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A Seminar Report on Contemporary Management Issue Titled

In The Partial fulfillment of MBA Degree 2009-2011 Mrs. Priti Gupta NidhiJain MBAIInd Sem.

Subodh Institute of Management & Career Studies

B.R. Shah MBA Block, Rambagh Circle, Jaipur-302004 (Rajasthan)



On this modest endeavour , its our moral duty to acknowledge with a deep sense of gratitude, the valuable help and encouragement rendered to us by one and all. I would like to thanks my guide mrs. Priti Gupta without whose valuable guidance, enormous patience and constant encouragement, this work would not have been possible. Is incredibly to express emotions on paper and words are a poor recompense for the fevers recuried. I would also like to give thanks to my Family members and to all my friends at SIMCS, who gave their valuable time to me and spread their best help in this seminar work.

Nidhi Jain (MBA Part-I, SemesteII)


Advertising is defined in Webster's dictionary "as the action of calling something to the attention of the public especially by paid announcements, to call public attention by emphasizing desirable qualities so as to arouse a desire to buy or patronize: promote." Advertising is a mass-mediated communication. For communication to be classified as advertising it must be: 1) Paid for, 2) Delivered to an audience via mass media, and 3) Be attempting to persuade. In order to persuade, or be effective the advertisement must communicate to the audience the message it wants to relay. If for example, the advertisement is trying to sell a particular product than it must persuade the audience that for whatever functional or emotional reason they need to purchase the product. Not only must the advertisement effectively communication the desired message, but the individual audience must be willing to "buy into" the desired message. In other words, for the advertisement to be effective, the communication must be sent and received. Advertising is a two way communication process. The individual recipient is capable of interpreting the advertisement any way he/she wants. The individual should realize that they have the ability and the power to interpret the advertisement any way they so choose. They can either accept the message, ignore the message or rally against the message. As a matter of fact, the consumer has more power than they often realize to dictate what is communicated and what is not.




What is Advertising ?
The American Marketing Association , Chicago, defines Advertising as,Any, paid form of non-personal presentation of ideas, goods and services by an identified sponsor. Advertising is a form of communication whose purpose is to inform potential customers about products and services and how to obtain and use them. Many advertisements are also designed to generate increased consumption of those products and services through the creation and reinforcement of brand image and brand loyalty. For these purposes advertisements often contain both factual information and persuasive messages. Every major medium is used to deliver these messages, including: television, radio, movies, magazines, newspapers, video games, the Internet, and billboards. Advertising is often placed by an advertising agency on behalf of a company. Advertisements can also be seen on the seats of grocery carts, on the walls of an airport walkway, on the sides of buses, heard in telephone hold messages and in-store public address systems. Advertisements are usually placed anywhere an audience can easily and/or frequently access visuals and/or audio and print Organizations which frequently spend large sums of money on advertising but do not strictly sell a product or service to the general public include: political parties, interest groups, religion-supporting organizations, and militaries looking for new recruits. Additionally, some non-profit organizations are not typical advertising clients and rely upon free channels, such as public service announcements. While advertising can be seen as necessary for economic growth, it is not without social costs. Unsolicited Commercial Email and other forms of spam have become so prevalent as to have become a major nuisance to users of these services, as well as being a financial burden on internet service


providers. Advertising is increasingly invading public spaces, such as schools, which some critics argue is a form of child exploitation.

Objectives of Advertising
Advertising objectives are the communication tasks to be accomplished with specific customers that a company is trying to reach during a particular time frame. A company that advertises usually strives to achieve one of five advertising objectives: Information, trial, continuity, brand switching, and switchback. Which of the five advertising objectives is selected usually depends on where the product is in its life cycle. 1 Information Advertising can be used to inform customers of changes that take place in existing products. Details about the product play a prominent role in advertising. In fact, a very large percentage of product-oriented advertising includes some mention of features and benefits offered by the marketers product 2 Trial The purpose of the trial objective is to encourage customers to make an initial purchase of a new product. Companies will typically employ creative advertising strategies in order to cut through other competing advertisements. The reason is simple: Without that first trial of a product by customers, there will not be any repeat purchases. 3 Continuity It is a strategy to keep current customers using a particular product. Existing customers are targeted and are usually provided new and different information about a product that is designed to build consumer loyalty. 4 Brand Switching Companies adopt brand switching as an objective when they want customers to switch from competitors' brands to their brands. A common strategy is for a company to compare product price or quality in order to convince customers to switch to its product brand.


