Introduction to Advertisement
1. Concept of Advertisement
Advertisement/Ad/Ad-Film/Commercial
From Latin word which means “to turn attention of people to specific
thing”
Is a from of communication
Represents the message/idea of the sender
Targeted at a mass audience – mass persuasion apart from
disseminating information to target customers
Not always the efficient way of reaching people
Usually paid by sponsors and viewed on different media
A combination of creativity, market research & economic
media
buying
Diverse field
Ultimate aim is to increase sales
2. Meaning & Definition
Derived from Latin word ‘advertere’ which means to turn on attention
Powerful communication medium & vital marketing tool to help sale
of goods
Convinces people to buy product
Contains information & persuasion
According to America Marketing Association, “Advertising is any paid form
of non-personal presentation of ideas, goods or services by an identified
sponsor”
According to William J. Stanton, “Advertising consists of all activities involved
in presenting to a group, a non-personal, oral or visual, openly-sponsored
message regarding a product, service or idea, this message is called
advertisement, is disseminated through one or more media and is paid for by an
identified sponsor”
3. Features of Advertisement
Paid form Non-personal
Ideas, goods & services presentation &
promotion
Controlled
Identified
Persuasive act
sponsor
Competitive act Mass communication
media
Not neutral; not unbiased
Informative act
4. Scope of Advertisement
1. Message 5. Advertiser
2. Media 6. Objectives
3. Merchandise 7. Activities
4. Advertising functions 8. Art & Science
5. Objectives of Advertisement
1. Informing
2. Influencing
3. Reminding
4. Adding Value
5. Assisting with other company efforts
6.Functions of Advertisement
1. Communication with 8. Reduce costs
customer
9.Lower prices
2. Persuasion
10.Competitive weapon
3. Contribution to
11.Brand image building
economic growth
12.Innovation 13.Growth of
4. Catalyst for change
media
5. Stimulates demand
6. Strengthens other
promotion mix
element
7. Develops brand
preference
Principles of Advertisement
Grab people
Be clever & creative
Speak loudly
Do not make people think
Use colors that make sense
Be informative
Be memorable
Show not tell
Use humor
Types of Advertisement
Classification
On basis of geographical spread
On basis of target group
On the basis of demand influence level
On the basis of Corporate Philosophy
On the basis of Timing of the response it elicits
On the basis of media
Miscellaneous
A. On the basis of Geographical Spread
Global Advertising
National Advertising
Local Advertising
B. On the basis of Target Group
Consumer Advertising
Trade Advertising
Industrial Advertising
Professional Advertising
C. On the basis of Demand Influence Level
Primary Demand (Stimulation)
Selective Demand (Stimulation)
D. On the basis of Corporate
Philosophy
i. Corporate Advertising
ii. Brand Advertising
a. Informative Brand Advertising
b. Persuasive Brand Advertising
c. Reminder – Oriented Brand Advertising
d. Negative Advertising
E. On the basis of the Timing of
Response it Elicits
i. Direct action advertising
ii. Indirect action advertising
iii. Surrogate advertising
F.On the basis of media
Audio
Visual
Audio-Visual
Written
Internet
Verbal
G. Miscellaneous
Covert
Institutional
Product
i. Pioneering Advertising
ii. Competitive Advertising
iii. Reminder Advertising
Advantages of Advertisement
To Manufacturers
Increased sales
Steady demand
Lower costs
Greater dealer interest
Quicker turnover & smaller inventories
Supplementing salesmanship
Encouragement to better performance
Creating goodwill
To Consumers
Facility of Purchasing
Improvement in Quality
Elimination of unnecessary intermediaries
Consumer’s surplus
Education of consumers
To Society
Generates employment
Standard of living
Stimulates research & development
Promote art & culture
Disadvantages of Advertisement
1. Multiplication of needs 7. Product proliferation
2. Misrepresentation of 8. Inefficient manufacturers
facts stay in business
3. Consumer's deficit 9. Propensity to consume
4. Increased cost 10.Deferred revenue
5. Wastage of national expenditure
resources 11. Managerial
6. Barriers to entry difficulties
Implications of Advertising
Introduction
Ads have social & legal implications
When violated, social issues arise & government may take
corrective measures
Society – decides what is offensive, excessive &
irresponsible
Government – decides what is deceptive & unfair
The implications are:
1. Social aspects of advertising
2. Economic aspects of advertising
3. Legal aspects of advertising
1. Social Implications of Advertising
To direct the desires of human beings
Ads are the integral part of mass distribution of Industrial
Capitalism
Objectives of marketers influence social values, lifestyle and
society’s tastes
Generally agreed – Ads exert a powerful social influence & is
criticised for encouraging materialism in society
Critics say ads should be informative instead of using
persuasion to influence the emotions, anxieties, etc
Positive Social Implications of Ads
Informed society Preventive course if
Rights of Consumers dreaded diseases
New ideas Contribute to creativity of
people
Environmental protection
Social changes
Quality consciousness
Promotion of national
Health & hygiene
interest
awareness
Negative Social Implications of Ads
Children & advertisement Control of media
Materialism & Stereotypes
consumption Religion & culture
Wrong message Undermines social values
Message
problems
2. Economic Implications of Ads
Subsystem of economy – plays an important role in
economy
Helps producer reduce costs
Helps consumers widen choices
Principles of free economies:
1. Self – interest
2. Perfect information
3. Many buyers & sellers
4. Absence of externalities
Positive Economic Implications of Ads
Effect on cost – Production, Effect on demand
Distribution & Prices Effect on consumer
Effect on competition choice
Effect on business cycle Effect on national
