ADVERTISING

Advertising is a marketing communication that employs an openly

sponsored, non-personal message to promote or sell a product, service or
idea. Sponsors of advertising are typically businesses wishing to promote
their products or services. Advertising is a marketing tactic involving paying
for space to promote a product, service, or cause. The actual promotional
messages are called advertisements, or ads for short. The goal of
advertising is to reach people most likely to be willing to pay for a
company’s products or services and entice them to buy.
Advertising simply put is telling and selling the product. Advertising
Management though is a complex process of employing various media to
sell a product or service. This process begins quite early from the
marketing research and encompasses the media campaigns that help sell
the product.

Without an effective advertising management process in place, the media

campaigns are not that fruitful and the whole marketing process goes for a
toss. Hence, companies that believe in an effective advertising
management process are always a step ahead in terms of selling their
goods and services. A whole lot of creativity and inspiration is required to
launch an adequate advertising campaign. In addition, the management
skills come into play when the work has to be done keeping the big picture
in mind. It would be fruitful for the company if the advertising campaign
lasts well over the lifetime of a product or service, reach the right
customers, and generate the desired revenue.

Creating Effective Ads

Advertising messages themselves are designed to persuade an individual
to buy a company’s goods or services. Even in business-to-business
transactions, individuals have to first be convinced to choose one product
over another. To accomplish this, ads have five main components:

1. Headline - This is the key attention-getting message. “Got milk?” is a

perfect headline. Or Wendy’s old, “Where’s the beef?”

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2. Subhead - Some ad headlines need clarification, much like a book’s
subtitle.
3. Body copy - The meat of the advertising message occurs in the main
section where the product or service’s features and benefits are
highlighted.
4. Image - Unless you’re advertising on the radio, including a product photo,
or image illustrating a key benefit is critical.
5. Call-to-action - At the end of the ad you want to invite the consumer to
take a step towards doing business with you, such as calling a toll-free
number, visiting a website, texting a certain number, or pulling into the
drive-thru window.
While advertising is the only way to guarantee that your message will be
seen or heard, it is expensive by comparison to other marketing methods.
For that reason, it is more popular with large corporations and brands than
small businesses.

OBJECTIVE AND IMPORTANCE OF ADVERTISING

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, with
different techniques and methods most suited.
Steps in Advertising Process
The following are the steps involved in the process of advertising:

1. Step 1 - Briefing: the advertiser needs to brief about the product or the
service which has to be advertised and doing the SWOT analysis of
the company and the product.
2. Step 2 - Knowing the Objective: one should first know the objective or
the purpose of advertising. i.e. what message is to be delivered to the
audience?
3. Step 3 - Research: this step involves finding out the market behavior,
knowing the competitors, what type of advertising they are using, what
is the response of the consumers, availability of the resources needed
in the process, etc.

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4. Step 4 - Target Audience: the next step is to identify the target
consumers most likely to buy the product. The target should be
appropriately identified without any confusion. For e.g. if the product is
a health drink for growing kids, then the target customers will be the
parents who are going to buy it and not the kids who are going to drink
it.
5. Step 5 - Media Selection: now that the target audience is identified,
one should select an appropriate media for advertising so that the
customers who are to be informed about the product and are willing to
buy are successfully reached.
6. Step 6 - Setting the Budget: then the advertising budget has to be
planned so that there is no short of funds or excess of funds during
the process of advertising and also there are no losses to the
company.
7. Step 7 - Designing and Creating the Ad: first the design that is the
outline of ad on papers is made by the copywriters of the agency, then
the actual creation of ad is done with help of the art directors and the
creative personnel of the agency.
8. Step 8 - Perfection: then the created ad is re-examined and the ad is
redefined to make it perfect to enter the market.
9. Step 9 - Place and Time of Ad: the next step is to decide where and
when the ad will be shown.

The place will be decided according to the target customers where

the ad is most visible clearly to them. The finalization of time on which
the ad will be telecasted or shown on the selected media will be done
by the traffic department of the agency.

10. Step 10 - Execution: finally the advertise is released with perfect

creation, perfect placement and perfect timing in the market.
11. Step 11 - Performance: the last step is to judge the performance of
the ad in terms of the response from the customers, whether they are
satisfied with the ad and the product, did the ad reached all the
targeted people, was the advertise capable enough to compete with
the other players, etc. Every point is studied properly and changes are
made, if any.

