Principles of Advertising & Brand

Communication

Programme: BA( J&MC)

Semester: V ( Bucket C)
Course code: BJE509
Credit Units: 04
Session: 40 (One hour each)
Faculty : Diwakar Shukla / Guest Faculty
 Instruction Details

• Session hours : 2-3 hours per week

• Total No. of Lectures Planned : 40
• Self Study : 2 hours per session
• Tutorials ( offline or in-class) : 2 hours per week

• Read
– Brand Equity, Campaign India & Campaign Asia, Exchange4Media,
Brand and advertising pages of Business Standard, HinduBusinessline,
Ad week

2
 Course Objectives

The objectives of the course are:

• The aim of the course is to equip you all with theoretical and
practical knowledge necessary for a successful and efficient
management of brands and its advertising.

• It provides the framework for the analysis of the main factors

determining success of an advertising campaign and brand in
the market and introduces techniques and tools necessary for
management of brands.

3
 Learning Outcomes

Upon course completion, students will be able to:

• At the end of this course, students will be able to explain the

role of advertising in the today's economy.
• Describe the purpose and methods of effectively managing
brands including how to build brand equity and establish brand
identity.
• Formulate effective strategies for successful advertising
• Develop brand strategies for consumer and business goods and
services.

4
 Instruction Methodology

– Lecture
– PPT presentation
– Audio-Visual Presentation
– Home assignment
– Debate related to topic
– Practical
– Live Industry briefs

5
Units & Course Content Layout
Unit 1
Definition, Historical Development; Social and Economic
Benefits of Advertising

Types of Advertising: Consumer, Corporate, Industrial,

Retail, National, Trade; Public or Government
Advertising; Product Advertising
Unit 2
Target Audience

Advertising strategies, appeals

Advertising Planning: Objectives and Budget

Unit 3
Market and its segmentation Sales Promotion,
Creative Strategy; Purchase proposition;

Creative Execution; Ad-Copy Writing; Slogan; Headline;

Ad Lay-out

Media Strategy; Planning of Ad-budget for Newspapers,

Magazines, Radio, Television

Issues related to advertising and ethics

Unit 4
Strategic product & Brand Management: Branding
elements: Branding Portfolio, Brand Personality

Brand Image, Brand Positioning, Brand Extensions

Unit 5
Brand Associations, Brand Awareness, Brand Loyalty

Brand Responsibility, Brand equity

Brand Evaluation, Classification of Brands, Developing

New Brands
 Suggested List of Practical's
• Read advertising media, campaign case studies
• Track brands and their communication, brand and advertising
trajectory
• Understand the basic concept of design and creative process
• Hands-on exposure in operating software's like Adobe In-design/
Adobe Page makeup, Adobe Photoshop and Corel draw & FCP
• Understand advertising production in various forms
• Designing Dummy advertisements and TVCs
• Understand various ideation, insight mining and consumer
research techniques
• Pitch techniques

12
 Academic Integrity Policy

• Students are expected to follow Rules of Conduct and Academic

Behavior Standards as detailed in the Student regulations.

• Failure to comply with these rules may result in disciplinary

actions as stipulated in the Students Regulations.

13
 Evaluation Scheme
S. No. Evaluation Weight (%) Date for Learning Date of
Component Evaluation Outcome Completion of
Evaluated Evaluation
Units

1 Assignment -I 10 With-in One week Units 1-2 Within 15 days

of submission
deadline

2 Mid-Term 20 As per academic Units 1-2

calendar

3 Assignment -II 10 With-in One week Units 3-4 Within 15 days

of submission
deadline

4 End-Semester 60 As per University Units 1-5

Examination schedule

Total 100
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 Unit I

Rise & Dawn of Advertising in all formats

History and Roles
 What is
Advertising?
 Advertising is:

