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1
INTRODUCTION ADVERTISING

Unit Structure
1.0 Objectives
1.1 Introduction
1.2 Definitions of Advertising
1.3 Features of Advertising
1.4 Objectives of Advertising
1.5 Importance of Advertising
1.6 Active Participant in advertising
1.7 Role of advertising Marketing Mix
1.8 Role of advertising in Society
1.9 Summery
1.10 Questions

1.0 OBJECTIVES

After completion of this lesson the student will be able to

understand:
Meaning, Nature and Features of Advertising
Objectives of Advertising
Importance of Advertising
Active Participant in Advertising
Role of Advertising in Marketing Mix
Role of Advertising in Society
Advertising and Brand building

1.1 INTRODUCTION:

The word advertising comes form the latin word "advertere

meaning” to turn the minds of towards". Some of the definitions
given by various authors are:

According to William J. Stanton, "Advertising consists of all the

activities involved in presenting to an audience a non-personal,
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sponsor-identified, paid-for message about a product or

organization."

According to American Marketing Association "advertising is

any paid form of non-personal presentation and promotion of
ideas, goods and services by an identified sponsor".

Advertising is used for communicating business information to

the present and prospective customers. It usually provides
information about the advertising firm, its product qualities, place of
availability of its products, etc. Advertisement is indispensable for
both the sellers and the buyers. However, it is more important for
the sellers. In the modern age of large scale production, producers
cannot think of pushing sale of their products without advertising
them. Advertisement supplements personal selling to a great
extent. Advertising has acquired great importance in the modern
world where tough competition in the market and fast changes in
technology, we find fashion and taste in the customers.

1.2 DEFINITIONS OF ADVERTISING

1. American Marketing Association has defined advertising as “any
paid form of non-personal presentation of ideas, goods and
services by an indentified sponsor”.

2. According to Webstar, “Advertising is to give public notice or to

announce publicity”.

3. According to Gardner, “Advertising is the means of mass selling

that has grown up parallel with and has been made necessary to
mass production”.

1.3 FEATURES OF ADVERTISING

1. Communication : Advertising is means of mass communication

reaching the masses. It is a non-personal communication because
it is addressed to masses.

2. Information : Advertising informs the buyers about the benefits

they would get when they purchase a particular product. However,
the information given should be complete and true.

3. Persuasion : The advertiser expects to create a favourable

attitude which will lead to favourable actions. Any advertising
process attempts at converting the prospects into customers. It is
thus an indirect salesmanship and essentially a persuasion
technique.
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4. Profit Maximisation : True advertising does not attempt at

maximising profits by increasing the cost but by promoting the
sales. This way It won‟t lead to increase the price of the product.
Thus, it has a higher sales approach rather than the higher-cost
approach.

5. Non-Personal Presentation : Salesmanship is personal selling

whereas advertising is non-personal in character. Advertising is not
meant for anyone individual but for all. There is absence of
personal appeal in advertising.

6. Identified Sponsor : A sponsor may be an individual or a firm

who pays for the advertisement. The name of reputed company
may increase sale or products. The product gets good market
because of its identity with the reputed corporate body.

7. Consumer Choice : Advertising facilitates consumer choice. It

enables consumers to purchase goods as per their budget
requirement and choice. Right choice makes consumer happy and
satisfied.

8. Art, Science and Profession : Advertising is an art because it

represents a field of creativity. Advertising is a science because it
has a body of organised knowledge. Advertising is profession is
now treated as a profession with its professional bodies and code
of conduct for members.

9. Element of Marking Mix : Advertising is an important element of

promotion mix. Advertising has proved to be of great utility to sell
goods and services. Large manufactures spend crores of rupees on
advertising.

10. Element of Creativity : A good advertising campaign involves

lot of creativity and imagination. When the message of the
advertiser matches the expectations of consumers, such creativity
makes way for successful campaign.

1.4 OBJECTIVES OF ADVERTISING

The fundamental purpose of advertising is to sell something - a

product, a service or an idea. In addition to this general objective,
advertising is also used by the modern business enterprises for
certain specific objectives which are listed below :

1. To introduce a new product by creating interest for it among the

prospective customers.
2. To support personal selling programme. Advertising maybe
used to open customers' doors for salesman.
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3. To reach people inaccessible to salesman.

4. To enter a new market or attract a new group of customers.
5. To light competition in the market and to increase the sales as
seen in the fierce competition between Coke and Pepsi.
6. To enhance the goodwill of the enterprise by promising better
quality products and services.
7. To improve dealer relations. Advertising supports the dealers in
selling he product. Dealers are attracted towards a product
which is advertised effectively.
8. To warn the public against imitation of an enterprise's products.

1.5 IMPORTANCE OF ADVERTISING

Advertising has become an essential marketing activity in the

modern era of large scale production and serve competition in the
market. It performs the following functions:

1. Promotion of Sales : It promotes the sale of goods and services

by informing and persuading the people to buy them. A good
advertising campaign helps in winning new customers both in the
national as wet as in the international markets.

2. Introduction of New Product : It helps the introduction of new

products in the market. A business enterprise can introduce itself
and its product to the public through advertising. A new enterprise
can't make an impact on the prospective customers without the
help of advertising. Advertising enables quick publicity in the
market.

3. Creation of Good Public Image : It builds up the reputation of

the advertiser. Advertising enables a business firm to communicate
its achievements in an effort to satisfy the customers' needs. This
increases the goodwill and reputation of the firm which is necessary
to fight against competition in the market.

4. Mass Production : Advertising facilitates large-scale production.

Advertising encourages production of goods in large-scale because
the business firm knows that it will be able to sell on large-scale
with the help of advertising. Mass production reduces the cost of
production per unit by the economical use of various factors of
production.

5. Research : Advertising stimulates research and development

activities. Advertising has become a competitive marketing activity.
Every firm tries to differentiate its product from the substitutes
available in the market through advertising. This compels every
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business firm to do more and more research to find new products

and their new uses. If a firm does not engage in research and
development activities, it will be out of the market in the near future.

6. Education of People : Advertising educate the people about

new products and their uses. Advertising message about the utility
of a product enables the people to widen their knowledge. It is
advertising which has helped people in adopting new ways of life
and giving-up old habits. It has contributed a lot towards the
betterment of the standard of living of the society.

7. Support to Press : Advertising provides an important source of

revenue to the publishers and magazines. It enables to increase
the circulation of their publication by selling them at lower rates.
People are also benefited because they get publications at cheaper
rates. Advertising is also a source of revenue for TV network. For
instance, Doordarshan and ZeeTV insert ads before, in between
and after various programmes and earn millions of rupees through
ads. Such income could be used for increasing the quality of
programmes and extending coverage.

1.6 ACTIVE PARTICIPANT IN ADVERTISING

Following are the group of people who are actively involved in

advertising.

1. Advertiser : Seller who manufacture and market consumer

products are the prominent group of advertisers. Hindustan unilever
, proctor and gamble, Seimen and Larson and toubro are the
examples of advertisers. Also the retailers are the second
prominent segment among advertisers. They stock the products .
and sell them to the ultimate consumers. Government and social
organization are also the active participant in this category.