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Objectives 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.

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.

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Advertising is an important part. Lets have a look on how and where is
advertising important:

1. Advertising is important for the customers

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.
▪ If any company wants to introduce or launch a new product in
the market, advertising will make a ground for the product.
Advertising helps making people aware of the new product so
that the consumers come and try the product.
▪ 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.

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 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.

TYPES AND CLASSIFICATION OF ADVERTISING

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.

There are several branches or types of advertising which can be used by

the companies. Let us discuss them in detail.

Classification of Advertising

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 an ad in the glossy

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 supplement of the paper would be more expensive than in a
mediocre quality paper.
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.
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 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.
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.

Marketing mix
Definition: The marketing mix refers to the set of actions, or tactics, that a
company uses to promote its brand or product in the market. The 4Ps
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make up a typical marketing mix - Price, Product, Promotion and Place.
However, nowadays, the marketing mix increasingly includes several other
Ps like Packaging, Positioning, People and even Politics as vital mix
elements.

THE FOUR P’S

Product
The product is either a tangible good or an intangible service that is seem
to meet a specific customer need or demand. All products follow a
logical product life cycle and it is vital for marketers to understand and plan
for the various stages and their unique challenges. It is key to understand
those problems that the product is attempting to solve. The benefits offered
by the product and all its features need to be understood and the unique
selling proposition of the product need to be studied. In addition, the
potential buyers of the product need to be identified and understood.

There is no point in developing a product or service that no one wants to

buy, yet many businesses decide what to offer first, and then hope to find a
market for it afterwards. In contrast, the successful company will find out
what customers need or want and then develop the right product — with
the right level of quality to meet those needs now and in the future.

• The perfect product must provide value for the customer. This
value is in the eye of the beholder — we must give our
customers what they want, not what we think they want

• A product does not have to be tangible — an insurance policy can

be a product

• Ask yourself whether you have a system in place to regularly check

what your customers think of your product, your supporting services,
etc, what their needs are now and whether they see them changing

• Beware going too far with product quality. Don’t try to sell a
RollsRoyce when the customer really wants a Nissan Micra

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Price
Price covers the actual amount the end user is expected to pay for a
product. How a product is priced will directly affect how it sells. This is
linked to what the perceived value of the product is to the customer rather
than an objective costing of the product on offer. If a product is priced
higher or lower than its perceived value, then it will not sell. This is why it is
imperative to understand how a customer sees what you are selling. If
there is a positive customer value, than a product may be successfully
priced higher than its objective monetary value. Conversely, if a product
has little value in the eyes of the consumer, then it may need to be
underpriced to sell. Price may also be affected by distribution plans, value
chain costs and markups and how competitors price a rival product.

A product is only worth what customers are prepared to pay for it. The
price also needs to be competitive, but this does not necessarily mean the
cheapest; the small business may be able to compete with larger rivals by
adding extra services or details that will offer customers better value for
money. Your pricing must also provide a profit. It is the only element of the
marketing mix that generates revenue — everything else represents a cost.

• Thinking of price as ‘cost’ to the customer helps to underscore why it is so

important

• Price positions you in the marketplace — the more you charge, the more
value or quality your customers will expect for their money

• Existing customers are generally less sensitive about price than new
customers — a good reason for looking after them well

• If you decide in favour of a higher priced added-value approach,

remember that price ‘positions’ you in the marketplace. This means it gives
an indication to potential and existing customers of where to place you in
relation to your competitors. Expectations will generally be higher;
customers will assume a higher quality product or service. Everything about
your dealings with customers must live up to the expectations of this
positioning. Anything that can be seen by the customer must be consistent
with these higher quality expectations — packaging, environment,
promotional materials, letterheads, invoices, etc

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Promotion
The marketing communication strategies and techniques all fall under the
promotion heading. These may include advertising, sales promotions,
special offers and public relations. Whatever the channel used, it is
necessary for it to be suitable for the product, the price and the end user it
is being marketed to. It is important to differentiate between marketing and
promotion. Promotion is just the communication aspect of the entire
marketing function.

Promotion is the way a company communicates what it does and what it

can offer customers. It includes activities such as branding, advertising,
PR, corporate identity, sales management, special offers and exhibitions.
Promotion must gain attention, be appealing, tell a consistent message and
above all else give the customer a reason to choose your product rather
than someone else’s.