5 Switchback Companies subscribe to this advertising objective when they want to get back former users of their product brand. A company might highlight new product features, price reductions, or other important product information in order to get former customers of its product to switchback.

Importance of Advertising
Spending on advertising is huge. One often quoted statistic by market research firm Zenith Optimedia estimates that worldwide spending on advertising exceeds (US) $400 billion. This level of spending supports thousands of companies and millions of jobs. In fact, in many countries most media outlets, such as television, radio and newspapers, would not be in business without revenue generated through the sale of advertising. While worldwide advertising is an important contributor to economic growth, individual marketing organizations differ on the role advertising plays. For some organizations little advertising may be done, instead promotional money is spent on other promotion options such a personal selling through a sales team. For some smaller companies advertising may consist of occasional advertisement and on a very small scale, such as placing small ads in the classified section of a local newspaper. But most organizations, large and small, that rely on marketing to create customer interest are engaged in consistent use of advertising to help meet marketing objectives. This includes regularly developing advertising campaigns, which involve a series of decisions for planning, creating, delivering and evaluating an advertising effort. Advertising has taken many different forms since the beginning of time. For instance, archaeologists have uncovered walls painted in Rome announcing gladiator fights as well as rock paintings along Phoenician trade routes used to advertise wares. From this early beginning, advertising has evolved to take a variety of forms and to permeate nearly every aspect of modern society.


The various delivery mechanisms for advertising include banners at sporting events, billboards, Internet Web sites, logos on clothing, magazines, newspapers, radio spots, and television commercials. Advertising has so permeated everyday life that individuals can expect to be exposed to more than 1,200 different messages each day. While advertising may seem like the perfect way to get a message out, it does have several limitations, the most commonly noted ones being its inability to (1) focus on an individual consumer's specific needs, (2) provide in-depth information about a product, and (3) be cost-effective for small companies.

Types of Advertising
Advertising can take a number of forms, including advocacy, comparative, cooperative, direct-mail, informational, institutional, outdoor, persuasive, product, reminder, point-of-purchase, specialty advertising, covert advertising. 1 Advocacy Advertising: Advocacy advertising is normally thought of as any advertisement, message, or public communication regarding economic, political, or social issues. The advertising campaign is designed to persuade public opinion regarding a specific issue important in the public arena. The ultimate goal of advocacy advertising usually relates to the passage of pending state or federal legislation. Almost all nonprofit groups use some form of advocacy advertising to influence the public's attitude toward a particular issue. One of the largest and most powerful nonprofit advocacy groups is the American Association of Retired Persons (AARP). The AARP fights to protect social programs such as Medicare and Social Security for senior citizens by encouraging its members to write their legislators, using television advertisements to appeal to emotions, and publishing a monthly newsletter describing recent state and federal legislative action. Other major nonprofit advocacy groups include the environmental organization Green-peace, Mothers Against Drunk Driving (MADD), and the National Rifle Association (NRA).


2 Comparative Advertising: Comparative advertising compares one brand directly or indirectly with one or more competing brands. This advertising technique is very common and is used by nearly every major industry, including airlines and automobile manufacturers. One drawback of comparative advertising is that customers have become more sceptical about claims made by a company about its competitors because accurate information has not always been provided, thus making the effectiveness of comparison advertising questionable. In addition, companies that engage in comparative advertising must be careful not to misinform the public about a competitor's product. Incorrect or misleading information may trigger a lawsuit by the aggrieved company or regulatory action by a governmental agency such as the Federal Trade Commission (FTC).


3 Cooperative Advertising: Cooperative advertising is a system that allows two parties to share advertising costs. Manufacturers and distributors, because of their shared interest in selling the product, usually use this cooperative advertising technique. An example might be when a soft-drink manufacturer and a local grocery store split the cost of advertising the manufacturer's soft drinks; both the manufacturer and the store benefit from increased store traffic and its associated sales. Cooperative advertising is especially appealing to small storeowners who, on their own, could not afford to advertise the product adequately.

