on TV.

Self Regulation

Almost all professional fields have self-regulatory bodies governing their activities. For the

advertising fraternity until 1985 there was none. Due to this there was a lot of false, misleading

and offensive advertising. This led to consumers losing faith in advertising and hence resenting

it. It was decided that if this continued it would not take time for statutory regulations such as

censorship to be imposed on advertising content.

In 1985, ASCI to be imposed on advertisers and advertising agencies. This would make fair,

truthful and decent advertising almost impossible which would in turn hinder the industry‘s

ability to compete and grow.

In 1985, the ASCI adopted a Code for Self-Regulation in Advertising. With the introduction of

the code, the aim is to promote honest and decent advertising and fair competition in the

industry. It will also ensure the protection of consumer interests and the all concerned with the ad

industry - advertisers, media, advertising agencies and others who help in the creation or

placement of advertisements.

As the fraternity starts accepting the code, it will result in fewer false claims, fewer unfair

advertisements and increased respect for advertisers.

Need for ASCI

When an advertiser is creating an ad, the consumer is his audience. The feedback from a

consumer is important to the advertiser so he can be assured if his message has been correctly

conveyed. If a consumer feels that a particular advertisement is in bad taste or is false in its

claims, they need a body or council to whom they can air their grievances and who will take any

appropriate action, if necessary. ASCI as a self-regulatory body governing advertising content is

the ideal medium as its purpose is to serve both the advertisers as well as the consumers.

Check Your Progress I:

i) When ASCI is founded?

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http://www.mib.nic.in/writereaddata/html_en_files/content_reg/PAC.pdf

ii) How many agencies constitute AAAI?

12.5 Broadcast Audience Research Council (BARC)

BARC brings together the three key stakeholders in Television Audience Measurement,

Broadcasters, Advertisers and Advertising & Media Agencies. Their respective apex bodies,

the Indian Broadcasting Foundation (IBF), the Indian Society of Advertisers (ISA) and the

Advertising Agencies Association of India (AAAI), represent the three industries. The three way

alliance will ensure that the sizable resources - financial as well as intellectual, required to mount

such a massive, continuously running initiative are made available within a robust, transparent

and accountable governance framework. Stakeholders, in India and around the world, would

enjoy uninterrupted access to comprehensive, accurate, reliable and timely television audience

measures.

BARC‘s founding team is comprised of eminent professionals from Broadcasting, Advertising

and the broader business community that includes chairmen/CEO‘s of organizations like

Hindustan Unilever Ltd., Procter & Gamble, Zee Telefilms, Sony Entertainment, star TV, Times

Group, WPP, IPG and Madison, Prasar Bharti is an active member of the IBF (Indian

Broadcasting Foundation) which has nominated its representatives of BARC.

BARC‘s infrastructure includes a CEO with a secretariat and it enjoys access to an industry

Technical committee to guide it in the area of research design and analysis. BARC encourages

competition from the intiation of research itself. It will invite global bids for the two stages viz.

Baseline establishment survey and research vendors from across the world to pitch for this

prestigious advertisement.

12.6 Indian Society of Advertisers (ISA)

The Indian Society of Advertisers has been the peak national body for advertisers for 60 years

and represents the interests of organisations involved in Indian advertising, marketing and media

industry. ISA's aim is to promote and safeguard the rights of its members to communicate freely

with their customers, and to protect consumers by ensuring advertising and

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http://www.barcindia.co.in/partners.html#ibf

http://www.barcindia.co.in/partners.html#isa

http://www.barcindia.co.in/partners.html#aaa

marketing communications are conducted responsibly. The Indian Society of Advertisers (ISA)

was founded and registered as a company fifty seven years ago (1952) by a like minded group of

large advertisers of those times. The original member companies were:

Bata Shoe Company, Calcutta

Glaxo Laboratories (India) Ltd., Bombay

Parle Products Manufacturing Co. Ltd., Bombay

Polson Ltd., Bombay

Tata Industries Ltd., Bombay

West End Watch Co., Bombay

While registered as a company under section 25 of the Companies Act, it is a non-profit

organization and is exempt from paying Income Tax under Section 11 of the 1.T. Rules 10 (23).

Over the years nearly all major advertisers have become members of the ISA and its current

membership of around 160 is spread throughout the length and breadth of the Country,Its

membership includes almost all the large and prestigious advertisers like Asian Paints, Bata,

Britannia, Cadbury, Castrol, Coca-Cola, Colgate-Palmolive, Dabur, Godfrey Phillips, Godrej,

Hero Honda, Procter & Gamble, Hindustan Unilever , ITC, Mahindra, Marico, HCL,Reliance

ADAG, UB Grop, MRF, Nestle, Nirma, Pepsi, P&G, Raymond, Reckitt, SmithKline Beecham,

Tata Tea, Tata Motors, Titan and WIPRO, to name just a few. Among large Public Sector

Enterprises who are members are companies like Air-India, Bharat Petroleum, Indian Oil and

LIC.

Collectively, the membership of ISA accounts for two thirds of all annual advertising

expenditures made in India.

Objectives of ISA

a) To promote, maintain and uphold ethical and economic discipline in advertising.

b) To represent, protect, inform and guide advertisers in all matters related to advertising.

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c) To help formulate and promote laws, codes and standards of advertising practice.

d) To monitor, measure and moderate the media in terms of cost, competition and

viewership/readership/listenership.

e) To encourage and support the development of new media in order to propagate the

fundamental right to freedom of information.

f) ISA is a founder promoter of the ASCI (Advertising Standards Council of India) Ensures

truthfulness in advertising and safeguard against misleading representations and that

advertisements are not offensive to accepted standards of public decency.

g) ASCI Code safeguards against indiscriminate use of advertising to promote products or acts

hazardous to society.

h) ASCI Code ensures the observance of fairness in competition while protecting the consumer‘s

right to be informed of choices in the market place.

i) ISA has enunciated a code of ethical conduct for advertising in the outdoor medium. This code

was put together in collaboration with advertising agencies, the Bombay Municipal Corporation

and the outdoor media.

j) As a member of the World Federation of Advertisers (WFA) is engaged in the global

discussion on use of women and children in F & B and Online Behaviour Advertising (OBA)

k) During 2007, pro-actively interacted with the Ministry of Information and Broadcasting to

have incorporated in the Cable TV Networks (Regulation) Act 1995 that the violation of the

ASCI code will be seen as a violation of the said Act.

Check your Progress II:

i) Expand WFA.

ii) “To promote, maintain and uphold ethical and economic discipline in advertising.‖ Iit is the

objective of which apex body in India?

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12.7 Summary

So, these regulatory bodies play an important role in regulating advertising agencies.

Advertising regulation refers to the laws and rules defining the ways in which products can

be advertised in a particular region. Rules can define a wide number of different aspects, such as

placement, timing, and content. In the United States, false advertising and health-related ads are

regulated the most. Many communities have their own rules, particularly for outdoor

advertising. Sweden and Norway prohibit domestic advertising that targets children. Some

European countries don‘t allow sponsorship of children‘s programs, no advertisement can be

aimed at children under the age of twelve, and there can be no advertisements five minutes

before or after a children‘s program is aired. In the United Kingdom advertising of tobacco on

television, billboards or at sporting events is banned. Similarly alcohol advertisers in the United

Kingdom are not allowed to discuss in a campaign the relative benefits of drinking, in most

instances therefore choosing to focus around the brand image and associative benefits instead of

those aligned with consumption. There are many regulations throughout the rest of Europe as

well.

12.8 Glossary

1. ASCI : Advertising Standard Council of India

2. AAAI: Advertising Agencies Association of India

3. ISA: Indian society for Advertisers

4. BARC: Broadcast Audience Research Council

5. Advertising regulation: Refers to the laws and rules defining the ways in which products can

be advertised in a particular region.

6. Rules: a wide number of different aspects, such as placement, timing, and content.

7. IBF : Indian Broadcasting foundation

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Answers to Check Your Progress I:

i) 1985

ii) 4 agencies from Calcutta – D J Keymer, General Advertising Agency, J Walter Thomson Co.

and Press Syndicate – and 3 agencies from Bombay – Adarts, Lintas and National Advertising

Service

Answers to Check Your Progress II:

i) World Federation for Advertisers

ii) Indian Society of Advertisers

12.10 References

http://www.aaaindia.org/downloads/AAAI-Memorandum_Rules%20and%20Regulations.pdf

http://advertising.indiabizclub.com/info/aaai

http://www.mbaknol.com/marketing-management/history-of-advertising-in-india/

http://www.asa.org.uk/

http://www.totalprofessions.com/more-about-professions/regulatory-bodies

http://en.wikipedia.org/wiki/Advertising_Standards_Council_of_India

http://en.wikipedia.org/wiki/Advertising_Association


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http://www.aaaindia.org/downloads/AAAI-Memorandum_Rules%20and%20Regulations.pdf

http://advertising.indiabizclub.com/info/aaai

http://www.mbaknol.com/marketing-management/history-of-advertising-in-india/

http://www.asa.org.uk/

http://www.totalprofessions.com/more-about-professions/regulatory-bodies


http://en.wikipedia.org/wiki/Advertising_Association


http://www.ascionline.org/index.php/mission.html

http://www.isanet.org.in/

http://www.campaignindia.in/Article/229905,asci-to-introduce-advertising-code-for-educational-

sector.aspx

http://economictimes.indiatimes.com/topic/Indian-advertising-agencies

http://www.matchboxindia.com/blog/TOP-10-ADVERTISING-AGENCY-IN-INDIA-2013.html

http://www.impactonnet.com/node/781

http://www.aaaindia.org/History.htm

http://trai.gov.in/WriteReadData/ConsultationPaper/Document/BARC.pdf


http://www.isanet.org.in/index.php/about-isa/8-about/13-self-regulation.html

http://www.aaaindia.org/downloads/AAAIMemorandum_Rules%20and%20Regulations.p

df



1. What do you mean by regulatory body in advertising?

2. What is the need of these regulatory bodies?

3. What are the important functions played by the apex bodies like AAAI, ASCI, ISA and

BARC?

4. Which agencies come together and constitute apex body like AAAI?

5. What are the important objectives of Indian society of Advertisers?

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http://www.isanet.org.in/

http://www.campaignindia.in/Article/229905,asci-to-introduce-advertising-code-for-educational-sector.aspx

http://www.campaignindia.in/Article/229905,asci-to-introduce-advertising-code-for-educational-sector.aspx

http://economictimes.indiatimes.com/topic/Indian-advertising-agencies

http://www.matchboxindia.com/blog/TOP-10-ADVERTISING-AGENCY-IN-INDIA-2013.html

http://www.impactonnet.com/node/781

http://www.isanet.org.in/index.php/about-isa/8-about/13-self-regulation.html

http://www.aaaindia.org/downloads/AAAIMemorandum_Rules%20and%20Regulations.pdf

http://www.aaaindia.org/downloads/AAAIMemorandum_Rules%20and%20Regulations.pdf

LESSON-13 PRINT MEDIA AS A MEDIA OF ADVERTISING

Structure

13.0 Objectives

13.1 What is print media?

13.2 Print media advertising

13.3 Types of Print Media Advertising

13.3.1 Newspapers

13.3.2 Magazines

13.3.3 Outdoor advertising

13.3.4 Direct mail

13.3.5 Yellow pages

13.4 Advantages and Disadvantages Print media advertising

13.5 latest trends in Print advertising

13.6 Recent scenario and scope of print advertising

13.7 Review questions

13.8 Glossary


13.10 Bibliography

13.0 Objectives of the Chapter are:

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• to make readers knowledgeable about different print advertising mediums.

• to help readers explore various positive and negatives advantages that print ads offer.

• To inform readers about the latest print advertising trends

• This chapter will help increase your knowledge about various print advertising concepts

• This chapter will increase your knowledge about various print media advertising tools

which are being used by advertisers.

13.1 What is Print Media?

Print media are lightweight, portable, disposable publications printed on paper and circulated as

physical copies in forms we call books, newspapers, magazines and newsletters. They hold

informative and entertaining content that is of general or special interest. They are published

once or daily, weekly, biweekly, monthly, bimonthly or quarterly. Today, many books,

newspapers, magazines and newsletters publish digital electronic editions on the Internet.

Books are collections of printed pages bound together and are the oldest medium of mass

communication. It may take many months in the production of a book and the content could be

information or entertainment.

Newspapers and magazines both are collections of printed pages and their content is mostly

public affairs and events information reporting with some entertainment.

Similarly a newsletter is regular publications of any organization which addresses one main topic

and provides information to members, customers, employees and friends of that particular

organization.

13.2 Print Media Advertising

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Press advertising describes advertising in a printed medium such as a newspaper, magazine, or

trade journal. This encompasses everything from media with a very broad readership base, such

as a major national newspaper or magazine, to more narrowly targeted media such as local

newspapers and trade journals on very specialized topics.

Print advertising media includes newspaper, magazines, direct mailers, ads in any type of print

publication, and phone book advertising. Direct mailers can be sent to households and businesses

through the mail, and flyers and posters can be hung in a variety of locations to reach a wide

audience.

One of the oldest type of print advertising media is newspaper advertising, in which a company

or business buys an advertising space in the newspaper. A form of newspaper advertising is

classified advertising, which allows private individuals or companies to purchase a small space

in newspapers at low fee for the advertising of a product or service. Another form of press

advertising is the Display Ad, which is a larger ad (can include art) that typically run in an article

section of a newspaper.