• Good promotion is not one-way communication — it paves the way for a

dialogue with customers

• Promotion should communicate the benefits that a customer obtains from

a product, and not just the features of that product

• Whether your promotional material is a single sheet or a complex

brochure, folder or catalogue, it must grab the attention of your customers.
It should be easy to read and enable the customer to identify why they
should buy your product

• A brochure isn’t necessarily the best way of promoting yourbusiness, the

problem being that once a brochure has been printed, the information is
fixed. You can’t change or remove anything should the need arise. A more
cost effective and flexible option might be a folder with a professionally
designed sheet inside, over a series of your own information sheets
produced in-house. These sheets can be customised by varying them to
suit the target customers and/or changing them as required Promotion
does not just mean communicating to your customers. It is just as important
to ensure your internal stakeholders are aware of the value and attributes
of your products. This means communicating effectively to your staff/fellow
employees so that they can be knowledgeable and share expertise with
their customers.
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Place
Place or placement has to do with how the product will be provided to the
customer. Distribution is a key element of placement. The placement
strategy will help assess what channel is the most suited to a product. How
a product is accessed by the end user also needs to compliment the rest of
the product strategy.

The place where customers buy a product, and the means of distributing
your product to that place, must be appropriate and convenient for the
customer. The product must be available in the right place, at the right time
and in the right quantity, while keeping storage, inventory and distribution
costs to an acceptable level.

• Customer surveys have shown that delivery performance is one of the

most important criteria when choosing a supplier.

• Place also means ways of displaying your product to customer groups.

This could be in a shop window, but it could also be via the internet.

PEOPLE

People Anyone who comes into contact with your customers will make an
impression, and that can have a profound effect — positive or negative —
on customer satisfaction. The reputation of your brand rests in your
people’s hands. They must, therefore, be appropriately trained, well
motivated and have the right attitude.

• It is essential to ensure that all employees who have contact with

customers are not only properly trained, but also the right kind of people for
the job

• Many customers cannot separatestaff member who provides it. This

shows the importance of your people

• The level of after sales support and advice provided by a business is one
way of adding value to what you offer, and can give you an important edge

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over your competitors. This will probably become more important than price
for many customers once they start to use you

• Look regularly at the products that account for the highest percentage of
your sales. Do these products have adequate after sales support, or are
you being complacent with them? Could you enhance your support without
too much additional cost? Traditionally, adding the sixth and seventh Ps
would be for service industries. However, they are worth considering for
products too, especially in B2B.

PROCESS

Process The process of giving a service, and the behaviour of those who
deliver are crucial to customer satisfaction. Issues such as waiting times,
the information given to customers and the helpfulness of staff are all vital
to keep customers happy.

• Customers are not interested in the detail of how your business runs.
What matters to them is that the system works

• Do customers have to wait? Are they kept informed? Are your people
helpful? Is your service efficiently carried out? Do your people interact in a
manner appropriate to your service? Process is one of the 'P's that is
frequently overlooked. A customer trying to reach your company by phone
is a vital source of income and returning value; but so often customers
have to stay on hold for several minutes listening to a recorded message
before they are able to get through. Many of these customers will give up,
go elsewhere and tell their friends not to use your company - just because
of the poor process that is in place. Even if they do get through, they will go
away with a negative impression of the company. The reason for this is that
the systems are not usually designed by marketers - they are designed for
the company's benefit, not the customer's. This part of the process is the
first experience of a company that many customers have. There's no value
in making the rest of the company run perfectly if this part is faulty. As a
consequence, this 'P' could be a great source of competitive advantage if
used wisely.

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PHYSICAL EVIDENCE

Physical evidence A service can’t be experienced before it is delivered.

This means that choosing to use a service can be perceived as a risky
business because you are buying something intangible. This uncertainty
can be reduced by helping potential customers to ‘see’what they are
buying. Case studies and testimonials can provide evidence that an
organisation keeps its promises. Facilities such as a clean, tidy and well-
decorated reception area can also help to reassure. If your premises aren’t
up to scratch, why would the customer think your service is?

• The physical evidence demonstrated by an organisation must confirm the

assumptions of the customer — a financial services product will need to be
delivered in a formal setting, while a children’s birthday entertainment
company should adopt a more relaxed approachAlthough the customer
cannot experience the service before purchase, he or she can talk to other
people with experiences of the service. Their testimony is credible,
because their views do not come from the company. Some companies
engage these customers and ask for their feedback, so that they can
develop reference materials. New customers can then see these
testimonials and are more likely to purchase with confidence. Each of the
‘ingredients’ of the marketing mix is a key to success. No one element can
be considered in isolation — you cannot, for example, develop a product
without considering a price, or how it will reach the customer. This process
is called marketing planning.