2. Target audience : It refers to the recipient of the advertising

message. Every message is either directed to a mass audience
and class audience. Advertising desire to cover this target audience
for promoting sales. Advertising message intends to cover the
potential user and non user who may purchase the product in
future. The messages are also directed to the user of the
competitor's product so that they switch over the advertiser's
products.

3. Advertising Agencies : An advertiser has two options viz. (i) to

design, develop and produce and advertising message and get it
placed in desired media directly through his own sales or
advertising department, or (ii) to entrust the entire job of advertising
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to a team of highly professionalised, specialised, independent,

advertising agency. An advertising agency is composed of creative
people, who conceive design, develop and produce, advertising
message with creative ideas and place it in the desired advertising
media, for and on behalf of its client (the advertiser). The
advertising agencies usually charge a commission of 15% on the
media bills from the media owners. In addition, they charge out-of
pocket expenses to their clients, i.e. the advertisers. They employ
copywriters, artists, photographers. Typographers, layout
designers, editors and such other creative people.

4. Advertising Production People (Artists) : The production of

impressive and persuasive advertisements is possible only with the
active help and creative spirit of the artists like copywriters, artists,
photographers, typographers, layout designers, editors and such
other creative people. Such people are usually employed by the ad
agencies or, their services may be hired by the ad agencies on job
basis.

5. Target Audience (Readers, Listeners, Viewers and Present

and Future Buyers) : Advertising messages are given about
products services and ideas to readers, listeners, viewers and
actual and potential buyers, who are known as the audience. The
target audience may be classified into the following three
categories, viz.,
(i) existing or, current consumers, who are reminded and
influenced to continue their patronage and to increase the volume
of their buying,
(ii) consumers, who buy and use, a competitor‟s brand; hence
they are persuaded to buy the advertised brand, instead of the
competitor‟s brand; and

(iii) those consumers, who do not use any such product; and
even then, are persuaded to buy the advertised product.

6. Mass Media : Advertising messages are communicated to the

target audience through different mass media, such as,

(i) Print Media : They consist of newspapers, magazines,

journals, handbills, etc.

(ii) Electronic Media : They consist of radio, television motion

pictures, video, multi-media and the internet.

(iii) Outdoor Media : They consist off posters, hoarding,

handbills, stickers air balloons, neon sing bill boards, local cinema
houses, and transit media.
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(iv) Direct Mail : It consist of brouchers, leaflets, pamphlets,

letters and return cards addressed to consumers.

The advertising agencies guide their clients (advertisers) in

selection of the most appropriate advertising media, which is known
as „media planning‟. Each medium has sits own merits and
demerits.

7. Government Authorities : The business of advertising is

regulated by the government department. The government adopts
law and regulation which have a direct or an indirect bearing on the
advertising. Apart from this ASCI (Advertising standards council of
India) and ABC (Audit Bureau of circulation) are also some of
authorities regulating advertising.

8. Advertising Production Firms: Advertising production firms

are the support agencies which help in the production of
advertisement. This includes copywriter, artist, photographers,
typographers, producer, editors. These are the people who
transform ideas into a finished forms Thus the success and failure
of the advertisement depend on these people.

Check your progress

1. “Advertising has become an essential marketing activity in the

modern era of globalization”. Explain.
2. Explain how the following group of people are involved in
advertising.
a) Mass Media
b) Target Audience
c) Advertising Agencies
d) Government Authorities
3. “To sell something is not the only objective of Advertisement”.
Discuss.

1.7 ROLE OF ADVERTISING IN MARKETING MIX

Marketing mix consist of four important variables of marketing,

i.e. 4Ps-Product, Price, Promotion and Place. Apart from the
traditional 4 Ps, there are also other variables, i.e. Packaging,
Postion, and Pace.

Advertising is an element of promotion. However, it not only

assists in promoting the product, but also affects the other variables
of marketing mix. This can be explained as follows:
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1. Advertising and Product : A product is normally a set of

physical elements, such as quality, shape, size, colour and other
features. The product may be of very high quality .At times, the
product is so designed that it requires careful handling and
operations. Buyers must be informed and educated on the various
aspects of the product. This can be effectively done through
advertising. Thus, advertising plays the role of information and
education.

2. Advertising and Price : The price is the exchange value of the

product. A marketer may bring out a very high quality product with
additional features as compared to competitors. In such a case,
price would be definitely high. But buyers may not be willing to pay
a high price would be definitely high. Here comes advertising.
Advertising can convince buyers regarding the superiority of the
brand and thus its value for money. This can be done by
associating the product with prestigious people, situations, or
events. Alternatively when a firm offers a low price products the job
of advertising needs to stress the price advantage by using hard
hitting copy. It is not just enough to convince, but it is desirable to
persuade the buyer. Thus advertising plays the role of conviction
and persuasion.

3. Advertising and Place : Place refers to physical distribution and

the stores where the goods are available Marketer should see to it
that the goods are available at the convenient place and that too at
the right time when the buyers need it. To facilitate effective
distribution and expansion of market, advertising is of great
significance. Thus advertising do help in effective distribution and
market expansion.

4. Advertising and Promotion : Promotion consists of advertising,

publicity, personal selling and sales promotion technique.
Businessmen today have to face a lot of competition. Every seller
needs effective promotion to survive and succeed in this
competitive business world. Advertising can play a significant role
to put forward the claim of seller, and to counter the claims of
competitor. Through effective advertising, sellers can face
competition and also help to develop brand image and brand
loyalty.

5. Advertising and Pace : Pace refers to the speed in marketing

decisions and actions. It involves among other things the launch of
new products or brand variations at greater speed than before. As
and when new brands are launched, advertising plays an important
role of informing, educating and persuading the customers to buy
the product.
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6. Advertising and Packaging : The main purpose of packaging is

protection of the product during transit, and preservation of quality
and quantity. Nowadays, marketers take lot of efforts to develop
and design attractive packages as they carry advertising value. A
creatively design package attract the attention of the customers. It
also carries an assurance of quality and creates confidence in the
minds of customers to buy the product.

7. Advertising and Positioning : Product positioning aims at

creating and maintaining a distinct image of the brands in the minds
of the customers. Through advertising the marketer can convey the
positioning of the brand and accordingly can influence the buying
decision of the target audience.

1.8 ROLE OF ADVERTISING IN SOCIETY :

Advertising is the integral part of every day's life. It is a

pervasive method of marketing in society. Though the methods by
which marketers advertise have changed over the decades, the
role and purpose of advertising has changed over the period of
time. Without advertising modern society cannot survive
.Advertising is useful to society in following ways.

Encourage Purchasing
Encouraging people to purchase goods and services is the
main role of advertising. Some industries rely on advertising more
than others: A cereal company, for instance, must advertise more
aggressively, due to the wide arrange of competing products, than
a power company that faces little to no competition. Advertisers
often influence members of society to purchase products based on
instilling a feeling of scarcity or lack. .