Paid, Nonpersonal Communication From

An Identified Sponsor Using Mass
Media to Persuade or Influence an
Audience.
 Advertising is:
 structured and composed nonpersonal
communication of information,
 usually paid for and usually persuasive in
nature,
 about products (goods, services, and ideas)

 by identified sponsors through various media

 Advertising Campaigns

 a series of coordinated advertisements

 single advertisement placed in multiple media
 several different advertisements with a similar
look, feel, and message
• The word advertising comes form the latin
word "advertere” which means to turn the
minds of towards.
• According to William J. Stanton, "Advertising
consists of all theactivities involved in
presenting to an audience a non-personal,
sponsor-identified, paid-for message about a
product or organization."
 Definition
• According to American Marketing Association
“advertising is any paid form of non-personal
presentation and promotion of ideas, goods
and services by an identified sponsor.”
Non-personal
• Basically sales is done either personally or non-personally.
• Personal selling requires the seller and buyer to get together.
• Personal selling has its on advantages and disadvantages.
• Whereas advertising is non-personal selling.
• Personal selling has many advantages over advertising like direct
communication, bargaining, enough time to discuss in detail about the
product, seller can easily locate potential buyer.
• Advertising has none of the advantages of personal selling, very little time to
present sales message, message is cannot be changed easily.

• But, advertising has its own advantages which is not found in personal
selling: advertising has comparatively speaking, all the time in the world.
• Unlike personal selling, the sales message and its presentation does not have
to be created on the spot with the customer watching.
• It can be created in as many ways as the writer can conceive, be rewritten,
tested, modified, injected with every trick and appeal known to affect
consumers.
• Advertising covers large groups of customer and to make it
effective proper research about customer is done to identify
potential customers, to find out what message element might
influence them, and figure out how best to get that message
to them.

• Thus, it appears that advertising is a good idea as a sales tool.

For small ticket items, such as chewing gum and guitar picks,
advertising is cost effective to do the entire selling job.

• For large ticket items, such as cars and computers, advertising

can do a large part of the selling job, and personal selling is
used to complete and close the sale.

• Advertising is nonpersonal, but effective.

Communication
• Communication means passing information, ideas, or feelings by a person
to another. Communication uses all the senses like smell, touch, taste,
sound, sight.
• Only two senses - sound and sight are really useful in advertising. In
advertising, what appears is everything the writer thinks the customer
needs to know about the product in order to make a decision about the
product.
• That information will generally be about how the product can benefit the
customer.

Paid For
• Advertiser has to pay for the creation of ad and for placing it in the media.
• Cost of ad creation and cost of time/space in the media must be paid for.
• Cost of advertising depends on TRP of media, reach of media, and
frequency of ad to be displayed.
Persuasive
• "Persuasive" stands to reason as part of the definition of advertising.
• The basic purpose of advertising is to identify and differentiate one
product from another in order to persuade the consumer to buy that
product in preference to another.

Identified Sponsors
• Identified sponsors means whoever is putting out the ad tells the
audience who they are.
• There are two reasons for this: first, it's a legal requirement, and second, it
makes good sense.
• Legally, a sponsor must identify himself as the sponsor of ad.
• By doing so the sponsor not only fulfils the legal requirements, but it also
makes a good sense, if the sponsor doesn't do so, the audience may
believe that the ad is for any competitor's product, thus wasting all the
time and money in making and placing the ad.
• According to Webstar, “Advertising is to give public notice or
to announce publicity”.

• According to Gardner, “Advertising is the means of mass

selling that has grown up parallel with and has been made
necessary to mass production”.
 The Evolution of Advertising
1441- 1850’s- 1900- 1920’s
1850 1900 1950’s

Industrial
Age of Age of Rise of
Revolution &
Print Science Agencies
Consumer Society

World War I- 1950’s 1960’s- 1970’s-

World War II 1970’s 1990’s

Reintroducing
Advertising Creative Accountability
Consumers to
Declines Era Era
Marketing
The Development of Advertising
The Development of Advertising
The Development of Advertising
 Life Before Advertising
 There is evidence of advertisements dating
back to Babylonian times
 Exchange of goods predates advertising
 Scattered and small populations of self-
sufficient households eliminate the need to
advertise
 Able to maintain themselves without outside
assistance

What if there was no advertising

 Factors Leading to Advertising
• Population increases
• Growth of towns and cities
– Specialization
– Barter
– Putting a price on items
– Supply, demand and competition
• New technology enabled distribution of
information to many people (mass media)
 Early Advertisements
• In 1704 the Boston News Letter contained paid
advertisements for items such as real estate
and rewards for stolen merchandise
– Slave owners would advertise runaway slaves
– Early advertisements had no illustrations
• Ben Franklin’s publications sold
advertisements
Historical Roles of Advertising