The size of the ad will often dictate the price, as will the content of the ad. Graphics usually cost

more money, while simpler text ads cost less. The newspaper and magazine vehicles deliver

messages in combination with news, entertainment or other editorial material to measurable

group of readers. The degree of a reader‘s interest in the advertising content of a publication

varies from person to person, from vehicle to vehicle, and from advertisement to advertisement.

Normally however the reader‘s primary focus is on articles or stories. Thus a publication‘s

editorial content provides the atmosphere of acceptance for advertisements.

13.3 Types of Print Media Advertising

The two most common print media are newspapers and magazines, but print media also include

outdoor billboards, transit posters, the yellow pages, and direct mail. Print media is important

because it can reach such a large audience, and the great numbers of specialized publications in

the market enable businesses to focus on a target audience with a specific set of characteristics.

Print media are allowed to advertise most anything, other than products intended for children and

sold to children. All other publications may advertise most anything sold legally like cigarettes,

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liquor, and contraceptives; however, many publications will not accept what they consider to be

controversial ads like liquor, cigarettes and other prohibitive material.

Some main types of print advertising are as follows:

13.3.1 Newspapers

13.3.2 Magazines


13.3.4 Direct Mail

13.3.5 Yellow Pages

13.3.6. Newspapers

When deciding upon a newspaper in which to advertise, there are three physical criteria to

consider: distribution, size, and audience. Newspapers are either daily or weekly, come in a

standard or tabloid size, and reach a large percentage of the reading public. Because of the broad

demographic reach of most newspapers it is difficult to target a specific audience; however,

newspapers are effective in increasing awareness of a business' products and services in a

specific geographical area.

Types of ads placed in newspapers include: Display ads, Classified ads, Public notes, and

Preprinted Inserts.

a) Classified Ads: They ads are the most cost efficient ads in the newspapers and are of two

types- text classifieds and display classifieds. The text classifieds contain no more than text and

numbers while the display ads can contain small images in colors.

These classifieds ads usually occupy a smaller space with just three or four

lines and offers equal efficacy and are meant for the small business owners and consumers as

well. Since they run for a particular period of time, they are found to be more effective.

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b) Spotlight Ads: These are the newspaper advertisements that are highlighted in a particular

background color. These can be suited to make your ad stand apart from the others as these ads

attract immediate attention and are efficient than the usual classified ads. They are bit expensive

as compared to the former ones.

c) Business Card Ads: As the name suggests these business newspaper advertisements are in the

size of a business card or even bigger with thick outer borders. These are also among the best

newspaper advertisement types as these can be placed anywhere in the newspaper unlike

classified ads where there is a separate section and are best suited to improve businesses.

d) Circular Ads: These newspaper advertisements come with the newspaper as separate sheets

with the details of the business and are not usually printed in the newspaper. They are printed by

a separate party and then inserted along as a newspaper advertisement and you need not to pay to

any ad agency but only need to pay the printing services.

e) Display Ads: Display ads in the newspaper garner much attention as they occupy a larger

space (quarter, half or a full-length page) in the newspaper. These ads can contain as many

pictures, words, etc. These ads are generally meant for creating awareness about a new product

in the market. The ad rates can cost much for the business owners to have a display ad in a

leading newspaper.

Newspaper ads have some flexibility in their size. For instance, some are small boxes that take

up only a small portion of a page, while others might span one or two full pages (the latter,

however, are typically only bought by larger corporations). Regardless of this flexibility,

newspaper ads can only use limited special effects, such as font size and color. These limitations

lead to advertising "clutter" in newspapers because all the ads look very similar. Therefore,

advertisers must use original copy and headings to differentiate their ads from those of their

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competitors. The quick turnover of newspapers also allows the advertiser to adjust ads to meet

new market conditions; however, this turnover means that the same ad may need to be inserted

over a significant period of time in order to reach its target audience.

13.3.2. Magazines

With magazines advertising a business can focus on a specific target audience. Audiences can be

reached by placing ads in magazines which have a well-defined geographic, demographic, or

lifestyle focus. An attractive option for many small businesses may be placing an ad in the

localized edition of a national magazine. Magazines allow elaborate graphics and colors, which

give advertisers more creative options than do newspapers.

Magazine advertising can vary in costs according to the size and content of the ad as well as

whether the ad is in black and white. . A company or business purchasing ad space in a magazine

can often choose from a full page ad, half page ad, quarter page ad, or sidebar ad.

Magazines are sometimes not the optimum option for businesses seeking to target fast-changing

market trends as magazine ads often have a lag time of a couple of months between the purchase

of ad space and the publication of the issue in question. But recent surveys have indicated that

informative magazine ads are the most persuasive.

Types of Magazine Ads:

a) Display Ads: These are the glossy, four-color ads that dot most consumer magazines. Display

advertisements can shill everything from new cars and smart phones to upcoming movies, newly

published books and the pilots for next fall's TV shows.

B) Classifieds: Usually located in the back pages of magazines, classified are small, usually

black-and-white, ads that most often contain text but little or no other artwork. Classifieds often

list homes for sale, financial services, help-wanted jobs and other services. In fact, classifieds are

often an eclectic mix that might even include personal ads and dating service promotions. These

ads may look small, but magazines often rely on them--thanks to the volume of classifieds they

receive--as a solid revenue stream.

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C) Advertorials: Advertorials usually look similar to a story or feature in the magazine and are

often difficult to spot. These are written by the marketing department of a company to promote a

specific product or service. The advertorial may include what looks like a standard headline--an

advertorial promoting a newly released collector's coin might have a headline such as "Rare Coin

Released to the Public"--and even feature quotes from people thrilled with a certain product or

service.

To determine if what you're reading is an advertorial, look at the top of the

page. Written there somewhere, perhaps in small type, should be a phrase similar to "Paid

Advertisement."

13.3.3. Outdoor Advertising

Outdoor advertising usually comes in two forms: Billboards and Transit posters. Like yellow

page ads, outdoor advertising is usually used to support advertisements placed in other media.

One of the greatest strengths of outdoor advertising is as a directional marker to point customers

toward your business.

Billboards afford businesses and company the opportunity to reach local audiences by

strategically placing ads and images on large signs near roadways. Such an ad space is often

purchased monthly, and the cost of producing the ad can be quite significant since billboards are

quite large. The ad will be affixed to a large board that can be seen for significant distances,

usually by motorists during daily commutes. This type of advertising is especially useful for

local businesses or larger companies that provide a specific service to the area surrounding the

billboard.

Since the prospective consumer often has only fleeting exposure to billboards and transit posters,

the advertising copy written for these media needs to be brief with the ability to communicate

ideas at a glance. To do this well one must use graphics and headings efficiently and artfully.

13.3.4. Direct Mail

Direct mailers are print ads that are sent directly to homes and businesses through the mail. The

mailers could simply be an ad for a product or service, or they may advertise a special deal or

discount. This type of print advertising media requires the advertiser to have a list of addresses to

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which the mailers can be sent; the advertiser may purchase a mailing list, or he or she may

accrue a list by offering this service to customers, who can then sign up for such a mailing list.

Direct mail is considered the best way for a small business to begin developing awareness in its

target consumers. Mailing lists can be generated with the names of those people most likely to

purchase the advertiser's products or services. However, direct mail is not always cost effective.

Business experts indicate that direct mail does tend to generate more purchasing responses and

they observe that the products of many small businesses are often more suited to a direct mailing

campaign than to indirect, image advertising.

13.3.5. Yellow Pages

A yellow page ad is often used to "complement or extend the effects of advertising placed in

other media." Such an ad has permanence and can be used to target a specific geographic area or

community. Essentially, a yellow page ad gives the consumer information needed to make a

purchase. Therefore the key information to include in such an ad includes: the products and

services available; location; phone number; business hours; special features, such as the

acceptable kinds of payment (i.e., credit cards, checks); parking availability; discounts; and

delivery policies and emergency services. The best way to arrange this information is in a list, so

that the consumer will be able to scan the ad for the desired information.

A major consideration with a yellow page ad is where to place it, which primarily depends on the

directory (or category) under which businesses choose to locate their ads. Central to this choice

are the products or services that the company wishes to emphasize. The ad copy should

compliment the directory, indicating the main products and services for sale, so that the ad will

emerge from the similar looking ads that surround it.

Some other forms of Print Advertising are:

When one thinks of print advertising, they will usually picture traditional magazine ads, and

direct marketing such as promotional leaflets and flyers. Although these are popular and

effective ways of marketing, there are also numerous other forms of print advertising that may be

beneficial to your business.

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Brochures: Have a supply of brochures that you can hand out to customers/clients when they

visit your business. Potential customers may find a product or service in your brochure that they

may not have realised you supply. They‘re also a great way of adding memorability and

professionalism to your businesses.

Postcards: Instead of sending your customers a promotional letter, a promotional post card is sent

to the prospective customer. These will often ‗stand out from the crowd‘, and can actually be

cheaper than sending a large number of traditional letters. They also have the bonus of being

seen by everyone who comes in to contact with the mail, instead of just the letter opener.

Calendars: By having some calendars printed for your business, you can give an affordable gift

to your best customers. If they hang them in their home/office, it‘s a year-long advertisement for

your business, regularly seen by your customer, and anyone who enters the room!

There may be numerous other mediums of print advertising which can be used by the businesses

or advertising agencies depending upon the creativity one have.

13.4 Advantages and Disadvantages of Print Advertising

Advantages of print media advertising:

a) Specific Target Audience: In print media, the advantage of catering to specific target audience

opens up countless opportunities to enhance sales figures. A fashion magazine would highlight

cosmetic products and fashion accessories. At the same time, a sports magazine would display

sports related ads to cater to its readers. There is no wastage of resources as ads get to reach the

target audience.

b) Loyal Readerships: In the print media industry, readership is mostly longstanding and loyal.

c) Special Ad Positioning: A major advantage in magazine advertising is that an advertiser can

request special ad positioning. This means you can ask that your ad is placed in a specific page

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or within a column article. This will bring greater visibility to the brand. This is also

commercially more effective as potential buyers would notice it.

d) Credibility: Over a period of years, magazines create a vast pool of loyal readers who feel safe

in its very credible environment. The interactive element may be less when you compare it with

the aggressive online advertising. But the key factor is credibility that print media continues to

reign over. It adds improved quality branding that adds great value to your range of products.

e) Long Life Span: Compared to websites or national newspapers, magazines enjoy the longest

life span. There are some magazines that are treasured across decades like valuable references.

The National Geographic is such an example as its content is never redundant.

f) High Reach Prospective: Another advantage is that magazines have a high reach prospective.

This is because magazines get passed from family to friends to customers to colleagues and so

on.

g) Glossy Ads: Unlike newspaper advertising, magazine advertising gives great scope to glossy

ads. These are usually trend setting and eye catching. The best thing is that everybody loves to

look again and again at glossy ads. Maximum visibility is again reiterated through magazine

advertising.

That is why it is stated often that consistent advertising ensures a cumulative effect. The more

familiar buyers are with a brand, the more likely they would buy it. That is why print media

advertising will never be out of fashion.

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Disadvantages of print advertising-

Newspapers have historically played an integral role in the growth of large cities and small

communities. As each city or town grew, its newspaper showcased more businesses' products

and services through paid advertisements. Newspaper ads have enabled businesses to reach large

potential markets for a fixed cost and to target specific consumer groups by placing ads in

dedicated sections. For example, a sporting goods store's ad would logically appear in the

newspaper's sports section. These positive newspaper attributes are countered by downsides each

business and consumer should objectively evaluate.

Along with some major advantages in print advertising there are also some drawbacks of this

medium. Some of them are listed below:

a) Media Competition: Newspapers face unrelenting competition from other consumer

information sources. Cable television provides 24-hour-a-day news along with in-depth coverage

of major events and news stories. Broadcast and cable channel Internet sites often cover

additional story angles and frequently update content in close to real time. In contrast, a

newspaper operates on non-negotiable production deadlines that limit the freshness of its

content. This reduced ability to provide current news, plus readers' tendency to only view select

newspaper sections, has helped drive a decline in overall newspaper circulation.

b) Low Younger-Market Readership: Younger consumers often receive news, entertainment

information and shopping opportunities via computers and portable electronic devices. These

highly mobile media meet younger adults' needs effectively, meaning that these consumers rarely

have a need or desire to browse a newspaper. Many newspapers‘ executives do not entertain

much hope this situation will change. They have recognized that numbers of consumers who are

under 40 are reluctant to purchase or subscribe to newspapers and their numbers are decreasing

day by day. News Editors of many leading newspapers have predicted that newspaper readership

would continue to decline as older readers are not joined by younger ones.

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c) Short Shelf Life: Newspaper frequency varies from medium- and large-city dailies to

community newspapers that print weekly or bimonthly. Newspaper advertisements' short shelf

life considerably limits each advertiser's ability to reach its target audience. Daily newspapers are

especially affected, as readers may toss only a cursory glance at each day's paper before running

out the door to work. If the reader does not read the paper by the end of that day, ads that feature

daily specials will be obsolete. Some advertisers may lack funds to advertise frequently, which

makes it even less likely the business will reach its potential customers.

d) Ad Clutter: Newspaper pages often mix ads with editorial content, although some pages are

devoted solely to advertising. A reader can easily focus on a full-page ad since no other ads

compete for his attention. In contrast, a page's multiple ads create visual clutter and competing

messages. Advertisers, especially businesses with small or unimaginative ads, risk having their

ad completely passed over while the reader engages with larger or more interesting graphics.

Readers viewing multiple ads may also subconsciously spend less time on each individual ad.