4 Direct-Mail Advertising: Catalogues, flyers, letters, and postcards are just a few of the direct-mail advertising options. Direct-mail advertising has several advantages, including detail of information, personalization, selectivity, and speed. But while direct mail has advantages, it carries an expensive per-head price, is dependent on the appropriateness of the mailing list, and is resented by some customers, who consider it "junk mail."

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5 Informational Advertising: In informational advertising, which is used when a new product is first being introduced, the emphasis is on promoting the product name, benefits, and possible uses. Car manufacturers used this strategy when sport utility vehicles (SUVs) were first introduced.

6 Institutional Advertising: Institutional advertising takes a much broader approach, concentrating on the benefits, concept, idea, or philosophy of a particular industry. Companies often use it to promote image-building activities, such an environmentally friendly business practices or new community-based programs that it sponsors. Institutional advertising is closely related to public relations, since both are interested in promoting a positive image of the company to the public. As an example, a large lumber company may develop an advertising theme around its practice of planting trees in areas where they have just been harvested. A theme of this nature keeps the company's name in a positive light with the general public because the replanting of trees is viewed positively by most people.

7 Outdoor Advertising:

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Billboards and messages painted on the side of buildings are common forms of outdoor advertising, which is often used when quick, simple ideas are being promoted. Since repetition is the key to successful promotion, outdoor advertising is most effective when located along heavily traveled city streets and when the product being promoted can be purchased locally. Only about 1 percent of advertising is conducted in this manner.

8 Persuasive Advertising: Persuasive advertising is used after a product has been introduced to customers. The primary goal is for a company to build selective demand for its product. For example, automobile manufacturers often produce special advertisements promoting the safety features of their vehicles. This type of advertisement could allow automobile manufactures to charge more for their products because of the perceived higher quality the safety features afford.

9 Product Advertising:

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Product advertising pertains to non-personal selling of a specific product. An example is a regular television commercial promoting a soft drink. The primary purpose of the advertisement is to promote the specific soft drink, not the entire soft-drink line of a company.

10 Reminder Advertising: Reminder advertising is used for products that have entered the mature stage of the product life cycle. The advertisements are simply designed to remind customers about the product and to maintain awareness. For example, detergent poducers spend a considerable amount of money each year promoting their products to remind customers that their products are still available and for sale.

11 Point-of-Purchase Advertising: Point-of-purchase advertising uses displays or other promotional items near the product that is being sold. The primary motivation is to attract customers - 13 -

to the display so that they will purchase the product. Stores are more likely to use point-of-purchase displays if they have help from the manufacturer in setting them up or if the manufacturer provides easy instructions on how to use the displays. Thus, promotional items from manufacturers who provide the best instructions or help are more likely to be used by the retail stores.

12 Specialty Advertising: Specialty advertising is a form of sales promotion designed to increase public recognition of a company's name. A company can have its name put on a variety of items, such as caps, glassware, gym bags, jackets, key chains, and pens. The value of specialty advertising varies depending on how long the items used in the effort last. Most companies are successful in achieving their goals for increasing public recognition and sales through these efforts.

13 Covert advertising: Covert advertising is when a product or brand is embedded in entertainment and media. For example, in a film, the main character can use an item or other of a definite brand, as in the movie Minority Report, where Tom Cruise's

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character John Anderton owns a phone with the Nokia logo clearly written in the top corner, or his watch engraved with the Bulgari logo. Another example of advertising in film is in I, Robot, where main character played by Will Smith mentions his Converse shoes several times, calling them "classics," because the film is set far in the future. I, Robot and Spaceballs also showcase futuristic cars with the Audi and Mercedes-Benz logos clearly displayed on the front of the vehicles. Cadillac chose to advertise in the movie The Matrix Reloaded, which as a result contained many scenes in which Cadillac cars were used. Similarly, product placement for Omega Watches, Ford, Vaio, BMW and Aston-Martin cars are featured in recent James Bond films, most notably Casino Royale.

How To Use Them ?

