ADVERTISING

Unit 1 (i) - Concept and Features of Advertising

 Concept

• Advertising originates from the Latin word- advertere meaning ‘to turn the
mind towards’

• Primary function of drawing attention towards an object/an idea/service

• American Marketing Association (AMA) defines advertising as- “any paid

form of non-personal presentation and promotion of ideas, goods or
services by an identified sponsor.”

• 20 Must Read Marketing & Advertising Books for professional guidance:

https://rosssimmonds.com/20-books-read-job-advertising/
 The 5 Ms of Advertising

Message: Measurement:
Message to the TA Research and results

Mission: Media: Money:

Advertising objectives Kind of communication Budget allocation
 Features of Advertising

• Paid form of communication- Involves transaction

• Non-personal presentation- As a medium of mass communication

• Provides publicity- Meaningful, informative

• Identified sponsor- Sponsored and invested by Brands

• Builds goodwill- Helps build brand preference & loyalty

• Target oriented- Focused and aimed at a group or target audience

• Facilitates consumer choice- Enables informed choices and creates

awareness about options
 Features of Advertising (Cont.)

• Comprehensive term- not limited to manufactured products but also

services
• Expanded scope- Advertisements also used for creating awareness (Eg:
https://www.youtube.com/watch?v=N1JPLJIIWcE )

• Influences consumers- Advertisements may reflect social preferences

while also influence mind-sets
• Stress on persuasion- Induces action and relies on consumer psychology
• Important element in ‘marketing mix’- contributes to the process of
promotion
• Creativity- essence of advertising
• Art, Science and Profession- involves design, creativity, innovation and
also research, principles and strategy
 Advertising is Multidimensional

Form of mass-communication Means of financing mass media

Powerful marketing tool An art form with creativity and innovation

ADVERTISING
Component of economic system Social institution

Field of employment and a profession Instrument of business management

Functions of Advertising
Unit 1
Functions of Advertising
(elaborate the points as per class discussion and further research)

• Communicates about goods and available options

• Can create a demand for a product/service
• Informs and educates masses (as a form of mass media)
• Persuasive approach
• Motivates to buy
• Reminders to purchase or use
• Recall factor for products and services
• Informs about new uses, offers and features of a product
• Helps form brand loyalty
Functions of Advertising (cont.)
(elaborate the points as per class discussion and further research)

• Spreads the message of ongoing trends for consumers to review

• Can also start new trends
• Long lasting impact on consumers (by means of slogans, iconic
campaigns, etc.)
• Bridge between seller and buyer
• With its influencing power, can also help spread awareness about good
causes
• Helps brands build image and reputation
• Facilitates trade advertising: Advertising directed to middlemen in
distribution channels is called trade advertising. Intended towards
wholesalers or retailers by manufacturers.
Evolution of Advertising
Unit 1
Evolution of Advertising: Overview

• Advertising based on communication

• Dates back to customs of buying, selling and preferences in trade
and purchase
• Word-of-mouth, written and painted advertising oldest forms of
advertising
• Commercial advertising significant in recent times
• Steady progress and evolution in forms, medium and content
• Need and importance grew as per expansion and diversification of
business activities
 Process of Evolution: Some significant
developments
• Signs: Pictorial and focus on
identification and
communication. Pictorial
advertisements are now again
popular with minimalism
• Town Criers: Spoken publicity,
use of drums and slogans,
accessible content, popular
even today in rural areas
• Written Advertisements:
Literacy and expansion of
trade practices
Process of Evolution: Some significant
developments
• Introduction of Printing Press: Revolutionized the communication
methods. In 1447, William Caxton- first printed advertisement in the
form of a handbill to advertise his book
• Newspapers: Early ones appeared in the form of announcement. First in
English newspaper “The Weekly News of London” in 1622
• Product advertisements in newspapers and magazines: Boston Newsletter
advertised for itself in 1704. Magazines became popular only in late 19th
Century.
• Radio: Suitable for illiterate, sound effects, early 20th century
• TV: Post 1950s, TV along with radio and Outdoor Advt, developments in
technology boosted new forms.
Process of Evolution: Some significant
developments
• Ad Agencies: Recognition of Advertising as a professional field and
establishment of ad agencies. Volney B. Palmer started first ad
agency in America in 1840.
• Internet: World Wide Web, improved access, internet community
opportunities of growth, forms of advertisement: text, graphic,
audio…
- Some of the common types of internet advertising include:
- Videos,
- Email Marketing,
- Search Engine Marketing (using SEO, key words, sponsorship…),
- Web Banners (rectangular images on web pages with a call to
action), etc.
 RAPID
GROWTH OF
EXPANSION IN
MARKET
PRODUCTION
COMPETITION
ACTIVITIES