Reflect cultural trends

Advertising bridges the gap among people by communicating
varied culture through advertising message. It bring variation in the
social life

Promotes Economic growth

Advertising contributes to bring about all round development of
the economy by increasing demand and by encouraging economic
activities it fuels the desire to shop and, in turn, shopping stimulates
the economy.

Improves standard of living :

Advertising is an economic activity. It provides opportunities to
people to improve their income. It motivates people to consume
more material and thereby improves their standard of living.
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Provides employment: Effective advertising generates demand

for goods and services. high demand calls for more production
which requires more of physical and human resources thus creating
employment opportunities.

Advertising and Brand building

Brands are the identification that differentiates one business
from another (through name, symbol etc.). However, today brands
can also be defined as the personality they reflect to people in
relation to status, emotional characteristics and subjective quality.
They give the consumers a perceived knowledge of the product, its
quality and uniqueness before they buy it.

Brands Ensure delivery of service as promised by them. For

example, Pizza Company A claims to deliver pizza within a certain
time and Pizza company B claims to deliver most delicious Pizzas.
It makes easy for the consumers to identify what they want and
which brand to choose for it. It is important for a brand to
accomplish the claim advertised to retain Brand Image.

Advertising is one of the key elements in building a brand,

which is equally important to the marketer and consumers. Brand
personality acts as a potent brand differentiator and offers
sustainable competitive advantage.

Advertising by creating or reinforcing brand's personality

enhances brand value or equity which in turn can be leveraged
through brand extension. Brand personality also helps brands to
gain market share, command price premium and insulates from
discounting Brands.

Building a strong brand name is key factor for business

success. In the competitive business environment of today,
consumer sophistication has altered business practices.
Organizations are forced to anticipate customers' needs and
convey clear messages to consumers by establishing strong brand
names and focusing on brand building.

A brand's practical attributes and symbolic values are inherent

elements that help the brand appeal on consumers' minds and
emotion. When consumers relate brands with symbols, it becomes
easier for an organization to raise consumer interest. For instance,
Lexus is known for luxury, or Apple is known for innovation.
Therefore, in consumers' minds, a brand is more than just a
recognizable name: it is a promise that needs to be met on a
regular basis.
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Advertising is important for building brand awareness. By

raising consumer interest and making consumers awareness of
their products and services, firms not only expand their customer
base, but they also keep their loyal customers and increase their
market share. In other words, the more aware consumers are of a
brand, the more likely they are to buy from a particular business.

Approaches in Brand building :

To make brand distinctive: brand building can be done through
repetitive advertising. Also by highlighting unique selling proposition
one can distinguish brand from one another.

1. Constant innovation: Consumers need continuous innovation

and new products. It is not always a new product even an
improvement on the existing product is acceptable to the
consumers. Through intensive advertising such brands are build
which is time consuming.

2. Domination of brand: brand building largely depends on the

domination is creates on the competitors. Domination can take
place either in national market or in niche market.

3. Prompt availability: Prompt delivery of the product is one of the

factors that ensure brand building. This is possible if there is proper
coordination between the finance, production, and marketing
department.

4. Integration of new and old media: Consumers have ever

changing demand. Due to availability of various media option the
seller can push the product in the market by blend multiple media
option .Thus advertising message are flashed to consumers
through media mix.

1.9 SUMMERY

Advertising consists of all the activities involved in presenting to

an audience a non-personal, sponsor-identified, paid-for message
about a product or organization.

Advertising has become essential to promote sales, to

introduce new product, to create good public, for large scale of
production, for educating people etc.

Advertising is the integral part of every day's life. Without

advertising modern society cannot survive .Advertising is useful to
society as it encouraging people to purchase goods and services,
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it bridges the gap among people by communicating varied culture

through advertising message, it contributes to bring about all round
development of the economy by increasing demand, it provides
opportunities to people to improve their income.

1.10 QUESTIONS :

1. Define Advertising and explain its nature and features.

2. Define Advertising and explain the main objectives of Advertising
3. What is Advertising? Explain the importance of Advertising
4. Who are the Active Participants in Advertising?
5. What is the Role of Advertising in Marketing Mix?
6. Explain the Role of Advertising in the Society
7. What is the interface between Advertising and Brand building?
Explain the main approaches in Brand building.



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2
INTEGRATED MARKETING
COMMUNICATION

Unit Structure :

2.0 Objectives
2.1 Introduction
2.2 Meaning of IMC
2.3 Tools of IMC
2.4 Importance of IMC
2.5 Framing Integrated marketing
2.6 Summary
2.7 Questions

2.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand:
The concept of Integrated Marketing Communication
Tools of Integrated Marketing Communication
Importance of Integrated Marketing Communication
Steps involved in framing Integrated Marketing Communication

2.1 INTRODUCTION

Advertising is as old as civilization and has been used as the

means of communication to buy and sell the goods and services to
the society. Advertising is an important tool of promotion that can
create wonders with beautiful words to sell product, service and
also ideas. Advertising has, acquired great importance in the
modern India characterized by tough competition in the market and
fast changes in technology, and fashion and taste of customers.

Today as per the changing marketing situation advertising is

not the only sufficient medium of communication. It has to be
integrated with other mediums so as to create the long lasting
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impact on the consumers. Thus the concept of integrated marketing

communication is gaining considerable momentum due to
challenges faced by the advertisers in designing and implementing
their advertising communication messages.

2.2 MEANING OF IMC

Integrated Marketing Communications is a simple concept. It

ensures that all forms of communications and messages are
carefully linked together. Integrated marketing communications
(IMC) is a process of managing customer relationships that drive
brand value primarily through communication efforts. Such efforts
often include cross-functional processes that create and nourish
profitable relationships with customers and other stakeholders by
strategically controlling or influencing all messages sent to these
groups and encouraging data-driven, purposeful dialog with them.
IMC includes the coordination and integration of all marketing
communication tools, avenues, and sources within a company into
a seamless program in order to maximize the impact on end users
at a minimal cost.

Ideally, IMC is implemented by developing comprehensive

databases on customers and prospects, segmenting these current
and potential customers into groups with certain common
awareness levels, predispositions, and behaviors, and developing
messages and media strategies that guide the communication
tactics to meet marketing objectives. In doing this, IMC builds and
reinforces mutually profitable relationships with customers and
other important stakeholders and generates synergy by
coordinating all elements in the promotional mix into a program that
possesses clarity, consistency, and maximum impact.