 The Pre-industrial Age (up to start of 19th century)

Historical Roles of Advertising
The Industrializing Age (Mid 1700’s Europe / 1800’s in
U.S. To WW1)

 Mass production / Need for mass consumption

 Cost people less to buy products than to make them
 Manufacturers were concerned with production
Historical Roles of Advertising
 The Industrial Age (1900’s to 1970s)
 Luxury goods developed
 Manufacturers changed from a production
orientation to a sales orientation
Historical Roles of Advertising

 The Post Industrial Age (Starting 1980)

 Age of social responsibility / Quality of life issues
 Lifestyle advertising
Historical Roles of Advertising
 The Global Interactive Age (Last 15 years)

 Growth in world markets

 The History of Advertising
A General Overview
• Advertising has not always been as
glamorous as it seems to be in this day of
mass media in America.
• The most reliable source of advertising in
the old days (before print) was word of
mouth.
• The town crier was the source of most
information, and this was one of the early
ways that people advertised.

39
 The History of Advertising
In 1704, the first newspaper ad
was published.
• It was an announcement about a
house for sale in the Boston
Newsletter.

40
 The History of Advertising
In 1729, our forefather Benjamin
Franklin began the advertising tradition
in America.
• His Philadelphia Gazette had a full page of
advertisements.

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 The History of Advertising
Ben Franklin also started
magazine advertising in 1749
with his General Magazine.
• The first successful newspaper
(after our founding as a nation)
was in 1784, also in Pennsylvania.
It was even called the Advertiser!

42
 The History of Advertising
1833: New York Sun
• The first successful “penny newspaper”
founded by Benjamin Day.
• Revolutionized distribution by selling lots
of 100 to boys to sell on the street.
• By 1837, circulation reached 30,000!

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 The History of Advertising
The first Advertising Agency
opened in 1843.
• It was also in Philadelphia! A
man named Volney Palmer was the
first true ad agency man.
• He was in charge of brokering space
for advertising more than for the
actual creation of the ads.

44
 The History of Advertising
In 1873, there was a convention of
advertising agents in New York.
• A few years later, James Walter
Thompson created the position of
“account executive” for himself and
went into the business of general
magazine advertising.
• This was the beginning of creative
advertising in this country.

45
 The History of Advertising
1880 – First full-time retail
advertising copywriter
• In 1880, department store
founder John Wanamaker
became the first retailer to hire
a full-time advertising
copywriter, John E. Powers
who is considered the father of
modern creative advertising.

46
 The History of Advertising
In 1882, the first “big budget”
client spent $11,000 on
advertisements.
• This company’s main product was
soap!
• Selling soap was big business in
America!

47
 The History of Advertising
In 1893, a cola company got
the first registered
trademark.
• The company bookkeeper
came up with the original first
mark for the brand.
• His name was Frank Robinson.
• Can you guess which company
this was?

48
 The History of Advertising
In 1900, N.W. Ayer started a “Business
Getting” Department in their agency.
• This department was based on the marketing
needs of their clients. Marketing in America now
had a name. “Business Getting” was what it was
all about.

49
 The History of Advertising
In 1906, the first million
dollar advertising client
was born.
• Can you guess which
company broke the million
dollar barrier to promote its
cereal products?

50
 The History of Advertising
In 1916, outdoor billboard
ads were mostly under the
control of a group of
representatives from many
different agencies that
formed a new entity.
• The National Outdoor
Advertising Bureau controlled
about 75% of all outdoor ads
during this time.

51
 The History of Advertising

The first sponsored radio

show aired in 1923.
• In 1924, other companies began
sponsoring radio programs, and
the age of radio advertising was
in full swing.

52
 The History of Advertising
1929: Stock Market Crashes
• Advertising revenue plummeted
from a high of $3.5 billion.
• Stock Market revenue only reached
$1.5 billion by 1933.

53
 The History of Advertising

In 1936 a magazine published

over $100 million dollars in ads.
• It was the most financially successful
magazine the country had ever seen,
primarily due to ad revenues.

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 The History of Advertising

Advertising Media changed

again in 1938.
 Radio surpassed magazines as
the dominant form of advertising.