13.5 Latest Trends in Advertising

a) Variable Printing:

Although variable printing is by no means a new process, consumers have been using it with

more frequency as advancements in printing technology have lowered the cost. Variable printing

allows you to uniquely customize each piece of media by changing certain elements from piece

to piece, taking advantage of the power of complex personalization.

b) QR Codes and NFC:

As our smartphone and tablet technologies continue to grow and develop, so too has the

interactivity of print media.

QR Codes help retrieve information that can be read quickly by a cell phone. Brands are now

using QR Codes for a multitude of reasons. Driving traffic on social media pages is one of the

ways QR Codes are often being utilized today. Consumers can scan the QR Code on their

Smartphone and it takes them directly to the brand‘s social media platforms.

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Another great use for QR Codes is for consumers to scan contact information, nutrition facts,

company website, etc. QR Codes are a great way to link customers to your website, online

personality, or other information about your products.

It used to be that the only way to advertise your Web presence via print was to include the URL

and hope that the audience took the time to type it into a browser. Nowadays, QR codes and NFC

technology make it possible for your print media to directly connect customers to your website.

QR codes can be customized with colors and patterns to better integrate into your print

marketing designs and to give you the opportunity to add branded elements.

c) NFC (near-field communication)

It is a new technology that is not available in all devices, but it is sure to replace QR codes down

the line. NFC technology uses a tiny microchip to send a signal directly to your mobile device

without the need for scanning. Tap the print media against your mobile device, and the NFC chip

will instantly connect you to the website.

d) Integration of print and social Media

Social networking has become an integral part of the way entrepreneurs reach their customers,

but the idea of networking has been around much longer than Facebook and Twitter. Online

social media can also be fully integrated with any print marketing campaign. In fact, you'd be

hard-pressed to find a business card from a serious entrepreneur without his or her Facebook

address, Twitter address, or other social networking URL printed on it. (Slightly over half of

respondents to a Nielsen survey said they used a social media advertising campaign in

conjunction with print media.)

Photo: Sarah Papierz

Print media help to draw attention to your social media sites, and your social media profiles can

be used to strengthen your print campaign. By adding customer comments and testimonials from

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your social networking profiles to your print designs, you can make your print marketing that

much more effective.

13.6 Recent Scenario and Scope of Print Advertising

Print media advertising has come a long way. The Indian print media had been lobbying for

opening up of the sectors to foreign direct investment. In 2005, the government relaxed foreign

direct investment, but with many conditions. The print media boomed in 05 when Jagran

solutions and HT media came out with publications. Since the demand for Indian content is on

the rise, print advertising too is going to be on the rise.

In the previous year, print advertising growth has been 5 %. New innovative layouts are being

tried and tested in the print media rather than the traditional layouts to attract consumer‘s

attention. Food products and cellular services are the ones to try these new layouts in print. The

Print media is highly fragmented with most publications being family owned. However, the trend

is now changing and publishers are looking to expand their markets leaving new opportunities

for print advertising.

In this energetic and bubbly media scenario, Print is the dominant medium and has greatly

contributed to the development of media. Companies however continue to put their energies and

time heavily in television and sometimes ignore print which is such a powerful medium of

advertising. Many businesses take advantage of print media advertising because it is a relatively

inexpensive way to reach a wide audience or a more localized or specific audience.

In India, the Government as well as the private organisations uses print media to secure wide

coverage of messages through various newspapers and journals. Print media as a traditional

media plays a significant role in the development communication. A lot of publicity material and

government ads still appears in all the available newspapers because this media still has a large

space among the large population of India. People still scan the newspapers for jobs and various

other classified ads. In India, print media strengths have largely been shaped by its historical

experience and, in particular, by its association with the freedom struggle as well as movements

for social emancipation, reform, and amelioration.

Print media is still very reliable source of information among large population of India. With the

increasing national literacy rates 74.04% (2011 census) the reach of newspapers and magazines

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has increased from distinctly urban educated readers to the large rural landscapes in the recent

times. The role of print media has been defined more in terms of information dissemination and

advocacy. The picture which used to be lopsided is improving with the advent of many local

newspapers. Placement of advertisements in regional newspapers along with national dailies has

become important for every business.

Today a key feature of the print publications is the increasing use of glossy ad pages, ad-friendly

film and TV-based reporting. Given the increasing costs of newsprint and production, and the

pressure of market imperatives, leading dailies have over the last few years dropped their special

sections devoted to development and health and increased the space of advertisements so as to

generate more revenues. Magazine ad pages have grown in recent times according to few studies.

Print is an integral component of any web-based campaign, and the web is also helping print

advertising to evolve. Print is also a strong driver of online behavior by whetting the reader‘s

appetite for a complementary web experience. Over the past several years, almost all print ads

carry some URL or digital code. A lot of the new web-based mobile technologies, such as QR

codes, have forced media planners (and consumers) to give print a closer, more appraising look.

Print ads become even more engaging if they are also tied to a text-messaging campaign, because

it is the most effective means of accessing short-code messages on a mobile phone. The process

of consumer engagement doesn‘t start on the mobile device; it has to start from a print ad. So

integration between print and digital is key. Additionally, there‘s no fee for a QR code because

it‘s part of the creative execution of the print ad. What needs to be built out is the mobile site.

Short code in print ads has also helped big-brand marketers (think McDonald‘s and BMW) to

build customer databases.

Magazines remain a welcomed and effective advertising medium. People still engage with print

even in a young demographic. Consumers enjoy the tactile, personal relationships they have with

their favorite magazines. And not everyone has the disposable income or desire for an e-reader,

which you can‘t use to cover your head in the rain.

Print marketing is used less, so it stands out more

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Many companies are competing online for their audience's attention, which can make it hard to

stand out in the crowd. However, since online marketing tends to be the focus of most

businesses, a void is left in print marketing that is begging to be filled.

Compared with how often and how quickly you check your email, consider the daily ritual of

going to the mailbox and checking your postal mail. You set aside a few moments to take the

time to look at every piece of mail before going back to whatever it was you were doing before.

That means your print materials are likely to receive extra attention—especially if they look

unique.

13.7 Review Questions

1. Explain what is print media? What are different types of print media advertising?

2. Write a short note on the newspaper advertising types.

3. Explain different advantages that print media advertising offer.

3. What are the demerits of print media advertising? Explain.

4. What are different print media advertising trends that are prevalent today?

5. Write a brief note on the future of print media advertising.

13.8 Glossary

1) Classified Advertisement: Small messages grouped under a specific heading (classification)

such as automobiles, employment, real estate, in a separate section of a newspaper or magazine.

These relatively inexpensive ads are usually a column wide, do not include any graphics, and are

typeset (see typesetting) by the printer or publisher of the publication.

2) Business card ads: Business card advertisements are ads in a business card format.

Information about the company, business or services is printed on small business cards. These

types of ads are easy and convenient for distribution.

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3) Display Advertisement: Usually any print advertisement other than a classified advertisement.

Display ads are generally several columns wide and often contain color, graphics, and pictures.

They are assembled or typeset (see typesetting) by the advertiser and supplied to the printer or

publisher either on a CD or disk (in a standard file format such as InDesign, Illustrator,

PageMaker, PhotoShop, QuarkXpress) or on paper (in camera-ready form).

4) Public notices: These are issued by a government agency or legislative body in certain

rulemaking or lawmaking proceeding. It is a requirement in most jurisdictions, in order to allow

members of the public to make their opinions on proposals known before a rule or law is made.

5) Advertorial: An advertorial is an advertisement in the form of editorial content. The term

"advertorial" is a blend of the words "advertisement" and "editorial."

6) Yellow pages: It refers to a telephone directory of businesses, organized by category, rather

than alphabetically by business name and in which advertising is sold. The directories were

originally printed on yellow paper, as opposed to white pages for non-commercial listings.

7) Brochures: it is a small, thin book or magazine that usually has many pictures and information

about a product, a place, etc.

8) Advertising Postcard: An advertising postcard is a postcard used for advertising purposes (as

opposed to a tourism or greeting postcard). These are used as an alternative or to supplement

other advertising media. Advertising postcards may be mailed or distributed in other ways.

9) Shelf life: Shelf life is the length of time that a commodity may be stored without becoming

unfit for use or consumption. It applies to foods, beverages, pharmaceutical drugs, chemicals,

and many other perishable items.

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10) Advertising clutter: It refers to the large volume of advertising messages that the average

consumer is exposed to on a daily basis. This phenomenon results from a marketplace that is

overcrowded with products leading to huge competition for customers.

11) Variable-data printing (VDP): (also known as variable-information printing (VIP) or VI) is a

form of digital printing, including on-demand printing, in which elements such as text, graphics

and images may be changed from one printed piece to the next, without stopping or slowing

down the printing process and using information from a database or external file.

12) QR code (quick response): A machine-readable code consisting of an array of black and

white squares, appear in a variety of places such as magazine and newspaper ads, typically used

for storing URLs or other information for reading by the camera on a smartphone.

14) Near field communication (NFC): It is a set of standards for smartphones and similar devices

to establish radio communication with each other by touching them together or bringing them

into proximity, usually no more than a few inches.

15) Pre Printed Inserts: It is an enclosure (booklets, brochures, reply envelopes and cards) in a

newspaper or magazine that is produced by an advertiser and submitted to the carrier publication

in final form. The advertiser bears the cost of printing and shipping the insert to the carrier

publication.


1. Advertising, Dr. C.N. Santakki, 1994, Kalyani Publishers New Delhi.

2. Advertising Principles and Practice, Chunawala, 1999, Himalaya Publishers, New Delhi

3. Handbook of Public Relations in India, D.S. Mehta, 1998, Allied Publishers, New Delhi

4. Advertising, Wright, Winter, Zeigler

5. Creative advertising, Moriaty, Sandra E

6. Advertising Principles and Practice, Chunawala and Sethia, K.C.

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7. Advertising Writing, Kaith, Hafer W., Whita Fordo E.

8. Principles of Advertising, Monle Lee, Johnson, Viva books private ltd.

9 .Advertising Management, David A Parker, Rajiv Batra, Practice HallM 97, Connaught

Circus, New Delhi.

10. Reading in Advertising Management, Bellur V.V.,Himalaya Publishing House, Bombay

1.10 Bibliography/ Web Resources

1. http://www.wisegeek.com/what-are-the-different-types-of-print-advertising-media.htm

2. http://www.inc.com/encyclopedia/advertising-media-print.html

3. http://www.wisegeek.com/what-are-the-different-types-of-print-media-advertising.htm

4. http://www.redcore-marketing.co.uk/marketing-tips/marketing-tip-there-are-many-forms-

of-print-advertising.html

5. http://advertisinginindia.wordpress.com/2009/04/01/print-advertising-in-india/

6. http://blogs.imediaconnection.com/blog/2011/06/01/print-is-still-a-strong-and-viable-ad-

medium/

7. http://www.courierprinting.com/the-value-of-print-in-your-media-mix/

8. http://i.haymarket.net.au/News/Micra-Ads-03.jpg

9. http://listdose.com/wp-content/uploads/2013/06/Madhuri-dixit.jpg

10. http://files2.coloribus.com/files/adsarchive/part_1102/11026555/file/bingo-chips-indian-

small-80588.jpg

11. http://www.slideshare.net/shubhraha/the-growth-of-indian-print-media-in-the-last-

decade-and-its-fallouts

12. http://yourbusiness.azcentral.com/list-types-print-advertising-3324.html

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13. http://www.scribd.com/doc/3682641/Trends-in-Print-Media

14. http://www.businessdictionary.com/definition/classified-

advertisement.html#ixzz34rxWSHXJ

15. http://www.businessdictionary.com/definition/display-

advertisement.html#ixzz34s10Mm7Z

16. http://www.merriam-webster.com/dictionary/brochure

17. http://en.wikipedia.org/wiki/Brochure

18. http://en.wikipedia.org/wiki/Shelf_life

19. http://www.businessdictionary.com/definition/shelf-life.html#ixzz34sIem44X

20. http://en.wikipedia.org/wiki/Clutter_(advertising)

21. http://en.wikipedia.org/wiki/Variable_data_printing

22. http://www.oxforddictionaries.com/definition/english/QR-code

23. http://cellphones.about.com/od/phoneglossary/g/Qr-Codes.htm

24. http://en.wikipedia.org/wiki/Near_field_communication

25. http://www.answers.com/topic/preprinted-insert#ixzz34sRI1f15

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LESSON- 14 ELECTRONIC MEDIA AS A MEDIA OF ADVERTISING

Structure of the Chapter

14.0 Objectives of the chapter

14.1 What is electronic media?

14.2 Electronic media advertising

14.3 What are the different types of electronic media?

14.3.1 Radio advertising

14.3.2 Television advertising

14.3.3 Internet

14.4 Advantages and Disadvantages of electronic media

14.5 Latest trends in electronic media advertisings


14.7 Glossary

14.8 Suggested readings

14.9 reference

14.0 Objectives of the Chapter

1. To help you understand what electronic media advertising is?

2. To increase your knowledge about various tools of electronic media advertising

3. It will help you know the advantages and disadvantages of this medium of advertising.

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4. To help students understand the new tools being used by electronic media advertisers

14.1 What is Electronic Media?

Electronic Media is a rich resource of services, supplies, creative and innovative solutions to

everyday domestic and professional demands. Our commitment to our clients makes us the

preferred supplier of this kind in South Africa. As there are so many applications to what we can

do for you, should you not find the specifics listed on our website, please contact us and we will

gladly assist as soon as possible.

