CONSUMER BEHAVIOUR & ADVERTISING MANAGEMENT

Unit 3

“Advertising consists of all activities involved in presenting to a group a non-

personal, oral or visual, openly sponsored identified message regarding a
product, service, or idea. The message, called an advertisement, is
disseminated through one or more media and is paid for by the identified
sponsor”-William Stanton.

Definitions of Advertising:

1. We can define term ‘advertising’ as:

Advertising is a paid form of mass communication that consists of the special

message sent by the specific person (advertiser or company), for the specific
group of people (listeners, readers, or viewers), for the specific period of time,
in the specific manner to achieve the specific goals.

2. More clearly, advertising can be defined as:

ADVERTISEMENTS:

Advertising includes oral, written, or audiovisual message addressed to the

people for the purpose of informing and influencing them to buy the products or
to act favorably toward idea or institution.

3. Philip Kotler:

“Advertising is any paid form of non-personal presentation and promotion of

goods, services, or ideas by an identified sponsor.”

4. Frank Presbrey:

ADVERTISEMENTS:

“Advertising is a printed, written, oral and illustrated art of selling. Its objective
is to encourage sales of the advertiser’s products and to create in the mind of
people, individually or collectively, an impression in favour of the advertiser’s
interest.”

5. William Stanton:

“Advertising consists of all activities involved in presenting to a group a non-

personal, oral or visual, openly sponsored identified message regarding a
product, service, or idea. The message, called an advertisement, is disseminated
through one or more media and is paid for by the identified sponsor.”

Detailed History of Advertising (3000 BC - 1700s)

History of Written Advertising
The voyage through the history of advertising begins in the ancient city of
Thebes, Egypt, around 3000 BC. It was here that the first-ever written
advertisement was discovered. A Papyrus, found amidst the ruins, served a dual
purpose - tracking down a runaway slave while subtly promoting a weaving
shop. This artifact marked the inception of written advertising, a practice that
would evolve over millennia.

History of Advertising From Verbal to Visual

In antiquity, advertising relied heavily on verbal communication and word of
mouth. However, as societies advanced, so did advertising methods. Carved
signs and flags started appearing, becoming more effective in capturing
consumers' attention. The transition from verbal to visual advertising marked a
significant shift in how products and services were promoted.

The Pre-Digital Era of Advertising (1700s - 1900)

Emergence of Print and Outdoor Ads
The 1700s witnessed a transformative period in advertising. The first
newspaper advertisement surfaced in the United States in 1704, opening new
avenues for reaching customers. In the early 1800s, billboards emerged,
offering yet another medium for brands to express their value propositions.
Advertising was transitioning from word of mouth to more lasting forms.

Direct vs. Indirect Advertising

During this era, direct advertising, which involved reaching out directly to
potential customers, was considered expensive. Many organizations favored
indirect advertising, which took a subtler approach. For instance, large signs
and posters outside shops were forms of indirect advertising. Sears broke the
mold in 1892 by launching a direct mail campaign that generated significant
orders, encouraging others to invest more in advertising.
Golden Age of Advertising (1900s - 2000)
Rise of Radio and Television
The early 20th century marked a revolutionary phase in advertising with the
advent of radio and television. Radio advertising debuted in 1922, allowing
businesses to communicate their unique selling propositions directly to
consumers. Television followed suit in 1941 with the first-ever TV commercial,
signaling the onset of the Golden Age of Advertising.

Birth of Brand Characters

In the 1950s, brands began introducing characters into their advertisements to
connect with their audience on a personal level. For instance, Kellogg's
introduced Tony the Tiger to promote Frosted Flakes. Brands shifted their focus
from strict sales pitches to building brand awareness.

Digital Revolution (2000 - Present)

Rise of Online Advertising
The internet's proliferation in the early 2000s presented a golden opportunity
for advertisers. Online display ads emerged in 1994, and the introduction of
pay-per-click advertising revolutionized budget allocation. Keywords became
pivotal in reaching the right audience.

Mobile Era
With the advent of 3G technology, mobile advertising took off. Advertisers
started creating personalized ads tailored to individual preferences. Email
advertising, dating back to the 1970s, reached a global audience, further
expanding advertising's reach.

Social Media Explosion

Social media platforms like Facebook, Google Ads, and Instagram became
advertising powerhouses, enabling brands to connect with billions of users
worldwide. Video advertising on platforms like YouTube gained immense
popularity.

Nature of advertising

Advertising is the prominent element of the promotion mix. Advertising has a

huge reach and is pervasive in nature. Here’s more about what an advertising

message should have:

● Attention seeker

The term ‘advertising‘ is derived from the Latin word ‘advertere’ that

means ‘to turn the attention’. Every piece of advertising attempts to

seek the attention of your audience towards a product or service.

● Has a unique selling proposition

Often, the advertiser need to have a unique selling proposition (USP).

This unique selling proposition makes the product or service stand out of

the crowd. Advertising attempts to persuade and influence the audience

through the different kinds of appeal.

● Visually attractive

The visual and non-verbal elements play a dominant role in advertising.

An eye-catching advertisement uses crisp information and focuses on the

 visual treatment to convey the message. The visual elements used in the

advertisements not only convey the information, but also tell a story.

● Consumer oriented

Advertising broadens the knowledge of the consumers. With this nature

of advertising, consumers can have the know how of the products, brands

or services that exist in the market. In fact, every product or service is

designed in a way to keep the consumers satisfied.

● Uses various media

Apart from print platforms like newspapers and magazines, its presence

can now also be seen in audiovisual platforms like, films, hoardings,

banners and many such promotional campaigns.