Definition of IMC: According to American Association of

Advertising Agencies IMC is a “concept of marketing
communication planning that recognises the added value of a
comprehensive plan that evaluates the strategic roles of a variety of
communication discipline”
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2.3 TOOLS OF IMC

Advertising
Sponsor-
ship Publicity

Trade Fair
Public
&
Relation
Exhibition
IMC

Sales
Internet
Promotion

Personal
Packaging
Selling

Advertising :
Advertisement is a non-personal presentation of an idea or a
product (where as personal selling or salesmanship help in
personal promotional.) Advertisement supplements personal selling
to a great extent. Advertising has, acquired great importance in the
modern India characterized by tough competition in the market and
fast changes in technology, and fashion and taste customers. It
creates an active role in integrated marketing communication mix
as it creates.
• Good image
• Top of the mind awareness
• Counterclaim the competitors
• Reinforce positive attitude

Publicity :
Publicity is the non-personal presentation. It originates from the
desk of the editor. It aims at only informing the public about the
events, person, firm etc. There is no control on the publicity by the
advertiser as it comes from the media owner. Publicity can be
favorable or unfavorable. Large firms have separate publicity or
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public relation department for publicity and cordial public relation.

The secret of the publicity is to get placement in the desired media.
Thus the use of publicity provides various advantages to the seller
they are:
• It is available free of cost
• It provides more information than advertising as it comes
from the editors desk
• Consumer believe publicity more than advertising

Public relation :
A Public relations is defined as a management function which
identifies, establishes, and maintains mutually beneficial
relationships between an organization and the publics. Public
relations consider multiple audiences (consumers, employees,
suppliers, vendors, etc.) and uses two-way communication to
monitor feedback and adjust both its message and the
organization's actions for maximum benefit. It is used to generate
goodwill for the organization. Public relation help the company and
its public by relating each other for mutual benefits. The main
objective of public relation is :

• To remove misunderstanding, doubts, confusion, and wrong

impression in the minds of different social groups
• To maintain good corporate image.
• To have the public support to the future of the company.
• To fulfill social responsibility.

Sales promotion :
Sales promotions are direct inducements that offer extra
incentives to enhance or accelerate the product's movement from
producer to consumer. Sales promotion constitutes devices like
contests, coupons, free samples, premium, and point of purchase
material. Sales promotion is action oriented. It motivates customers
to buy the goods under incentive plans. Sales promotion not only
covers consumers but also dealers and wholesalers. It acts as a
connecting link between advertising and salesmanship. Thus in a
competitive marketing sales promotion act as a effective tool to an
advertiser to solve several short term hurdles in marketing.

Personal Selling :
Personal selling includes all person-to-person contact with
customers with the purpose of introducing the product to the
customer, convincing him or her of the product's value, and closing
the sale. The role of personal selling varies from organization to
organization, depending on the nature and size of the company, the
industry, and the products or services it is marketing. Many
marketing executives realize that both sales and non-sales
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employees act as salespeople for their organization in one way or

another.

Personal selling is the most effective way to make a sale

because of the interpersonal communication between the
salesperson and the prospect. Messages can be tailored to
particular situations, immediate feedback can be processed, and
message strategies can be changed to accommodate the
feedback.

Packaging :
A properly designed package can induce the prospects to buy
the product. A well designed package can communicate the type
and quality of the product. Packaging plays an important role in
converting the minds of the consumers as it provides
• Providing information of the product.
• Protection of goods while transportation and handling
• Preservation of quality of the products.
• Promotion of the product.

Internet :
Just as direct marketing has become a prominent player in the
promotional mix, so too has the Internet. Virtually unheard of in the
1980s, the 1990s saw this new medium explode onto the scene,
being adopted by families, businesses and other organizations
more quickly than any other medium in history. Web sites provide a
new way of transmitting information, entertainment, and advertising,
and have generated a new dimension in marketing: electronic
commerce. E-commerce is the term used to describe the act of
selling goods and services over the Internet. In other words, the
Internet has become more that a communication channel; it is a
marketing channel itself with companies such as Amazon.com,
CDNow, eBay, and others selling goods via the Internet to
individuals around the globe.

The interactivity of the Internet is perhaps its greatest asset. By

communicating with customers, prospects, and others one-on-one,
firms can build databases that help them meet specific needs of
individuals, thus building a loyal customer base.

Sponsorships :
Many advertisers heavily rely on sponsorship in order to create
positive feelings toward a company. Sponsorships increase
awareness of a company or product, build loyalty with a specific
target audience, help differentiate a product from its competitors,
provide merchandising opportunities, demonstrate commitment to a
community or ethnic group, or impact the bottom line.
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Like advertising, sponsorships are initiated to build long-term

associations. Organizations sometimes compare sponsorships with
advertising by using gross impressions or cost-per-thousand
measurements. However, the value of sponsorships can be very
difficult to measure. Companies considering sponsorships should
consider the short-term public relations value of sponsorships and
the long-term goals of the organization. Sports sponsorships make
up about two-thirds of all sponsorships.

Trade shows and Exhibition :

It is one of the oldest forms of promoting the sales of products.
Trade shows and exhibition provide opportunities for face-to-face
contact with prospects, enable new companies to create a viable
customer base in a short period of time, and allow small and
midsize companies that may not be visited on a regular basis by
salespeople to become familiar with suppliers and vendors.
Because many trade shows generate media attention, they have
also become popular venues for introducing new products and
providing a stage for executives to gain visibility. In India, India
trade promotion organization (ITPO) has been set up by the
government to organized trade fairs and exhibitions.

Check your progress:

1) Give the chare of tools of IMC.

2) Explain the following terms related to tools of IMC
a) Publicity
b) Sales promotion
c) Personal selling
d) Sponsorship
e) Internet

2.4 IMPORTANCE OF IMC

1) Awareness: IMC tools play an important role in creating

awareness of the products with respect to brand name and brand
availability. It brings to the notice of the potential customer the new
varieties of goods available in the market.

2) Information: Product information is needed when the product is

recently launched in the market. Potential customer must know
about the product, features. IMC provides this information through
various techniques so that the buyer can take correct decision while
buying the goods.
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3) To increase sales. A proper communication mix tends to

increase the sales of the organization. This is possible as increased
sales brings economies of large scale production which enables the
seller to reduce cost and increase profit.

4) To inform the intermediaries. IMC act as a communication

channel between the sellers and the intermediaries like dealer and
agents. These intermediaries are regularly informed through sales
literature, pamphlets, brochures, price list etc.

5) Expansion of the market: IMC help the seller to expand the

business from local level to regional level and to national level .
This expansion provides his goodwill, recognition through out the
country.

6) More specialized media. It used to be said that mass media

was enough to cover any advertiser's needs. But with ever-
increasing ad clutter, shorter attention spans and greater resistance
to advertising, customers now tend to be a lot more selective: they
shut out the stuff they feel they don't need, and go with the stuff that
they want. Therefore with IMC sellers can retain the attention of
customer by diverting their attention through various
Communication Mix.

2.5 STEPS INVOLVED IN FRAMING INTEGRATED

MARKETING COMMUNICATION :

It is likely that integrated marketing communication will be

expected to make a number of contributions toward meeting the
marketing objectives. Thus the main steps in designing IMC are :

1) Identification of target audience : Defining the target audience

is one of the first steps in designing the IMC. While thinking about
the target audience one must look well beyond traditional
demographic considerations. It is also important to 'think ahead
'and ask the following question.

• What are the relevant target buyer groups?