Electronic media are media that use electronics or electromechanical energy for the end user

(audience) to access the content. This is in contrast to static media (mainly print media), which

today are most often created electronically, but do not require electronics to be accessed by the

end user in the printed form. The primary electronic media sources familiar to the general public

are video recordings, audio recordings, multimedia presentations, slide presentations, CD-ROM

and online content. Most new media are in the form of digital media. However, electronic media

may be in either analog electronic data or digital electronic data format.

Although the term is usually associated with content recorded on a storage medium, recordings

are not required for live broadcasting and online networking.

Any equipment used in the electronic communication process (e.g. television, radio, telephone,

desktop computer, game console, handheld device) may also be considered electronic media.

14.2 Electronic media advertising?

Electronic media advertising is advertising through the means of electronic media i.e. radio,

television, internet and all other electronic media available in the market. Advertising through

television commercials, radio jingles, internet videos or through other media like electronic

billboards, digital billboards etc. all are the examples of electronic media advertising. Because of

its many features like scope for creativity, interactivity, integration of audio and video etc. makes

it a most demanding media for advertising today.

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14.3 What Are The Different Types Of Electronic Media?

Electronic media is anything that is used to advertise or promote that is run by electricity and

other electronic means. This is quite a wide subject and there are many different things that fall

into this category. There are more and more channels for electronic media that come out as our

technology grows and expands.

Here are just a few types of electronic media;

14.3.1 Radio Advertising

The radio is the oldest form of electronic media. There are hundreds of thousands of radio

stations across the world and advertisements are frequent features on most of these. Advertising

on radio dates back almost one hundred years and is the first form of spoken advertisement rather

than a printed advertisement.

All of us are aware about a radio and must have heard advertisements for various products in it.

In radio there are short breaks during transmission of any program which is filled by

advertisements of products and services. There are also popular programs sponsored by

advertisers. (One of the longest run programs in Radio was a sponsored program started as

There are a few different types of FM radio advertising, which typically rely on different ways

for advertising messages to be conveyed over the radio. One of the most common types of

advertising on radio is a pre-recorded paid advertisement played between groups of songs. These

are often professionally produced and recorded, and then sent to a radio station for inclusion in

commercial breaks. Such advertisements are easy to create and record, but may offer less

flexibility for some markets and can become repetitive for listeners.

There are types of FM radio advertising in which a written script is provided to a DJ who then

reads the script aloud on the air during a live broadcast. Such advertisements are quite

inexpensive and easy to utilize and deploy. Live events can also be used as forms of FM radio

advertising.A radio station can be invited to cover and participate in a live event and the station

can set up a live broadcast from that location, which then directs attention to that event as

listeners hear the DJ talk about the event live on the air. Potential customers may also be drawn

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to the event since they have a chance to meet the radio personalities and DJs they like; this draw

can be especially powerful for younger markets and audiences.

14.3.2. Television Advertising

With rapid growth of information technology and electronic media, television has topped the list

among the media of advertising. TV has the most effective impact as it appeals to both eye and

the ear. Products can be demonstrated over the screen and their utilities can be told over

television. Just like radio, advertisements are shown in TV during short breaks and there are also

sponsored programs by advertisers.

A commercial advertisement on television is a span of television programming produced and

paid for by an organization, which conveys a message, typically to market a product or service.

Advertising revenue is a major source of earning for many privately owned channels. Most of the

television ads consist of advertising spots varying in length from a few seconds to few minutes.

Advertisements of this sort have been used to promote a wide variety of goods, services and

ideas.

Television is the most popular medium for advertising but expensive too and many companies

may not be able to afford it.

Following are the few types of TV ads:

a) Television Commercial: It is a well-known type of TV ad and it typically runs as a 15 or 30

second spot, which is not very much time to describe your product. So it is important that you

partner up with a talented and creative production team which has experience in commercial

production.

b) Infomercial: infomercials are usually much longer in length which may extend to an hour or

two. This approach is perfect for demonstrations and testimonials as it allow you much time to

explain your products.

c) Product Placement: This is a very trending ad type these days. In such type of advertising the

companies pay a certain amount of money to be a part of some famous programmes, movies or

commercials on TV. You may notice the lead character of a movie or a TV programme wearing

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the clothes, shoes of a particular brand or driving a car of a particular brand or having a soft

drink of a particular brand for which they have been paid by the company. But it is a very

expensive type of promotion.

d) Sponsoring: This type of advertising does not try to sell anything directly but just make a

presence of the brand in the market. This is a ―Brought to you by……‖ segment of the

advertising. Whenever you hear ―brought to you by ….,‖ before, in between or after the

programme than it means that the company is sponsoring that segment.

14.3.3. Internet

It is the latest method of communication and gathering information. With a computer and an

internet connection you can access information from all over the world within a fraction of

second. You can access the websites of different companies and gather information about their

products and services. With the help of search engines you can get information about products

being offered by different companies in a particular segment.

Internet advertising is very popular these days as you can reach your specific target

audience/customers directly. You can easily assess the effectiveness of your ad campaign over

the internet through various methods available.

Internet provides you with many free tools to drive traffic to your website. But it still lacks the

speed and ease of paid advertising campaign.

Following are the various methods available online for advertising:

a) Google AdWords (Pay-per-click Advertising): AdWords is a targeted advertising because

people type in keywords phrases that are relevant to your product and services before clicking on

your advertisement. This can bring a flood of traffic to your online business very quickly, and

this is an excellent choice as long as you‘re able to turn a profit.

There is a lot of competition in this format of advertising these days and

before using this format you need to be excellent and should have enough finance.

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b) Banner Advertising: In this type of advertising you simply put some sort of banner (usually

with a catchy image and headline) on a relevant website. Users who choose to click the banners

will end up on your website and hopefully will make a purchase. With the development of

banner blindness it is important to be cautious that you are not paying much for the ad.

c) Newsletter Advertising: In this type of advertising you can place an ad in e-magazines or

newsletters of the companies. This way you can connect to their subscribers. The ad can be as

simple as a text link that states your website is a sponsor of that publication.

d) Affiliate Marketing: Affiliate marketing is a type of performance-based marketing in which a

business rewards one or more affiliates for each visitor or customer brought by the affiliate's own

marketing efforts. The industry has four core players: the merchant (also known as 'retailer' or

'brand'), the network (that contains offers for the affiliate to choose from and also takes care of

the payments), the publisher (also known as 'the affiliate'), and the customer.

These affiliates do most of the legwork for you like writing articles, using pay per click

advertising themselves, and ultimately driving traffic to your product in any number of ways and

you don‘t actually have to pay your affiliates a commission until the sale is made.

e) Social Media: Today most of the companies are using social media sites for the promotion of

their products and services. Almost every company has pages on social networking sites like

Facebook, Twitter, LinkedIn etc. promoting their products and services. Today it is considered as

an easy medium to reach out to young customers. It offers a wide scope of advertising. You can

target some specific customers on the basis of your needs.

f) Electronic advertising: Advertising through electronic billboards on screens at bus stops,

shopping centers and on ATM screens have also increased in the last decade. These usually

advertise amenities and shops that are close by so that consumers will have them fresh in their

minds when they are in the area.

Some other examples of electronic media are:

Smart phones

Electronic display advertising

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Electronic streaming billboards

E- Mail& text messaging

Podcasting

Telephone ads

14.4 Advantages and disadvantages of electronic advertising

Advantages of electronic media

a) Wide impact: Radio advertising is more effective as people hear it on a regular basis

while TV is most effective as it has an audio-visual impact.

b) With catchy slogans, jingles, famous personalities exhibiting products, TV advertising

has a lasting impact while the Radio ads are useful to illiterates also, who can‘t read and write.

c) Variety of choices: With varieties of TV channels and programmes advertisers have a lot

of choices to advertise and with the arrival of local channels even illiterates can watch the

advertisements and understood it by seeing and hearing.

d) Long exposure: Large outdoor electronic billboard units can make a strong impact as they

provide all day, all week exposure and are inexpensive also as compared to other electronic ad

media.

e) New avenues: Outdoor advertising provide you with almost unlimited new venues like

elevators, waiting rooms, bus stops etc. and you can choose target specific locations.

f) Flexibility: There are places where newspapers reading may not possible, but you can

hear radio. For example, while working at home or while driving you can enjoy the radio.

Through internet Information is made available at your doorsteps and you can see the

advertisement as per your convenience.

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Disadvantages of Electronic Advertising

The Internet and other electronic mediums have opened the world to possibilities never before

imagined. A click of the mouse takes you around the globe and allows instant purchases and

instant feedback. Electronic advertising places products and services in front of potential

customers as long as they open the email or website and read the content. While electronic

advertising is inexpensive compared to other advertising vehicles, there are some disadvantages

possible with its use.

a) High production costs: One limitation of electronic advertising (Radio, TV and Internet)

is that it is very costly to produce an electronic advertisement. The media costs are too high

which makes it impossible for the small businesses to use these mediums.

b) Advertisement clutter: Today almost every company is advertising its products through

various available media which has caused an ad clutter. It makes impossible for general public to

remember a specific advertisement.

e) Suitability issues: few electronic means like online advertising is also not suitable for all

due to less accessibility to all public. It is also not useful for those who are not aware about the

operation of electronic mediums like internet, Smartphone, emails etc.

f) Spam Filters: Electronic advertising often lands in a throw-away spam folder. Email

users can adjust email account settings to move unfamiliar mails to the spam folder. Thus direct

this option of emails turns into waste many times.

g) Subject Line Limitations: The majority of email programs provide a single subject line to

announce what the email is about. This means you cannot use logos, graphic art and other eye-

catching visuals to attract potential customers.

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h) High media costs: Media costs of electronic advertising are costly and make it impossible

to use by small businesses. Such advertising is purchased by a company and placed in key spots

on the Internet.

i) Shelf Life: electronic ads have less shelf life like if you do not book mark a webpage you

lose that forever and it is not easy to relocate that ad easily.

14.5 Latest trends in electronic media advertising

As social media use continues to grow in popularity, marketers, advertisers, and businesses are

looking for ways to use the new technology to increase revenue and improve customer service.

Meanwhile, social networking sites are expanding into commerce, connecting businesses and

consumers via third-party sites so that people can bring a network of friends to partner websites.

Facebook Connect, for example, enables a consumer to visit a partner site such as Forever 21,

find a pair of jeans on sale, and broadcast the information to everyone on her Facebook network.

If a few Facebook friends do the same thing, the information can create an effective viral

marketing campaign for the partner site

The current trend toward immediacy (instant Twitter updates, instant Google searches, instant

driving directions from Google Maps) is compounded by the development of smartphone

applications, which allow users to access or post information wherever they happen to be

located. For example, a person shopping for a particular product can instantly compare the price

of that product across an entire range of stores using the Android ShopSavvy app, while someone

new to an area can immediately locate a park, or supermarket using iPhone‘s AroundMe app.

Industry insiders have coined the term nowism to describe the instant gratification that can be

achieved by real-time content on the web. Sparked by social networking sites such as Facebook

and Twitter, the real-time trend looks set to continue, with companies from all types of industries

jumping on the immediacy bandwagon.

Here we have listed some of the trends prevalent in the markets:

1: Media Fragmentation

In this age of multimedia consumption media multitasking is normal. Consumers are using more

devices across a common set of platforms to do more things than ever. That means marketers

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have to play catch-up and shift away from strategies of the past. Today, the ―e‖ in e-commerce

means ―everywhere.‖

Your goal as a marketer should be to distribute content across as many types of media and

platforms as your budget can allow. Make fast, confident decisions that give digital consumers

opportunities to buy. Your digital content will need to be smarter, more creative and more visual

to connect and engage today‘s audiences.

2: Smartphone device adoption has increased:

Today smart phones have reached critical mass in all over the world and presenting unparalleled

opportunities for digital marketers. People are spending more time on the mobile devices and

smartphones are becoming an attractive alternative channel for commercial transactions

With the growing number of people downloading apps on their smartphones a strong strategy

will help to remain connected with your customers. Location based marketing which will surely

grow in the coming digital era.

One recent trend in smartphone applications is the use of location-sharing services such as

Foursquare, Gowalla, Brightkite, and Google Latitude. Utilizing the GPS function in modern

smartphones, these apps enable users to ―check in‖ to a venue so that friends can locate each

other easily.

3: Content Marketing Is Still King:

In today‘s markets content marketing is still important and digital marketers believe that it will

continue to grow more in coming years.

Recent market research points to the top 3 types of content that are working best for marketers:

social posts and updates (83%), email newsletters (78%) and news or feature articles (67%). So

marketers are focusing more on the content marketing rather than advertising because consumers

interact with content first and provide important insights about what is important to them.

4: Facebook Is Still Dominant among social networks

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Facebook continues to be at the top among social networks despite all changes (like graph search

and # hashtag) that have taken place on Facebook. Facebook users are increasing day by day and

also giving marketers new opportunities to interact innovatively with their customers.

Hash tag has opened up new opportunities for marketers as it enable the marketers to advertise

directly to users who have used or clicked on a particular # hashtag.

On the other hand, Graph Search is a valuable tool for helping you find people who like your

Page. If you‘re a local business this means you can create content, ads or free giveaways just for

fans in your geographical location, thus encouraging a more vibrant local community.

5: Users notice more branded content on their News Feed

Most of the users notice branded content on their newsfeed and don‘t visit a brand‘s Facebook

page. Thus branded content on users' news feeds presents significant opportunities and

challenges for marketers.

Users who want to interact with brand content are more engaged and open to brand messages &

those who don‘t want to interact simply hide any brand content they don‘t want to see. Images

are growing in importance as these make up 50% of the news feed stories and brands are posting

high quality and eye catchy visuals on the internet and social networks.