Mistakes in advertising can be costly to small business. For this reason many business decide either not to advertise at all or to be very conservative with their ads. However, using the right "type" of advertising, with the right message, can cut the cost of advertising by making it more effective. Not every business will use all types of advertising. Which type you use will depend on what your message is and the end result you wish to accomplish. 1 Company Image

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Which is more important, the company or its products or individuals? In a small town or market, this can be a very important question. For example, your insurance agent might be a personal friend. You will buy your insurance from him/her regardless of the company they represent. In another example, you may purchase a lot of goods at your local Wal-Mart, instead of local merchants, because of their low-price advertising message. If you are a new company you may want to begin by establishing the company name first and the products and services later. This also works for company name changes. 2 Name Brands If there is one company in operation today that understands the importance of brand names, it has to be Procter and Gamble. Tide laundry detergent is far and away a number one best seller and has been for several years. When the dishwasher appeared on the scene they could have very easily created "Tide For Dishes." Capitalizing on a winning product name. But as we all know, that thinking doesn't work. Instead of using the established name "Tide", they created a new name that became just as strong in dish washing, "Cascade." Ivory Soap. When you hear the name alone, you know the product. Kraft, on the other hand, has a bunch of products, but only one true winner. Philadelphia Cream Cheese has about 70% of that market. Also notice, the Kraft name is hardly noticeable on the package. Their Velvetta brand of cheese might be another winner. Kraft makes jams and jellies, Smuckers is number one. Kraft makes their own brand of mayonnaise, but Hellman's is number one. Are you starting to get the picture? Kraft also makes another successful brand name, "Miracle Whip." A brand name creates a perception in the customers mind that becomes very strong. It's that strong perception every advertiser strives for. Would you buy Pennzoil Cake Mix? Why not? They're a good company aren't they?

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Do you see how ridiculous that sounds? It flies in the face of our perception of Pennzoil as an oil product. It's dramatically out of place as a cake mix. There is nothing stronger than a good brand name. If you develop one, put is everywhere you can afford to. 3 Advertising A Service Instead Of A Product Advertising services is one of the most difficult type of advertising. You don't have a tangible product you can put in someone's hand. They can't touch it, feel it, see it or smell it. It must often be explained as well as demonstrated. One of the best examples of service advertising is carpet cleaners. They come in, run some machinery over your carpets and leave. Nothing tangible is left behind. Except clean carpets. Service advertising is most often emotional advertising. Carpet cleaners don't sell clean carpets. They sell health to the infant crawling on the floor. They sell pride that people can visit a beautiful clean home. 4 Business To Business Advertising Many businesses never have the need to deal with the public at all. For these businesses, advertising in the newspaper, radio or TV would be a waste of time and money. You will find these companies using direct mail or placing ads in trade magazines. For a complete listing of trade magazines ask for the "Encyclopaedia or Periodicals" at your local library. Also ask to see the "Standard Rates and Data Service" directory. These will have listings and rates of trade and industry publications you can advertise in. 5 Co-Op Advertising Co-Op advertising in one of the best ways for the small business owner to get the message out. In this type of advertising the manufacturer absorbs a portion of the cost and can also supply all the artwork for the ads.

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Their are some pitfalls to be careful of when dealing with co-op advertising. Every company wants their business portrayed in the best possible light. To that end, they will be very strict about how and where you place your advertising. Before the ok the co-op money, they will want to approve all ad copy, pictures, size, placement and use of logos. If you place an ad without approval you run the risk of violating one of the guidelines and absorbing the entire cost of the ad. The media you choose will want payment for the ad within a month at the most. You may not receive your co-op money for several months. Make sure you get reimbursement procedures in writing and can live with them. An alternative to teaming up with a manufacturer is to team up with another local business. You can share production costs for brochures or other printed materials and put each others coupons in your respective businesses. Pizza parlors and video stores are naturals to work together. 6 Public Service Advertising (PSA's) If your company can sponsor a charity event, PSA's are a great way to promote your company in a positive light. Most media are required by licensing agreements to provide a certain amount of time or space for the good of their local communities. Some of the downsides of PSA's. Don't expect to see your ad on "er" or some other prime time show. PSA's are often placed in off times. I don't want to paint everyone with a broad brush here. Some media are better than others. Just because you request a PSA, doesn't mean you'll get it. Media has a limited amount of space or time for PSA's. You might get a break if you are currently advertising in the media of choice. It might also help if your organization buys a small amount of time or space to run with your PSA's. - The Last Word On Types Of Advertising