ADVERTISING SPIRAL

The advertising spiral is a chart that parallels the product's life cycle and it
points out what has to be done in each stage of the product's life.
The concept of advertising can be broken down into three specific stages.
These stages refer to the advertising spiral. It is known as a spiral because
in order to keep innovating, companies need to continually change their
advertising methods based on these three stages and an unending spiral is
created as their business grows and changes. Understanding this spiral
can help companies create better ad campaigns and improve their overall
advertising capabilities.

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The three stages of the advertising spiral correspond to the four
stages of the product life cycle (PLC).

a. The pioneering stage

Which corresponds to the introduction stage of the PLC, is generally
devoted to the stimulation of primary demand.
Pioneering
Pioneering advertising refers to new forms or new ways of getting across a
marketing message. Most ad spots follow a basic formula. You show the
product, establish a need in the consumer's mind and then illustrate how
the product will solve that need. To give an example, the iconic "Head On"
commercials, while mildly irritating, were pioneering. They stripped
everything from their commercial and merely showed a person applying
Head On directly to their forehead while repeating the phrase. It may have
been different, but it definitely worked.

b. In the competitive stage

Which corresponds to the market growth stage of the PLC, selective
demand is emphasized.
Competitive advertising is based on showing how your product is better
than your competitors as well as finding out how they market their products
and improving upon their techniques. Examples of this form of advertising
can be found in car commercials. Toyota will say that their vehicle gets
better gas mileage than a Honda. This is a very simple illustration of how
competitive advertising can be used to drive home a point to a consumer.
The viewer says "Well, I want better gas mileage. Maybe I should think
about getting a Toyota rather than a Honda."

c.The retentive stage

Which corresponds to the maturity and decline stages of the PLC,
emphasizes name advertising designed to maintain market share.
Retentive advertising may also be referred to as reminder advertising. This
form of advertising can be used when a consumer is already well aware of
the product being offered and does not need to be convinced to buy it.
They already know about it and like it, but they may have forgotten to buy it
lately. Excellent examples of this can be found with cereal commercials.
We all know Cheerios exist and we like the flavor. We see an ad on
television and are reminded of how good they taste so we buy them the
next time we're in the store.
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Advertising Basics and the Spiral
Now that the spiral is understood, you can see a basic outline of how it
works. First, you pioneer with a new product or way of promoting an
existing product. Then, you let consumers know how your product stacks
up against the competition. Finally, you remind your market that your
product is still out there. Once all of these stages have been completed,
you start over in the process. This is a very important component of the
basics of advertising and successfully marketing to consumers.

Social and Economical Aspects 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 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.

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.

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Effect on Prices:

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.

But some products do not advertise much, and they don’t need much of it
and even their prices are high but they are still the leaders in market as
they have their brand name. e.g., Porsche cars

Effect on consumer demand and choices:

Even if the product is heavily advertised, it does not mean that the demand
or say consumption rates will also increase. The product has to be different
with better quality, and more variety than others. For E.g., Kellogg’s
cornflakes have variety of flavors with different ranges to offer for different
age groups and now also for people who want to loose weight thus giving
consumers different choices to select from.

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.

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Social role of Advertising:

There are some positive and some negative aspects of advertising on the
social ground. They are as follows.

Deception 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 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 Subliminal 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

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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.

MARKETING COMMUNICATION MODELS

What is Marketing communications

In the traditional manner, the communication between two humans
involves a simple process which is as follows.

Sender —> Encoding —> Message —> Decoding —> Receiver

Like the above human model, Marketing communications too involves a

communication message being sent from the Sender (which can be a
company, product or a brand) to a receiver (who can be an audience,
your target group, stakeholders or anyone whom you want to target your
message)

AIDA MODEL

What Is the AIDA Model?

It is a model used in marketing that describes the steps a customer goes
through in the process of purchasing a product. The AIDA model has been
in use since the late 19th century. It has been reviewed and modified
multiple times over the years, both in marketing and public relations.