6: Twitter Getting More Popular

Although Facebook is at the top of the social media world but the report also shows that Twitter

is getting more popular. The hidden potential of Twitter is bigger than most people think.

Surveys have suggested that although the frequent users of twitter are few but a large population

use to hear about tweets in other media almost every day which means that an overwhelmingly

majority of the people have exposed to twitter via multimedia consumption. Twitter is much

bigger platform and marketers have recognized that. They are taking the advantage of current

twitter friendly multimedia environment to promote their brands using hashtags.

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Review questions:

1. What do you understand by electronic media? Explain its different types.

2. What is electronic media advertising? Explain what are different tools of electronic media

advertising?

3. Explain what are the negatives and positives of electronic media advertising?

4. Write a brief note on the electronic media advertising trends.

14.7 Glossary

Airtime: Media time slots a network or broadcast station has slated for the placement of

infomercial programs

Audience Composition: The classifications of a program‘s audience into specific demographic

categories.

Campaign: Term used to describe a product‘s advertising plan and execution, from development,

through production and media placement.

Clutter: Is defined as all non-programming content, which includes network and local

commercial time, public service announcements (PSAs), public service promotions (PSPs),

promotions aired by broadcast and cable networks, program credits not run over continuing

program action, and ―other‖ unidentified gaps within a commercial pod.

Copy: Term used by advertisers and agencies to specify the written or spoken words in a

commercial.

Direct Marketer: In the infomercial industry, an infomercial direct marketer is a company that

manufactures or sources products that executes an infomercial campaign while retraining

ownership in the product sales. They differ from an infomercial agency which has no ownership.

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Electronic Marketing: The direct response, marketing and sales methodology that uses electronic

media, such as: TV, radio, online, CD ROM, or electronic kiosks.

Electronic Media: The media of television, radio, fax, phone, kiosks, CD ROM and computers.

It is distinguished from print (newspapers, magazines, catalogs or letters) and outdoor media.

Format: Refers to the creative concept governing the overall structure of an infomercial.

Frequency: The number of times the infomercial will play in a specific TV market over a

specified time period, and the number of times the average individual will see the same

commercial.

Impression: The impact of watching a TV commercial.

Market: Term used by advertisers to describe a distinct geographic area surrounding a city or

cities that is the area of dominant influence for that city‘s broadcast TV stations.

Media Cost: The price paid for a specific time slot, or flight (group) of spots on cable or

broadcast stations.

Production: The actual shooting of film or videotape of the infomercial script elements

Telemarketing: Inbound and outbound telephone calls used to generate sales.

Universal Product Code (UPC): A bar code placed on a product to be read by a scanner. The

code consists of a System Number, Manufacture Number and an Item code.






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Circus, New Delhi.


14.9 References

1. Campbell, W. J. (1998). Beyond the litany of limitations. In Emergent independent press

in benin and cote d‘ivoire: From voice of the state to advocate of democracy (chapter 1).

2. Crabtree, R. D. &Malhotra, S. (2003). Media hegemony and commercialization of

television in india: Implications to social class and development communication. In

Artz&Kamalipour (Eds.), Globalization of corporate media hegemony (213-229). Albany: State

University of New York Press.

3. Eko, L. (2003). Globalization and the mass media in africa. In Artz&Kamalipour (Eds.),

Globalization of corporate media hegemony (195-213). Albany: State University of New York

Press.

4. Guardian (2006, May 12). Editorial and opinion page; cartoon.

5. Heath, C. (2001). Regional radio: A response by the ghana broadcasting corporation to

democratization and competition. Canadian journal of communication. (26)89-106.

6. MRA/IFEX (2006, April 21). Regulatory authority lifts restrictions on sanctioned radio

station. International freedom of expression exchange (IFEX).

7. Nigerian Tribune (2006). About us.

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8. Nuviadenu, K. K. (2005). Media globalization and localization: Analysis of the

international flow of programs on ghana television. Global media journal.4(7).

9. Nyamnjoh, F. B. (2005). Africa‘s media: Democracy and the politics of belonging. New

York: Zed Books.

10. Reuters (2006). Archives.

11. Thussu, D.K. (2000). International communication: Continuity and change. London:

Arnold.

12. ThisDay (2006). Who we are.

13. World Fact Book (2006). Ghana.

14. World Fact Book (2006). Nigeria.

15. http://www.lincolnmedia.com/resources/glossary-of-media-terms

16. http://www.cia.gov/cia/publications/factbook/print/ni.html

17. http://www.cia.gov/cia/publications/factbook/geos/gh.html

18. http://www.thisdayonline.com/who_we_are.php

19. http://today.reuters.com/news/home.aspx

20.

http://lass.calumet.purdue.edu/cca/gmj/OldSiteBackup/Fall2005/Refereed/Nuviadenufa0

5.html

21. http://www.tribune.com.ng/abt.html

22. http://www.ifex.org/en/content/view/full73920/

23. http://www.cjc-online.ca/viewarticle.php?id=620

24. http://academic2.American.edu/~wjc/cote.html

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25. http://www.guardiannewsngr.com/editorial_opinion/

26. http://catalog.flatworldknowledge.com/bookhub/reader/3833?e=lulemedia_1.0-ch16_s04

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LESSON- 15 OUT OF HOME MEDIA TOOLS AS MEDIA OF ADVERTISING

Structure of the chapter

15.0 Objectives

15.1 What is out of home media?

15.2 Out of home advertising

15.3 Different types of OOH advertising media


15.3.2 Transit advertising

15.3.3 Point Of Purchase advertising

15.4 Advantages and disadvantages of OOH media

15.5 Latest trends in OOH advertising

15.6 Scope and growth of OOH advertising


15.8 Glossary

15.9 Reference books

15.10 Bibliography

15.0 Objectives of the chapter are:

To make you understand what Out Of Media is?

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To help you know what different types of Out Of Home media are available?

To let you know about the types of Out of Home media advertising.

To know the advantages and disadvantages of Out Of Home media

To know about the trends those are prevalent in this media of advertising

To know what scope is available in this media of advertising

15.1 What is Out-of-Home media?

Out-of-home media is defined as any type of communication that reaches an individual while

they are out of the home. In particular, billboards, posters, and mass transit placards represent a

promising avenue for science learning. With the advent of cell phones (and smart phones in

particular) the opportunity to tailor the out-of-home learning experience to the needs and/or

interests of individuals has never been greater.

Additionally, many possibilities exist that integrate out-of-home media with web-based

interactive learning experiences. The effectiveness of outdoor media, especially of mass transit

media has been demonstrated for disseminating knowledge of a social problem and promoting

healthy behavioral change Research suggests that transit advertising is able to grab audiences‘

attention, raise awareness, and promote recall of information.

If out-of-home media is effective at selling products and services as well as fostering social

change, might it also be effective at helping the public understand a significant scientific issue?

15.2 Out- of- Home Advertising

Out-of-home advertising (or OOH advertising) is advertising that reaches the consumer whilst

they are outside the home. This medium is in contrast with broadcast, print, and Internet

advertising.

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Out of home advertising, therefore, is focused on marketing to consumers when they are "on the

go" in public places, in transit, waiting (such as in a medical office), and/or in specific

commercial locations (such as in a retail venue). Outdoor advertising formats fall into four main

categories: billboards, street furniture, transit, and alternative.

The OOH advertising industry in the USA includes more than 2,100 operators in 50 states

representing the major out of home format categories. These out of home media companies range

from public, multinational media corporations to small, independent, family-owned businesses.

15.3 Different types of out of home advertising media

Out-of-home media includes various forms of:


15.3.2 Transit advertising

15.3.3 Point-of-purchase (at-retail) advertising

15.3.4 Outdoor Advertising:

Outdoor advertising is broadly of two types- Digital out-of-home and Non-Digital Out-of-home

a) Digital out-of-home Advertising

Digital out-of-home (DOOH) refers to dynamic media distributed across placed-based networks

in venues including, but not limited to: cafes, bars, restaurants, health clubs, colleges, arenas, gas

stations, convenience stores, barber shops, and public spaces. DOOH networks typically feature

independently addressable screens, kiosks, jukeboxes and/or jumbotrons. DOOH media benefits

location owners and advertisers alike in being able to engage customers and/or audiences and

extend the reach and effectiveness of marketing messages. It is also referred to as Digital

Signage.

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The reason that this category is growing so rapidly is because busy people are typically busy at

home and with the introduction and acceptance of digital video recorders, it has diluted the

frequency with which traditional television commercials are viewed. Every day more TV

viewers are skipping past commercials with their DVRs which in turn has made out-of-home

advertising all the more appealing. A Nielsen media research study in 2009 showed that 91

percent of DVR owners skipped commercials. As a result, traditional TV advertisers are hungry

for an effective substitute, and digital out-of-home ads appear to be one of the solutions.

DOOH also includes stand-alone screens, kiosks, and interactive media found in public places.

The availability of inexpensive LCD screens with built-in media players has opened the door for

companies to add interactive video messages in Point of Purchase (POP) Displays. The displays

allow consumers to get additional information at the moment of decision on a product or service.

DOOH industry is as more POP manufacturers, advertisers, and content developers moving to

digital.

b) Non-digital out-of-home

Non-digital out-of-home refers to other types of media distributed across physical spaces. These

are:

i) Bulletin - Bulletin billboards are usually located in highly visible, heavy traffic areas such as

expressways, primary arteries, and major intersections. With extended periods of high visibility,

billboard advertisements provide advertisers with significant impact on commuters. This is the

largest standard out of home advertising format.

Source: clearchanneloutdoor.com

ii) ComPark advertising - ComPark is a device used for car park advertising; which is placed

onto the parallel lines of a bay and is able to gain instant exposure from motorists that have just

parked their vehicle. The ComPark also serves as a guide to assist motorist in adhering to the

parking bay size.

http://cdn.list25.com/wp-content/uploads/2012/07/university.png

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iii) Lamppost banner advertising - Lamp columns are sited everywhere, allowing advertisers and

events to use banners to target precise geographical locations and create massive promotional

awareness.

http://sphotos-f.ak.fbcdn.net/hphotos-ak-prn1/548685_402458026494892_725118901_n.jpg

iv) Mobile billboard - Mobile billboards offer a great degree of flexibility to advertisers. These

advertisements can target specific routes, venue or events, or can be used to achieve market

saturation. A special version is the inflatable billboard which can stand free nearly everywhere.

This product can also be used for outdoor movie nights.

http://aow.adsonwheelsinc.netdna-cdn.com/wp-content/uploads/2014/01/mobile-billboard-

bud.jpg

v) Postcards - Free advertising postcards available in venues such as cafes & bars, arts & cultural

institutions, universities and high schools. Postcards are taken from a specially designed display

unit with signage indicating the postcards are free for the general public to take.

http://www.pand-tech.com/img/postcard/example_01.png

vi) Poster – Posters are highly visible to vehicular traffic and are ideal for the introduction of

new products/services. Marketers use posters to achieve advertising objectives and increase

brand awareness by placing multiple units in strategic locations while lowering the cost per

thousand impressions.

vii) Premier panel - Premiere panels combine the frequency and reach of a poster campaign with

the creative impact of a bulletin.

viii) Premier square – these are premium panels with bright top and bottom illumination that

provides extra impact after dark.

ix) Street advertising – street advertising means the use of pavements and street furniture to

create media space for brands to get their message onto the street in a cost-effective approach.

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x) Wallscape – Wallscapes are attached to buildings and are able to accommodate a wide variety

of unusual shapes and sizes. These billboard advertisements are visible from a distance and

provide tremendous impact in major metro areas.

Other types of non-digital out-of-home advertising include airport displays; transit and bus-

shelter displays; headrest displays; double-sided panels; junior posters; and mall displays.

15.3.2. Transit Advertising

Transit media is a form of out-of-home advertising that displays advertisements in or on the

outside of vehicles such as on the side of or above the seats of a bus or tram.

a) Taxi advertising - Taxi advertising allows advertisers to highlight their products, whether

brand awareness, or a targeted message, directly to areas where people work, shop, and play.

http://www.taxiadvertising.com/wp-content/themes/Starkers/images/London-Taxi-

Advertising1.jpg

b) Commuter rail display - Reaches a captive audience of upscale suburban commuters.

Additionally, reaches lunch-time patrons, shoppers and business professionals.

http://clearchanneloutdoor.com/images/products/commuter-rail/slide01.jpg

c) Bus advertising - Firmly establish brand awareness and generate quick recall with high profile

exposure near point of purchase locations.

http://www.matrixmediaservices.com/25/wp-content/uploads/2013/02/on-bus-digital.jpeg

d) Airship Advertising - An airship can provide one of the physically largest out-of-home

advertising platforms.

http://1.bp.blogspot.com/-y-H0HHVNLG4/Tj1a0j3im1I/AAAAAAAAA6w/NfKi-

qerbTg/s1600/Goodyear_Blimp_-_Spirit_of_Innovation.jpg

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e) Billboard bicycle - Billboard bicycle is a new type of mobile advertising in which a bike tows

a billboard with an advertising message. This method is a cost efficient, targeted, and

environmentally friendly form of advertising.

15.3.3. Point of Purchase (POP) advertising

Point of Purchase means a place where sales are made. Advertising materials used in the retail

setting to attract shoppers‘ attention to a brand, to convey primary product benefits, or highlight

pricing information. A point of purchase may be a physical location, such as a store, booth, or

other retail outlet, or may consist of an electronic sales environment such as a telephone-based

ordering service or a website. On a macro-level, a point of purchase may be a mall, market or

city. On a micro-level, retailers consider a point of purchase to be the area surrounding the

counter where customers pay. Transportation of products to points of purchase is an important

element of marketing and distribution and is also called point of sale.

https://advertisinginindia.files.wordpress.com/2010/01/point-of-purchase_vi_a8e93d.jpg

Objectives for P-O-P Advertising:

• Draw consumers‘ attention to a brand in the retail setting.

