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Advertising facilitates

large-scale marketing. It is a medium of mass communication.

Manufacturers supply information about new products through it. The fact that
companies spend millions of dollars on it through TV, radio, the internet, and
newspapers indicate its benefits in sales promotion. It has its origin in a classical
Latin word Advertere.
1. According to John E. Kennedy,
"Advertising is salesmanship in print."
2. According to American Marketing Association (AMA),
"Advertising means any paid form of non-personal presentation and promotion of
ideas, goods, or services by an identified sponsor."

Advertising is within the scope of a promotion, which is one element in the

marketing mix. It is getting popularity in the present highly competitive and
consumer-oriented marketing. All products old and new, consumer and durable,
cheap and costly need extensive advertising for sales promotion and customer
support. Latest communication techniques now are used for making it more
attractive and agreeable.
Advertising is crucial in marketing but is also equally important and essential to
social, cultural and political aspects of our lives.
The term Advertising originates from the Latin word Advertere which means
to turn the mind towards.
The dictionary meaning of the term advertising is to give public notice or to
announce publicity.
Advertising acts as a marketing vehicle and is useful for drawing the attention of
people (prospects) towards a particular product or service.
Advertising is defined differently by various authorities and the institutions
dealing with its subject.
The American Marketing Association (AMA) defines advertising as,
Any paid form of non-personal presentation and promotion of ideas, goods or
services by an identified sponsor.
2. Features of Advertising
The nine main features of advertising:
1) Provides information: Advertising's primary purpose is to provide
information about products or services to prospective buyers. The details
of products such as features, uses, prices, benefits, manufacturer's name,
so on; are in the advertisements. The key message and brand name are

2)

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also there. The information supplied educate and guide consumers and
facilitate them to make a correct choice while buying a product.
Paid communication: Advertising is a form of paid communication. The
advertiser pays to the media for giving publicity to his AD message. He
also decides the size, slogan, etc. given in the advertisement.
Non-personal presentation: Advertising is non-personal in character as
against salesmanship, which is a personal or face to face communication.
Here, the message is given to all and not to one specific individual. This
rule is applicable to all media including the press. However, even in it,
target consumers or target market can be selected for making an AD
appeal.
Publicity: Advertising publicizes goods, services, ideas and event events. It
is primarily for giving information to consumers. This information is related
to the features and benefits of goods and services of different types. It
offers new ideas to customers as its contents are meaningful. The aim is to
make the popularize ideas and thereby promote sales. For example, an
advertisement for family planning, family welfare, and life insurance is
useful for placing new ideas before the people.
Primarily for Persuasion: Advertising aims at the persuasion of potential
customers. It attracts attention towards a particular product, creates a
desire to have it, and finally induces consumers to visit the market and
purchase the same. It has a psychological impact on consumers. It
influences their buying decisions.
Target oriented: Advertising becomes effective and result-oriented when it
is target oriented. A targeted advertisement intensively focuses on a
specific market or particular groups of customers (like teenagers,
housewives, infants, children, etc.). Here, the selection of a particular
market is called a target market.
Art, science and profession: Advertising is art, science and a profession,
and this is now universally accepted. It is an art as it needs creativity for
raising its effectiveness. It is a science as it has its principles or rules. It is
also a profession as it has a code of conduct for its members and operates
within standards set by its organized bodies. In its field, AD Agencies and
space brokers function as professionals.
The element of a marketing mix: Advertising is an important part of a
marketing mix. It supports the sales promotion efforts of the manufacturer.
It makes a positive contribution to sales promotion provided other
elements in the marketing mix are reasonably favorable. It is alone
inadequate for promoting sales. Many companies now spend huge funds
on advertisements and public relations.
Creativity: Advertising is a method of presenting a product in an artistic,
attractive and agreeable manner. It is possible through the element of
creativity. The creative people (professionals) introduce creativity in
advertisements. Without it, the Ads won't succeed. Therefore, creativity is
called the Essence of Advertising.