• What are the target group's demographic, lifestyle ,and
psychographic profile?
• How is the trade involved?

2) Determining the communication objectives : The next step is

setting the communication objectives. There may be different
communication objectives like increase in sales, brand image and
good will, expansion of business. Thus the seller has to evaluate
all this objectives and select the one which he intends to achieve.
20

3) Determining the message : An effective message should get

attention, hold interest, arouse desire, & obtain action (AIDA
model). In practice, few messages take the consumer all the way
from awareness to purchase, but the AIDA framework suggests the
desirable qualities of a good message. In putting the message
together, the marketing communicator must decide what to say &
how to say it. , who should say it. Thus the communicator should
focuss more on message content, message format and message
structure.

4) Selecting the communication channel : There are two broad

types of communication channels - Personal and Non personal.

a. Personal Communication Channels : In personal

Communication channels, two or more people communicate
directly with each other. They might communicate face-to-face,
over the telephone, through the mail or even through an internet
chat. Personal Communication channels are effective because they
are allowed for personal addressing the feedback.

b. Non Personal Communication Channels : Non personal

communication channels include media at most yearend events.
Media consists of:
1. Print media -newspapers, magazines, direct mail etc.
2. Broadcast media-radio, television etc.
3. Electronic media-audiotapes, videotapes, CD-ROM, web
page etc.
4. Display media-billboards, signs, posters, banners, hoardings
etc.
Most of the non personal messages come through paid media.

5) Determining the budget: This is one of the most important

decisions of IMC process. The effective IMC depends upon the
budget set for communication Mix. The marketer prepares the
budget taking into nature of the customers, objectives, nature of
competitions and also availability of funds.

6) Promotion Mix decision. After determining budget it is essential

to determine the promotional mix. Promotional mix is the
combination of various tools like advertising, public relation,
personnel selling and so on. Because of different marketing
environment thee has to be variation in communication mix. One
medium which is effective in one market may not be equally
effective in another market.
21

7) Implementation of promotion mix: The marketer then makes

an arrangement to implement the communication mix. The seller
has to select the right media in order to put across the promotion
message.

8) Follow up. Here the advertiser has to review the performance in

terms of sales and purchase. If the performance is as per
communication objectives there is nothing to worry. On the other
hand if the performance falls below the communication objectives
then certain corrective step have to be taken.

2.6 SUMMARY
Integrated marketing communications (IMC) is a process of
managing customer relationships that drive brand value primarily
through communication efforts.
Advertising, Publicity, Public Relation, Sales Promotion,
Personal Selling, Packaging, Internet, Trade fairs and Exhibition,
Sponsorship these are the main tools of IMS
IMC helps to create awareness of the products, provide the
information of the new products, act as a communication channel
between the seller and the intermediaries and expand the business.
Identification of target audience, Determining the
communication objectives, Determining the message , Selecting
the communication channel, Determining the budget, Promotion
Mix decision, Implementation of promotion mix and then Follow up
these are the main steps in designing IMC.

2.7 QUESTIONS

1. Define Integrated Marketing Communication (IMC)

2. What are the main tools of Integrated Marketing Communication
3. What is the importance of Integrated Marketing Communication
4. What are the steps involved in framing Integrated Marketing
Communication
5. Write short note on Advertising
6. What is the importance of Advertising? Explain the objectives of
Advertising.


22

CLASSIFICATION OF ADVERTISING

Unit Structure :

3.0 Objectives of the lesson

3.1 Introduction
3.2 Classification of Advertising
3.3 Types of Advertising
3.4 Difference between National Advertising and Retail
Advertising
3.5 Summary
3.6 Questions

3.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand :
Broad classification of advertising
Various categories of advertising : Social Advertising, Political
Advertising, Advocacy Advertising, Retail Advertising
Financial Advertising, Essentials for the success of Financial
advertising, Advantages of Financial advertising
Corporate Image Advertising, Public Relations Advertising,
Institutional Advertising
Internet Advertising, Types, Advantage and disadvantages of
Internet Advertising
Product Advertising, Service Advertising, National Advertising,
Retail Advertising

3.1 INTRODUCTION

Different authors have classified advertising in different ways.

Philip Kotler has classified advertising on the following basis :
23

(a) Geographical Area : National, Regional or Local.

(b) Content : Product Advertising, Brand Advertising,
Institutional Advertising.
(c) Type of Appeal : Factual and Emotional.
(d) Audience : Consumer, Industrial, Trade.
(e) Sponsor : Manufacturer, Middlemen, Manufacturer -
middlemen, private.
(f) Intended Effort : Direct Action and Delayed Action.
(g) Level of Demand Influence : Primary Product Level,
Selective Brand Level.

3.2 CLASSIFICATION OF ADVERTISING

Management scientists have classified advertising on

different such criteria as follows :

Chart :
Classification of Advertising on the various basis

Area Audience Media Function Stage

Coverage
1) Local 1) Consumer 1) Print Media 1) Direct Action and 1) Pioneering
Indirect Action. stage
2) Religional 2) Industrial 2) Electronic 2) Primary & 2) Competitive
Selective Stage
3) National 3) Trade 3) Outdoor 3) Product &
Institutional
4) 4) 4) Other
International Professional
Stages

Area Coverage Audience Media Functions Ad. Stages

- Local- Consumer- Press- Direct & Indirect - Pioneering
- Regional - Industrial - Broadcasting -Action- Competitive
- National - Trade - Outdoor -Primary & Selective
- Retentive
- International - Professional - Others - Product & PRA

I) Classification on The Basis of Area Coverage :

On this basis advertising may be classified into the following

four categories, viz., (1) local, (2) regional, (3) national,
(4) international advertising.
24

1. Local Advertising : It is also known as „retail advertising‟. It is

undertaken by local retail stores, departmental stores, co-operative
stores, selling cloth, saris and other consumer goods and consumer
durables. It is directed at local customers. Media, used for local
advertising, are shop decorations, local newspapers, magazines,
posters, pamphlets, hoarding, new signs, local cinema houses, etc.

2. Regional Advertising : It has wider coverage, as compared to

local advertising. It covers a particular region, which may be one
state, or, more than one state, the people of which may be having a
common tongue, or, using one common product. It is undertaken by
manufacture, or, regional distributor of a product. Media, used for
regional advertising, include regional newspapers, magazines,
radio, regional T.V., outdoor media, etc. It is considered to be an
ideal form of advertising for launching and marketing a new product
in a specific region.

3. National Advertising: It is generally undertaken by

manufactures of branded goods, for which, advertising messages is
communicated to consumers allover the country. Almost all
possible mass media, including national newspapers, radio and
television network, are employed for national advertising. Product
services, and ideas, which have demand all over the country, are
suitable for national advertising. In India, Indian Airline Hindustan
Lever Ltd., Vicco, Godrej, Bajaj and Kirloskar are a few leading
advertisers at national level. Likewise, detergents, soaps,
toothpastes, cosmetics, scooters, cars, and bicycles, are some of
the products, which are advertised all over the country.