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 The History of Advertising

1941: Television’s first broadcast

ad!
• It was an ad for a watch that ticked
for 60 seconds.
• 7500 televisions in New York were
tuned in to see it… the thrill of
watching a watch on TV.

56
 The History of Advertising

1954: Television makes history!

• Color came into the picture, and the
world was set on its ear. Everyone had
to have a color television!
• Which station do you think was the
largest advertising medium in the
world at this time?

57
 The History of Advertising
In 1967, Mary Wells became
the first woman to head a
major advertising agency.
• In the heat of the Women’s
Movement, we saw the impact of
women having a great deal of
influence on the direction
advertising was taking in America.

58
 The History of Advertising
In 1971, Congress banned
cigarette advertising via
broadcast media.
• Cigarette companies felt the bruises
from the advertising restraint and
re-channeled all of their ads into
magazines and billboards.

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 The History of Advertising

Music TV debuted in 1981.

• A new, frenetically paced style
of television advertising tried
to emulate the music videos
that young people were
coming to expect.

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 The History of Advertising
1993 brings the Internet to over 5
million people worldwide and
changes the way ads are delivered
yet again.
• Ads pop up, pop under, and become
a general nuisance to most computer
users.
• Special software programs are
written to help eliminate unwanted
ads from the computer screen.

61
 The History of Advertising
1999: Regulating Internet
Advertising
• This occurred as billings for
internet advertising neared the
$3 Billion mark.
• Do you know which company
moved to standardize all Internet
advertising?

62
 The History of Advertising
With the new millennium,
advertising product placement has
become quite common.
• Next time you buy a movie ticket or
tune in to a commercial television
program, watch your favorite stars
and see what they are they wearing,
drinking, eating and driving. It’s all
advertising.

63
 The History of Advertising
Other new topics
• Virtual placement – most commonly used at
sporting events and on electronic billboards
• Crowdsourcing
• Niche marketing
– Usage tracking
– Customer profiles
– Social networking sites

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 The History of Advertising
Where did all of this start?
• Most modern advertising can essentially
trace its roots to the invention of the
Gutenberg printing press with moveable
type back in 1441. The rest of it is almost a
natural evolutionary process. With new
inventions come new ways to advertise. So
the next time you sit down with that
paper, realize that it was print advertising
that revolutionized the way things are
done.

Advtg history Evolution of advtg 65

 Pre Independence

• Press advertisements – largely imported goods which had

reached Indian shores.

• Dattaram , the first agency , was found in 1905. it released the

first ad for West End Watch Co., Mumbai in 1907.

• In 1920, the banner ad was put on trams.

1930’s
• The talkies and radio emerge as media.

1940’s
• 2nd World War
• Famine
• Fight for Independence
• In 1941, Leela Chitnis became the first Indian film actress to
endorse Lux soap
1950’s

• Industrial revolution in the Nehruvian era

• Burmah Shell propagated kerosene by advertising on Vans
• Cinema advertising began
• In 1956, Kolkata gets the privilege of India’s first ad club
• In 1957 government launches Vividh Bharati
• Leading ad agency - Press Syndicate
1960’s
• India’s first Advertising Convention (1960)
• Advertising to to be Indian in thought and content
• Shift to marketing orientation
• Professionalization within agencies
• 1st Asian Advertising Congress at New Delhi Research data
generated
• MRI (Market Rating Indices)
• Shop Audits
• National Readership Survey(NRS) I and II
• Creativity was emphasized
• Photography find increasing use
• Social marketing
1970’s
• Media boom
• Special magazines
• 2nd Asian Advertising Congress at New Delhi
• Lifestyle studies, positioning
• Rural marketing
• In 1978 India's first TV Commercial goes on air
1980’s
• Indianisation of western advertising
• Public sector advertising
• Expansion and diversification of agencies
• Aug 15th 1982 – Colour TV introduced
• Radio commercials introduced(1982)
• NRS III by IMRB
• Colour Printing more popular
• Regional broadcasts, expansion of radio
• Formation of Indian chapter of International Advertising
Association
• Formation of Advertising Standards Council of India(ASCI)
• Concept of sponsored programmes on TV
1990’s
• NRS-IV ( 2 surveys – ORG and IMRB-MARG)
• Niche magazines
• Emphasis on Direct marketing
• Satellite TV(1991)
• CNN – 1st channel to be beamed to India
• Star bouquet Zee bouquet(1992) DD Metro to counter
satellite channels
• DD Audience surveys
• Movie channels and pay channels
• FM Radio
• Emphasis on Brand Equity
• Internationalization of Advertising
• NRS V-VI & IRS survey in 1997
• Consumer Tracking and Satisfaction studies
2000