Characteristics of Advertising:

Above stated definitions reveal following features:

1. Tool for Market Promotion:

There are various tools used for market communication, such as advertising,
sales promotion, personal selling, and publicity. Advertising is a powerful,
expensive, and popular element of promotion mix.

2. Non-personal:

ADVERTISEMENTS:
Advertising is a type of non-personal or mass communication with the target
audience. A large number of people are addressed at time. It is called as non-
personal salesmanship.

3. Paid Form:

Advertising is not free of costs. Advertiser, called as sponsor, has to spend

money for preparing message, buying media, and monitoring advertising
efforts. It is the costliest option of market promotion. Company has to prepare
its advertising budget to appropriate advertising costs.

4. Wide Applicability:

Advertising is a popular and widely used means for communicating with the
target market. It is not used only for business and profession, but is widely used
by museums, charitable trusts, government agencies, educational institutions,
and others to inform and attract various target publics.

5. Varied Objectives:

ADVERTISEMENTS:

Advertising is aimed at achieving various objectives. It is targeted to increase

sales, create and improve brand image, face competition, build relations with
publics, or to educate people.

6. Forms of Advertising:

Advertising message can be expressed in written, oral, audible, or visual forms.

Mostly, message is expressed in a joint form, such as oral-visual, audio-visual,
etc.

7. Use of Media:

Advertiser can use any of the several advertising media to convey the message.
Widely used media are print media (newspapers, magazines, pamphlets,
booklets, letters, etc.), outdoor media (hoardings, sign boards, wall-printing,
vehicle, banners, etc.), audio-visual media (radio, television, film, Internet, etc.),
or any other to address the target audience.

8. Advertising as an Art:

Today’s advertising task is much complicated. Message creation and

presentation require a good deal of knowledge, creativity, skills, and experience.
So, advertising can be said as an art. It is an artful activity.

9. Element of Truth:

ADVERTISEMENTS:

It is difficult to say that advertising message always reveals the truth. In many
cases, exaggerated facts are advertised. However, due to certain legal
provisions, the element of truth can be fairly assured. But, there is no guarantee
that the claim made in advertisement is completely true. Most advertisements
are erotic, materialistic, misleading, and producer-centered.

10. One-way Communication:

Advertising involves the one-way communication. Message moves from

company to customers, from sponsor to audience. Message from consumers to
marketer is not possible. Marketer cannot know how far the advertisement has
influenced the audience.

Key Decisions in Advertising:

Advertising is one of – but popular and powerful – tools of market promotion. It

involves a several decisions.

Some experts explain advertising decisions and activities in form of six

‘M’s as under:

ADVERTISEMENTS:

1. The first ‘M’ stands for Mission – Advertising Objectives.

2. The second ‘M stands for Money – Advertising Budget.

3. The third ‘M’ stands for Message – Creating Advertising Message and Copy.

4. The forth ‘M’ stand for Monitoring – Managing (organising) of Advertising

Efforts.

5. The fifth ‘M’ stands for Media – Advertising Media Selection and Media
Scheduling.

6. The sixth ‘M’ stands for Measurement – Measuring and Evaluating

Advertising Effectiveness (MEAE).

ADVERTISEMENTS:

However, most of experts agree that advertising consists of mainly eight

decisions as shown in figure 1. Manager concerns with taking decisions on
these areas of advertising.

Types of Advertising
1. Online Search Advertising
Businesses increasingly turn to online advertising to connect with their
audience. Online platforms offer tools and analytics, enabling real-time tracking
of campaign reach and results. Key methods include:

● Pay-Per-Click (PPC) Advertising: PPC advertising is a strategic

approach that allows businesses to bid on specific keywords and
secure prominent placement in search engine results. This method
ensures that ads are presented to users actively searching for related
products or services.

● Display Banners: Display banners are visually engaging

advertisements that appear on websites, often in the form of images
 or videos. These banners contribute to building brand awareness and
are charged based on either Cost per Thousand impressions (CPM) or
Cost per Click (CPC).

● Native Ads: Native Advertising takes a subtle approach, seamlessly

blending promotional content with the organic material on a webpage.
This format aims to provide a non-disruptive user experience by
mimicking the style and format of the platform.

2. Social Media Advertising

Social media’s authentic engagement allows for personalized ads, with global
spending reaching US $180 billion in 2021. Platforms include:

● LinkedIn Advertising: LinkedIn, known for its focus on professional

networking, offers a robust advertising platform catering to B2B
businesses. Sponsored content, sponsored messaging, text ads, and
dynamic ads enable advertisers to connect with a professional user
base of over 690 million.

● Facebook Advertising: With a staggering reach of 1.6 billion users,

Facebook provides a versatile advertising platform. Businesses can
customize campaigns based on specific objectives, choosing from
various ad formats such as image ads, video ads, carousel ads, and
more.

● Instagram Advertising: Leveraging the visual appeal of Instagram,

businesses can turn existing posts into ads, showcasing content in
Stories, Reels, and users’ Feeds. The platform’s seamless integration
with Facebook’s ad manager allows for efficient campaign
management.

● Twitter Advertising: Twitter offers diverse ad formats, including

promoted posts featured in users’ newsfeeds. Follower ads, a
prominent format, promote account visibility. Given Twitter’s real-time
nature and widespread user engagement, businesses can reach
audiences with tailored messages, enhancing brand awareness and
interaction.
 ● Pinterest Advertising: Pinterest’s visual nature lends itself well to
advertising, allowing businesses to create visually appealing pins for
users’ feeds. The platform’s unique format, where users often discover
new ideas and products, makes it particularly effective for retail
brands.