Advantages of Advertising

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1) Large-scale production and marketing: Advertising is useful as a sales
promotion technique. It gives information to consumers and encourages
them to purchase more. Manufacturers expand their production base due
to a higher market demand created through advertisements.
2) Introducing new products: Advertising facilitates the introduction of new
products. Due to it, information about new products is given to the people
(prospects). A demand generates because of this, and the manufacturer
can sell new products along with the existing ones.
3) Creates new demand: Advertising spreads information and encourages
consumers to purchase new products. It creates a new demand.
Customers are offered various concessions in the initial period. It
generates positive responses from them, and soon new customers also
respond. Thus, advertisement creates new demand from non-users.
4) Effective personal selling: Advertising creates a proper background for
personal selling. It gives advance information to the prospects. They visit
the shop in order to purchase a particular product that they know through
advertisements in media. The job of a salesman becomes easy as
consumers develop an affinity for advertised products. In brief, it supports
and supplements personal selling.
5) Builds brand image: Advertising build brand image and this develops
consumer loyalty towards a specific brand. Manufacturers introduce
branding to popularize their products with a distinct personality. Brands
get popular through advertisements. As a result, buyers develop loyalty
towards a specific brand.
6) Reduces cost of production: Advertising creates demand and promotes
sales. It enables a manufacturer to conduct production on a large scale. It
leads to a reduction in the cost of production and distribution. As a result,
the profit margin of the manufacturer increases.
7) Facing competition: Advertising aids a manufacturer to deal with market
competition effectively. It helps him to promote and popularize his
products. He can remove misunderstanding among consumers about his
products through appropriate advertisements.
8) Sales promotion: A manufacturer can make his sales promotion campaign
successful by using the support of advertising. He can prepare a proper
background for the success of such an ad-campaign as it facilitates direct
communication with consumers.
9) Goodwill builder: A manufacturer can build up goodwill in the business
world and also among the group of customers through advertising. The
social welfare programs and community service activities can get wide
publicity through advertisements. The public can notice even the progress
of the organization through it.

Benefits of advertising for consumers:

1) Information and guide: Consumers get information and guidance from
advertising. They can study the advertisements of competitors and select
the appropriate products that are best suited and profitable to them. It
helps to avoid their cheating and exploitation at the hands of middlemen.

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2) Acts as a reminder: Advertising act as a reminder to consumers and alerts
them about the urgent product they need to purchase.
3) Attracts customers: Advertising leads to competition among
manufacturers and retailers. They have to offer something special in order
to attract buyers. Such attraction offers benefits to consumers. For
example, manufacturers have to bring down the price in order to attract
customers. They have to supply quality goods in order to attract them
more. All this is beneficial to consumers in terms of price and quality of
goods.
4) Raises living standards: Advertising raises the standard of living of people
by supplying information about goods and services, which can offer
convenience and pleasure to them. It guides consumers in the selection of
most suitable products for their daily life. Thus, it provides a higher
standard of living to consumers as a social group.
5) Efficient product use: Consumers get information about uses or benefits of
different products through advertising. They also get guidance as regards
the right manner of using the product and helps to avoid any possible
damage from the use of a purchased product. The information supplied
through advertisements helps to know how to use a product in different
ways.
6) Removes misunderstanding: Advertising helps most consumers in
removing their misunderstanding about certain products. They change
their attitudes towards products and services due to it.

Five M's of Advertising

1) Mission:
Mission refers to the purpose or objective of advertising.
These goals vary in character and mainly include:
Sales promotion,
Information and guidance to consumers,
Developing brand loyalty,
Market goodwill,
Facing market competition effective,
Making the products popular or successful, and
The introduction of a new product in the market.

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The decision in regard to mission or objective is a basic one, and all other
decisions get adjusted according to it. For consumer products like chocolate,
toothpaste, soap, etc., the mission or objective includes facing market
competition, sales promotion and to make a product successful in the market.
2) Money:
Money refers to the finance provided for advertising purpose. It makes an AD
budget. It means the budget allocation made by the company for running the
entire operation of AD Campaign. Money provided is a limiting factor because the
effectiveness of advertising, media used, coverage of advertising, etc. are all
related to the funds provided for running advertisements. Advertising is a costly
affair, and companies have to spend millions of dollars on it. It should always be
within the limits of funds provided. Naturally, decisions in selecting an
advertising package should be properly adjusted to the allocated AD budget.
Consumer products like toothpastes or chocolates are highly competitive with
many substitutes readily available in the market. Naturally, extensive advertising
on TV, newspapers, radio, etc. is required. These media are costly. So, the
manufacturing or marketing company will have to provide huge money for
advertising purpose.
3) Message:
The message gets delivered through the text of an advertisement. It is passed
through written words, pictures, slogans, and signs. It is for the information,
guidance and motivation of prospective buyers. Attractive and meaningful
messages give positive results, and the advertising becomes result-oriented. For
this, the services of creative writers, artists, etc., are used to give an appealing
message to the consumers.
Here, the advertiser has to decide:
How to deliver the message?
Which media to use for communicating the message?
What would be the extent of creativity?
Which specific customer group be targeted with the message, so on.
The AD message is related to the decisions taken in regards to the mission, and
money provided for the purpose of advertising.
For advertising consumer product like chocolate, the message is important for its
success. Chocolate is favored mainly by children and teenagers. The message
should be such that it is beneficial and appealing to the younger minds. It must
have a promise of a taste pleasure and satisfaction as expected by the younger
generation. The AD message should be simple and easily understandable with
the help of a picture or slogan. It should also be attractive and agreeable to the

