About Advertising

Advertising is a form of communication intended to persuade an audience (viewers,

readers or listeners) to purchase or take some action upon products, ideals, or services. It
includes the name of a product or service and how that product or service could benefit
the consumer, to persuade a target market to purchase or to consume that particular brand.
These brands are usually paid for or identified through sponsors and viewed via various
media. Advertising can also serve to communicate an idea to a mass amount of people in
an attempt to convince them to take a certain action, such as encouraging
'environmentally friendly' behaviors, and even unhealthy behaviors through food
consumption, video game and television viewing promotion, and a "lazy man" routine
through a loss of exercise. Modern advertising developed with the rise of mass production
in the late 19th and early 20th centuries. Mass media can be defined as any media meant
to reach a mass amount of people. Several types of mass media are television, internet,
radio, news programs, and published pictures and articles.

Commercial advertisers often seek to generate increased consumption of their products or

services through branding, which involves the repetition of an image or product name in
an effort to associate related qualities with the brand in the minds of consumers. Different
types of media can be used to deliver these messages, including traditional media such as
newspapers, magazines, television, radio, outdoor or direct mail; or new media such as
websites and text messages. Advertising may be placed by an advertising agency on
behalf of a company or other organization.

Non-commercial advertisers that spend money to advertise items other than a consumer
product or service include political parties, interest groups, religious organizations and
governmental agencies. Nonprofit organizations may rely on free modes of persuasion,
such as a public service announcement.

In 2007, spending on advertising was estimated at more than $150 billion in the United
States and $385 billion worldwide.

Introduction

Advertising definition:
Paid form of non personal communication about an organization or its products that is
transmitted to a target audience through a mass/broadcast medium.

Any paid form of non-personal presentation and promotion of ideas, goods or services
through mass media such as newspapers, magazines, television or radio by an identified
sponsor

(Principles of Marketing: Kotler, Armstrong, Saunders and Wong)

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Advertising Objectives Two school of thoughts
Role of objectives

Many organizations, including advertising agencies, fail to set realistic promotional

objectives. There are several explanations for this behaviour, but one of the common
factors is that managers are unable to differentiate between the value of advertising as
expenditure and as an investment.

The setting of objectives is important for 3 main reasons:

• They provide a means of communication and co-ordination between groups (client

and agency working on different parts of a campaign.)
• These objectives also serve as a guide for decision-making and provide a focus for
decisions that follow in the process of developing promotional plans.
• Objectives provide a benchmark so that relative success or failure of a programme
can be determined.

In the matter of advertising objectives, 2 distinct schools of thought emerge:

The Sales School & The Communication School

The Sales school

Many managers see sales as the only meaningful objective for promotional plans. Their
view is that the only reason an organization spends money on promotion is to sell its
products or service. Therefore, the only meaningful measure of the effectiveness of the
promotional spend is in the sales results.

These results can be measured in a number of different ways.

• Sales turnover is the first and most obvious factor particularly in business-to-
business markets.
• In the consumer markets and the FMCG sector, market share movement is more
sensitive barometer of performance. Over the longer term, return on investment is
used to check success or failure.

However sales objectives are applicable only in particular situations.

Advertising Objectives :

• Direct response advertising: where direct action is required by the receiver in

response to exposure to message, measurement of sales is justifiable. Thus it
attempts to induce quick response from the members of the target audience,

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Ads offering some kind of incentive, or ads announcing contests, or encouraging
prospects to place orders on phone or through internet. In such cases evaluation is
based on sales results.

• The retail sector: can also use sales measures, and it has been suggested that
packaged goods organizations, operating in markets, which are mature with
established pricing and distribution structures, can build a databank from which it
is possible to isolate the advertising effect through sales.

If a particular celebrity is used for an ad campaign and a particular amount of money

is spent on it, by monitoring the amount of sales, it is possible to evaluate the success of
the campaign or success of using the celebrity.

• Sales Promotion Programs: Many sales promotion programs have sales

objectives since their goal is often to generate trial or short-term sales increases

Several companies come up with the scratch and win offers. Britannia at the time of
world cup had actually come up with such offers “ Britannia khao, world cup jao”

However, there are certain difficulties associated with using sales as advertising
objective:

• Sales could result from variety of influences, such as the other marketing mix
elements, competitor actions and wider environmental effects, like the strength of
the currency or the level of interest.

• Concept of adstock or carryover: the impact of promotional expenditure will not

be immediately apparent as the receiver may not enter the market until a later date
but the effects of the promotion may still influence the final purchase decision.
Thus while measuring effectiveness of campaign, sales results may not show its
full impact as there is considerable time lag between audience exposure to ad and
actual sales.
• Sales objectives do little to assist the media planner, copywriters and creative team
working on the communication programme.

They would want to know what the company intends to communicate, what is the target
audience and what kind of behaviour or response is finally desired on their part.

The communications school

There are many situations where the aim of a communication campaign is to enhance the
image or reputation of an organization or product. Sales thus don’t remain the only goal.

Consequently, promotional efforts are seen as communication tasks, such as the creation
of awareness or positive attitudes towards the organization or product. To facilitate this
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process, receivers have to be given relevant information before the appropriate decision
processes can develop and purchase activities established as long-run behaviour.

Thus the communication objectives basically seek to move people to action and induce
them to purchase the products.

When we see ads, we tend to judge them with their ability to make us laugh or feel
engrossed. However, a far more powerful way to look at advertising is by understanding
that advertising is a communication task, with specific communication objectives, and
therefore we need to understand how communication works.

It is important to understand all the different interactions that target customers have with
the product or the company.

Suppose, a person were to buy a coloured television, before making the investment he
is likely to look into several aspects like features available, benefits, information with
regard to these in the form of articles, etc. thus a marketer would do good if he could
understand what influences this person at every stage in the buying process and
accordingly formulate his communication plan to ensure more effective allocation of
the communication budget.