● TikTok Advertising: TikTok, known for short-form videos, provides a

dynamic advertising space. Advertisers can create engaging content
tailored to the platform’s energetic and creative user base. TikTok’s
segmentation options allow businesses to target specific user
verticals, ensuring that ads resonate with the most relevant audience.

3. Print
Despite digital advancements, print advertising retains relevance in
newspapers, magazines, brochures, and flyers.

● Newspapers and Magazines: Print advertising in newspapers and

magazines provides a tangible and targeted means of reaching
specific demographics. Businesses can opt for full-page or smaller ads,
strategically selecting publications that align with their target
audience.

● Brochures and Flyers: Brochures and flyers serve as traditional yet

effective forms of advertising, especially when aiming for widespread
distribution. These printed materials offer an opportunity to highlight
product benefits, making them ideal for handouts at events, stores, or
in high-foot-traffic areas.

4. Direct Mail
Direct Mail remains a compelling advertising method, leveraging physical mail
to reach customers directly. Despite the speed limitations compared to digital
alternatives, the tangible nature of mail often leads to an 80% open rate,
surpassing email engagement rates. Marketers use direct mail to send targeted
promotions, coupons, and business updates to existing customers. Integrating
technology, such as QR codes, allows for seamless transitions between physical
mail and online interactions.
5. Broadcast, Video, and TV Advertising
Video content takes center stage as a highly effective and engaging form of
advertising. TV advertising is ideal for reaching broad audiences, potentially
numbering in the millions. However, measuring the exact reach and direct
return on investment poses challenges. Cost considerations include factors like
airtime, program placement, and whether it’s a local or national channel.

6. Out-of-Home (OOH) Outdoor Advertising:

Outdoor advertising proves its success, evident in iconic locations like Times
Square in New York City. Billboards, prominently displayed in high-traffic areas,
offer a visually impactful means of promotion. Transportation advertising on
buses, taxis, and airport spaces capitalizes on commuters’ attention during their
daily travels.

7. Cell Phone Mobile Advertising

Leveraging the constant use of cell phones, advertisers can deploy push
notification ads via SMS. These messages may include promotions or offers,
typically accompanied by a URL directing users to a landing page or website for
further action. With a low cost and an impressive average open rate of 98%, cell
phone mobile advertising provides extensive reach.

8. Product Placement
Product Placement, a discreet yet influential form of advertising, involves
strategically featuring products or brand mentions within TV shows and movies.
This type of advertising builds a subconscious connection between the scene
and the brand. Businesses can pay for their products to be used or showcased,
creating an association with the characters or storyline.

9. Consumer-Generated Advertising
Consumer-generated Advertising represents a contemporary marketing strategy
where brands leverage User-Generated Content (UGC) for promotions. Ads
based on UGC are highly trusted and boast four times higher click-through
rates than other forms. Brands collaborate with influencers, micro-influencers,
affiliate marketers, and brand ambassadors to create diverse content.

10. Radio and Podcast Advertising

Advertisers can leverage the vast listener base of podcasts, with users
indicating a higher likelihood of considering brands heard through this medium.
Targeting becomes precise, focusing on specific radio channels or podcast
genres that align with the brand’s services. Brands can sponsor messages
during peak listening times, providing helpful and relevant content to a captive
audience.

Advertising Objectives:

Introduction:

Advertising is aimed at achieving various objectives. Objectives may be

commercial or social in nature. Prof. Kelly gave the concept of DAG MAR –
Defining Advertising Goals for Measuring Advertising Results – in relation to
advertising objectives. Broadly, advertising objectives can be categorized into
three classes, such as informative objectives, persuasive objectives, and
reminder objectives.

Prof. Sew and Prof. Smith have classified objectives as:

i. Sales objectives

ii. Aiding sales force

iii. Competition-related objectives

ADVERTISEMENTS:

iv. Brand loyalty and reputation-related objectives

However, we will consider following objectives:

1. To Inform Buyers:

This objective includes informing customers regarding product’s availability,

price, features, qualities, services, and performance. Besides, it also includes
informing them about changes made in the existing product and introduction of
new products. Company also highlights its location, achievements, policies, and
performance through advertising.

2. To Persuade or Convince Buyers:

ADVERTISEMENTS:

Company uses advertisement to persuade or convince the buyers about superior

advantages offered by its product. Company communicates competitive
advantages the product offers to induce customers buy it. Comparative
advertising is used to prove the additional benefits of product at a given price.

3. To Remind Buyers:

Marketer uses advertising to remind the buyers regarding existence of

company, products, maintenance of quality, superior services, and chasing
customer-orientation. Mostly, the existing firms aim their advertising for this
objective.

Here, the purpose is to inform that the company is still in existence and serving
customers in a better way. Due to huge information bombarded by a number of
companies, customers are more likely to forget name of company and/or
products and services it offers.
4. To Face Competition:

Advertising is treated as the most powerful weapon to fight with competitors

effectively. Advertising enables the firm to respond the competitors strongly. It
helps the firm to distinguish its total offerings from competitors.

ADVERTISEMENTS:

In brief, the firm can face competition, can prevent the entry of competitors, or
can remove competitors away from the market. In competitive marketing
environment, the firm cannot survive without an effective advertisement.

5. To Achieve Sales Targets:

Increase sales volume is one of the major advertising objectives. A company can
advertise its products in various media to attract customers situated in different
parts of the world. National and international marketing is the result of
advertising. Even, non-users can be converted into users and usage rate can be
increased. Thus, company can achieve its sales objectives by advertisement.