• Maintain purchase loyalty among brand loyal users.

• Stimulate increased or varied usage of the brand.

• Stimulate trial use by users of competitive brands.

P.O.P. advertisement forms include:

1. Window signage

2. Shelf displays

3. Floor stands

4. Banners

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5. Cash registers

6. End aisle displays

7. Trash cans

8. Lighted signage

9. Motion displays

10. Interactive displays

11. Custom logo floor mats

12. Cart advertising

13. Directories

14. Customized door mats

Each type of advertisement has its own strengths and weaknesses, but every ad should focus on

grabbing the attention of potential customers. Sometimes, this is accomplished by using a larger

ad or sometimes with a brighter ad; it really depends on the place, product, price, and promotion.

Hybrid out-of-home Advertising

Static out-of-home advertising combining paper with digital interaction

Other types of out-of-home advertising include a hybrid set of displays. Those displays combine

a mix of non-digital, paper for instance, with some technical enhancements like LED lights,

mechanical motion inside or even a disruptive interaction with the audience.

Either being any type of advertising, the most important is people traction towards its targeted

audience.

Other creative forms of out-of-home advertising are:

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Advertising can reach consumers in unique and unexpected ways:-

• Airport Display Advertising

• Washrooms Advertising

• Elevator Advertising

• Mobile Signage

• Food Court Video Screens

• Sports and Arena Advertising

• Cinema Advertising

• Wild Postings

15.4 Advantages and disadvantages of out of home media

Out of home advertising reaches its audience as an element of the environment. Unlike

newspaper, radio or TV, it doesn't have to be invited into the home. And it doesn't provide

entertainment to sustain its audience.

Advantages of out-of-home media:

1) Captured Audience: Since it is in the public domain, Outdoor Advertising assuredly reaches

its audience. People are exposed to it whether they like it or not and they can't "switch it off" or

"throw it out.‖ In this sense, outdoor advertising truly has a "captured audience."

2) High Frequency: its messages work on the advertising principle of "frequency." Since most

messages stay in the same place for a period of a month or more, people who drive by or walk

past see the same message a number of times which increases its impact. Other out of home

media like transit advertising gives you high reach and frequency since the transit media like bus,

taxi etc. keeps moving from place to place. Its messages have fairly long life as the ads remain at

the venue for a long time.

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3) Unlimited venues: Particular locations can be acquired for certain purposes. A billboard

located a block in front of your business can direct people to your showroom. Or you can reach

rural areas efficiently by placing a billboard in each small town.

4) Geographic flexibility: You can select your target markets by areas (not by people) of

demographic interest, thus creating flexibility.

5) Works well with other media: Outdoor advertising is an excellent adjunct to other types of

advertising you are doing.. It reinforces messages brought to the consumer by other forms of

media (TV, Magazines). In fact, it is most effective when coupled with other media

6) Good for product awareness/recognition: this type of advertising is excellent for product

awareness and recognition since the advertising messages are displayed at places where

maximum public can see the banners, hoardings without avoiding. As already said people can‘t

―switch off‖ or ―change the channels‖ like TV or radio and these ads create a good awareness

about new products in the market.

7) Flexible for message changes: It provides fairly flexibility for message changes and covers all

sectors of an urban/suburban community

8) Branding: It has been demonstrated that using a brand icon in an outdoor advertisement makes

it 40% more memorable than not using a brand icon and no other medium can turn a product or

service into a brand as cost-effectively as Outdoor

9) Make an impact: With dominant visibility, larger-than-life images and strong branding that

stands out from the environment – Outdoor‘s impact is largely determined by the creative.

The outdoor medium achieves great cut-through because it‘s not competing with a plethora of

other advertisements, as is the case with other media environments. It provides a path to

purchase, reinforces brand messages from other media closer to point-of-purchase.

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Disadvantages of out-of-home media:

1) Outdoor advertising is a glance medium. At best, it only draws 2-3 seconds of a reader‘s time.

2) Messages must be brief to fit in that 2-3 second time frame. Ninety-five percent of the time,

either the message or the audience is in motion.

3) The nature of the way you have to buy outdoor advertising (usually a three month

commitment) is not conducive to a very short, week-long campaign.

4) Almost impossible to focus in on a specific target market since the messages are seen by all

demographics.

5) Production cost of some large banners, hoardings and electronic displays is very high.

6) Today there are many displays at one place and it makes a cluttering scene at most of the

places.

7) Weather can also restrict communication of the message sometimes. Plus it can‘t provide

product details.

8) It is considered as a suitable media for urban markets only.

15.5 Latest Trends in Out of Home Advertising

A trend we have our eye on is the increasing number of people using smartphones. Because

they‘re spending more time on their mobile devices, it has opened up new opportunities for out-

of-home campaigns, in essence, becoming a gateway to reaching mobile users and connecting

with consumers. (SMS, Augmented Reality, QR Codes, NFC, etc)

The improvement of our targeting techniques and measurements has an important impact on the

effectiveness of a campaign. Outdoor advertising is considered to be a ―mass media‖, but we

have developed powerful tools to understand our audiences and target them with more accuracy.

Now, we can categorize a geographical sector by the type of customers we are likely to find

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there, and then modify our out-of-home presence accordingly. That was not even possible 10

years ago. We worked on instinct back then.

Getting media placement in prime Out of Home (OOH) advertising locations has been crucial for

companies looking to expand their audience for a long time. Out of home advertisements

continue to remain an effective way to reach a larger crowd, but in 2013 the tide is changing with

new trends. Just like in other parts of the marketing world, many out of home strategies are

beginning to shift to digital.

Here we are listing some of the emerging trends in out of home advertising-

Digital Targeting

The shift to digital advertisements in the outdoor space is nothing new. Companies have long

been using digital ads outdoors to grab attention, but this year, many will be taking an extra step

to leave their brands on people‘s minds long after they have seen the ad. Customization with

different forms of digital outdoor advertising everywhere, from airports and taxis to shopping

malls, will allow more clients to directly target specific audiences with precise locations,

different ad content and particular time slots. Digital advertising is certainly expected to continue

growing this year and the OOH portion of that will as well.

Interactive Displays

For places like airports and shopping malls, the introduction of even more interactive advertising

is extremely likely in coming years. We‘ve already been seeing some interactive displays being

used, but for the most part, this strategy remains at an infant stage. The use of Interactive

displays on LED screens and other formats is increasing which will allow companies to increase

their chance of conversions by promoting more instant relations with the customer.

Interactive marketing has grown heavily in social media and other formats and it is expected that

more companies will begin to do so in the coming years. LED technology is also expected to

play a big part in this shift, as it‘s great for viewing from long distances; it also allows for

interactive capability and will be implemented for different ads everywhere, from shopping malls

to highway billboards.

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Crossover Appeal

In the coming years many of the online advertising and marketing companies are expected to

venture more into the outdoor media picture. We‘ve already mentioned things such as interaction

and digital displays, but there are many strategies being applied online that will soon be helping

outdoor advertising. For example, social media platforms, such as Foursquare, have already

begun letting customers check into billboards and receive corresponding benefits. This allows for

different deals to be given out at different locations, which relates back to our first trend of

targeting.

The use of interactive displays will also allow outdoor campaigns to tie into digital and online

campaigns as well. Imagine social media contests and check-ins, being combined with displays

in places like shopping plazas. This cross-platform marketing would allow for companies to

experience a level of interaction with customers and potential for conversion that‘s been

previously unreachable for a long time.

Some examples of latest out of home media trends-

1) British Airways takes digital out-of-home to new heights

In a world-first, British Airways (BA) planes flying over London‘s Chiswick Towers – part of

Storm, Clear Channel UK‘s new premium brand – will trigger advertising creative displaying

real-time data of that plane, including destination and flight number. An estimated 200 British

Airways planes that fly over the Chiswick Towers every day have triggered unique technology

and replaced the advert on the state-of-the-art screens with BA‘s creative of a child pointing at

the plane alongside the live flight data.

British Airways and OgilvyOne advertising agency have devised a truly innovative campaign

that uses the inherent flexibility of Storm beautifully. Using unique technology, the Chiswick

Towers showcases fantastic creative at the exact moment a British Airways plane flies over the

structure with the creative changing depending on the plane‘s destination.A unique weather feed

reads the cloud height to ensure the plane is visible before showing the advert. The messaging of

the creative changes depending on which plane is above the Towers, with the destination of the

planes influencing what content is displayed.

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2) This New Zealand Billboard Always Predicts the Local Weather With 100 Percent Accuracy

Can the website say that?

MetService.com, a weather site in New Zealand, recently put up this empty (but nonetheless

branded!) billboard frame in Auckland, through which it offered ―real-time weather reports.‖ As

a gimmick, it‘s amusing enough. Of course, it‘s hard to tell the temperature from looking at the

sky—and that‘s the major thing people check real-time weather reports for.

15.6 Scope and growth of Out of Home advertising

Radio and print do not work standalone. It is integrated with different events/activation. These

have now increasingly become a part of radio and print media solutions. India is seeing a sea

change in its sophistication and grandeur in the way live events are done. India can now boast of

world class events, concerts, festivals (be it literary, food, drama or music). These events

essentially give the maximum visibility to the brands especially to the title sponsors.. All this has

become possible because of the increased consumption of video, music on-the-go while being

mobile or travelling in cars, etc. This provides new avenues for real time mobile geo-location

advertising. The OOH medium has seen a tremendous growth in transit advertising.

Fig: Contribution by different medium (INR billion)

Source: FICCI FRAMES 2013.

Following is the comprehensive report on the major contributions to advertising in India.

The figures for OOH look abysmal. But one cannot deny the potential it has. It is believed that it

is difficult to measure the spending on OOH due to the cluttered presence of different

advertisements. In recent years, the OOH medium has attracted companies from the FMCG,

entertainment and media and healthcare sectors, which have multiple brands and a focused target

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group. Conventional sources of income like FMCG, media and entertainment contribute to the

growth of OOH. However, we see that, real estate, e-commerce has come up in a big way

(especially in tier-II and tier-III cities. The industry size is estimated to be more than 15.5 billion

INR and expected to grow at a faster pace in coming years.

New advertisers are making efforts to reach their focused target groups in their own style and

digital advertising has raised the creative bar for ad agencies. Recent example being

Smartphones, tablets shall help OOH gain transaction. Any good creative OOH shall get noticed

and people will tweet about it. Thus, helping gain transactional and visible growth.

Advertising still has a place in contemporary marketing:

Spending on outdoor ads has risen in recent years in the face of some pretty sharp declines in

other traditional media like print and radio. But one can‘t deny the power of outdoor advertising,

which has been an under-utilized medium. Like new digitally-based advertising platforms like

Social media, online video, and banner ads outdoor advertising too have an important place in

advertisers‘ toolkits.

As part of a multimedia plan outdoor ads can achieve broader engagement than any other

medium besides TV. Additionally outdoor typically does a better job than most other media in

expanding overall campaign awareness engaging people who were missed by the TV campaign.

Another very strong argument for the use of outdoor lies in its ability to successfully convey the

brand. A well-designed outdoor ad reflects the brand identity to nearly everyone who sees it,

with even the ‗average‘ outdoor ad gaining about 85% correct brand associations (compared to a

TV average of fewer than 50% correct branding). And, if the multimedia campaign is well-

integrated, the outdoor executions can actually help to boost branding for the TV spots among

those who see the ads in both media. Executed smartly within a well-integrated campaign, it just

might be your time-tested ticket to marketing success.

Consumer exposures to digital out of home media have increased in recent years. Consumers

worldwide are increasingly accessing media outside the home and, as a result, brands need to

determine the most efficient way to reach and engage the on-the-go, always-connected consumer

with targeted messages. While time spent with most traditional media continues to decline,

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consumer exposure to digital out-of-home (DOOH) media is experiencing rapid growth around

the world.


1. Explain what Out of Home media is and what are its different types?

2. What is the future of this media of advertising? Discuss.

3. What are the advantages and disadvantages of this media?

4. Write in brief about the new trends in this form of advertising.

5. Write short notes on: Transit Advertising, Point of Purchase (POP) Advertising

15.8 Glossary

1) Out-of-home advertising: It is the type of advertising that reaches the consumer whilst they

are outside the home. This medium is in contrast with broadcast, print, and Internet advertising.

2) Bulletin Billboards: Bulletin billboards are the highway, expressway or large surface street

billboards. In the outdoor advertising industry there are two major types of bulletins; permanent

or rotary. A permanent bulletin billboard is one that targets a specific location. A rotary bulletin

is a campaign that it targets a market or a market segment and moves every 8 or 12 weeks.

3) Billboard: Billboard is a large outdoor advertising structure (a billing board), typically found

in high-traffic areas such as alongside busy roads. Typically showing large, ostensibly witty

slogans, and distinctive visuals, billboards are highly visible in the top designated market areas.

Bulletins afford greatest visibility due not only to their size, but because they allow creative

"customizing" through extensions and embellishments.

4) Bulletin - Bulletin billboards are usually located in highly visible, heavy traffic areas such as

expressways, primary arteries, and major intersections. With extended periods of high visibility,

billboard advertisements provide advertisers with significant impact on commuters. This is the

largest standard out of home advertising format, usually measuring at 11x48 in overall size.