Advertising & creation of income
utility Effect on employment
Effect on product quality
Negative Economic Implications of Ads
Not productive Forces people to desire & buy
Multiplies needs things
Monopoly argument Increases cost of goods
Restricts entry of new Encourages waste
business units Reduces consumer
Widens business cycle choice
Wastage of National
Resources
3. Legal Implications of Ads
Ads have been accused of many crimes – social, economic
& moral
Gives exaggerated hopes to people
Despite pitfalls, ads cannot be wished away
Ads face legal restrictions
Consumer-movement has forced government to
enforce laws to regulate advertising
Need to Regulate Ads
Morality & tastes
Untruthful advertising
Ads as Environment pollutant
Legislative codes controlling Ads
Prevention of Insults to
Indian Penal Code
National Honor Act, 1971
(IPC), 1860
Infant Milk Substitutes, Feeding
Drugs & Cosmetics Act,
Bottles & Infant Foods (Regulation
1940
of Production, Supply &
Drugs Control Act, 1950 Distribution) Act, 1992
Young Persons (Harmful Indian Copyright Act, 1957
Publications) Act, 1950 Trademarks Act, 1999
Indecent Representation of
Monopolies & Restrictive Trade
Women (Prohibition) Act, 1986
Practices (MRTP) Act, 1984
Emblems & Names
Consumer Protection Act,
(Prevention of Improper
Use) Act, 1950 1986
Prize Competitions Act, Cigarettes & Other Tobacco
1955 Products Act, 2003
Setting Advertisement Objectives
Introduction
Objectives – end point towards which every activity of an
organization is oriented
Philip Kotler – “The objectives of advertising is to
communicate to a defined audience, the necessary information
that simulates action in a given period of time”
Setting objectives is the integral part of planning process
If objectives are not formulated clearly, ads can fail
Functions of Advertisement Objectives
Serves as Communication & Coordination Device
Criterion for Decision-Making
Evaluation of Advertising Effectiveness
Types of Advertising Objectives
1. Sales Objectives
2. Communication Objectives
3. Specific Objectives of Advertising
1. Sales Objectives
To sell product & raise level of present sales
When objectives are sales, a definite & quantifiable
perspective should be present
If sales increase after an ad campaign, the campaign is successful
Limitations:
Ads not the only factor affecting sales
Effect on sales is in long run
2. Communication Objectives
1. To increase brand awareness
2. To increase knowledge
3. To create linking
4. To induce preference
3. Specific Objectives of Advertisement
1. To increase demand 9. To reach customers left out
2. To sell new product/ by sales man
build new brand 10.To inform about changes in
3. To educate masses marketing mix
4. To build brand 11. To neutralize
preference competitor’s ads
5. To build good will 12. To enter in new
geographical area
6. To attract & help
middlemen 13.To do entire selling job
7. To support sales 14.To overcome
team dissonance of buyers
8. To remind customers of 15.Specific objectives of
product & company classified ads
Advertisement Agencies
Introduction
A service business dedicated to creating, planning & handling
advertising (and sometimes other forms of promotions) for its
clients
George E. Belch – “Advertising agency is a service organization
that specializes in planning and executing advertising programs
for its clients”
Functions of Advertising Agency
1. Contacting clients 7. Ad-Execution
2. Advertising Planning 8. Evaluation Function
3. Creative Function 9. Marketing Function
4. Developing & Preparing 10. Research Function
Advertising Copy 11. Accounting Function
5. Approval from Client
6. Media selection & Media
Scheduling
Organizational Structure of Advertising
Agency
Types of Advertising Agencies
7. Sweet Shops
1. Full-Service Agencies
8. Interactive Agencies
2. In-House Agencies
9. Search Engine Agencies
3. Creative Boutiques
10. Health Care
4. Media Buying Services Communications
5. A La Carte Agency Agencies
6. Special Service 11. Medical Education
Agency(Group) Agencies
i. Promotional
Education
ii. Continuing Medical
Education
Services offered by various Agencies
1. Account services 6. Media buying services
2. Marketing Services 7. Special services
3. Research services 8. Direct response services
4. Media services 9.Sales promotion services
5. Creative services 10.Sponsorship services
Selection of Advertisement Agencies
Agencies vary widely in their focus
Some cater to only a few larger clients & do not
generally accept new accounts
Others have hundreds of clients
It is important for businesses to work hand in hand with
agencies
Many factors come into play when choosing advertising agency
Criteria for selection & evaluation of Ad
agencies
1. Location 7. Creative skills & new
2. Size ideas
3. Agency working for 8. Past record of agency
competitors 9. Quality & calibre of
4. Image of agency staff
5. Service offered by 10. Financially sound
agency 11. Agency experience
6. Rates charged
Remuneration Strategies for Ad agencies
1. Commission
2. Fee arrangement
3. Cost plus agreement
4. Incentive based compensation
5. Percentage charges
6. Speculative basis
5. Advertisement Campaigns
Meaning & Definition
Advertising campaign is a series of advertisement messages that
share a single idea & theme which make up an IMC
Advertising campaigns appear across different media such as
radio, tv & internet
According to Dunn & Barban “ An advertising campaign includes a
series of ads, placed in various media, which are designed to meet
objectives, and are based on analysis of marketing &
communication situations”
Importance of Ad Campaigns
Establish a feel of urgency for the buyer
Advertiser’s benefit concerns
Avoiding failure
Consumer’s benefit concern
Compliments to production area
Factors influencing planning of Ad
campaigns
1. Organization 7. Media
2. Advertising budget 8. Sales promotion efforts
3. Product 9. Identification of current
4. Consumers problems
5. Language 10. Government regulations
6. Competitors 11. Advertising objectives
End of Unit - I
Thank You!