6. To Build and Improve Brand Image:

Advertising is used for brand recognition and acceptance. A company can

distinguish its brand by magnifying major benefits the product offers.
Advertisement attracts customers toward the brand; they try it and accept it
over time. In the same way, bad image related to brand can be changed by
systematic presentation of facts and scientific evidences, and removing
misunderstanding.

7. To Help or Educate People:

ADVERTISEMENTS:
Advertising is not always used only for company’s benefits. It is meant for
helping customers to make the right choice of product. It educates people about
availability of new products, its features and qualities, price, services, and other
related aspects. Such information is instrumental for purchasing suitable
products. Thus, it guides customers to choose the most appropriate product.

8. To Build Company Image and Reputation:

A company opts for advertisement to build prestige and reputation in the

market. Most of the companies, though they are satisfied with the volume of
sales, go for advertising to acquire fame in the market. Many companies
advertise its policies, activities, and achievements to make a permanent place in
the mind of people.

9. To Assist Sales Force and Middlemen:

Advertising is an aid to middlemen and salesmen. Advertising also popularizes

the name of dealers. Likewise, advertising provides necessary information to
the buyers. Middlemen and salesmen are not required to do the same. It eases
the task of sellers. In the same way, advertising encourages sales force.

10. Other Objectives:

There are certain minor objectives of advertising, such as:

i. To promote new products.

ii. To build long-term relations.

iii. To remove misunderstanding.

iv. To expand of market.

v. To gain confidence of buyers.

vi. To request customers to compromise with unavoidable circumstances.

vii. To seek apology of the buyers for any undesirable events, etc.

Company has to select one or more objectives based on its situations. It should
be clarified that the list is not exhaustive. New advertising objectives may
emerge as per change in situations. However, the main objective of advertising
is to increase sales and earn profits. Company must define it advertising
objectives clearly and precisely.

Functions of Advertising:

Advertising has become an essential marketing activity in the modern era of

large-scale production and severe competition in the market.

ADVERTISEMENTS:

It performs the following functions:

(i) Promotion of Sales:

Advertising promotes the sale of goods and services by informing and

persuading the people to buy them. A good advertising campaign helps in
winning customers and generating revenues.

(ii) Introduction of New Products:

Advertising helps in the introduction of new products in the market. A business

enterprise can introduce itself and its products to the public through
advertising. Advertising enables quick publicity in the market.

(iii) Support to Production System:

Advertising facilitates large-scale production. The business firm knows that it

will be able to sell on a large-scale with the help of advertising. Mass production
will reduce the cost of production per unit by making possible the economical
use of various factors of production.
(iv) Increasing Standard of Living:

ADVERTISEMENTS:

Advertising educates the people about the products and their uses. It is
advertising which has helped people in adopting new ways of life and giving up
old habits. It has contributed a lot towards the betterment of the standard of
living of the society.

(v) Public Image:

Advertising builds up the reputation of the advertiser. Advertising enables a

business firm to communicate its achievements and its efforts to satisfy the
customers’ needs to the public. This increases the goodwill and reputation of
the firm.

(vi) Support to Media:

Advertising sustains press. Advertising provides an important source of revenue

to the publishers of newspapers and magazines and the producers of T.V.
programmes.

Importance of Advertising
Advertising is important because of the following reasons:
1. Informing and Educating Customers: Advertising serves as a pivotal tool
for informing potential customers about various aspects of products, services,
promotions, and special events. By utilizing this platform, firms can effectively
communicate essential information such as availability, price, product function,
and unique qualities.
2. Promoting Products and Services: The significance of advertising lies in
its role as a catalyst for promoting products and services. This function is
instrumental in enabling businesses to compete effectively for the attention of
buyers in a competitive market. Through advertising, businesses can create
brand awareness, attract potential customers, and establish a compelling
presence in the marketplace.
3. Boosting Employee Morale: Effective advertising extends beyond customer
outreach and can have a positive impact on the internal dynamics of a business.
A well-crafted advertising campaign can enhance the overall reputation of a
business, subsequently boosting employee morale.
4. Increasing Brand Exposure: Advertising plays a pivotal role in significantly
increasing a brand’s exposure to the target audience. This increased visibility
can directly impact sales and revenue for businesses of all sizes. By reaching a
broader audience and ensuring the brand is in front of the right people,
advertising becomes a powerful tool for acquiring new customers and
expanding market reach.
5. Enhancing Sales: Advertising is not just about creating awareness but also
driving tangible results. By strategically showcasing product qualities and
benefits, advertisements can influence consumer behavior, leading to increased
sales. This is especially powerful when combined with compelling calls to action
that prompt immediate purchases.

Top 10 Role of Advertising in Promotion of a Product

1. Awareness:

One of the important roles of advertising is to create awareness of the product

or services such as brand name and price. The awareness of the product or
services can be created through highlighting the unique features of the brand.
Nowadays, due to intense competition it is not just enough to create awareness,
but top of mind awareness is needed.

2. Information:

Advertising helps to inform the target audience about the product. Providing
information is closely related to creating awareness of the product. Potential
customers must know about a product, such as product features and uses.

ADVERTISEMENTS:

Product information is very much required, especially when the product is

introduced in the market, or when product modification is undertaken. Proper
product information can help the consumers in their purchase decision.
3. Persuasion:

When business firms offer similar products, the firm must not only inform the
customers about the product’s availability, but also persuade them to buy it.
Through persuasive messages, the marketers try to provide reasons regarding
the superiority of their products as compared to others available in the market.
Persuasion can be undertaken through creative advertising messages, product
demonstration at trade fairs, offering free gifts, premium offers and organizing
contests.