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Who created the AIDA model?
The AIDA model was developed by the American businessman, E. St.
Elmo Lewis, in 1898. The original main purpose was to optimize sales calls,
specifically the interaction between seller and buyer concerning the
product.

What is the AIDA approach?

The AIDA model is based on four individual stages that attract interested
parties who are deciding on a product or service.
1. Attract attention: The product must attract the consumer's attention. This
is done via the advertising materials. It is a type of “eyecatcher.”
Examples: a window designed in a striking way, a sensational YouTube
clip, or a themed newsletter, or a graphic on a landing page.

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2. Maintain interest: In the first phase, the attention of the potential
customer is piqued; their interest in the product or service should be
aroused.
Example: detailed information on the product is presented, for example, the
product description on a website, a product brochure or flyer, photos, or
video clip of the product.
3. Create desire: If interest in the product is aroused, it is the seller’s task
to persuade the customer that they want to own this product. In the best-
case scenario, the advertisement or the product itself creates the desire to
purchase.
Example: the seller provides clear examples of the advantages of the
product or service, taking into account the daily lives of the target group. In
the online shop, a bullet point list can generate the desire to buy. This
desire to buy can also be awakened by an advertising medium that
specifically addresses the emotions of the customer.
4. Take action: As soon as the desire to buy is aroused, this must be
transferred into an action, that is, the purchase.
Example: In the case of online shops, this would ultimately be the shopping
cart process, in which a customer is lead to a conversion. The customer
can be encouraged to buy the product with a call-to-action.
Nowadays, the AIDA formula is frequently supplemented with an “S” for
"satisfaction", because the product has to ultimately satisfy the consumer.
Customer satisfaction does not lie solely with the advertising but rather with
the product itself. Therefore, the basic constellation of the four phases is
only the prerequisite for the sale.
With the insertion of the “confidence” (trust) factor, a sixth element can also
be added. Many marketers also work with the AIDCAS model to optimize
sales processes and advertising.

How is AIDA used?

The AIDA model has shaped the views on marketing and sales strategies
for over 100 years. The formula can still be found in current standard
marketing textbooks. Beyond that, AIDA is also used in PR to plan and
analyze the effectiveness of PR campaigns, and still provides valuable

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information for the analysis of advertising messages. The benefit of this
simple formula can be found in its simplicity and flexible application
possibilities in areas other than store-based or stationary sales. In e-
commerce for example, the effectiveness of the product presentation in an
online shop could be analyzed using the four aspects of the AIDA formula.

Criticism
For a long time, the AIDA model was viewed as exemplary for a successful
sales process, but today there is general agreement that using this purely
linear model alone is no longer suitable in modern sales processes. For
example, the emotion that is often addressed in advertising and recognized
by advertising psychology as elementary does not play a role in the AIDA
formula. Targeting and, for example, considerations on socio-demographic
background is also not included. AIDA also does not take into account the
different points at which sales take place. The sales strategy for a customer
visiting an online shop will be quite different to that for new a customer
wanting to find out about a new car at the dealership.
Another criticism of the AIDA model today is that the step-by-step model
provides a relatively fixed sequence of individual steps. In practice,
however, a sales process does not always have to be linear. For example,
the stages "Attraction" and "Interest" can be completed as one phase. In
addition, various media and/or devices can be used in the course of the
customer journey until an interested party becomes a buyer. A simple AIDA
step-by-step model does not take these different paths to the goal into
account. This is why non-hierarchical multi-process models are mostly
used today in advertising impact research.
The DAGMAR model appeared in 1961 as a descendant of the AIDA
model. The DAGMAR model focuses more clearly on the communicative
approach of advertising, as an alternative to the AIDA model. The
abbreviation "Dagmar" is taken from the title of the book "Defining
Advertising Goals for Measured Advertising Results" published by Russell
H. Colley. However, even the DAGMAR model introduced in 1961 is now
over 50 years old.
When advertisers today work with the AIDA model, they should always be
aware of the fact that it is actually a phase model that cannot represent all
individual aspects of the purchase process or advertising impact process.
Nevertheless, Lewis’s work was important, as he was the first to present
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the sales process as a phase model, thus laying a groundwork for modern
advertising.

Hierarchy of Effects Theory

Definition: Hierarchy of Effects Theory
The hierarchy of effects model is a model which tells advertisers to make
an advertisement in such a way that the customer goes through all these
six stages namely awareness, knowledge, liking, preference, conviction
and purchase. It is created by Robert J Lavidge and Gary A Steiner in
1961, the hierarchy of effects model suggests six steps to consumer buying
behaviour.