FACTORS
INFLUENCING
GROWTH OF
ADVERTISING

GLOBALISATION OF CONSUMERS’ RISING

BUSINESS AND STANDARD OF LIVING
TECHNOLOGICAL AND HIGHER
INTERVENTIONS IN EXPECTATIONS AFTER
COMMUNICATION INVESTMENT
Growth of Advertising in India
(refer to uploaded PDF and further research for adding content)

• Newspaper- first newspaper in India?

• Radio- Pre-independence what was advertised on the radio? In recent
times, what form of commercial broadcasting has emerged in India?
• Ad Agencies- Which was the first Indian ad agency? Name some well-
known ad agencies in India today.
• Ad bodies- When was AAAI established? What is the full form of ABC?
What is the role of such governing bodies?
• Television- note the difference in technology and broadcasting
• Internet- India is now a part of a borderless virtual community via
internet. What was the internet used for before 1990s?
Active Participants in Advertising

Unit 1
 Advertising is a collective activity which requires the active support
and participation of the following groups of individuals/organisations:

Advertiser

Audience Advertising Agencies

Advertising Production
Advertising Media Advertising Firms/Individuals

Government Authorities Self-Regulatory Bodies

Research Firms
 Advertiser

• The individual/firms that are advertising their product/services

• Advertiser initiates the advertising process
• Finance the campaign
• Large scale advertisers usually have their own advertising team/dept.
• Small scale companies usually rely on ad agencies
• The advertiser exercises full control over preparation and placement of
the advertisement of his goods and services
• Every advertiser plans his advertising campaign differently as per
requirement and market
• The advertiser should have clarity about the mission, TA and the
product/service for effective advertising
 Advertising Agencies

• Advertisers can transfer the responsibility and execution of

advertising on a specialized ad agency
• Such agencies bill the advertiser and charge commission from
media owners
• They also curate an advertising plan
• Buffer between advertiser and media
• Provide professional guidance and skillset
• Agencies have a team of expert copy writers, designers, creative
strategists, etc. for the conduct of various activities
• Generate employment opportunities
 Audience

• The purchasing group towards whom the

advertisement is directed
• The audience is the recipient of the
advertising message
• Usually segmented into ‘Target Audience’
• Advertising messages are sent to the
audience through different vehicles
• Consumer audience: target group who would
be the final users of a product/service
• Business audience: target group who
function as middlemen, distributers,
retailers, etc.
 Advertising Media

• The right media suitable for the advertiser’s mission and vision
• The main objective of choosing a medium or media is to ensure the
message reaches the masses effectively
• Space, time, duration, frequency, etc. booked by the advertiser
• Every medium has its distinct features and drawbacks
• Media wastage can be managed with the right choice of media and
planning
• Media options can be decided as per the TA, resources, region, etc.
• For e.g.: Jacket Ads in newspapers, video advertisements, cinema ads,
billboards and hoardings, etc.
 Advertising Production Firms/Individuals

• Expert and professional teams/individuals

• Freelancers as copywriters, photographers, designers, editors and
so on.
• Contractual and independent
• Offer guidance, consultation, skillsets
• Creativity and focused approach can enhance the advertisement
and ad campaigns
 Research Firms

• Market research and survey a very crucial step in the advertisement

process
• Helps answer questions such as: What creates brand loyalty? Do TV
commercials influence consumer behaviour? Does change in packaging
affect sales? etc.
• Research firms offer information related to consumer behaviour,
effectiveness, media coverage, preferences, feedback, etc.
• Research firms help provide focused data as per the advertiser’s
demands
• Can help provide insight into the market and existing trends before a
campaign is designed
• Some research firms in India include: IMRB International, RNB Research,
TNS India Pvt. Ltd., Etc,
 Government Authorities

• Functions as a supervisory authority

• Helps regulate advertising as a business and professional field
• Also provides legal frameworks within which advertisers are expected to
operate
• Some media such as TV and radio are controlled directly by the Central
Government
• The Govt. provides general policies for regulation which dictates
representation, censorship, disclaimers and even bans on advertisements
• Government can also advertise and spread awareness about certain
government practices and initiatives for public good
• For e.g.: https://www.youtube.com/watch?v=vJdbwonDiAs
 Self- Regulatory Bodies