4. Attitudes:

Promotion is required to build or reinforce attitudes in the minds of target

audience. The marketers expect the target audience to develop a favourable
attitude towards their brands. Positive attitude towards the brand helps to
increase its sales. Through promotional techniques like advertising, the mar-
keter can correct negative attitude towards the product, if any. Negative
attitude can also be corrected through public relations and advertising.

5. Reminder:

If target customers already have a positive attitude towards a firm’s product or

service, then a reminder objective may be necessary. The reminder objective is
necessary because the satisfied customers can be targets for competitors’
appeals. Well-established brands need to remind the customers about their
presence in the market. For instance, ‘Raymond – the complete man’ campaign
is designed to remind the customers.

6. Brand Loyalty:
Advertising helps to develop brand loyalty. Brand loyalty results in repeat
purchases and favourable recommendations to others by existing customers.
Sales promotion, effective personal selling, timely and efficient direct
marketing, and other techniques help to develop brand loyalty.

7. Brand Image:

An advertiser helps to develop a good image of the brand in the minds of target
audience. There are several factors that can be of help to audience. There are
several factors, such as the character of the personality that endorses the
brand, the content of the advertising message, the nature and type of packaging
and the type of programmes or events sponsored, that can help to develop
brand image in the minds of target audience.

8. Counter Competitors’ Claims:

The marketer may counter the claims made by the major competitors. For
instance, competitive advertising is undertaken to counter the claims made by
competitors either directly or indirectly. With the help of creative advertising,
the marketers can claim the superiority of their brand. The marketer may also
undertake aggressive sales promotion to counter the competition in the market.

9. Expansion of Markets:

Successful ads results in expansion of the markets. A marketer may intend to

expand markets from the local level to the regional level, from the regional level
to the national level, and from the national level to the international level. For
this purpose, the marketer may undertake various techniques of promotion.

10. Educating the Customers:

Promotion may be undertaken to educate the customers. For instance, some of
the advertising is undertaken to educate the audience regarding the use of the
product, handling operations, and so on. Public awareness campaigns also
educate the public regarding the negative effects of noise, air and dirt pollution,
social evils, and so on.

Objections to Advertising
Advertising is criticised by many people, despite being one of the most common
mediums of promotion. Many people think that it raises the price of products
and services and leads to social waste.
Some of the objections are as follows:
1. Adds to Cost: Advertisements increase the price of products, so they are
severely criticised. The cost of production is increased as firms spend a lot on
advertising a product. For example, Advertisements which are shown on TV
cost a lot of money to the firms, which end up adding costs to the product. The
customers are offered the products at higher prices because of this.
Against this Objection:
This objection is not completely true. We cannot deny the fact that advertising
helps to increase the demand for a product. It induces buyers to buy products
by creating awareness. It also leads to mass production, which leads to
economies of scale and reduces per unit cost of production. So, we can say that
it reduces the burden on consumers rather than adding to it.

2. Undermines Social Values: Advertising is also criticised because it

promotes materialism. People’s needs are multiplied and they are tempted to
buy products, which is not required for them. They become dissatisfied with
their present product after getting knowledge about a new product. It is said
that it undermines social values, and leads to discontent among people.
Against this Objection:
This objection is also not entirely true, as advertising gives people a wide choice
by making them aware of modern and better products. Moreover, the aim of
advertising is only to inform the consumers, and the final choice to buy or not
lies in their hands.

3. Confuses the Buyers: Advertisements confuse people as there is a

continuous increase in the number of advertisements. Each brand claims to be
the best through advertisements. For example, there are various
advertisements for cement in India, like Ultra Tech Cement, Ambuja Cement,
Dalmia Bharat, ACC, JK Cement, etc. These advertisements confuse the buyers
as it is very difficult for them to make a choice.
Against this Objection:
The objection that advertisement confuses people is not true, as it only works
towards providing a wide choice and various alternatives to the buyers.
Consumers should be rational enough to make a choice as per their needs, and
in case of any confusion, they should clarify it before taking any decision.
4. Encourages Sale of Inferior Products: There is an objection that
advertisement induces people to buy even inferior products. It is said by most
people that with the help of advertisement anything can be sold in the market.
Against this Objection:
Advertisements should not be blamed for the sale of inferior goods, as the
inferiority or superiority of a product depends on the economic status and
preferences of the target customers. For example, Rolex watches advertise their
watches for a particular class of people. Any person who is not financially
sound, will not buy such a product.
5. Some Advertisements are in Bad Taste: Some advertisements are
criticised because they use indecent language, photographs, or convey bad
messages to attract customers. For example, some advertisements objectify
women. Ethical and social values are degraded because of such advertisements.
Some advertisements can even distort relationships.
Against this Objection:
This cannot be taken as an objection against advertisement as good or bad taste
is a matter of personal opinion. What was not accepted many years back is now
acceptable with the change in time. The main idea behind advertising is to
create awareness and demand for a product. It should also be kept in mind that
it is also government’s duty to ensure that ethical standards are being used in
advertisements.

Aspects of Advertising – Economic, Social and Ethical Aspects: With

Characteristics, Merits and Demerits

The economic, social and ethical aspects play a significant role in enhancing
business. The advertising brings development of the economy by enhancing
demand. It encourages people to purchase goods and services. It provides
opportunities to people to improve their income. Social advertisings focus on
social concerns and awareness for human being.