• Internationalization of domestic agencies

• Net Advertising
• The role of the advertising agency – changing to that of a
marketing consultant
 Different Stages Of Advertising In India In India

1 st stage (1900-1947)

• Advertising products originated abroad

• Minimal Indian production
• Economic growth was negligible
• Investments in market was very low
• Most indigenous products are commodities, required no
advertising
2nd stage(1947-1977)

• India started on the path of self-reliance

• Press commission in 1953
• Total spent on ads in India was Rs.5 crore
– 3.5 crore on print ads
– 1.5 crore on hoardings
3rd stage(1977-2000)

• Second press commission, 1983

• At this point, ad revenues touched Rs200 crore
• Increase in revenue was phenomenal, almost 40 times
• 1982 was a trademark year because colour TV came in,
changing the Indian lives completely
• TV reached to 70 % of the Indian people
Indian Advertising
Movie 2

Movie 3

Movie 4
Social & Economic Benefits of
Advertising
 Introduction
• 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.
 Economic Benefits of Advertising
• Value of Products:
The advertised products are not always the best products in the market. There are
some unadvertised products also present which are good enough. But advertising
helps increase value for the products by showing the positive image of the product
which in turn helps convincing customers to buy it. Advertising educates
consumers about the uses of the products hence increasing its value in minds of
the consumers. For e.g. mobile phones were first considered as necessity but
nowadays the cell phones come with number of features which makes them mode
of convenience for consumers.
• Effect on Prices:
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
 Economic Benefits of Advertising
• 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.
 Economic Benefits of Advertising
• 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.
 Social Benefits of Advertising
• 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.
Role of Advertising in the Economy

Makes consumers aware of

products and services

Provides consumers with

information to use to make
purchase decisions

Encourages consumption,
fosters economic growth
Economic Impact of Advertising

Effects on Consumer Choice

• Differentiation
• Brand Loyalty

Effects on Competition
• Barriers to entry
• Economies of scale

Effects on Product Costs and Prices

• Advertising as an expense that
increases the cost of products
• Increased differentiation
 Summarizing Economic Effects

Change consumers’ tastes

Advertising
Equals Market Lowers sensitivity to price
Power
Builds brand loyalty

Results in higher profits

Reduces competition
Leads to higher prices
Leads to fewer choices
 Summarizing Economic Effects

Provides useful information

Advertising
Equals Increases price sensitivity
Information
Increases competition

Pressure for high quality

Pressure for lower prices
Forces inefficient firms out
 Social Benefits of Advertising
• 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.
 Do you agree with Leo Burnett?

“It must be said that without advertising

we would have a far different nation,
and one that would be much the poorer-
not merely in material commodities, but
in the life of the spirit.”

Excerpters is from a speech given by Leo Burnett on the American

Association or Advertising Agencies’ 50th anniversary, April 20,1967
 Four Fundamental Elements of
Effective Advertising
• Advertising strategy
– The logic and planning behind the advertisement
that gives it direction and focus.
– Develop the ad to meet specific objectives.
• Creative idea
– The ad’s central idea that grabs your attention and
sticks in your memory.
 Four Fundamental Elements of
Effective Advertising
• Creative execution
– The details, the photography, the writing, the
acting, the setting, the printing, and the way the
product is depicted all reflect the highest
production values available to the industry.
– E.g. Corona.
• Creative media use
– Every message has to be delivered somehow.
– E.g. traditional media, outdoor and transportation
media, and the Internet.
 Two Techniques to Persuade
Consumers
• Hard-sell approach – use reasons to persuade
consumers, e.g. NOW Magazine.
• Soft-sell approach – build image for a brand
and touch consumers’ emotions, e.g. Aqualis.
 Four Roles of Advertising -
Marketing
• The process a business uses to satisfy
consumer needs by providing goods and
services
– Product category
– Target market
– Marketing mix
– Brand
 Four Roles of Advertising -
Communication
• Can reach a mass audience
• Introduces products
• Explains important changes
• Reminds and reinforces
• Persuades
 Roles of Advertising
Marketing Role •Marketing is the process a business
uses to satisfy consumer needs and
wants through goods and services.