• Apart from Government regulations, advertisements are also subjected to a

general code of conduct
• These are monitored by self-regulating bodies in the field of advertising
• All associated with advertising are expected to be familiar with the laws
and this code of conduct
• Violation of this can lead to penalties and legal action
• The authorities that have laid down such self-regulatory codes in advertising
for guidance are:
- Advertising Standards Council of India (ASCI)
- Advertising Agencies Association of India (AAAI)
- Indian Newspaper Society (INS)
- Doordarshan
Classification of Advertising:
Part A- Geographic Area
Unit 1
 Classification of Advertising (on the basis of)

A) Geographic Area B) Media C) Target Audience D) Functions

1- Consumer
1- Local/Retail Advt. Advt.
2- Regional Advt. 2- Industrial
3- National Advt. 1- Direct & Indirect
1- Print Advt.
4- International/ Action
2- Outdoor 3- Professional
Global Advt. 2- Primary & Selective
3- Broadcasting Advt.
3- Product &
4- Internet 4- Trade Advt.
Institutional
A) Classification on the basis of Geographic Area

1. Local Advertising
• Small and local area
• Also called ‘retail advertising’
• Promoting at the shop level
• Appeals to local consumers
• Limited cost and reach
• E.g.- Shop decorations, standees,
• pamphlets in local newspapers, etc.
A) Classification on the basis of Geographic Area (cont.)

2. Regional Advertising
• Covers a specific region wider than local
• For e.g. across a state or a region with people using a common language
• Useful for introducing new products in a region
• Also useful for specific discounts/offers for particular TA
• Enabled by regional manufacturers or distributers
• Costs more than local advertising
• E.g. Via regional newspapers, TV channels, regional films, etc.
• Check this link for Lay’s Wafer Style introduced in Southern India,
inspired by traditional and regional favourite ‘papad’:
https://www.youtube.com/watch?v=ZKuTZZKFpmM
A) Classification on the basis of Geographic Area (cont.)

3. National Advertising
• Extension of regional advertising
• Nation-wide coverage
• Branded and universal goods are suitable for national level advertising
• In India, Hindustan Uni Lever, Godrej, Bajaj, Vicco are some leading
advertisers at national level
• Popular choice for FMCG products
• National newspapers, TV networks, national-level events, etc. are
popular media options
• Costly but helps create a demand and presence at the national level
A) Classification on the basis of Geographic Area (cont.)

D. International/Global Advertising
• Covers many countries using suitable media options
• Used by exporters and MNCs
• Costly and requires coordination and intervention of professional
advertising agencies across the world
• International airlines, tourist hotels, food chains, and products available
throughout the world
• Advertisements can be made as per the country and culture
• Check the link for McDonald’s campaigns tailor-made for country-wise
appeal: https://www.youtube.com/watch?v=pMLrVP_E-jA
Classification of Advertising:
Part B, C, D
Part B- On the basis of Media
Part C- On the basis of Target Audience
Part D- On the basis of Functions
 Classification of Advertising (on the basis of)

A) Geographic Area B) Media C) Target Audience D) Functions

1- Consumer
1- Local/Retail Advt. Advt.
2- Regional Advt. 2- Industrial
3- National Advt. 1- Direct & Indirect
1- Print Advt.
4- International/ Action
2- Outdoor 3- Professional
Global Advt. 2- Primary & Selective
3- Broadcasting Advt.
3- Product &
4- Internet 4- Trade Advt.
Institutional
B) Classification on the basis of Media

1. Print:
• Newspapers and Magazines are two important print media
• Pamphlets and direct mails
• Popular since a long time
• Enhanced quality of paper and printing technology has boosted scope
• Detailed information about products and visually appealing graphics
• Economical and has a reference value
• Interesting and innovative ad campaign: Volkswagen plants a talking advertisement in
Times of India in 2010: https://www.youtube.com/watch?v=9x0JoMo9svg
• Read more about it: https://bit.ly/3iWx09F
B) Classification on the basis of Media (cont.)

2) Broadcasting Media:
• Radio and Television media
• TV more popular than Radio
• Spot announcements (radio): usually an advertisement, made by
an individual station during or after a network program
• Sponsored events or segments
• Live and scheduled
• Wide coverage
• Example: https://youtu.be/K5UNz3GVlcE
B) Classification on the basis of Media (cont.)