The various stake holders such as business houses, government, profit and non-
profit organizations contributes towards the welfare and well-being of the
society. Ethics is the most important feature of the advertising industry. It
should avoid attacking competitors unfairly; it shall be free from offensive to
public decency etc.
Economic Aspects of Advertising:

1. Enhance Product Value:

Advertising enhances the value of the products and services. Most of the
advertised products are always the best products in the market. It enhances
product value through positive brand image of the product. There are many
unadvertised products available in the market. But most of the people prefer
the advertise products compared to unadvertised products. For example – Most
of the people prefer to have branded products to quench their thirst such as
Coca-Cola or Pepsi over other unbranded cool drinks.

2. Enhance Product Utility:

Advertising provides product utility to the consumers. It educates consumers

about the uses of the products and services. The people learn about the product
utility through advertisements. It helps in making appropriate decision during
the purchase of products. For example – The basic requirement of mobile
phones is to facilitate communication between the sender and receiver. Now we
have many features in the mobile phones such as camera, internet facilities,
Blue tooth etc. These extra features in mobile phones have created enhanced
utility to consumers.

3. Reduce Prices:

The consumer price includes production costs, selling costs, distribution costs
and profit margin of the seller. The advertising expenditure and consumer price
are directly related to each other. An expenditure on advertising will increase
marketing costs. In the short-run the increase in advertising expenditure
increases the consumer price.

In long run, the company enhances the production capacity and expand market.
It leads to enhanced sales volume and hence reduction in prices. For example –
The durable products such as refrigerators, washing machines, computers etc.
have lowered down their prices over a period of time due to competition, mass
production, distribution and consumption.

4. Reduce Production Cost:

In long run the advertising reduces the production cost. The plant capacity will
expand over a time period. It leads to enhanced production volume. The
company may achieve economies of scale. The producers can purchase large
quantities of raw materials at discounted rates from the suppliers. The
economies of scale are obtained through large scale production, savings in
transportation, enhancing plant utilization, reducing overhead expenditure etc.

The advertising reduces the production costs by the following ways:

i. It lowers the overhead costs of production by generating demand.

ii. It keeps the track on seasonal fluctuations in demand.

iii. It helps the producer to achieve economies of reduced storage capacity.

iv. It enhances the sales turn over.

v. It ensures economies of scale in production.

vi. It helps to reduce the cost of production capacity.

vii. It helps to reduce per unit production costs.

5. Reduce Distribution Costs:

Distribution cost includes advertising and sales promotion costs. It includes the
cost of display, demonstration, dealer’s commission, incentives etc. The
advertising expense is a part of selling expense. It will add to the total selling
and distribution costs. The effective advertising cuts down the expenditure on
personal selling. Hence reduces the distribution costs for the manufacturer.
6. Enhances Demand and Choice:

The advertising plays a vital role in enhancing the demand for products and
services. The effective advertising gives advertiser a chance to introduce new
brands. It promotes the existing products and services. It helps in convincing
the customer to purchase the advertised products. For example – The effective
advertising of mobile phones with varied features for different consumer groups
leads to enhance the consumer demand and the choices.

The advertiser can enhance the demand and choice by the following:

i. Produce unique products.

ii. Enhance quality of products.

iii. Providing product variety.

iv. Effective promotional activities.

v. Creating research facilities of global standards.

vi. Achieving economies of scale.

vii. Creating effective advertising.

viii. Selecting appropriate target group etc.

7. Overcome Competition:

The success of business depends on the effective reach to the targeted

population. The effective advertising helps the company to sustain the present
competition. It reduces new companies to enter the market. It creates
favourable brand image for the products and services. It establishes an
exclusive identity for the product. The company can gain customer confidence.
It helps in achieving customer loyalty. It leads to earn maximum profits. It
ensures customer satisfaction.

8. Enhances Economic Growth:

The advertising helps the advertiser to stimulate economic growth. The future
of the economy is determined by consumer expenditure. It motivates people to
spend more. It encourages purchase and repurchase. It promotes job growth. It
enhances the productivity. It helps to meet increase in demand.

The role of advertising towards economy:

i. It performs an economic function for an advertiser.

ii. It is an integral part of the economic system.

iii. It plays a vital role to promote sales.

iv. It is an effective marketing tool to promote new product and services.

v. It helps to educating people.

vi. It is a powerful tool to meet and overcome competition.

vii. It provides valuable information about products and services.

viii. It is an efficient and cost-effective promotion tool for masses.

ix. It ensures low prices in long run.

x. It facilitates the entry of new products and new firms into the market.

xi. It affects economic decision of the audience.

xii. It results in enhanced efficiency of the economy.

Social Aspects of Advertising:

The advertisements which deal with social causes aimed at welfare and well-
being of the people is called social advertisement. It is a social institution. It is a
continuous social process. The social process, stands for all social activities that
are performed to achieve the goals and objectives of an individual and the
society.

It creates awareness among the people, inform and educate them about social
relevant issues. For example – The advertisements which communicates the
masses to save oil, save water, save energy etc.

Characteristics of Social Advertising:

1. It is public relations advertising.

2. It focuses on the matters of social importance.

3. It results in public attention towards the societies issues.

4. It initiates public action towards the social problems.

5. This kind of advertising is sponsored by government, voluntary organizations

etc.

6. It is non-controversial.

7. It contains the idea of folk culture.

8. It has concern to rural people.

9. It helps in shaping the cultural values of society.

10. It ensures consumer welfare.

Merits of Social Advertising:

1. It stimulates people to purchase goods and services.

2. It reflects cultural trends of the society.

3. It bridges the gap among diverse people.

4. It brings variation in the social life.

5. It contributes to overall development of the economy.

6. It enhances the living standards of the people.

7. It provides opportunities to people to improve their income.

8. It enhances employment opportunities.

9. It ensures consumer protection.

Demerits of Social Advertising:

1. The false or deceptive advertising leads to poor customer relationship.

2. It may create negative influence in children’s behaviour.

3. It motivates the consumer in purchasing unwanted products.

4. Few advertising are unreal, boring or depressing nature

5. It may create negative influence on our value system.

6. The appeals in advertising may create emotional disturbances in some

audience.