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5) ComPark advertising - ComPark is a device used for car park advertising; which is placed

onto the parallel lines of a bay and is able to gain instant exposure from motorists that have just

parked their vehicle. The ComPark also serves as a guide to assist motorist in adhering to the

parking bay size.

6) Lamppost banner advertising - Lamp columns are sited everywhere, allowing advertisers and

events to use banners to target precise geographical locations and create massive promotional

awareness.

7) Mobile billboard - Mobile billboards are advertising billboards on the move and can be

moved from one place to another according to the need. These boards offer a great degree of

flexibility to advertisers. These advertisements can target specific routes, venue or events, or can

be used to achieve market saturation

8) Postcards: Postcards re specially designed display units with signage indicating the

advertisers‘ services and products and are free for the general public to take. Free advertising

postcards available in venues such as cafes & bars, arts & cultural institutions, universities and

high schools.

9) Street advertising: The use of pavements and street furniture to create media space for brands

to get their message onto the street in a cost-effective approach.

10) Wallscape: Wallscapes are large billboards attached to buildings and are able to

accommodate a wide variety of unusual shapes and sizes. These billboard advertisements are

visible from a distance and provide tremendous impact in major metro areas.

11) Transit media is a form of out-of-home advertising that displays advertisements in or on the

outside of vehicles such as on the side of or above the seats of a bus or tram.

12) Transit advertising: Transit advertising is typically advertising placed on anything which

moves, such as buses, subway advertising, truckside, food trucks,and taxis, but also includes

fixed static and electronic advertising at train and bus stations and platforms.

13) Frequency: Frequency is the number of times a person must be exposed to an advertising

message before a response is made and before exposure is considered wasteful.

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14) Targeted advertising is a type of advertising whereby advertisements are placed so as to

reach consumers based on various traits such as demographics, psychographics, behavioral

variables (such as product purchase history), and firmographics or other second-order activities

which serve as a proxy for these traits.

15.9 Reference Books










Circus, New Delhi.

10. Reading in Advertising Management, Bellur V.V., Himalaya Publishing House, Bombay

1.10 Bibliography and web resources

1. http://www.trendsinadvertising.com/2014/04/08/why-outdoor-advertising-still-has-a-

place-in- contemporary-marketing/

2. http://flheadlines.net/category/out-of-home-trends/

3. http://en.wikipedia.org/wiki/Out-of-home_advertising

4. http://www.billboardconnection.com/products/bulletin-billboards

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5. http://en.wikipedia.org/wiki/Billboard

6. http://en.wikipedia.org/wiki/Out-of-home_advertising

7. http://en.wikipedia.org/wiki/Transit_media

8. http://www.wirespring.com/Solutions/pop_displays.html\

9. http://en.wikipedia.org/wiki/Effective_frequency

10. http://thenewcreative.blogspot.in/2012/12/advantages-and-disadvantages-of-outdoor.html

11. http://www.marketingscoop.com/outdoor-advertising

advantage.htm#sthash.zV2asmH7.dpuf

12. http://www.cbsoutdoor.com/outdoor101/mediadirectory.aspx

13. http://www.adoptahighway.com/Blog/post/2012/10/10/What-Are-the-Advantages-and-

Disadvantages.aspx

14. http://www.pqmedia.com/consumerdoohmediaexposure-2014.html

15. http://www.economist.com/node/18587305http://www.economist.com/node/18587305

16. http://www.faceadblog.com/en/trends-to-watch-in-out-of-home-

advertising/#sthash.vdqddhlB.dpuf

17. http://www.uml.edu/Education/Scienceexpress/Carbon-Smarts/Out-of-Home-Media.aspx

18. http://www.clickz.com/clickz/column/2309955/top-5-digital-marketing-trends-of-2014

19. http://en.wikipedia.org/wiki/Transit_media

20. http://www.promomatting.com/types-of-point-of-purchase-ads/

21. http://smallbusiness.chron.com/pointofpurchase-marketing-20757.html

22. http://en.wikipedia.org/wiki/Wrap_advertising

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LESSON 16- INTERNET ADVERTISING AS A MEDIUM OF ADVERTISING

Structure

16.0 Objectives

16.1 What is Internet/Online Advertising?

16.2 Various types of Online Advertising

16.2.1 Online ad targeting methods

16.3 Advantages and Disadvantages of Internet Advertising

16.4 Trends in Online/Internet Advertising


16.6 Glossary


16.8 References

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16.0 Objectives of this Chapter are:

To help you understand what Internet/Online advertising is?

To let you know about the various types of Online Advertising

To increase your knowledge about various online targeting methods

To understand the benefits and drawbacks of this mediums of advertising

To know about the trends in this medium of advertising

16.1 What is Internet or Online Advertising?

Online advertising is a form of advertising that uses the Internet for the delivery of promotional

marketing messages to the target audiences. Internet advertising uses many forms of internet

advertising to deliver the messages like email marketing, social media marketing, web banner

ads, search engine results pages, social networking ads, email spam, online classified ads, pop-

ups, contextual ads and spyware.. Like other advertising media, online advertising frequently

involves both a publisher, who integrates advertisements into its online content, and an

advertiser, who provides the advertisements to be displayed on the publisher's content. Other

potential participants include advertising agencies that help generate and place the ad copy, an ad

server who technologically delivers the ad and tracks statistics, and advertising affiliates who do

independent promotional work for the advertiser.

Definition - What does Online Advertising mean?

Online advertising is a marketing strategy that involves the use of the Internet as a medium to

obtain website traffic and target and deliver marketing messages to the right customers. Online

advertising is geared toward defining markets through unique and useful applications. Since the

early 1990s there has been an exponential increase in the growth of online advertising, which has

evolved into a standard for small and large organizations.

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A major advantage of online advertising is the quick promotion of product information without

geographical boundary limits. A major challenge is the evolving field of interactive advertising,

which poses new challenges for online advertisers.

16.2 Various types of Online/Internet advertising

One major benefit of online advertising is the immediate publishing of information that is not

limited by geographic or time constraints. Online advertisers can customize advertisements,

making consumer targeting more efficient and precise. For example, AdWords, Yahoo! Search

Marketing and Google AdSense enable ads to be shown on relevant web pages or alongside

related search results. On the other hand, consumers have greater control over the content they

see, affecting the timing, placement, and visibility of online advertisements.

Within the scope of Internet marketing, online advertising includes display advertising, affiliate

marketing, search engine marketing (SEM), and mobile advertising.

a) Display Advertising: Display advertising is the use of web banners or banner ads placed on a

third-party website or blog to drive traffic to a corporate website and increase product awareness.

These banners consist of static or animated images, as well as interactive media including audio

and video. In addition to contextual targeting, online advertising is targeted based on a user's

online behavior. This practice is known as behavioral targeting.

b) Affiliate marketing: Affiliate marketing is a form of online advertising where advertisers place

campaigns with a potentially large number of publishers, who are only paid media fees when the

advertiser receives web traffic. Today, this is usually accomplished through contracting with an

affiliate network.

c) Social Network Advertising: Social network advertising is a form of online advertising found

on social networking sites such as Facebook, Twitter, LinkedIn, MySpace etc. Advertising on

social media networks can take the form of direct display ads purchased on social networks; self-

serve advertising through internal ad networks, and ad serving on social network applications

through special social network application advertising networks.

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d) Search Engine Marketing (SEM): Search engine marketing is a form of marketing that seeks

to promote websites by increasing their visibility in search engine result pages (SERPs). SEM

tactics include paid placement, contextual advertising, and paid inclusion, or free search engine

optimization techniques to drive placement of their ads. Advertisers pay each time users click on

their listing and are redirected to their website, rather than for the ad itself. This system allows

brands to refine searches and gain information about their market.

e) Mobile Advertising: Cell phone advertising is the ability for organizations and individuals to

advertise their product or service over mobile devices. Mobile advertising is generally carried out

via text messages, Idle screen advertising, App-vertising or applications. This presents a cost-

effective way for brands to deliver targeted advertisements across mobile platforms on a daily

basis. Technologies such as location-based advertising also give marketers the ability to deliver

ads in close proximity to the physical location of a consumer. Although advertisements appear

on a small mobile interface, mobile advertisers have the ability to deliver personalized, and thus

effective, messaging.

e) Group Buying: Sites like Living Social and Group on have become extremely popular,

literally guaranteeing customers for businesses. However, these ―deal sites‖ come with a price

and often result in very few long-term customers. These can work for certain businesses, but do

your research and tread with caution here.

f) Online Videos: Video is a great way to make your product or service even more real to those

who are visiting your website. Customer testimonials, product overviews, and demos all work

nicely and properly titled videos can drive SEO based traffic.

16.2.1 Online Ad Targeting Methods

a) Geotargeting: Sell a generally needed product to a specific area? You might be successful

utilizing geotargeted advertising which can be targeted down to the country, state, city or zip

code of the user. Geo-targeting your advertising to a specific area can typically be achieved on

any online advertising platform.

b) Contextual: By placing you ads next to content that contains the same keywords and concepts,

you are likely to find more customers who are more receptive to your marketing message.

Contextual advertising involves using

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c) Behavioral Targeting: By leveraging anonymous data, many advertising platforms allow you

to target internet users who may be interested in your product based on the similarities to your

existing customers.

16. 3 Advantages and disadvantages of internet advertising

Online Advertising is the best choice for brands looking for long-term, performance-oriented

campaigns with high penetration. In fact, the term ―high penetration‖ is an understatement as an

Online Advertising Campaign operates on a global scale. However, just like any other media,

Online Advertising also suffers from a few disadvantages. Here are few advantages and

disadvantages of online media advertising.

Advantages of Internet Advertising

a) Highest Penetration: There is no media that can compete with Online Advertising on the levels

of penetration. An Online Ad posted anywhere in the world can be viewed from anywhere in the

world. Thus, an Online Advertising Campaign essentially has a worldwide audience. The

medium also offers ample opportunities for posting campaigns specially designed for the areas

where they would be implemented. A properly implemented campaign on the internet can do

wonders for your visibility.

b) Promptness: Online Advertising incites prompt action without the ad copy saying so. An

Online Ad is clicked immediately if it is exciting enough. Thus, the response is generated on an

immediate basis. Business houses all around the world will always have eloquent presentations

on the importance of promptness. Better reproductions of the creative visualizations are possible

with Online Advertising. Thus, the overall impacts of the ads are much higher.

c) Maintenance Convenience: Advertisers and publishers are well accustomed to the toil that the

maintenance of ads demands. Online Advertising provides options of setting alerts on the basis

of time period and events and does away with the requirement of manual inspections. Next is its

ability to produce fast and accurate analyses. These data are crucial in terms of making the

urgent changes even while the Online Advertising Campaign is running and improving on the

ads later at the stage of conceptualization itself.

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d) Cost implications: The electronic medium is a powerful mile ahead of other means when it

comes to cost. Covering a huge audience is possible with a limited spend online, resulting in a

much better return on investment percentage. And, this is one of the biggest reasons why

companies, who really can't bear the cost of outdoor banner advertising, trade shows or magazine

ads, are now considering online marketing to their marketing strategy.

e) Easier targeting means: Due to the nature of the internet, it is possible to taper down the target

audience so that only the segment that does view the ad consists of potentially strong buyers. In

fact, there is a lot of geographical targeting to make the ads relevant to users. Similarly, users‘

web browsing history can be made a base for zeroing in on preferences and avoiding useless

repetitions.

f) Measurable: This is one of the most important factors in deciding the impact of online

advertising. On the internet, it is possible to collect accurate data of hits, pages visited, number of

times the ad was viewed by the same user, how the user reached to the ad or the website, and

whether the activity resulted in a sale.

g) Versatility: Unlike offline media, online advertising can be highly interactive. From

incorporating videos and games to audio messages and sections for query input, there are many

methods to keep the consumer keenly and constantly engaged.

h) Speed: Once an ad copy is ready, the distance between the advertiser and its consumers can be

rapidly covered. Deployment can be immediate as most of the time the delivery of ad schedules

is not dependent upon the publisher‘s schedule. Even modifications and replacements in the ad

are faster on the internet.

Disadvantages of Internet advertising

Even though Online Advertising presents increased efficiencies, it also suffers from a few

disadvantages.

a) Banner Blindness: One of the major disadvantages of Online Advertising is that it has been

used to such extents that the users have developed a blind eye to most Online Ads. The Top

Online Advertising Agencies across the world rely on innovative approaches to tackle this

blindness.

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b) Intrusive: Web Banners, if not placed systematically, can be intrusive and distracting elements

for the internet users. There have been some horrible instances of agencies flooding sites with so

many banners that it became virtually impossible for the user to work on them. Online

Advertising Agencies need to understand that optimization rather than maximization is the name

of the game here.

c) Receptiveness: Although some consumers don't object to viewing ads on the websites they

visit, others either ignore or refuse to click on them. Because these ads appear in a setting within

which the viewer may not expect to see commercial messages -- on a news or informational site,

for example -- your message runs the risk of failing to connect with an audience that dislikes and

even distrusts online ads. Because online ads run above or alongside the content viewers really

want to see or read, they can be seen as nuisances rather than added value.