3) Outdoor Advertising Media

• Include posters, billboards, roadside hoardings, wall and
skywriting, vehicle advertising (also called transit advertising),
neon signs, so on.
• Eye catching and attractive
• Not suitable for detailed advertisements
• Costly and might malfunction in bad weather conditions (specially
if electronic)
• Scope for creativity and social awareness
• E.g.: https://www.youtube.com/watch?v=6zoCDyQSH0o
(disclaimer: depicts abuse and may be disturbing)
B) Classification on the basis of Media (cont.)

4) Internet Media
• Online marketing and using internet enabled technology for
promoting goods and services
• Extremely popular in today’s times
• ‘Trending’ topics and fast paced marketing
• Social media platforms and various related methods
• Advertisements on webpages and SEO
C) Classification on the basis of Target
Audience

1) Consumer Audience
• Direct purchasers of a product or service
• Informative and persuasive
• Continuous and extensive advertising
• Useful for promoting consumer items such as groceries, cosmetics,
electronics, etc.
• Most of what we are exposed to on TV, radio, OOH and newspapers
is for consumer audience.
C) Classification on the basis of Target
Audience (cont.)

2) Industrial Advertising
• Customers that require spare parts, raw materials, machinery, etc.
• Advertising aimed at manufacturers
• Such purchasers are limited
• Media selected used for supplying information and target consumer
queries
• Media used ranges from trade journals, direct mail and business
magazines
• Appeal of the advertising is more focused on being factual and
informative
C) Classification on the basis of Target
Audience (cont.)

3) Professional Advertising
• Advertising aimed at professionals such as doctors, advocates,
chartered accountants, engineers, academicians, etc.
• Information about new products and developments that can be
used in practice of their profession
• Items like software, technical equipment, manuals, new surgical
equipment, etc.
• Media used direct mails, magazines and journals
• Personal sales via booklets, brochures or stalls at professional
conferences or meets
C) Classification on the basis of Target
Audience (cont.)

4) Trade Advertising
- Mainly for those engaged in trading activities or involved in
retailing and distributing
- Used by manufacturers who would like to showcase their products
to retailers and middlemen
- New products, commission, offers, incentives
- Trade journals, brochures, direct mails, brief information in
newspapers, magazines, etc.
D) Classification on the basis of Functions
(cont.)

1) Direct Action and Indirect Action Advertising

• Direct Action Advertising: Purpose is to influence the prospective
consumer to purchase the product immediately.
For e.g. limited time offers.

• Indirect Action Advertising: Purpose is to provide information from

time to time for better recall over a period of time. The consumer
will remember the advertisement and product when they desire to
purchase the same.
For e.g. electronics
 D) Classification on the basis of Functions
(cont.)

2) Primary and Selective Advertising

• Primary Advertising: Focuses on creating demand for a specific category of
products, irrespective of the brand. Used to revitalise a losing market or
promote a new kind of product category.
• Also called ‘generic advertising’
For e.g. National Egg co-ordination committee’s ‘Sunday hoy a Monday, roj khao
ande’ campaign. This campaign was started with an objective to increase the
consumption of Eggs in India. Various segments of the customers were targeted.

• Selective Advertising: Relates to a specific product with a specific name or

brand. Purpose of this advertising is to make this select product popular.
D) Classification on the basis of Functions
(cont.)
4) Product Advertising and Institutional Advertising
• Product Advertising: Product is given special exposure over the brand.
Product as the focus in the advertisement. Purpose is to make that
particular product of the brand popular for sales.

• Institutional Advertising: Used for building brand image or for public

relations. Company is used as focus of the advertisement.
• Institutional advertising is also called image building advertisements or
corporate advertising.
• Usually taken up by large, profitable and socially conscious companies
• E.g. https://www.youtube.com/watch?v=xNWWBEXXtLE
Integrated Marketing Communication
(IMC)
Concept and Features
 Concept

• Integrated Marketing Communication (IMC) is the practice of unifying all

marketing communication tools so they send a consistent, persuasive
message for promoting company goals
• An IMC plan aims at managing different communication options as an
integrated whole
• It is based on the idea that if used appropriately, the various
communication media have the potential to increase the effectiveness of
the message
• It is a strategic attempt to ensure all communication components are in
sync and present a comprehensive plan
• Serves the purpose of providing a clear and compelling message which can
effectively influence delivery of information, consumer behaviour, purchase
patterns and brand image
 Features of IMC

• Customer as the focal point: Message and media directed towards consumer
audience. Customer central to the plan.
• Use of communication mix: IMC is effective if all communication tools are
carefully chosen as per requirement at varying scale
• Employing a single, unified voice: Coordination of message across media
• Build relationships: Helps build a rapport between brand and consumers. IMC
places retention of message and response as very critical
• Encourages consumer action: IMC aims at moving customers to informed
action. Facilitates in reinforcing the product or service.
 Features of IMC (cont.)