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younger generation. The pictures or slogans used should be short and
impressive.
4) Media:
The advertiser has to take a crucial decision about selecting a proper media for
an advertising purpose. Media differ as regards to cost, coverage, effectiveness
or impact, etc. The selection of media depends on the budget provided, products
getting advertised, and features of prospective buyers, so on. A wrong decision
on media may make entire advertising ineffective and money spent on it will be
wasted. Therefore, a media should be properly selected, and decision in this
regard is essential and critical.
For advertising popular and extensively used consumer items like chocolate, the
media should be selected properly. Cartoon TV channels, comic books,
newspapers supplement meant for kids, etc., should be preferred.
5) Measurement:
Measure relates to the effectiveness of advertising. An advertiser will like to
evaluate advertisement in order to judge its effectiveness. If an advertisement is
not effective, it will be modified or withdrawn. It is necessary for avoiding
expenditure on the advertisement that is not purposeful or is not likely to give
any positive results. An advertiser has to measure the effectiveness of his ad
program or campaign and take suitable decisions. This decision-making as
regards effectiveness of advertisements is equally important and essential. Such
testing facilitates an introduction of appropriate remedial measures if required.
For measuring effectiveness of chocolate advertising, the post advertising sale is
one major consideration. Demand creation in new market segments or new age
groups is another factor in the measurement of an ad effectiveness. Even the
success of a sales promotion program is useful for measuring the effectiveness
of an advertisement.

Social and Economical Aspects of

Advertising
Economic role 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.

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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 dont 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

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., Kelloggs 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.
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 role of Advertising:

There are some positive and some negative aspects of advertising on the social ground. They are as
follows.

Deception in Advertising:
The relation between the buyers and sellers is maintained if the buyers are satisfied with what they
saw in advertise and what they got after buying that product. If seller shows a false or deceptive
image and an exaggerated image of the product in the advertisement, then the relation between the
seller and buyers cant be healthy. These problems can be overcome if the seller keep their ads clean
and displays right image of the product.

The Subliminal Advertising:

Capturing the Minds of the consumers is the main intention of these ads. The ads are made in such a
way that the consumers dont even realizes that the ad has made an impact on their minds and this
results in buying the product which they dont even need. But All ads dont impress all consumers at
all times, because majority of consumers buy products on basis of the price and needs.

Effect on Our Value System:

The advertisers use puffing tactics, endorsements from celebrities, and play emotionally, which makes
ads so powerful that the consumers like helpless preys buy those products.
These ads make poor people buy products which they cant afford, people picking up bad habits like
smoking and drinking, and buy products just because their favorite actor endorsed that product. This
affects in increased the cost of whole society and loss of values of our own selves.

Offensiveness:
Some ads are so offensive that they are not acceptable by the buyers. For example, the ads of denim
jeans showed girls wearing very less clothes and making a sex appeal. These kinds of ads are
irrelevant to the actual product. Btu then there is some ads which are educative also and now
accepted by people. Earlier ads giving information about birth control pills was considered offensive
but now the same ads are considered educative and important.
But at the last, there are some great positive aspects which help

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.

DAGMAR Model
DAGMAR stands for Defining Advertising Goals for Measured Advertising Results. DAGMAR Model
was developed by Russell Colley in 1961 for setting advertising objectives and measuring
advertising results.

According to DAGMAR Model the ultimate objective of advertising involves a communication task,
intended to create awareness, impart information, develop attitude and induce action.

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Advertising objective is to carry a consumer through four levels of understanding :-

1.

From unawareness to awareness - consumer must be aware of product or company,

2.

Comprehension - what the product is and its benefits,

3.

Conviction - mental conviction to buy the product, and

4.

Action - finally buy the product.

Communication Process in DAGMAR Approach

1. Awareness
Before the purchase behaviour is expected from target audience it is necessary to make the audience
aware with the product or company.The initial communication task of the advertising activity is to
increase the consumer awareness of the product or offer.
2. Comprehension
Only Awareness is not be sufficient to stimulate a purchase, sufficient knowledge and information
about product or organisation is necessary. This step involves the target audience to learn something
about product, organisation, or offer. Here communication task of advertising activity is to make consu
3. Attitude or Conviction
At this step a sense of conviction is established. By creating interest and preference, buyers are
moved to a position where they are convinced that a particular product in the class should be tried at
the next opportunity. At this step communication task of advertising activity is to mould the audiences
beliefs about the product and this is often done through messages that demonstrate the products
superiority over a rival or by talking about the rewards as a result of using the product.
4. Action
Finally, communication must encourage buyer to engage in purchase activity.