Communication Role
•Advertising is a form of mass
communication.

Economic Role •Improves standard of living and the

economy by generating material
consumption.

•Informs us about new and

Societal Role improved products, teaches us how
to use these innovations, etc.
 Four Roles of Advertising -
Economic
• Moves from being informational to creating
demand
• Advertising is an objective means for
providing price-value information, thereby
creating a more rational economy
• Signaling high quality
Four Roles of Advertising - Societal
• Informs consumers about innovations and
issues
• Mirrors fashion and design trends
• Teaches consumers about new products
• Helps shape consumer self-image
• Perpetuates self-expression
 The Functions of Advertising
• Building awareness of products and brands
• Creating a brand image
• Providing product and brand information
• Persuading people
• Providing incentives to take action
• Providing brand reminders
• Reinforcing past purchases and brand
experiences
 The Key Players
• Advertiser
• Advertising agency
• Media
• Supplier
• Target audience
 Advertiser
• Uses advertising to send out a message about
its products
• Initiates the advertising effort by identifying a
marketing problem
• Approves audience, plan and budget
• Hires the advertising agency
 Advertising Agency
• Has strategic and creative expertise, media
knowledge, workforce talent, and negotiating
abilities
• In 2002-2003 ad agency gross income was
$10.6 billion worldwide. (Advertising Age)
• Advertising Age - Agency Family Trees
 Advertising Agency
• Advertising department
– Act as a liaison between the marketing
department and the advertising agencies and
other vendors.
– Agency-of-record
• In-house agency
– Perform most, and sometimes all, of the functions
of an outside advertising agency.
 Media
• The channels of communication that carry the
message to the audience
• Are also companies or huge conglomerates
• Mass media advertising can be cost effective
because the costs are spread over the large
number of people the ad reaches
 Supplier
• Assist advertisers, agencies, and the media in
creating and placing the ads
• Vendor services are often cheaper than those
in-house.
 The Target Audience
• The desired audience for the advertising message
• Data-gathering technology improves accuracy of
information about customers
• Advertisers must recognize the various target audiences
they are talking to and know as much about them as
possible
• Purchasers are not always the product users.
• Interactive technology has created a new world of
targeting and ads can now be customized to individual
consumers to some extent.
 Social Benefits of Advertising
• 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.
 Types of Advertising
• Brand advertising
– The most visible type of advertising
– Focusing on the development of a long-term
brand identity and image.
• Institutional advertising
– It is also called corporation advertising or image
advertising.
– Focusing on establishing a corporate identity or
winning the public over to the organization’s point
of view.
 Types of Advertising
• Retail or local advertising
– Focusing on retailers or manufacturers that sell
their merchandise in a certain geographic area.
– Objectives: stimulating store traffic and creating a
distinctive image for the retailer.
• Direct-response advertising
– Trying to stimulate a sale directly.
– The consumer can respond by telephone, mail or
the Internet, and the product is delivered directly
to the consumer by mail or some other carrier.
 Types of Advertising
• Business-to-business advertising
– B2B advertising is sent from one business to
another.
– Advertisers place most business advertising in
professional publications or journals.
 Types of Advertising
• Nonprofit advertising
– Not-for-profit organizations advertise for customers, members,
and volunteers, as well as for donations and other forms of
program participation.
• Public service advertising
– Communicating a message on behalf of some good cause, e.g.
stopping drunk driving or preventing child abuse.
– These advertisements are usually created by advertising
professionals free of charge and the media often donate the
necessary space and time.
Classification of Advertising

Function

Media Region
Classification
of Adverting
on the basis
Desired
of: Target
Response Market

Company
Demand
 Types of Advertising
Interactive Brand
Advertising Advertising

Public Service
Retail or Local
Advertising
Advertising

Institutional
Advertising Political
Advertising
Business-to-
Business Directory
Advertising Advertising
Direct-Response
Advertising
 Classification on the basis of function
Informative Advertising
• Advertisement informs the customers about a product
• Advertisement persuades the consumers to buy a products
• Advertisement reminds existing customers about the presence of the product in the market

Let us discuss some important types of advertising based on the functional aspect of advertising.
• Informative advertising: This type of advertising informs the customers about the products,
services, or ideas of the firm or organization.