7. Few advertisements may create irritation to audience.

Areas Covered under Social Advertising:

The areas covered under social advertising are as follows:

1. Health Care:

India has consistently followed the path of planned progress. The main objective
of this planned development has been to fulfil the people’s needs. It helps to
bring about an upward shift in the quality of people’s life.

Advertisements on health include advertising on Cancer; AIDS etc. For example

– The newspaper advertisements on AIDS highlight what causes AIDS, what are
the symptoms, who are the target group, what preventive measures can be
taken etc.

2. Child Care:

The advertising plays a vital role in educating the people about the child care.
The various stakeholders need to take the responsibility of implementing
welfare and developmental programme for children.

The various stakeholders includes government, society, NGO’s, private business

houses etc. For example – The advertisements related to nutrition and child
development.

3. Education:

The education plays vital role in the socio-economic development of the country.
The quality education is the back bone of our nation. It leads prosperity of the
nation. For example – The advertisements related to right of education to
women for a positive change in society.

4. Family Welfare:

The family welfare advertising programme needs to ensure stabilization of

population in India. Through advertising it can be a realistic goal in near future.
For example – The family welfare advertising programme of National
Technology Mission on Immunization.

5. Dowry Prevention:

The social advertisements helps in eradicating the problem of dowry. It can be

checked to some extent if effective advertising are made to educate people. For
example – The television advertisements related to the dowry in national
television channels.

6. Safety Problems:

The number of deaths due to accidents is a major concern in India. There is a

need to emphasize on safety issues. We come across advertising related to
safety issues in various media.

For example – The advertisements which educates the public to follow traffic
rules and signals in order to avoid road accidents.

7. Resource Preservation:

The natural resources are essential for improving the quality of life. It plays the
role of a catalyst in economic development of the country. The advertising can
play a vital role in protecting natural resources. For example – The energy
conservation advertisements in various media highlights upon the issues such
as save oil, save petrol, save water, save electricity etc.

Ethical Aspects of Advertising:

The ethics means a set of moral principles, standards or values which govern a
person’s behaviour. It is a branch of social science. It deals with good and bad
with reference to a particular culture. The ethics in advertising is a set of well-
defined principles which governs the ways of communication taking place
between the seller and the buyer.
It deals with moral standards of what is “right” or “wrong”. The advertiser must
possess moral duty and obligation towards the society in their advertising. The
advertiser needs to ensure ethical standards of advertisings are adopted such as
avoiding false claims, misleading customers etc.

Fundamentals of Ethical Advertising:

Fundamentals of Ethical Advertising are as follows:

1. Truth:

The advertiser needs to ensure to provide true information to the customer. It

shall reveal significant facts. The elimination of facts may mislead customers.

Benefits:

a) It enhances the confidence in consumers.

b) It builds goodwill of the products, services, ideas or institution.

c) The customer develops trust on the advertiser.

d) It avoids confusion in customers.

e) It leads to customer satisfaction.

f) Enhances credibility.

g) It leads to customer loyalty.

2. Avoid Misrepresentation:

The misrepresentation in advertising is a deliberate attempt to tell lie. The

advertiser can misrepresent the product attributes such as quality, price,
benefits, features etc. For example – The advertising which represents the
particular product as number one in the market by showing unreal statistics.
3. Avoid Illusion:

The advertiser needs to avoid the advertisements which claim illusion. For
example – The advertising promises the consumer that by using that product
the person is going to reduce his or her weight by ten kilo grams.

4. Avoid Misuse of Testimonials:

The advertiser needs to ensure the advertisings containing testimonials are

limited. The testimonials must reflect a genuine and truthful opinion or
experience. For example – The advertisements in which testimonials of film
stars and sportsmen are used simply for sales promotion needs to be avoided.

5. Substantiating Evidence:

All claims made by the advertiser in their advertisings must be backed with
evidence. The advertisers are responsible for the claims they make regarding to
their products or services. For example – If a pharmaceutical company claims
the particular tablet reduces cold within half an hour. The advertising must be
backed with evidence.

6. Avoid Deception:

The false or untruthful advertising is called deceptive advertising. It is illegal

according to the Federal Trade Commission (FTC). The deceptive advertising is
prohibited under Section 43(a) of the Lanham Act, which is enforced by the
FTC. If a company fails to fulfil the promise made in the advertising, the
company may lose many customers.

7. Avoid Psychoactive Ads:

The advertising that has negative emotional impact on the target audience is
called psychoactive advertising. This type of advertising can create anxiety, low
self-esteem and aggression. If these emotions become intense it may induce
harmful effect to the audience. These types of advertisings are not illegal. It
may be considered as unethical.

Precautionary measures to avoid unethical practices in advertising:

1. The advertiser must design self-regulatory codes which take care of ethical
norms, truth, decency and legal points.

2. The advertiser needs to avoid the advertising which causes harm to people.
For example – The advertising of tobacco and alcohol should be avoided.

3. The advertiser must have a regular tracking on advertising activities and

ensure the removal of unwanted advertising.

4. The advertiser should not make use of unnecessary sex appeal in their
advertisements.

5. The advertiser needs to inform about the self-regulatory codes of the

company to customers to gain confidence and belief.