DAGMAR Defining Advertising Goals for

Measured Advertising Results
Russell Colley (1961) developed a model for setting advertising objectives and measuring the results. This
model was entitled Defining Advertising Goals for Measured Advertising Results- DAGMAR.

DAGMAR model suggests that the ultimate objective of advertising must carry a consumer
through four levels of understanding: from unawareness to Awarenessthe consumer must
first be aware of a brand or company Comprehensionhe or she must have a comprehension
of what the product is and its benefits; Convictionhe or she must arrive at the mental
disposition or conviction to buys the brand; Actionfinally, he or she actually buy that
product.

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Awareness
Awareness of the existence of a product or organization is necessary before the
purchase behavior can be expected. Once the awareness has been created in
the target audience, it should not be neglected. If there is neglect, the audience
may become distracted by competing messages and the level of awareness of
focus product or organization will decline.
Awareness needs to be created, developed, refined or sustained, according to
the characteristics of the market and the particular situation facing an
organization at any one point of time.
Comprehension

Awareness on its own may not be sufficient to stimulate a purchase. Knowledge about the product or the
organization is necessary. This can be achieved by providing specific information about key brand attribute
s.
In attempting to persuade people to try a different brand of water, it may be necessary to compare the product
with other mineral water products and provide an additional usage benefit, such as environmental claims. The ad
of Ganga mineral water, featuring Govinda, which banked on the purity aspect. They related the purity of the
water with that of river Ganga.
Conviction
The next step is to establish a sense of conviction. By creating interest and preference, buyers are moved to a
position where they are convinced that a particular product in the class should be tried at the next opportunity. To
do this, audiences beliefs about the product have to be moulded and this is often done through messages that
demonstrate the products superiority over a rival or by talking about the rewards as a result of using the product.
Many ads like Thumbs Up featured the reward of social acceptance as grown up. It almost hinted that those
who preferred other drinks were kids.
Action
Communication must finally encourage buyers to engage in purchase activity. Advertising can be directive and
guide the buyers into certain behavioural outcomes,
Use of toll free numbers, direct mail activities and reply cards and coupons.
Tupperware, Aqua Guard, are famous in Indian cities as a result of its personal selling efforts.
For high involvement decisions, the most effective tool in the communication mix at this stage in the hierarchy is
personal selling. Through the use of interpersonal skills, buyers are more likely to want to buy a product than if
personal prompting is absent.

Functions of advertising agency

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Advertising agency is an independent service-rendering organization. It delivers
various services and performs many functions for its clients, who are advertisers.
It is mainly involved in activities like planning, preparing and placing of ads in
media. It also performs non-advertising functions for them. It offers them
advisory and creative services. It does so to make a profit.
1. Attracting clients
Advertising agency needs clients (advertisers). Without them, it cannot survive.
Ad agency always tries to attract clients usually by giving ads in trade journals. It
also seeks their attention by offering them various services. It offers expert,
cheap and quick services. It maintains good relations with them. It tries to give
them full satisfaction. It strives harder to attain their goodwill and customerloyalty.
2. Research function
Advertising agency gathers information related to the client's product.
It collects following information about a product under its research function:
Features, quality, advantages and limitations of a product,
Present and future market possibilities,
Competition in the market,
Situation in the market,
Distribution methods,
Buyers' preferences, so on.
Ad agency analyses (studies) all this collected information properly and draws
conclusions for its research. It helps in planning an advertising campaign,
selecting proper media and creation function.
3. Advertising planning
Advertising agency plans the entire ad campaign of its client.
Advertising planning is a primary function of an ad agency. It is done when its
research function is completed. That is, after analyzing the client's product, its
competitors, market conditions, etc. It is done by experts who use their
professional experience to make a result-oriented advertising-plan.
After making the advertising plan, it is shown to the client. If the client likes and
approves it, then the plan is executed (put into action).