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The type of message and your target market will often dictate which type of advertising to use. Some companies will use more than one. Some will use several depending on the situation. Let's also keep in mind the pros and cons of advertising. There are two basic advantages to advertising. One, it's the best way to get a message out about a new or existing product or service. Two, it can actually lower the cost of a product to the consumer by increasing sales which can result in reduced production costs. The bad side of advertising is that it can create an artificial need for unnecessary products and services. Every Christmas the media creates the toy of the season. One year it's "Tickle Me, Elmo" the next it's the "Furbee." Don't even get me started on "Star Wars." The point is to keep an eye on the message you want your target market to receive. If you can, test some of the six types of advertising with various offers and messages. Find the type that works for you and work it


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The term Media advertising or advertising media is given to the use of media to advertise products and services to a relevant audience. The list of advertising opportunities across different formats of media is endless, so we'll only cover the key ones here. The advertising world has moved on significantly over the last 15 years and Online advertising is now moving ahead of the more traditional forms of promotion vehicles like magazine advertising and newspaper advertising. More and more companies are increasing their online ad spend, due to how cost effective it can be and how easy it is to monitor and track. The use of advertising is paramount to the long-term success of your business, but you must adopt a logical and level-headed approach to this important activity, or your advertising spend will certainly get out of hand - this can make a huge dent in your overall profits! If you prefer to outsource your media planning and media buying then there are plenty of Buying Media Services that can help you to find the best

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opportunities. Remember, If you take on the services of a marketing or advertising agency then make sure you meet up with them to discuss your requirements in detail. You may also want to appoint a company that has experience in your particular marketplace and we have a selection of media buying agencies in our advertising agency resource page. Depending on your budget and objectives, you may also want to consider advertising formats like Radio Advertising or TV advertising to shout about your brand. These can be targeted to a consumer or business audience and each provider will be happy to discuss ways in which you can get the best value for money. Another growing format is Outdoor Advertising and this is now performing very well in many parts of the world. It all started in the US with restaurant adverts being displayed on roadside billboards and buildings - this has now moved to the UK, Europe and other parts of the world, although certain restrictions are in place for type of location and the size of adverts. However, this is a good one to try if you want to push a brand, event, or local business and the costs can be very reasonable. For a small business, every dollar is precious. Small businesses do not advertise for the sake of advertising. Instead, they want to get the most return for their investment. Learn the advantages and disadvantages of each advertising medium that you can use to provide your business the winning edge. If you are ready to get the word out about your business, one of the steps that you need to do is to select the right media where you will advertise and promote your business. There are a number of venues where you can promote your business, you need to ask three important questions:

Where are my target buyers? What is the best medium to reach them?

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An important step to developing your sales and marketing plan is to select the right media to send out your message. There are no hardand-fast rules as to which media is better. The right media for one business may be wrong for another.

Print media
The print media include all newspapers, newsletters, booklets, pamphlets, magazines, and other printed publications, especially those that sell advertising space as a means of raising revenue. In the United States, at present, there are 1745 daily and 7602 weekly newspapers, and 64,000 magazines. Most print media, with the exception of magazines, are local, although there are some national newspapers and trade publications that have become quite successful. Magazines, on the other hand, have always been national, although there is a trend today toward localization and specialization. Also included in print media category are directories, church and school newspapers and yearbooks, and programs at theater presentations and sporting events.

Newspapers. Newspapers are one of the traditional mediums used by

businesses, both big and small alike, to advertise their businesses.


Allows you to reach a huge number of people in a given geographic area You have the flexibility in deciding the ad size and placement within the newspaper

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Your ad can be as large as necessary to communicate as much of a story as you care to tell Exposure to your ad is not limited; readers can go back to your message again and again if so desired. Free help in creating and producing ad copy is usually available Quick turn-around helps your ad reflect the changing market conditions. The ad you decide to run today can be in your customers' hands in one to two days.


Ad space can be expensive Your ad has to compete against the clutter of other advertisers, including the giants ads run by supermarkets and department stores as well as the ads of your competitors

Poor photo reproduction limits creativity Newspapers are a price-oriented medium; most ads are for sales Expect your ad to have a short shelf life, as newspapers are usually read once and then discarded. You may be paying to send your message to a lot of people who will probably never be in the market to buy from you. Newspapers are a highly visible medium, so your competitors can quickly react to your prices With the increasing popularity of the Internet, newspapers face declining readership and market penetration. A growing number of readers now skip the print version of the newspaper (and hence the print ads) and instead read the online version of the publication.