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

buyers to take quick actions to buy the products or services of the firm. Example: “Buy one,
get one free”.

• Reminder advertising: This genre of advertising reminds the existing customers to become
medium or heavy users of the products or services of the firm that have been purchased by
them at least once. This type of advertising exercise helps in keeping the brand name and
uses of the products in the minds of the existing customers.
 Classification on the basis of region
• Global advertising: It is executed by a firm in its global market niches. Reputed global magazines like
Time, Far Eastern Economic Review, Span, Fortune, Futurist, Popular Science. Cable TV channels are
also used to advertise the products through out world. Supermodels and cinema stars are used to
promote high-end products Examples: Sony, Philips, Pepsi, Coca Cola, etc.

• National advertising: It is executed by a firm at the national level. It is done to increase the demand
of its products and services throughout the country. Examples: BPL (Believe in the best). Whirlpool
Refrigerator (Fast Forward Ice Simple) etc.

• Regional advertising: If the manufacturer confines his advertising to a single region of the country,
its promotional exercise is called Regional Advertising. This can be done by the manufacturer,
wholesaler, or retailer of the firm. Examples: Advertisements of regional newspapers covering those
states or districts where these newspapers are circulated. Eg. The Assam Tribune (only for the NE
region) etc.

• Local advertising: When advertising is done only for one area or city, it is called Local Advertising.
Some professionals also call it Retail Advertising. It is sometime done by the retailer to persuade the
customer to come to his store regularly and not for any particular brand. Examples: Advertisements
of Ooo la la, Gupshup (Local FM channels) etc.
 Classification on the basis of target market

• Depending upon the types of people who would receive the messages of
advertisements, we can classify advertising into four subcategories:

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

ultimate consumer is a person who buys the product or service for his personal
use. This type of advertising is done by the manufacturer or dealer of the product
or service. Examples: Advertisements of Intel, Kuttons (shirt), Lakme (cosmetics)
etc.

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

This is done by the industrial manufacturer or his distributor and is so designed
that it increases the demand of industrial product or services manufactured by the
manufacturer. It is directed towards the industrial customer.
 Classification on the basis of target market
• Trade advertising: This is done by the manufacturer to persuade wholesalers and
retailers to sell his goods. Different media are chosen by each manufacturer
according to his product type, nature of distribution channel, and resources at his
command. Hence, it is designed for those wholesalers and retailers who can
promote and sell the product.

• Professional advertising: This is executed by manufacturers and distributors to

influence the professionals of a particular trade or business stream. These
professionals recommend or prescribe the products of these manufacturers to the
ultimate buyer. Manufacturers of these products try to reach these professionals
under well-prepared programmes. Doctors, engineers, teachers, purchase
professionals, civil contractors architects are the prime targets of such
manufacturers.

• Financial advertising: Banks, financial institutions, and corporate firms issue

advertisements to collect funds from markets. They publish prospectuses and
application forms and place them at those points where the prospective investors
can easily spot them.
 Classification on the basis of desired responses
• An ad can either elicit an immediate response from the target customer, or create
a favourable image in the mind of that customer. The objectives, in both cases, are
different. Thus, we have two types of advertising under this classification.

• Direct action advertising: This is done to get immediate responses from

customers. Examples: Season's sale, purchase coupons in a magazine.

• Indirect action advertising: This type of advertising exercise is carried out to make
a positive effect on the mind of the reader or viewer. After getting the
advertisement he does not rush to buy the product but he develops a favourable
image of the brand in his mind.

• Surrogate advertising: This is a new category of advertising. In this type of

promotional effort, the marketer promotes a different product. For example: the
promotion of Bagpiper soda. The firm is promoting Bagpiper Whisky, but
intentionally shows soda. They know that the audience is quite well aware about
the product and they know this fact when the actor states, "Khoob Jamega Rang
Jab Mil Baithenge Teen Yaar ... Aap ... Main, Aur Bagpiper").
 Classification on the basis of the media used in advertisement

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

• Visual advertising: It is done through PoP displays, without text catalogues, leaflets, cloth
banners, brochures, electronic hoardings, simple hoardings, running hoardings etc.