D) Measuring Effectiveness: Measuring the reach and effectiveness of online advertising can

involve evaluating complex, ongoing sets of metrics. Even after you crunch the numbers and

look at how many sales you convert from the ads you place, these simple measurements may not

tell the entire story of how effectively your message gets across. Everything from how you pay

for your ads -- by the click or by the sale, for example -- to where your ads appear plays a role in

how well your online outreach works. Evaluating the full range of outcomes can require time and

statistical savvy.

e) Click Fraud: Depending on how you pay for your online advertising, you may encounter a

common form of ad-result fraud based on inflated click through results. If your ad placement

costs rely on the number of clicks your messages receive, your competition can pay people to

inflate the click rate and drive up your costs. These deceptive strategies can cost the competition

much less than they do you.

f) Ethical and Privacy Concerns: As an online advertiser, you need to remember that even though

your commercial messages appear on websites instead of in print or on broadcast media, your

ads must comply with applicable laws that regulate truthfulness, disclosure, claims from unhappy

customers and other regulations. These regulations can vary from state to state and country to

country. At the same time that you face compliance mandates from government, you also can

encounter consumers' ethical concerns about the use of cookies, Web bugs and other tracking

mechanisms to aggregate together their online clicks.

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16.4 Trends in Online/Internet advertising

The Internet has drastically altered the way in which information is shared, and has had a

profound impact on marketing. Over the past few years, there has been more of a shift toward

inbound techniques, while many outbound tactics have become antiquated. More businesses are

finding success publishing original content rather than embedding advertisements within external

content, because of the additional benefits these tactics offer, such as branding and audience

growth.

Here we are listing few trends that will dominate the online/Internet advertising.

1. Content marketing will be bigger than ever

Companies are establishing authority and gaining trust with consumers by consistently creating

valuable content through a variety of channels. This typically involves relevant industry

information that provides insight or entertainment to an audience and allows a company to

steadily build rapport with its demographic and develop a loyal following. Today the top content

marketing strategies are social media, articles on a business‘s website, e-newsletters, case

studies, videos and articles on other websites.

By using one or more of these channels, businesses are building a positive reputation within their

industry. This trend suggests that marketing to the masses through techniques like television ads

and radio ads are becoming less effective and use of content marketing is increasing.

2. Social Media Marketing has diversified.

Businesses were limited with regard to the social media networks few years ago that they could

us6e into their marketing campaigns as there were only few like Facebook, LinkedIn and

Twitter. Now new sites like Pinterest, Google+, Tumblr and Instagram have surfaced and surged

in popularity. These sites have provided businesses with new options that allow them to produce

engaging content in a variety of media forms and build their audiences across more channels

than ever before.

Consequently, it has become common for businesses to branch out and experiment with multiple

networks with the aim of reaching the maximum amount of consumers. This diversification

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seems to prove fruitful for many companies because it often builds brand equity by making it

easier for consumers to recognize a particular brand.

3. Image-Centric Content Will Rule

It has become important to make content easily and quickly understandable as the consumers are

being hit by unlimited number of ad messages. One of the common features that most of the

social sites share is their emphasis on images. The rapid rise to success of Buzzfeed and Pinterest

are testaments to the power and viral potential of image-based content.

The most successful blogs that receive the most social shares have a common characteristic that

they pepper in some well-placed pictures to break content up and emphasize certain points.

Another example is infographics, which combine images with a minimal amount of text to

explain a topic and provide statistical information or data from research studies. All these

examples show the increasing use of images in internet advertising.

4. Less will be more

One notable trend is the apparent shift in consumer preference regarding simplistic marketing

messages instead of in-depth messages. When you think about some of the top brands in the

world like Apple and Google, they clearly value simplicity. A large part of Pinterest‘s appeal is

its clean, uncluttered, and minimalist aesthetic. With many consumers feeling burned out by a

constant barrage of information and advertisements marketers are now making efforts to tone-

down their campaign messages and not overwhelm consumers with hype.

Based upon the studies it is clear that now the most successful marketing strategies will be ones

that are not only simple in nature, but promote goods and services that serve to simplify the

consumer‘s life, or even just their customer experience.

5. Mobile-friendly content is necessary

Widespread use of mobile devices have necessitated that companies create and modify their

content for mobile users also. Latest the increasing use of tablets and smartphones have forced

the companies to create mobile version of their websites and give consumers a positive

experience who are browsing the internet via their mobile devices.

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Otherwise, it‘s easy to lose customers to competitors who have adapted to this trend. As the shift

from traditional PCs and laptops to mobile devices continues, businesses that aren‘t onboard are

likely to suffer.

6. Ad retargeting will grow in effectiveness

A recent trend is utilizing browser cookies to track the websites that users visit. Once they leave

a certain site, the products or services they viewed will be shown to them again in advertisements

across different websites.This keeps the brand and the product at the top of the consumer‘s mind.

There are even psychological studies that have shown that simple exposure to brand names and

logos creates familiarity, which builds trust and makes consumers more likely to make a

purchase. Even if there‘s no immediate purchase, this can really pay off in the long run.

7. SEO (Search Engine Optimization) and social signals will become even more intertwined

Although social signals still don‘t typically carry the same weight as traditional inbound links,

it‘s pretty undeniable that they play a role in organic search rankings these days. After all,

they‘re one of the three pillars of SEO. Since the goal of Google and other search engines is to

provide users with the most relevant and highest quality content possible, it makes sense why

they would factor in the number of social shares that a blog post, article or product page receives.

The more people that are sharing a piece of content, the higher quality it‘s likely to be, and

therefore its position should increase within the search engine results pages. It‘s no coincidence

that the top-ranking search results tends to have lots of social shares, while those ranked lower

have fewer. Besides this more social shares can serve as a stamp of approval (trust signal) for

visitors landing on a page. If they see that it has hundreds or thousands of shares, it‘s likely that

there‘s something of value. That‘s a big reason why so many businesses are installing social

share plugins and encouraging consumers to share as much as possible.

8) Location-based Marketing

If there‘s one dominating trend to pinpoint in 2014, it almost surely is location-based marketing.

This makes use of GPS technology to deliver multimedia content tailored to the geographical

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location straight to the potential customer‘s mobile device. This helps to cater more specifically

to users‘ needs, and both marketers and consumers are expecting more of this in 2014. Already

there are social apps including Ban.jo, Path, and Foursquare that provide vital consumer data.

91 percent of adult mobile phone owners have their devices within arm's reach 24/7 and location-

based marketing could exploit this massively. Furthermore, tools such as Google Wallet are

being perfected, which will enable people to buy with their credit card right from their

smartphone. The NFC (near field communication) technology in Google Wallet, which allows

users to make secure payments, is only set to get more popular and better. Businesses are sure to

capitalize on this.


1. What do you understand by online advertising? Discuss.

2. What are the various tools of online advertising? explain

3. Discuss the advantages that online advertising offer

4. Explain in brief the latest trends in this type of advertising

5. Write short notes on:

a) Search Engine Marketing

b) Mobile Advertising

c) Social Network Advertising

16.6 Glossary

1. Ad : For Web advertising, an ad is almost always a banner , a graphic image or set of

animated images (in a file called an animated GIF ) of a designated pixel size and byte size limit.

An ad or set of ads for a campaign is often referred to as "the creative." Banners and other

special advertising that include an interactive or visual element beyond the usual are known as

rich media .

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2. Ad space : An ad space is a space on a Web page that is reserved for ads. An ad space

group is a group of spaces within a Web site that share the same characteristics so that an ad

purchase can be made for the group of spaces.

3. Ad view : An ad view, synonymous with ad impression , is a single ad that appears on a

Web page when the page arrives at the viewer's display. Ad views are what most Web sites sell

or prefer to sell. A Web page may offer space for a number of ad views. In general, the term

impression is more commonly used.

4. Affiliate marketing : Affiliate marketing is the use by a Web site that sells products of

other Web sites, called affiliates , to help market the products. Amazon.com, the book seller,

created the first large-scale affiliate program and hundreds of other companies have followed

since.

5. Banner : A banner is an advertisement in the form of a graphic image that typically runs

across a Web page or is positioned in a margin or other space reserved for ads. Banner ads are

usually Graphics Interchange Format (GIF ) images.

6. Brand, brand name, and branding : A brand is a product, service, or concept that is

publicly distinguished from other products, services, or concepts so that it can be easily

communicated and usually marketed. A brand name is the name of the distinctive product,

service, or concept. Branding is the process of creating and disseminating the brand name.

Branding can be applied to the entire corporate identity as well as to individual product and

service names.

7. Click : According to ad industry recommended guidelines from FAST , a click is "when a

visitor interacts with an advertisement." This does not apparently mean simply interacting with a

rich media ad, but actually clicking on it so that the visitor is headed toward the advertiser's

destination.

8. Click stream : A click stream is a recorded path of the pages a user requested in going

through one or more Web sites. Click stream information can help Web site owners understand

how visitors are using their site and which pages are getting the most use.

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9. Clickthrough : A clickthrough is what is counted by the sponsoring site as a result of an

ad click. In practice, click and clickthrough tend to be used interchangeably. A clickthrough,

however, seems to imply that the user actually received the page.

10. Click rate : The click rate is the percentage of ad views that resulted in clickthroughs.

Although there is visibility and branding value in ad views that don't result in a clickthrough, this

value is difficult to measure.

11. Cookie : A cookie is a file on a Web user's hard drive (it's kept in one of the

subdirectories under the browser file directory) that is used by Web sites to record data about the

user. Some ad rotation software uses cookies to see which ad the user has just seen so that a

different ad will be rotated into the next page view

12. CPM : CPM is "cost per thousand" ad impressions, an industry standard measure for

selling ads on Web sites. This measure is taken from print advertising. The "M" has been taken

from the Roman numeral for "thousand."

13. Demographics : Demographics is data about the size and characteristics of a population

or audience (for example, gender, age group, income group, purchasing history, personal

preferences, and so forth).

14. Filtering : Filtering is the immediate analysis by a program of a user Web page request in

order to determine which ad or ads to return in the requested page. A Web page request can tell a

Web site or its ad server whether it fits a certain characteristic such as coming from a particular

company's address or that the user is using a particular level of browser. The Web ad server can

respond accordingly.

15. Hit : A hit is the sending of a single file whether an HTML file, an image, an audio file,

or other file type. Since a single Web page request can bring with it a number of individual files,

the number of hits from a site is a not a good indication of its actual use (number of visitors). It

does have meaning for the Web site space provider, however, as an indicator of traffic flow.

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16. Impression : An impression is "The count of a delivered basic advertising unit from an ad

distribution point." Impressions are how most Web advertising is sold and the cost is quoted in

terms of the cost per thousand impressions ( CPM ).

17. Media buyer : A media buyer, usually at an advertising agency, works with a media

planner to allocate the money provided for an advertising campaign among specific print or

online media (magazines, TV, Web sites, and so forth), and then calls and places the advertising

orders. On the Web, placing the order often includes requesting proposals and negotiating the

final cost.

18. Opt-in e-mail : Opt-in e-mail is e-mail containing information or advertising that users

explicitly request (opt) to receive. Typically, a Web site invites its visitors to fill out forms

identifying subject or product categories that interest them and about which they are willing to

receive e-mail from anyone who might send it. The Web site sells the names (with explicit or

im6plicit permission from their visitors) to a company that specializes in collecting mailing lists

that represent different interests.

19. Pay-per-click : In pay-per-click advertising, the advertiser pays a certain amount for

eachclickthrough to the advertiser's Web site. The amount paid per clickthrough is arranged at

the time of the insertion order and varies considerably. Higher pay-per-click rates recognize that

there may be some "no-click" branding value as well as clickthrough value provided.

20. Pay-per-view : Since this is the prevalent type of ad buying arrangement at larger Web

sites, this term tends to be used only when comparing this most prevalent method with pay-per-

click and other methods.

21. Sponsor : A sponsor simply means an advertiser who has sponsored an ad and, by doing

so, has also helped sponsor or sustain the Web site itself. It can also mean an advertiser that has a

special relationship with the Web site and supports a special feature of a Web site, such as a

writer's column, a Flower-of-the-Day, or a collection of articles on a particular subject.

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22. Sponsorship : Sponsorship is an association with a Web site in some way that gives an

advertiser some particular visibility and advantage above that of run-of-site advertising. When

associated with specific content, sponsorship can provide a more targeted audience than run-of-

site ad buys. Sponsorship also implies a "synergy and resonance" between the Web site and the

advertiser.

23. Targeting : Targeting is purchasing ad space on Web sites that match audience and

campaign objective requirements.

24. Visit : A visit is a Web user with a unique address entering a Web site at some page for

the first time that day (or for the first time in a lesser time period). The number of visits is

roughly equivalent to the number of different people that visit a site.










9 .Advertising Management, David A Parker, Rajiv Batra, Practice HallM 97, Connaught Circus,

New Delhi.


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11. Positioning: The Battle for Your Mind: How to Be Seen and Heard in the Overcrowded

Marketplace - Al Ries and Jack Trout

12. How to Write an Inspired Creative Brief - Howard Ibach

13. A Technique for Producing Ideas - James Webb Young

14. It's Not How Good You Are, It's How Good You Want To Be

by Paul Arden

15. Creative Advertising: Ideas and Techniques from the World's Best Campaigns by Mario

Pricken

16.8 Bibliography and Other web references

1. https://www.boundless.com/marketing/social-media-marketing/introduction-to-social-

media-digital-marketing/types-of-internet-advertising/

2. http://www.linkedin.com/today/post/article/20140323175141-10816248-8-digital-trends-

that-will-change-the-future-of-advertising

3. http://www.forbes.com/sites/jaysondemers/2013/09/17/the-top-7-online-marketing-

trends-that-will-dominate-2014/2/

4. http://www.clickz.com/clickz/column/2309955/top-5-digital-marketing-trends-of-2014

5. http://www.forbes.com/sites/roberthof/2013/04/10/heres-the-future-of-advertising-

according-to-google/2/

6. http://whatis.techtarget.com/reference/advertising-terminology-on-the-Internet

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Advertising - PTU (Punjab Technical University)

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