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Magazines. Magazines are a more focused, albeit more expensive,

alternative to newspaper advertising. This medium allows you to reach highly targeted audiences.


Allows for better targeting of audience, as you can choose magazine publications that cater to your specific audience or whose editorial content specializes in topics of interest to your audience.

High reader involvement means that more attention will be paid to your advertisement Better quality paper permits better color reproduction and full-color ads The smaller page (generally 8 by 11 inches) permits even small ads to stand out


Long lead times mean that you have to make plans weeks or months in advance The slower lead time heightens the risk of your ad getting overtaken by events There is limited flexibility in terms of ad placement and format. Space and ad layout costs are higher

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Yellow Pages. There are several forms of Yellow Pages that you can use
to promote and advertise your business. Aside from the traditional Yellow Pages supplied by phone companies, you can also check out specialized directories targeted to specific markets (e.g. Hispanic Yellow Pages, Blacks, etc.); interactive or consumer search databases; Audiotex or talking yellow pages; Internet directories containing national, local and regional listings; and other services classified as Yellow Pages.


Wide availability, as mostly everyone uses the Yellow Pages

Non-intrusive Action-oriented, as the audience is actually looking for the ads Ads are reasonably inexpensive Responses are easily tracked and measured Frequency


Pages can look cluttered, and your ad can easily get lost in the clutter Your ad is placed together with all your competitors Limited creativity in the ads, given the need to follow a pre-determined format

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Electronic media
Electronic media are media that utilize electronics or electromechanical energy for the end user (audience) to access the content. This is in contrast to static media (mainly print media), which are most often created electronically, but don't require electronics to be accessed by the end user in the printed form. The primary electronic media sources familiar to the general public are better known as video recordings, audio recordings, multimedia presentations, slide presentations, CD-ROM and Online Content. Most new media are in the form of digital media. However, electronic media may be in either analog or digital format.



Radio is a universal medium enjoyed by people at one time or another during the day, at home, at work, and even in the car. The vast array of radio program formats offers to efficiently target your advertising dollars to narrowly defined segments of consumers most likely to respond to your offer.

Gives your business personality through the creation of campaigns using sounds and voices Free creative help is often available Rates can generally be negotiated During the past ten years, radio rates have seen less inflation than those for other media - 26 -


Because radio listeners are spread over many stations, you may have to advertise simultaneously on several stations to reach your target audience

Listeners cannot go back to your ads to go over important points Ads are an interruption in the entertainment. Because of this, a radio ad may require multiple exposure to break through the listener's "tuneout" factor and ensure message retention

Radio is a background medium. Most listeners are doing something else while listening, which means that your ad has to work hard to get their attention



Television permits you to reach large numbers of people on a national or regional level in a short period of time Independent stations and cable offer new opportunities to pinpoint local audiences Television being an image-building and visual medium, it offers the ability to convey your message with sight, sound and motion


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Message is temporary, and may require multiple exposure for the ad to rise above the clutter Ads on network affiliates are concentrated in local news broadcasts and station breaks Preferred ad times are often sold out far in advance Limited length of exposure, as most ads are only thirty seconds long or less, which limits the amount of information you can communicate Relatively expensive in terms of creative, production and airtime costs

Direct Mail.
Direct mail, often called direct marketing or direct response marketing, is a marketing technique in which the seller sends marketing messages directly to the buyer. Direct mail include catalogs or other product literature with ordering opportunities; sales letters; and sales letters with brochures.


Your advertising message is targeted to those most likely to buy your product or service. Marketing message can be personalized, thus helping increase positive response. Your message can be as long as is necessary to fully tell your story. You have total control over the presentation of your advertising message. Your ad campaign is hidden from your competitors until it's too late for them to react - 28 -


Some people do not like receiving offers in their mail, and throw them immediately without even opening the mail. Resources need to be allocated in the maintenance of lists, as the success of this kind of promotional campaign depends on the quality of your mailing list.

Long lead times are required for creative printing and mailing Producing direct mail materials entail the expense of using various professionals - copywriter, artists, photographers, printers, etc. Can be expensive, depending on your target market, quality of your list and size of the campaign.

Telephone sales, or telemarketing, is an effective system for introducing a company to a prospect and setting up appointments.


Provides a venue where you can easily interact with the prospect, answering any questions or concerns they may have about your product or service.