• Consistency: Along with uniform voice, the components of the message across the
media should represent consistency. Helps in prompt recognition of the brand
• Measure impact: Review of campaign and address the achievements and
shortcomings
• Coherence: Different communications are logically connected and present a
coherent whole
• Aims at greater reach: Employing various communication tools ensures greater
possibility of reach with a healthy combination of traditional and new media
• Higher transparency: An IMC plan helps address any ethical or moral issues that
may rise and keep brands free from disputes
THE IMC CYCLE
Elements of Integrated Marketing
Communication (IMC)
Unit 1
 Advertising

Sponsorship Publicity

Sales
Internet Promotion

Company Objectives

Trade fairs
& Personal
Exhibitions Selling

Public
Direct
Marketing Packaging
Relations
1- Advertising

• Any paid form of non-personal presentation and promotion of

ideas, goods and services by an identified sponsor.
• Large coverage and short time
• Enables the advertiser to repeat their message across media
platforms
• Dramatizes the product or service and aims at persuasion of the
consumer using creative representation
2- Publicity

• Non-paid presentation and promotion

• Securing representation in media without intentionally investing
for advertising
• Can be favourable or unfavourable
• Can boost or affect brand image
• New products, remarkable achievements must continue to attract
publicity
• In case of brand crises, advertiser must address the negative
publicity
3- Sales Promotion

• Sales promotion constitutes devices like contests, coupons, free

samples, etc.
• Sales promotion supports advertising and personal selling
• It is action oriented
• Motivates customer to buy under incentive plans
• Very handy to introduce new products
• Not only for direct consumers but wholesalers and dealers
• Advertiser must define the objective of sales promotion,
determine budget, formulate an action plan and examine the
impact of the sales promotion post execution
4- Personal Selling

• Involves personal contact and communication

• Scope for demonstration and detailed explanation
• Feedback is obtained immediately
• Personal selling involves: locating potential buyers, conversion
into customers and retaining them as loyal customers
• Can be time consuming
5- Public Relations

• Used to establish sound and effective communication with the public

• Paid form of public communication
• Helps to boost brand image and obtain goodwill with the masses
• Advertiser must establish PR objectives, budgets, engage PR professionals and assess feedback
• Tools of PR:
- Newspapers: to create buzz about current developments, press releases about the company,
etc.
- Events: Sponsorship of popular events, relevant seminars & conferences, contests, live shows,
etc.
- Social service activities: Boosts brand image, generates goodwill, attracts the eye of customers
and distributers
- Publications: Via magazines, brochures, monthly journals, etc.
- Social Media and other audio/visual material: Quick, easy, and most sought after medium
6- Packaging

• Packaging as a communication vehicle

• Asserts brand image and represents brand ethos
• Helps in brand recall
• Helps provide information and delivers it creatively
• Quality of packaging as part of communication
7- Direct Marketing

• Direct marketing as an important means of communication for all kinds

of businesses
• Eliminates intermediaries such as wholesalers and retailers
• Seller and consumer engaged in direct communication
• Emerges from strong focus on marketing research and database
development
• Exposure of consumers to non-personal medium such as TV, newspapers,
direct mail, radio, magazine, etc.
• Offers scope for growth and flexibility
• Measurable results and scope for feedback
8- Trade Fairs and Exhibitions

• Attract large crowds

• Involve personal interaction via sales person
• Facilitate demonstration, establishing contact with diversified and
new potential buyers, introduction of new product, etc.
• Help build databases and measure impact
9-Internet

• Enables marketing opportunities and digitalisation

• Boost of E-business
• Platform to sell products, advertise, ease of distribution, quick
information, B-2-B connectivity and with the public, etc.
• Enables Social Media marketing
• Global reach and customizable approaches
• New formats of advertisements
10-Sponsorship

• An arrangement in which a company contributes to the expenses

incurred by an event or a cause to help boost brand image
• Helps build brand loyalty and goodwill
• Costly
• Sponsorship provides brands the opportunity to negotiate
frequency, placement and contents of its commercial
• Attractive and helps register the brand name
• Mental association of the event with the brand