Thus there are several models that are framed based on this understanding. These models
tend to follow a certain sequence in influencing buyer behaviour.

The stages are as follows:

• Cognitive: This stage basically involves communication that deals with cognition
or knowledge. It deals with creating knowledge, perception, ideas and awareness in
the minds of people. Before people can be moved to action in terms of purchase,
they must be informed about the same.

• Affective: This stage deals with the emotions or the affections. Thus this is the
stage that determines whether a person develops positive perception about the
product or simply dislikes it. At this stage, interest may further strengthen to take
the shape of strong desires or preference.

• Conative/ behaviour: This mainly deals with the final buyer behaviour. In this
case the person on the basis of his preference or dislike for the product would
either purchase it or reject the product.

Thus as mentioned earlier, in case a person wants to buy a TV set, he may after having
understood his desire, collect different types of information and after having being
convinced by the same, finally make the purchase. This pattern may differ depending
upon low or high involvement products.

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These days, more and more research is being conducted under the premise that consumers
develop relationships with their brands and products, which could sustain the notion that
a series of stages occur between the point of product awareness and the point of product
purchase. The concept of "bottom-line" thinking has essentially passed. Effective
advertising should sell, but should also communicate with the consumer on an emotional
level. Knowing this, we can say that advertising is a communication task.

Role Of Advertising
Rise in new media

With the dawn of the Internet came many new advertising opportunities. Popup, Flash,
banner, Popunder, advergaming, and email advertisements (the last often being a form of
spam) are now commonplace. Particularly since the rise of "entertaining" advertising,
some people may like an advertisement enough to wish to watch it later or show a friend.
In general, the advertising community has not yet made this easy, although some have
used the Internet to widely distribute their ads to anyone willing to see or hear them. In
the last three quarters of 2009 mobile and internet advertising grew by 18.1% and 9.2%
respectively. Older media advertising saw declines: −10.1% (TV), −11.7% (radio),
−14.8% (magazines) and −18.7% (newspapers ).

Global advertising

Advertising has gone through five major stages of development: domestic, export,
international, multi-national, and global. For global advertisers, there are four, potentially
competing, business objectives that must be balanced when developing worldwide
advertising: building a brand while speaking with one voice, developing economies of
scale in the creative process, maximising local effectiveness of ads, and increasing the
company’s speed of implementation. Born from the evolutionary stages of global
marketing are the three primary and fundamentally different approaches to the
development of global advertising executions: exporting executions, producing local
executions, and importing ideas that travel.

Advertising research is key to determining the success of an ad in any country or region.

The ability to identify which elements and/or moments of an ad that contributes to its
success is how economies of scale are maximised. Once one knows what works in an ad,
that idea or ideas can be imported by any other market. Market research measures, such
as Flow of Attention, Flow of Emotion and branding moments provide insight into what
is working in an ad in any country or region because the measures are based on the visual,
not verbal, elements of the ad.

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Diversification

In the realm of advertising agencies, continued industry diversification has seen observers
note that “big global clients don't need big global agencies any more”.[32] This is reflected
by the growth of non-traditional agencies in various global markets, such as Canadian
business TAXI and SMART in Australia and has been referred to as "a revolution in the
ad world".

New technology

The ability to record shows on digital video recorders (such as TiVo) allow users to
record the programs for later viewing, enabling them to fast forward through
commercials. Additionally, as more seasons of pre-recorded box sets are offered for sale
of television programs; fewer people watch the shows on TV. However, the fact that
these sets are sold, means the company will receive additional profits from the sales of
these sets. To counter this effect, many advertisers have opted for product placement on
TV shows like Survivor.

Advertising education

Advertising education has become widely popular with bachelor, master and doctorate
degrees becoming available in the emphasis. A surge in advertising interest is typically
attributed to the strong relationship advertising plays in cultural and technological
changes, such as the advance of online social networking. A unique model for teaching
advertising is the student-run advertising agency, where advertising students create
campaigns for real companies. Organizations such as American Advertising Federation
and AdU Network partner established companies with students to create these campaigns.

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BIBLIOGRAPHY
S.no Name of the Book/Magazine/Article Author Publisher/Source
1 Advertising: Principles And Practice Wells, William 7, (Special Indian
D.; Burnett, John; Edition) Prentice
Moriarty, Sandra; Hall of India
2 How To Advertise Kenneth Roman Et Rupa & Co.
Al
3 Marketing Management Phillip Kotler & Pearson
Kevin Keller Education

Web sites Referred:

http://www.examstutor.com/business/resources/studyroom/marketing/advertising/3-
advertisingbudget.php

http://www.examstutor.com/business/resources/studyroom/marketing/advertising/index.p
hp

http://drypen.in/advertising/advertising-objectives.html

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INDEX

S.NO Contents Page No

1 About Advertising 1-2

2 Advertising Objectives 2
3 The Sales School & The Communication School 3-4

4 Role of Advertisng 5-6

5 BIBLIOGRAPHY

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MINI PROJECT

ACADEMIC YEAR : 2009-2010

SEMISTER : 3rd SEMESTER

MID : 1st MID
SUBJECT : ADVERSTISING & BRAND
MANAGEMENT
TOPIC : Objectives & Role of Advertising

SUBMITED
BY
BALAMURALI BHASKARAN
09331E0004

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SCHOOL OF MANAGEMENT STUDIES
MVGR COLLEGE OF ENGINEERING
ACCERDITED BY NBA & NAAC ‘A’ GRADED
(APPROVED BY AICTE & PERMANENTLYAFFILIATED TO JNTU KAKINADA)
VIZIANAGARAM – 535005

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