Hierarchy of Effects Steps

The steps are defined as below:
1. Awareness: This is the most crucial step and the starting point for
purchase. Brands must make sure that the consumer is aware of the
presence of your brand in a particular product segment.
For example, if Tina wants to buy a toothbrush, and you as the marketing
manager of Coolgate wants her to buy your brand’s toothbrush, you have

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to make sure that you advertise well so that she is aware of the existence
of such a brand for toothbrushes.

2. Knowledge: This is where your product will be evaluated against other

brands by the consumer. Make sure enough (positive) knowledge is
available about your product – through the internet, retail stores and the
product package itself.
For example, now Tina, aware that there is a Coolgate brand will try figure
out what unique features and benefits you are offering over any other brand
like Colgate and Oral-B.
3. Liking: This is where the consumer builds a liking to your product. This
is where your product is being considered for its emotional benefits; be
sure to make them prominent.
For example, now Tina has evaluated the pros & cons of buying a Coolgate
brush but might not like the colour of it, or might feel that this brush is for
the elderly. As the marketing manager of Coolgate, you have to make sure
that these features, that leave emotional impact, are taken care of properly
in the marketing communication program.

4. Preference: By this time consumer may be convinced to try out your

product, but may like other brands of toothbrush too. So what is it that will
make her prefer Coolgate over the other brands? These points of
differentiations or unique selling points need to be highlighted to make sure
that the consumer likes your brand more than the others in her
consideration list.
For example, Tina now may be actually considering buying a Coolgate
toothbrush. But is she thinking that she’ll buy it to try it only or is she
thinking that the next buy will also be a Coolgate brush?
5. Conviction: This is the stage where the doubt in consumers’ minds
about buying the product of your brand needs to be converted into action.
Marketers can aid in this step by giving out free samples, test drives etc.
This step should also decide if the consumer will stick to your brand i.e.
actually buy your brand, or switch after testing the sample.
For example, Tina tried the brush you gave her for a month and then when
time came to buy one, she bought an Oral-B one. Make sure that doesn’t

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happen and that trial builds loyalty. Incorporate such unique features in
your brand that will encourage purchase.

6. Purchase: The last and the most crucial stage of the consumer buying
cycle is the purchase. You need to make sure that purchase experience is
easy and perhaps even enjoyable for the consumer. Some of the ways to
encourage purchase is by keeping simple and multiple paying options,
making the product available easily, easy to understand usage instructions,
offers etc.
For example, now that Tina has decided to buy your brand after trying it out
for a month, make sure she knows where to buy it from and how she can
pay. You may also give her a tube of toothpaste free to delight her.

The main aim of this tool that serves as a marketing communication tool is
to encourage consumers to go through the six steps that end in purchase
of product. It is not necessary that consumers always go through all the six
steps but the aim is to land a purchase.
Hierachy of Effects Consumer Behaviour Stages
Lavidge and Steiner further grouped these six stages into three main
stages of consumer behaviour:
1. Cognitive
2. Affective
3. Conative

1. Cognitive: Also called the “thinking” stage, this is where the consumer
gathers knowledge about the product and becomes aware of it. This can be
said to be a rational step where pros and cons, product specifications etc.
of a product are evaluated.
2. Affective: Also called the “feeling” stage is when the consumer starts
developing a liking for the product, and may even develop strong positive
(or negative) feelings toward it.
3. Conative: This is the “behaviour” stage of the process. This is when the
consumer, after weighing the pros and cons, and deciding his/her
preference actually buys the product.

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The model is named so because of the fact that the buying process is a
step by step process where the number of people willing to participate at
each level keeps decreasing. Say you started with 10 people who are
aware of your brand; 5 people who considered buying it and only 2 of those
10 actually bought the product.
The hierarchy of effects model is a model which tells advertisers to make
an advertisement in such a way that the customer goes through all these
six stages namely awareness, knowledge, liking, preference,conviction and
purchase.
Hence, this concludes the definition of Hierarchy of Effects Theory along
with its overview.
Innovation Adoption Model
Model is evolved from work on the diffusion of innovations. This model
represent the stages a consumer passes through in adopting an
innovation—innovation such as a new product.