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4. Creative function
Advertising agency put the advertising-plan into action under its creative
function.
Creation of ads is the most important function of an ad agency. Generally, it
involves activities like:
Copy writing,
Drawing photographs,
Making illustrations, layouts, an effective ad message, etc.
These jobs are done by experts like copy writers, artists, designers, etc. These
people are highly skilled and creative. They make an advertisement more
appealing. Attractive ads help to increase the sales of the product.
The ad agency must always use fresh ideas for creating ads. It must neither use
old tactics nor copy the ad-campaign of other products.
5. Media selection
Advertising agency helps an advertiser to select a proper media (ad platform) to
promote his advertisement effectively.
Media selection is a highly specialized function of an ad agency. It must select
the most suitable media for its client's ad. It must choose media, which has a
potential to give best results for the lowest cost. It must select more than one
media for the ad. For example, an advertisement can be put on television, the
Internet, newspapers, magazines, etc.
After selecting the media, the ad agency must maintain goods contacts with the
media.
6. Advertising budget
Advertising agency helps an advertiser to prepare his ad budget. It helps him to
use his budget economically and make the best use of it.
Without a proper advertising budget, there is a risk of client's funds getting
wasted or lost. If an advertiser suffers a loss, he may not bring new projects. As a
result, there is a possibility of losing a potential client that can bring more
business to an ad agency.
7. Coordination
Advertising agency brings a good coordination between the advertiser, itself,
media and distributors. This is a very important function. If coordination is
proper, it will increase the sales of the product.
8. Sales promotion

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Advertising agency performs sales promotion. It helps an advertiser to introduce
sales promotion measures for the dealers and consumers. This helps to increase
the sales of the product.

9. Marketing research
Advertising agency helps its clients to solve their marketing problems. It does so
by conducting a marketing research for them.
10. Non-advertising functions
Advertising agency also performs many non-advertising functions:
It fixes the prices of the product,
It determines the discounts,
It designs the product,
It also designs its package, trade marks, labels, etc.
These non-advertising services help an advertiser to increase its sales.
11. Public relations
Advertising agency does the public relations (PR) work for its clients. It increases
the goodwill between its clients and other parties like consumers, employees,
middlemen, shareholders, etc. It also maintains good relations between the client
and media owner.

What Is Media Planning?

You are creating advertising for a new product. To complete this task you need to go through the
media planning process. Media planning in advertising is the making of decisions to deliver a
message to the target audience.

The Media Planning Process

Now that you understand what media planning is, it is time to review the process. The process
includes: market analysis, establishing the media objective, setting the strategy, implementation,
and evaluation and follow-up.

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Market Analysis
Performing a market analysis involves determining who your audience is. The audience is the
number and type of people your advertising targets. The audience can be classified according to
age, sex, income, occupation, etc. Performing this analysis will help you to project costs and
determine the right media for your campaign.

Establishing The Media Objective

The media objective is the goal of the media plan. To establish this objective you must
determine your goal for reach, frequency, circulation, cost, and penetration. Reach is the amount
of people the message is in front of over a period of time. Frequency is the average number of
times the message is in front of those people.Circulation is used for printed advertisements.
This is the number of prints that are produced and sent out.Cost is broken down into two different
sections: Cost Per Thousand (CPM) and Cost Per Person (CPP). It is important to understand
the cost as you are budgeting. The cost will tell you which form of media is the best option for
your business. Penetration is the number of audience members reached by the advertising. The
company must determine if it wants to take over a market or just reach a certain group prior to
setting the penetration goals and strategies.

Setting The Strategy

Now that you understand who you are marketing to and how much it will cost you, you need to
make a decision about what type of media you will use. Some options include Internet, television,
radio, newspaper, consumer and business publications, and interactive media platforms. Which
option reaches the largest audience? How often will it reach the audience? Does it fit in your
budget?

Implementation
You have a plan. Now it's time to set it in motion. This is when you buy media. Media buying is
the purchasing of the space in the selected media. This involves committing to the media
provider, submitting the ad, and paying the bill. This is the exciting part. You see all your hard
work come together.

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Evaluation And Follow-up

After everything is said and done, it is time to see how successful your media plan was. To do so,
you need to follow-up and evaluate the results. Ask yourself, 'Did we meet media objectives?
How successful were the strategies?' The success of this media plan will determine future media
plans.
Now that you understand the process, let's take a look at a few examples.

Example One
You are promoting a new candy bar. This candy bar has nutrition that gives you energy.
Therefore, the target audience is athletes.
Athletes are not usually lounging around watching television. They listen to a lot of radio. You've
determined you can advertise through an online radio company that plays advertisements one
time every ten minutes. You've set a goal (media objective) of getting your advertisements in
front of 1,000 people (reach) per day (frequency). The number of advertisers is limited to six per
station, so you are guaranteed once every hour (frequency). Their stations average 200 listeners
per hour. With a cost of $1,000 per day, 4,800 listeners per day, you are paying $0.21 per person
(CPP). This fits in your budget, so you implement the media plan.

After two weeks you evaluate the media plan. You successfully met your media objective of
reaching at least 1,000 people per day. There was, also, a 20% increase in sales. You continue
the campaign.