4. International Advertising : This type of advertising is

undertaken by those companies, which operate in more than one
country, known as „multi-national‟ companies. Exporters, generally
advertise their products and services in foreign countries, where
ready markets are available. Air India and other airlines, and multi-
national companies advertise their products and services allover
the world. Coca-Cola and Pepsi are advertised globally, as the
sales are almost all over the world. International advertising is
extremely expensive, involving the services of professional
advertising agencies in different countries.

II. Classification on The Basis of Audience

On this basis, advertising may be classified into the following
four categories, viz., (1) consumer advertising, (2) industrial
advertising, (3) trade advertising, and (4) professional advertising.

1. Consumer Advertising : This type of advertising is directed to

the ultimate consumers of the consumer products, i.e., the
individuals, who buy, or, use the consumer products, or services,
25

say, for example, toilet soap, toothpaste, toothbrush, tea, textiles,

etc., for themselves and for their families. All types of consumer
products need continuous and extensive advertising on T.V., radio,
and press.

2. Industrial Advertising : This type of advertising is used by

manufacturers and distributors of industrial goods. Such as,
machinery, plants, equipments, spare parts and components, and
are directed at industrial users or customers. Such advertisements
usually appear in trade journals, trade dictionaries, business
magazines and so on. The appeal made is tactual and rational.

3. Trade Advertising : This kind of advertising is employed by

manufactures and/or distributors to influence and persuade
wholesalers and dealers (retailers) to stock and sell the goods of
the advertiser by offering incentive schemes to them, or, by inviting
dealership for their particular products(s).

4. Professional Advertising : It is directed at professional like

doctors, professors, engineers and others, who are expected to
recommend, prescribe, or, specify the advertised products to
ultimate consumers. This is done through professional journals and
representative of the advertisers.

III. Classification on The Basis of Media

On the basis, advertising may be-classified into the following

four categories viz., (1) Print media advertising; (2) electronic, or,
broadcast media advertising; (3) outdoor media advertising.

1. Print Media Advertising : The print media consists of

newspapers, magazines, journals, handbills, etc. No newspaper or,
journal, today, can survive without advertising revenue. Print media
advertising, even today, is the most popular form; and revenue
derived by mass media from advertising has, therefore, been
progressively increasing year after year. Print media appeals only
to the sense of sight, i.e. eyes.

2. Electronic or Broadcast Media Advertising : Electronic, or,

broadcast media consists of (i) radio, (ii) television, (iii) motion
pictures, (iv) video, and (v) the internet. The radio is audio in
nature, appealing only to the sense of sound (ears). Radio
advertising is more effective in rural areas, as compared to urban
regions. Television, as an advertising medium, is more attractive
and effective because it is an audio-visual medium appealing to
both the senses of sight sound (eyes and ears). Different methods,
such as, spot announcements, sponsored programmes, etc., are
used for broadcasting advertising messages. However,
26

broadcasting media are very expensive form of advertising.

Advertising is also undertaken through movies, video, and the
internet.

3) Outdoor Media :
This include posters, neon signs, transit, point of purchase
(POP), etc. Outdoor advertising can be a good supporting media to
other forms of advertising. It is a good form of reminder advertising,
especially, the POP advertising.

4) Other Media :
This includes direct mail, handbills, calendars, diaries, cinema
advertising, internet and so on. These miscellaneous media can
play an important supporting role to the major media such as
television, and newspapers.

IV. Classification on The Basis of Function :

1. Direct Action and Indirect Action Advertising : Direct action

advertising is undertaken to obtain immediate response or action
on the part of target audience. Examples include discount sales
advertising, sale along with free gift offers, and mail-order coupon
sales, etc. The media used is mostly newspapers, and television.
Indirect action advertising is undertaken to influence the audience
in respect of advertiser‟s brand. The advertiser expects the target
audience to prefer his brand as compared to competitors whenever
a buying decision arises in future.

2. Primary and Selective Advertising : Primary Advertising is

undertaken by trade association or by cooperative groups. It is
undertaken to create generic den1 and for products and services.
For example, the Coffee Board may advertise to consume more
coffee. Selective Advertising is undertaken by marketers of branded
products. The advertiser intends to create selective demand for his
brand. Examples include Pepsi Cola, Coca Cola.

3. Product and Institutional Advertising : Product or Service

advertising is undertaken to promote the sale of products and
services-branded or unbranded. Institutional advertising is
undertaken to build name and goodwill of the organisation. It is
also, know as corporate advertising or image advertising. It is
mostly undertaken by large firms.

V. Classification on The Basis of Advertising Stages

On this basis, advertising may be classified into the following
three different categories, viz., (1) advertising at pioneering stage,
(2) advertising at competitive stage, and (3) advertising at retentive
stage.
27

1. Advertising at Pioneering Stage : Advertising at „pioneering

stage‟ is undertaken to make the audience fully aware of the new
brand of product and to inform, influence, and persuade them to
buy, or, use it by highlighting its unique features.

2. Advertising at Competitive Stages : Once the brand survives

the introductory stage, it has, soon to face a stiff competition with
other well established brands in the market. At this stage,
competitive advertising is undertaken to promote sales effectively.

3. Advertising at Retentive Stage or Reminder Advertising :

When the product has captured a large share of the market,
„retentive advertising‟ is undertaken to maintain, or retain the stable
position in the market as long as possible. Moreover, if the same
product is passing through the declining stage in the market, this
type of advertising is used to remind the buyers about the product
hence, it is also known as „reminder advertising‟.

Check your progress:

1) Draw the chart showing classification of Advertisement.

2) Explain the following terms.
a) Local Advertising
b) Professional Advertising
c) Primary & Selective Advertising
d) Advertising at pioneering stage
e) Print Media Advertising
3) Show the classification of advertising as per Philip Kotlar.

3.3 TYPES OF ADVERTISING

Advertising is also classified according to their functions and

role. Some of the important classifications of advertising are as
follows :

1. Social Advertising : Social Advertising is undertaken by non-

commercial organisations such as Trust, Societies, Associations
etc. The main objective of Social Advertising is to work for social
cause. Advertisements for collecting donations for war victims or for
victims of natural calamities, sales of tickets for a show etc. are
examples of Social Advertising.

2. Political Advertising : Political advertising is undertaken by

political parties to motivate the general public in favour of the
ideology of the party in question. Political advertising are intensively
made during election times to gain favour of the voters. Such
28

advertising promote plans and policies of the concerned party. It

also try to expose weaknesses of the opposition with a view to
convince the voters to vote for their party candidates. Some political
advertisement are also made to assist the Government to
implement its schemes for rehabilitation and national re-
construction. Mumbai Regional Congress Committee children
affected by communal riots in Mumbai under the scheme of
National Foundation for Communal Harmony. Advertisements
issued by a political party is essentially a political advertising.