Like the other models, this model says potential adopters must be moved
through a series of steps before taking some action (in this case deciding to
adopt a new product). The steps preceding adoption include awareness,
interest evaluation, and trial.

The challenge facing companies introducing new products is to create

awareness and interest among consumers and then get them to evaluate
the product favourably. The best way to evaluate a new product is through
actual use so that performance can be judged.

Marketers often encourage trial by using demonstration or sampling

programmes or allowing consumers to use a product with minimal
commitment. After trial, consumer either adopt the product or reject it. The
decision in favour of making an evaluation is likely to be influenced by
information available from various sources including advertising.

Evaluation is a major step towards the adoption of the product/service

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 GROWTH OF MODERN ADVERTISING

About 200 years ago, in ancient Greece and Rome the advertising was
used for the transmission of information. During middle ages, advertising
signs (consisted of illustrations of symbols of products) were very
extensively used. The upsurge in advertising comes after the development
of printing. Then the signs were replaced by written words or messages.

During the 17th century, newspaper advertising began to develop. Earlier

ads were for books, marriage offers, new beverages and ads for travel.
Around 1840, in USA, space selling in newspaper started.

Development of Modern Advertising

Although American are the forerunners of the modern advertising, it had its
root ion England. The industrial revolution led to the expansion of mass
manufactured goods in Europe and America. It changes the market trend.
Localized markets were replaced by extended domestic national markets
and international markets. This development created a need for
advertising.

By the end of 1920s, advertising had grown into a major industry in the
USA. Agencies started hiring skilled people and after a range of services to
the advertisers.

Evolution of Indian Advertising

The foundations of professional advertising business in India was led by

two English companies J. Walter Thompson and D. J. Keymer’s Lintas
India came on the scene in 1939. However O & M was set up in 1926.

In pre-independence India only press independence was there. In 1930

with the development of radio it emerges as media for advertisement. In
1950s cinema advertisement began. In 1960s professionalization within the
ad agencies started. 1970s was the era of media boom. In 1967 radio
services were commercialized. It was in the 60s and early 70s that the
concept of brand building appeared on the scene. In 1977, DD became
commercial and this brought about the qualitative change in Indian
advertising. This was also the time for expansion and diversification of

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agencies. Within its changing color, starting from august 15, 1982 TV
emerged as the most powerful medium. In 90s emphases was given on
direct marketing. During the time, satellite TV emerges. The major
development was the introduction of 24hr movie channels and pay
channels. FM radio also comes into picture. Gradually the main era of
concern was given to brand equity. This was also the time of
internationalization of advertising. In India, the last decade of 20th century
has witnessed a phenomenal growth in ad business. In 1990-91 the overall
growth in business was recorded to 17.1% and till 1994-95 it improved up
to 49.5%

This was due to the first major economy boom in the country. Since then
the growth rate has been slowing down and has settled at almost 18% in
1998-99. According to analyst 49.5% growth was an outcome of an
irrational response to economic liberalization and the media inflation of
1990s.

As economic policy changes, introduced in 1990s, have opened the door

for global competition a new economic era has begun. Aggressive
marketing efforts by domestic and foreign business houses are increasing.
The emergence of growth of new technologies, availabilities of new media
and media vehicles and an increase in middle class income and aspirations
have contributed to the phenomenal increase in the level of advertising and
other form of promotion.

The future of Indian advertising is bright, provided that those in the

profession acknowledge the social responsibility of advertising and conduct
themselves in such a way as to be seen as an important part of the
economic development effort of the country.

DEVELOPMENT OF MODERN ADVERTISING

It is a fact that advertising as we know it really had its beginnings in mid
19th century. Volney B Palmer was the first advertising agent who
established an office in Philadelphia. For a fee, he worked as an agent for
newspapers numbering about 1400. He sold space to advertisers
throughout the country. He did not provide any creative or planning
services to clients, except the media selection. In the late 1880s, John E
Powers emerged as great copywriter. He had a simple approach-he

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believed in “printing the news of store…no catchy headings…no brag , no
pressure.”
CONTEMPORARY ADVERTISING
Most of the growth in advertising has happened after Second World War.
Excessive mechanized production and serious efforts to rebuild nations
and economies were under way. Western Europe and the Far East started
to compete in world markets and advertising became an essential part of
this new economy. Large corporations such as Coca-Cola, General Motors
and IBM had long been active all over the world. After 1946, quite a
number of medium and small companies

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