Definition Of Advertising

Advertising : Paid, non- personal communication

through various media about a business firm, not-for-
profit organization, product, or idea by an identified sponsor
in a message that is intended to Inform, Persuade Or
Influence audience.

• A complex form of communication using objectives and strategies to

impact consumer thoughts, feelings, and actions.

• A form of marketing communication (all the techniques marketers

use to reach their customers and deliver their messages).
 Meaning Of Advertising
• Derived from original latin word ‘advertere’ which means ‘to
turn the attention’.
• Advertising is a tool of mass communication.

• It makes mass selling possible.

• It is a macro concept: representing the entire advertising industry.

• It promotes the goods through information and persuasion.

 Objectives Of Advertising (SCOPE)
• Informative advertising Promotion that seeks to develop initial demand for a good,
service, organization, person, place, idea, or cause.

• Persuasive advertising Promotion that attempts to increase demand for an existing good,
service, organization, person, place, idea, or cause.

• Reminder advertising Advertising that reinforces previous promotional activity by

keeping the name of a good, service, organization, person, place, idea, or cause before the
public.

Advertisers coordinate advertising objectives with the product’s stage in the product life
cycle.
 Objectives Of Advertising
• Sales
• Awareness/ familiarity with brand.

Information about
brand benefits / attributes – Acer laptop/ Water purifiers.
• Creation of brand image / personality – Old Spice, Axe.
• Association of feelings with brand– Cadbury celebrations.
• Reminder or inducement about brand/brand trial–
Colgate whiteness meter
Linkage of brand with / experts and group norms –Pampers diaper/
Oral B.
 Advertising Strategies
• Advertising is a means of bringing buyers and sellers together.
• Marketers often combine several strategies to meet their objectives.

COMPARATIVE ADVERTISING

• Comparative advertising Advertising strategy that emphasizes messages with direct or

indirect promotional comparisons between competing brands.
• Market leaders seldom acknowledge competing brands.
CELEBRITY TESTIMONIALS
• Use of celebrity spokespeople for products.
• Can build brand equity but can hurt brand if celebrity is hit by scandal.
RETAIL ADVERTISING

• Includes all advertising by retail stores that sell goods or services directly
to the consuming public.
• Cooperative advertising Strategy in which a retailer shares advertising
costs with a manufacturer or wholesaler.

INTERACTIVE ADVERTISING

• Involves two-way promotional messages transmitted through

communication channels that induce message recipients to participate
actively in the promotional effort.
• Changes balance between marketers and consumers.
 Role of advertising
• Economic function
• Creates wide market.
• Social function
• Improved standard of living.
• Promotes consumer welfare.
» Advertising promises a quality, and forces manufacturer to live up to the
quality.
» It invests a new product with confidence- confidence about its function,
quality, price and availability.
• Psychological function
• It affects the personality of the consumer, his attitudes, beliefs and
opinions.
 Importance and benefits of advertising
• Advertisers (LIC) • Middlemen (Automobile)
• Sales turnover. • It guarantees quick sales.
• It maintains the existing market and • It acts as a salesman.
explores the new.
• It makes possible retail price maintenance.
• It controls the product prices.
• Salesmen (Eureka Forbes)
• It creates a background.
• It lightens his burden of job.
• It instills self confidence and initiative.
• Consumers (choice of brand)
• Acts as a driving force in decision
making.
• Ensures better quality products at
reasonable prices.
• It saves good deal of time.
• Society
• It uplifts the living standards.
• It generates gainful employment opportunities.
• It provides new horizons of knowledge. (classified and job ads)
• It upholds culture of a nation (reflects and influences society) .
• Advertisements educates the society.
 Defining Modern Advertising
The Evolution of Advertising

• Identification
– Simple images found in ancient Babylonia, Egypt, Greece, and Rome identified a business,
manufacturer, or store.

• Information
– Gutenberg’s movable type mechanized printing leading to mass communication.

• Promotion
– The Industrial Revolution led to surplus goods, improved transportation, and the need for
new media.

• Sales
– Advertisers became concerned about making ads that worked and defining standards of
effective advertising.
 Five Basic Factors of Advertising
1. Paid communication
2. Sponsor is identified
3. Tries to inform or persuade
4. Reaches a large audience
5. Message conveyed through many different kinds
of largely nonpersonal mass media

Principle:
An effective advertisement is one that can be proven to
meet its objectives.
Four Components of Advertising
 Four Components of Advertising
1. Advertising Strategy
• The strategy is the logic
and planning behind the
ad that gives it direction.
• Advertisers develop ads
to meet objectives.
• Advertisers direct ads to
identified audiences.
• Advertisers create a
message that speaks to
the audience’s concerns.
• Advertisers run ads in
the most effective
media.
2. Creative Idea
• The creative concept is the
central idea that grabs the
consumer’s attention and
sticks in memory.
• Planning strategy requires
creative problem solving.
• Research involves creativity.
• Buying and placing ads
requires creative thinking.
3. Creative Execution
• Effective ads are well
executed reflecting the
highest production values
in the industry.
• Clients demand the best
production the budget
allows.
 4. Media Planning/Buying
• Television, Internet, magazines, and other media are used to reach
a broad audience.
• Deciding how to deliver the message requires creativity.