3. Advocacy Advertising : We often come acrossed advocacy

advertised relating to the use of family planning methods.
Conservation of scarce resources, maintaining green environment.
An extreme example occurred in the 1960s, when a private citizen
bought a two-page advertisement in the New York Times at a cost
of $12,000 to offer his peace plan for ending the war in Vietnam. In
1974, Mobil Oil Company began advocacy advertising concerning
the need for offshore oil drilling to alleviate the energy crisis that
existed at the time. NBC accepted the television commercial, but
ABC and CBS did not, because of the controversial nature of the
topic. As a result, Mobil Oil Company took out full-page newspaper
ads, which reproduced in print the visuals and text for the
commercial.

This is designed to alert people to the fact that such ads are
not editorials or informational pieces, but are specifically
advertisements. Companies can place advocacy advertising on
billboards, in print magazines and newspapers, online, and on
television.

In fact, many advertising firms consider candidates who have

completed advertising internships far more attractive than those
who have not. If you are planning to begin your career in
advertising in the creative department of an advertising firm, a
bachelor's degree may not be as essential.

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5. Retail Advertising : Retail advertising is the advertising by

retailers who usually sell goods direct to the customers. Retail
advertising has such objectives as : (i) to sell the stock; (ii) to
establish the identify of business; (iii) to attract personal, telephone
or mail order shoppers. Retail advertising is done through window
display, neon signs, posters, leaflets etc. It is usually local in
character. The various advertising approaches of Akbarallys,
Amarsons, Asiatic Departmental Stores are the examples of retail
advertising.

6. Financial Advertising : When an advertising message is

directed to attract for raising capital, it is called financial advertising.
The banks, insurance companies and commercial undertakings
collect required funds from the savings of the people by motivating
them to post-pone present expenditure to future-period.

An investor considers two things before investing his hard

earned savings.
(1) Safety of investment (2) Return on investment
The safety of investment depends upon the reputation and
goodwill of the company and the properties possessed by it. The
institutional advertising helps in creating confidence in the minds of
the investors. The financial advertisement inform the investors
about the past performance in declaring dividends and the trend in
declaring of dividend. The dividend depends upon the profitability of
the company. The company with the help of charts, diagrams etc.
communicate the rate of growth and rate at which profit is
increasing.

The financial advertising aims at establishing financial,

solvency of the company in the minds of the prospective investors.
It is because of financial advertising the company have succeeded
in floating of mega issue of shares arc in cores.

The financial advertising aims at establishing financial solvency

of the company in the minds of the prospective investors. It is
because of financial exports.

Essentials for the Success of Financial Ads :

No financial ad campaign; howsoever creative and persuasive
it may be, can produce the desired result, unless the following
conditions are satisfied.
30

(a) The performance and image of the company and its future
prospects must be good.
(b) The premium, charged on the share price, must be fair and
reasonable.
(c) The brokers and underwriters must extend unqualified support
to the company.
(d) The company should get wide publicity from the press through
press conferences.
(e) True statement of facts, made in the ads.
(f) Finally, financial climate of the country plays an important role.

Advantages of Financial Advertising :

Following are main advantages of financial advertising :

(a) Financial advertising transmits to target consumers all the

material information about new investment opportunities for
investment of savings, or, surplus funds.

(b) It provides education and guidance to consumers in respect

of their investments in shares, debentures, and public funds, off
companies.

(c) It serves as a reminder to consumers to take suitable follow-

up action on their part.

(d) It helps to tap yet untapped rich areas in mini-metros, small

towns, and even in villages for financial institutions.

(e) As financial ads are required to give the required in

formation about the aims, objective business operation, for which
additional funds are required by the advertiser, the company gets
wide publicity through such ads.

(f) Financial advertising serves as a : backbone to brokers as

well as underwriters, who as „intermediaries‟ between the advertiser
and the clients.

(g) Finally, financial advertising indirectly aids and supports the

economic an industrial growth of country by mobiling public funds
for expansion and diversification of business.

7. Corporate Image Advertising : Corporate Image advertising

designed or aimed to create a proper attitude towards the seller
and to build goodwill or image for the advertiser (manufacturing
concern or the selling concern) rather than to sell a specific product
or service. Institutional advertising is done to build good public
31

relations‟ image in the market for the marketer and a patronage for
its product or products. Institutional advertising can therefore be
patronage advertising and public relations service advertising.
Public relations institutional advertising is aimed to create a
favourable image of the company (advertiser) among employees,
investors or general public. Public service institutional advertising
aims at changing the attitudes or behaviour of the people to the
good of the community or public at large. Patronage advertising is
aimed to attract customers by appealing to their patronage buying
motives rather than product buying motives. Most of the companies
are successful in making their image in the minds of the people by
using their names, such as „Bata‟, „Tata‟, „Dunlop‟, „J.K.‟, „Bombay
Dyeing‟ etc.

8. Public Relations Advertising : It is a part of institutional

advertising. The basic objective of public relations advertising is to
establish co-ordial and healthy relations with the customers,
bankers, suppliers, Government. Patrons and the general public.

Through public relations advertising company announces the

changes in its policies, its developmental activities its position and
stand when the employees are on strike. It helps the company to
remove misconcepts about the company created by interested
groups.

During the periods of short supply of goods the public relations

advertising helps to hold the interest of the customers. The
company assures about the normalcy of supply and request its
customers to bear with the company.

Institutional advertising and public relations advertising are

complimentary to each other. Both are directed in building up
corporate image.

There are several reasons as to why a corporate firm may

resort to public relations advertising. The reasons are :
(a) To create a favourable image of the organisation.
(b) To secure and keep good suppliers.
(c) To build goodwill of the dealers.
(d) To arouse and serve customers in a better way.
(e) To arouse interest of the present and potential
shareholders.
(f) To correct misconceptions about the firm during strikes.
(g) To win confidence of its employees.
(h) To render community service.
(i) To make people aware of social evils, health hazards, etc.
(j) To obtain public support for certain cause.
32

9. Institutional Advertising : The object of institutional advertising

is to build manufacturers reputation in the minds of the public in
general.

The advertising message is directed to tell about the Company,

its people, its contribution in promoting social welfare activities, in
promoting consumer satisfaction its achievements in technology its
broad philosophies, its share in economic progress of the Company
etc.

Such advertisement do not bring benefits in the form of higher

sales immediately. But they create good footing for the company in
the long run. The competitive strength of the company goes up with
the enhancement of corporate image. It is much easier for a highly
reputed company to launch a new product in the market. Basically
the institutional advertising aims at getting public support for raising
the capital through public subscription.

The following points are normally referred in institutional ads :

(a) Research & Development of the firm.
(b) Number of factories or branches of the firm.
(c) The number of employees and facilities provided to them.
(d) Foreign collaborations, if any.
(e) Distribution network of the firm.
(f) Market position of the firm.
(g) Products or services offered by the firm.
(h) Social welfare programmes undertaken by the firm, etc.