6. The advertiser must pay attention on consumers complaints related to

advertising.

7. The advertiser needs to avoid false claims about the products or services with
hidden motives.

8. The unwanted emphasis on factors which may not have concern in reality
must be avoided by the advertisers.

9. The advertiser must avoid misleading the names and brands to create
favourable impression.

10. The company needs to maintain transparency.

11. The advertiser should avoid attacking unfairly to competitors.

Demerits of Unethical Advertising:

1. It results in customer distrust towards products, services or business.

2. The company may lose its loyal customers.

3. It creates unpleasant environment to various stakeholders such as

employees, shareholders etc.

4. It destroys the business image.

5. Due to lack of faith the advertisement will be less effective.

6. It effects the company growth.

7. It leads to dissatisfaction to customers.

8. It leads to switching brands.

9. The market share of the advertiser may reduce etc.

Copywriting: different elements of a copy and layout

Copywriting is the process of writing advertising promotional materials.

Copywriters are responsible for the text on brochures, billboards, websites,
emails, advertisements, catalogs, and more.
This text is known as "copy." Copy is everywhere it's part of a $2.3 trillion
industry worldwide.
Unlike news or editorial writing, copywriting is all about getting the reader to
take action. That action might be to purchase, opt-in, or engage with a product,
service, or company.
That's why a copywriter is often referred to as "a salesman in print."

Copywriting should not be confused with "copyright." Copyright means an

individual or company has the exclusive legal right to reproduce, publish, sell,
or distribute someone's work (such as books, music, artistic items). The purpose
of a copyright is to protect that material and prevent illegal use of it by
unauthorized agents. The owner designates the material is copyrighted with the
symbol ©.
Copy writing in different elements of copy and layout
An ad copy consists of various parts, elements, or ingredients. Which parts and
how many parts should be included depend on the media through which the
advertising message is to be communicated. Layout of ad copy shows the
coordination of various parts of ad copy like headlines, slogans, test,
illustrations, pictures, sponsor, and logotype.
It is a physical arrangement of presenting the message. It is like a map, design,
or structure of advertising message. It is a technical job that requires a high
degree of expertise, skills, and experience. All ingredients are presented in such
a way that attracts the reader, listener, and/or viewer to attend the
advertisement. Order must be decided carefully.

Practically, an advertising copy includes one or more of the following

parts:

1. Headlines:

ADVERTISEMENTS:

Headlines are crucial for print advertisements. They include attractive

description written in colorful bold letters at the top or anywhere in the
advertisement. Attractive fonts are used to make the headline eye-catching.
Headlines may contain slogans. For example, More Smile per Mile by TVS
Victor, Japanese quality, at Chinese price, available in India by Orpat Home
Appliances, Elora Times Ltd. Mostly, headlines are written in bold letters.
Headlines suggest major benefits, offers, or time limit. For example, special
offers open only for two days.

2. Slogans:

Slogans are made of words and sentences. They are expressed in a rhythmic
manner. Slogans are used for every type of advertisement such as TV, radio,
outdoor, and print media. Slogans are presented or written at the beginning, at
the middle, or at the end of advertisement.

In audio-visual media, a slogan is presented with musical effect by using

persons or cartoon characters. For example, Hero Honda, Des Ki Dhadkan; TVS
Victor, More Smile Per Mile; Raymond, The Complete Man; Sansui, Better than
the best; Onida Television, Change the World; Coca-Cola, Life Ho To Asi, and
Thanda Matalab Coca-Cola; Tata Namak, Desh Ka Namak, etc., slogans have
popularized some brands and companies. Sometimes, songs are used. For
example, Nirma Chemicals, MDS masala, etc., used songs in their
advertisement. Slogans are indicative of key themes the advertiser insists to
appeal the audience.

3. Text:

The text is the central part of ad copy. It contains a description. It is prepared

with reference to advertising objectives. For example, a company gives more
description if company’s objective is to provide more information. Text should
neither be too lengthy nor be too short. Text includes theme or appeal to the
customers.

ADVERTISEMENTS:

It describes major benefits of products. The claim must suggest an absolute or a

comparative superiority of the products. Most text shows product benefits,
special offers, time, availability, quality, etc. Text is prepared differently for
different media. For example, space is important for print media; time is
important for audio-visual media; size is important for outdoor media.

4. Illustration:

Illustrations are used to make the advertising claim clear and attractive. Here
picture, character, cartoons, charts, etc., are used to illustrate an use of the
product. In the illustration, claims are made through celebrities. In many cases,
they are shown using the products.

TV advertisement uses film stars, artists, or cricketers to illustrate the use of

the product. For example, Film stars Sharukh Khan and Priti Jinta are shown
driving Santro Car. Children are used for illustrating different brands of
toothpastes, chocolates, bicycles, and biscuits. Similarly, Coca-Cola illustrates
its product through film stars and cricketers.

5. Pictures:
Use of pictures is more or less similar to illustration. However, pictures are
more relevant to print media. Pictures include products, brands, persons, etc.,
presented in systematic manner. Here, also, products and brands are associated
with film stars, cricketers, and well-known cartoon characters.

6. Sponsor and logotype:

ADVERTISEMENTS:

Ad copy also includes name of company, sponsor, brand or logotype to assist

customers recognize the name of producers and/or marketers. Name of
producer or logotype is kept either at the beginning or at the end of
advertisement. Some advertisements include full name and address of company,
including registered office, regional offices, its website, e-mail, phone, fax, etc.
Use of sponsor or logotype popularizes name of a company along with products
and brands. In audio-visual advertisements, the name of company is shown
and/or spoken.