Principle:
In advertising how you say something and where you say it is just as
important as what you say.
 Place in marketing mix
• Part of promotion mix in MM.
• Dependent on other variables for its existence.
• Advertising: An important component of marketing mix.
• With other elements of promotion mix advertising leads to a successful
marketing programme.
• Advertising promotes non-commercial ventures also.
 Roles of Advertising

Marketing
Marketing Role
Role •Marketing is the process a business
uses to satisfy consumer needs and
wants through goods and services.

Communication
Communication Role
Role •Advertising is a form of mass
communication.

Economic
Economic Role
Role •Two main views about advertising,
either the market power model or the
economics of information theory.

•Informs us about new and

Societal
Societal Role
Role improved products, teaches us how
to use these innovations, etc.
 The Key Players: The Advertiser

• Wants to send out a message about its business

• Initiates effort by identifying a problem that advertising can solve
• Selects the target audience, sets the budget, and approves the ad
plan
• Hires the agency
– Agency of record (AOR) does the most business; manages other
agencies
 Key Players: Agency
• Agencies have the strategic and creative expertise, media knowledge,
talent, and negotiating abilities to operate more efficiently than the
advertiser.
• Some large advertisers have in-house departments.
 Key Players: Media
• Media are channels of communication that carry the
message to the audience
• They’re vehicles, but also large media conglomerates like
Time Warner and Viacom.

Principle:
Mass media advertising can be cost effective
because the costs are spread over the large
number of people the ad reaches.
 Key Players: Suppliers
• Group of service organizations that assist advertisers, agencies,
and the media in creating and placing ads by providing specialized
services
• Artists, writers, photographers, directors, producers, printers,
freelancers, and consultants

Insert
 Key Players: Target Audiences
• People to whom an ad is
directed—their responses
determine if advertising is
effective.
• Targeting is the process of
identifying the people in
the desired audience.
• Interactive technology
allows ads to be
customized to the target
audience’s individual
needs.
 Types of Advertising
Interactive
Interactive Brand
Brand
Advertising
Advertising Advertising
Advertising

Public
PublicService
Service Retail
Retailor
or Local
Local
Advertising
Advertising Advertising
Advertising

Institutional
Institutional
Advertising Political
Political
Advertising
Advertising
Advertising
Business-to-
Business-to-
Business
Business Directory
Directory
Advertising
Advertising Advertising
Advertising
Direct-Response
Direct-Response
Advertising
Advertising
Interactive Advertising
 Types Of Advertising
• Geographical spread
• National (HUL),
• Local (Ads in Delhi Times, Meerut Jagran )and
• Global (Sony)
• Target group
• Consumer ( Groceries, Beauty Care etc.)
• Industrial (machinery, equipment)
• Trade (for intermediaries)
• Professional (Consumers are not responsible for buying choice Eg. Office automation,
Library books)

• Product advertising
• Pioneer advertising: To stimulate primary demand of the product category.
• Competitive advertising: To stimulate immediate buying / highlight benefits of
product.
• Retentive advertising: To retain customers.
• Service advertising
• Highlight emotion and utility Eg. Idea/ emphasize tangible aspects.
Master Card
 Types Of Advertising
Institutional advertising (SBI)
• To make the company known
• To make its products/services known
• To make its achievements known
• To make its achievements known
• To make socio-political/moral statements
Public relations advertising (Reliance Foundation)
• Represents the management and communicates the policies, problems and
performances to the public.
Public service advertising (Polio Campaign, Sarv Saaksharta Abhiyaan))
• Social responsibility of advertising agencies
Financial advertising
• Promoting capital issues
International advertising
• Response to global marketing
Type Purpose
Institutional Promotes organizational images, ideas, and political issues
Advocacy Promotes a company’s position on a public issue
Product Promotes products’ uses, features, and benefits
Pioneer Tries to stimulate demand for a product category rather
than a specific brand by informing potential buyers about
the product
Competitive Points out a brand’s special features, uses, and advantages
relative to competing brands
Comparative Compares two or more brands on the basis of one or more
product characteristics
Reminder Reminds consumers about an established brand’s uses,
characteristics, and benefits
Reinforcement Assures users they chose the right brand and tells them
how to get the most satisfaction from it
 5 Advertising Decisions

• What are the advertising objectives? (Mission)

• How much can be spent ? (Budget)
• What message should be sent ? (Media)
• What media should be used? (Media)
• How should the results be evaluated ? (Measurement)