It's easy to prospect and find the right person to talk to. It's cost-effective compared to direct sales. If outsourcing, set-up cost is minimal Increased efficiency since you can reach many more prospects by phone than you can with in-person sales calls.

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Great tool to improve relationship and maintain contact with existing customers, as well as to introduce new products to them


An increasing number of people have become averse to telemarketing. More people are using technology to screen out unwanted callers, particularly telemarketers Government is implementing tougher measures to curb unscrupulous telemarketers If hiring an outside firm to do telemarketing, there is lesser control in the process given that the people doing the calls are not your employees

It can be extremely expensive, particularly if the telemarketing is outsourced to an outside firm

Specialty Advertising. This kind of advertising entails the use of imprinted, useful, or decorative products called advertising specialties, such as key chains, computer mouse, mugs, etc. These articles are distributed for free; recipients need not purchase or make a contribution to receive these items.


High selectivity factor as these items can be distributed only to the target market.

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If done well, target audience may decide to keep the items, hence promoting long retention and constant exposure Availability of wide range of inexpensive items that can be purchased at a low price. They can create instant awareness. They can generate goodwill in receiver The items can be used to supplement other promotional efforts and media (e.g. distributed during trade shows).


Targeting your market is difficult. This can be an inappropriate medium for some businesses. It is difficult to find items that are appropriate for certain businesses Longer lead time in developing the message and promotional product Possibility of saturation in some items and audiences Wrong choice of product or poor creative may cheapen the image of advertiser

A vast amount of time, money and energy go into the creative work of developing advertising appeal to influence the buying behaviour of consumer. Through various appeals, advertising influence, rationally or emotionally, the prospects purchase decisions. For this purpose, they take the help of varying product features or attributes in their ad appeals, or seek to influence consumer perception of, and changes in consumer attitude to, the advertised product or brand. Ad appeal may be product-oriented or consumer-oriented. Since there is large number of such ad appeal, it would be difficult to discuss them all. It would, therefore, be helpful to device for classifying advertising appeal. Advertising message should appeal, directly or indirectly, to those key needs which influence behaviour response. Without going into communication theories and models, we shall deal with the message content , its structure and the format to be employed for the formulation of an appropriate message.

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The message content refers to what the advertiser has to say to the target audience that will produce the desired response. It may be an appeal, a time, an idea or a unique selling proposition. Infect, the message content ultimately formulates some kind of benefit, motive or reason why the audience should respond to, or do, something.

Types of Appeals
Appeals are broadly classified into three categories : 1. Rational Appeals 2. Emotional Appeals 3. Moral Appeals

Rational Appeals In Advertising

Rational Appeals are those directed at the thinking process of the audience. They involve some sort of a deliberate reasoning process, which a person believes would be acceptable to other member of his social group. They attempt to show that the product would yield the expected functional benefit. Although there may be some disagreement regarding which motives are rational and which are emotional, the following are some buying motives which are normally considered rational under ordinary circumstances. 1. High Quality: People buy television, music systems, furniture, refrigerator, electrics gadgets, kitchenware and a host of consumer durables for their high quality. Many consumer goods are bought for their quality, such as clothing, beverages, food items, etc and not merely taste or fashion, or style.

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2. Low Price: Many people buy low-price locally made air-conditioners for their homes because they believe that these products will show a product performance similar to, or slightly inferior to, that of nationally reputed brands at higher price. Whether this is true or not, a person, as long he believes this to be true, things his reason will be accepted as a Good one by his social group. In this case, he is exhibiting a rational motive.

3. Long Life : Long life, as of a car tyre that will give 30,000 kms, before its utility has been exhausted.

4. Performance : Performance, as of a ball-point pen that wont release excessive ink or skip under any circumstances.

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5. Ease of Use : Ease of use, as of a screwdriver with a magnetized tip which clings to the metal head of the screw, or a timer in the kitchen mixer which switches off automatically after a pre-determined time period.

6. Re-sale value : Re-sale value, as of a 2-wheeler scooter. Bajaj has a better resale value than any other make.

7. Economy : Economy, in the operating expenses of some brands of refrigerator is greater because they consume less electricity. Many 2-wheeler maker claim a better mileage per litre consumption of fuel than similar other vehicle.