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

• Written advertising: It is done through letters, fax messages, leaflets with text, brochures,
articles and documents, space marketing features in newspapers etc.

• Internet advertising: The world wide web is used extensively to promote products and services
of all genres. For example Bharat Matrimony, www.teleshop.com, www.asianskyshop.com etc.

• Verbal advertising: Verbal tools are used to advertise thoughts, products, and services during
conferences, seminars, and group discussion sessions. Kinesics also plays an important role in
this context.
 Functions of Advertising

Provide Product &

Brand Information

Provide Incentives Advertising

To Take Action Performs 3 Basic
Functions

Provide
Reminders and
Reinforcement
 Classifications of Advertising
By Target By Geographic By By
Audience Area Medium Purpose

• Consumer • Local (retail) • Print • Product

• Nonproduct
• Business • Regional • Broadcast
(electronic) • Commercial
– Radio
• National • Noncommercial
– TV

• International • Action
• Out-of-Home
• Awareness

• Direct-Mail
 Current Advertising Issues

Interactive Advertising

Integrated Marketing Communication

Globalization

Niche Marketing

Consumer Power, Relationship Marketing

and Customization
Theories, Models and frameworks
of Advertising
 AIDA MODEL FRAMEWORK

A - Attention (Awareness): attract the attention of the customer.

I - Interest: raise customer interest by focusing on and

demonstrating advantages and benefits (instead of focusing on
features, as in traditional advertising).

D - Desire: convince customers that they want and desire the

product or service and that it will satisfy their needs.

A - Action: lead customers towards taking action and/or

purchasing.
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AIDA MODEL FRAMEWORK
A : Attention/Awareness
I : Interest
D : Desire
A : Action

To close the loop, add another letter:

L : Loyalty/Satisfaction - AIDAS

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AIDA MODEL FRAMEWORK

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AIDA MODEL FRAMEWORK

127
 Hierarchy-of-Effects Model
Awareness: The communicator’s task is to build awareness,
perhaps just name recognition, with simple messages. Consumers
must become aware of the brand. This isn’t as straightforward as it
seems. The brand name needs to be made focal to get consumers
to become aware

Knowledge: The target audience might have product awareness

and hence this stage involves creating brand knowledge.
1. What are the brand’s specific appeals, its benefits?
2. In what way is it different than competitor’s brands?
3. Who is the target market?

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 Hierarchy-of-Effects Model
Liking: If target members know the product, how do they feel
about it? If consumer somewhat unhappy and dissatisfied - it is
necessary to first find a solution and then can communicate its
renewed quality.

Preference: The target audience might like the product but not
prefer it to others. In this case, the communicator must try to
build consumer preference by promoting quality, value,
performance and other features. The communicator needs to
measure audience preference before and after the campaign.

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 Hierarchy-of-Effects Model
Conviction: A target audience might prefer a particular product
but not develop a conviction about buying it. The communicator
has to make efforts to build conviction among the target audience.

Purchase: Although convinced consumer may not engage in

immediate purchase. They wait for more information or plan to
act later. Perhaps the consumer may motivate target consumers
by offering the product at a low price, offering a premium, or
letting consumers evaluate and conduct trials prior to actual
purchase.

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 Hierarchy-of-Effects Model: Example

Cognitive stage: In this stage communication messages are informative

and provide consumers with facts. This could involve creating a pamphlet
or newsletter providing information about the service provider

Affective stage: (Emotions) In this stage communication messages are

designed to influence attitudes and feelings towards a
brand/product/service. This could be achieved by providing contact
details for any queries, or possibly a web service

Behavioral stage: (Motives) In this stage communication messages are

designed to stimulate direction or desires. An email address could be
given for people to raise queries or provide feedback, etc. By following up
any emails the organization is likely to encourage customers to select their
service over other rivals

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HIERARCHY OF EFFECTS MODEL: SEQUENCE

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Links to key documents

Document 1

Document 2

Document 3

Document 4
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