Emotional Appeals In Advertising

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Type of advertising in which the copy is designed to stimulate one's emotions, rather than one's sense of the practical or impractical. When copywriters use emotional appeal in advertising, they are attempting to appeal to the consumer's psychological, social, or emotional needs. The copy is written to arouse fear, love, hate, greed, sexual desire, or humour, or otherwise create psychological tension that can best be resolved by purchase of the product or service. Each of us enters the world as an irrational individual. For infants, feelings are everything. Our earliest response is to nonverbal communication. In the first years of life, mother's smile is comforting. Thunder is threatening. Life is simple. Meanings are clear. Then we invest 12 years or more in formal education to learn how to think rationally. By adulthood, it has become a habit. Emotion-based advertising speaks the primal tongue. It communicates through design and colour. Motion and stagecraft. Music and tonality. The primal mind evaluates the photo in a magazine advertisement or a televised image just as it would a real life situation. We immediately recognize that the Marlboro man is a rugged individualist because we see his tattoo. He controls his destiny as we would like to be in command of ours. By emulating him, we, too, might find fulfilment. Fantasy commercial Style of commercial that uses special effects or caricatures to create the idea of fantasy about the product, such as the Little Elves who make cookies, or Mr. Clean, or the Jolly Green Giant. The technique of a fantasy commercial is principally to appeal to the emotions to arouse interest in the product. In a fantasy commercial, the focus is the message itself.

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Fear appeal Advertising that attempts to create anxiety in the consumer on the basis of fear, so that the consumer is encouraged to resolve this fear by purchasing the product or service. For example, an advertisement may use people's fear of offending or of rejection to influence them to purchase personal products such as mouthwash or deodorant. Another example of fear appeal is an advertisement for fire insurance that pictures a family devastated by the fire that has destroyed their home. There are two types of Fear appeals which are: Positive Fear appeal Advertising copy approach that attempts to alleviate a person's anxiety about buying and using a product. The positive appeal stresses the positive aspects of a product and the positive gains for a person who purchases the product.

Negative Fear appeal Advertising copy approach that points out the negative aspects of life without the advertised product. The negative appeal attempts to increase people's anxiety about not using a product or service and stresses the loss they will experience if they do not purchase the product or service.

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Logical appeal Advertising approach that appeals to the consumer's practical or functional needs in an attempt to appeal to the consumer's sense of logic. In a logical appeal, the product or service is positioned as the logical choice for the consumer. For example, if an individual on a diet wants to drink beer, then the logical choice would be a light beer or perhaps a beer that is "less filling."

Moral Appeal in Advertising:

Moral Appeal are those appeals to the audience which appeals to their sense of right and wrong. These are often used in messages to arouse a favourable response to social caused, such as prohibition, adult literacy, social forestry, anti smuggling and hoarding, consumer protection, equal rights for woman, social responsibility projects of corporations, rural development, siding weaker sections of society, employment generation, and so on. There are messages which appeal for generous donations for flood victims and for famine operation these are often based on moral appeal. Many commercial advertisement are criticized on moral grounds. The most controversial ad

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campaigns are by multinational companies marketing baby food products. Many WHO experts are critical of these corporations which promotes bottle feeding against breast feeding.

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Advertising is the paid, non-personal promotion of a cause, idea, product, or service by an identified sponsor attempting to inform or persuade a particular target audience. Advertising has evolved to take a variety of forms and has permeated nearly every aspect of modern society. The various delivery mechanisms for advertising include banners at sporting events, billboards, Internet Web sites, logos on clothing, magazines, newspapers, radio spots, and television commercials. While advertising can be successful at getting the message out, it does have several limitations, including its inability to (1) focus on an individual consumer's specific needs, (2) provide in-depth information about a product, and (3) be cost-effective for small companies. Other factors, such as objectives, budgets, approaches, and evaluation methods must all be considered

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1. 2. 3. 4. 5. 6. 7. Communication, and Consumerism, 62+68 ^ Bhatia (2000). Advertising in Rural India: Language, Marketing 8. McChesney, Robert, Educators and the Battle for Control of U.S. Broadcasting, 1928-35, Rich Media, Poor Democracy, ISBN 0-25202448-6 (1999) 9. McChesney, Robert, Educators and the Battle for Control of U.S. Broadcasting, 1928-35, Rich Media, Poor Democracy, ISBN 0-25202448-6 (1999) 10. m

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