10. Internet Advertising : The Internet facility has been around for
some 30 years. It actually began in the early 19608 in USA, where
the U. S. Department of Defense saw it as a means of
supercomputer communication for researchers and military facilities
across the country. Until its commercial explosion in 1990s, the
Internet remained a relatively obscure network of linked computers
- mostly by academics, military researchers, and scientists around
the world to send and receive electronic mail, transfer files, and find
or retrieve information from databases –

At present, Internet the fastest growing medium in history,

offers incredible opportunities for a wide range of people in both
business and advertising. For advertisers, there is a whole new
world of potential customers.

11. Primary Demand Advertising : The main objective of Primary

demand advertising is to create demand for a new product or
product category. This is necessary in the case of a newly
developed products or the products which are costly in nature. For
33

example, cars, refrigerators, washing machines, watches, etc. Such

advertising is directed towards a class of customers, it is also
described as selective demand advertising. It is heavily utilised
during the introduction stage of product life cycle.

Primary demand is when a potential buyer, or prospect, is

showing interest in a product or service for the first time. Often
times it is because the prospect was never exposed to the
“concept” of the product or service or never really understood it. But
now due to new circumstances she has an apparent need all of a
sudden.

12. Selective Demand Advertising : Selective demand advertising

is done to meet the growing competition mainly in growth stage of
the life cycle of the product. Here, the goal of advertising is to push
the demand of specific product or service. Often, promotion
becomes less informative and more emotional during this phase.
Advertising may begin to stress subtle differences in brands with
emphasis on brand name recall. At this stage, pricing may also be
used as a weapon because products of all the competitors are
almost similar in quality.

Selective demand is when a prospect has a need, has

identified the need, and is ACTIVELY seeking out a solution. In
these cases the prospect will come to you if he feels comfortable in
your company's ability to solve his needs.

When someone has selective demand they are more proactive

in their search for information. They usually give themselves
enough time to compare the quality, value, and offers of different
companies. So while they are calling you they are also likely calling
others as well.

13. Product Advertising : Product Advertising refer to the

advertising of tangible product. It is for the marketing of the product
advertising as a powerful instrument has emerged. A product may
be anything in which a trader deals or trade. A product may be
tangible of intangible. Products like radio, soap, pen cloth etc. are
tangible products and services of professional people like doctors,
lawyers, engineers etc. are intangible products.

The fundamental of any advertising campaign is to establish

the fact that among the substitutes the product advertised is the
best. Thus product is the heart of any advertising programme.
Advertising makes possible for the smooth entry of the new product
in to the market.
34

14. Service Advertising : Service advertising is designed to

operate in the public interest. It is undertaken to seek public welfare
and social development. It is in the nature of non-commercial
institutional advertising. In this type of advertising, the objective is
to put across a message intended to change attitudes or behaviour
and, as a result, benefit the public at large. It is generally used by
government and other organisations to promote public welfare.

We often come across advertisements focusing on the need of

small family norms, functional literacy and environmental sanitation
and so on. The Government of India and many industrial houses
have been sponsoring adverting campaigns pertaining to family
planning programmes, national integration, employment assistance
schemes, cleanliness campaigns, need for vaccinations, anti-dowry
cause, drug addiction, AIDS, wildlife preservation, road safety
measures, adult literacy programmes, etc. Today, most of the
manufactures and businessmen have also started issuing
advertisements in the interest of the public. Advertisements
released by the Indian Railway appealing to the public to take care
of public properties and ads released by Cancer Society of India for
free Cancer check-up, are for socially relevant causes. Many
companies have also taken up public causes such as supporting a
leprosy eradication programme, avoiding pollution, safe driving,
blood donation drive etc., by resorting to public service advertising.
To create awareness of AIDS and its preventions Lintas has
designed TV/film/video campaign.

15. National Advertising: It is generally undertaken by

manufactures of branded goods, for which, advertising messages is
communicated to consumers allover the country. Almost all
possible mass media, including national newspapers, radio and
television network, are employed for national advertising. Product
services, and ideas, which have demand all over the country, are
suitable for national advertising. In India, Indian Airline Hindustan
Lever Ltd., Vicco, Godrej, Bajaj and Kirloskar are a few leading
advertisers at national level. Likewise, detergents, soaps,
toothpastes, cosmetics, scooters, cars, and bicycles, are some of
the products, which are advertised all over the country.

16. Retail Advertising: Retail advertising is the advertising by

retailers who usually sell goods direct to the customers. Retail
advertising has such objectives as : (i) to sell the stock; (ii) to
establish the identify of business; (iii) to attract personal, telephone
or mail order shoppers. Retail advertising is done through window
display, neon signs, posters, leaflets etc. It is usually local in
character. The various advertising approaches of Akbarallys,
Amarsons, and Asiatic Departmental Stores are the examples of
retail advertising.
35

3.4 DIFFERENCE BETWEEN NATIONAL

ADVERTISING AND RETAIL ADVERTISING

National Advertising Retail Advertising

1. It is used in wider market, 1. It is used in wider market.
national advertising follows National advertising follows
uniform message for all the uniform message for all the
consumer. consumers.
2. It is more interested in 2. It is more interested in
establishing long-range establishing long range
favourable attitudes. favourable attitudes.
3. It generally ignores price 3. It generally ignores price
factor. Moreover, prices may factor. Moreover, price may vary
vary from region to region. from region to region.
4. It mainly uses magazines 4. It mainly uses magazines
radio and T.V. radio and T.V.
5. It requires big budget. 5. It requires big budget.
6. It advertises less frequently 6. It advertises less frequently
exception cases of consumer except in cases of consumer
goods which are put to daily use goods which are put to daily use
like soap, tooth paste, etc. like soap, tooth paste, etc.
7. It is more spectacular and 7. It is more spectacular and
more attractive. more attractive.
8. It advertises with emphasis 8. It advertises with emphasis
for every aspect of the product, for every aspect of the product,
company and consumers. company and consumers.
9. It concentrates advertise 9. It concentrates on the entire
keeping in view business country.
objective.
10. The prospective retail 10. There is no such expectation
customers seek advertisements on the part of consumers. As a
of their favourite store. policy of business,
manufacturers advertising
keeping in view business
objective.

3.5 SUMMERY
Different authors have classified advertising in different ways.
Generally the advertising is classified on the following basics 1.
Area Covered, 2. Audience, 3. Media, 4. Functions, 5. Advertising
Stages etc.
36

3.6 QUESTIONS

1. Give broad classification of advertising according to Area

Coverage, Audience, Media and Functions
2. How would you classify different categories of advertising.
3. Write a brief note on (a) Social Advertising (b) Political
Advertising (c) Advocacy Advertising (d) Retail Advertising
4. What is Financial Advertising? What are the essentials for the
success of Financial advertising? Explain the advantages of
Financial advertising,
5. Write short note on (a) Corporate Image Advertising (b) Public
Relations Advertising, (c) Institutional Advertising,
6. What is Internet Advertising? What are the types of Internet
Advertising?
7. What are the advantage and disadvantages of Internet
Advertising.
8. Write short note on (a) Product Advertising (b) Service
Advertising.
9. What is National Advertising and Retail Advertising? How does
National Advertising differ from Retail Advertising.


37

4
ADVERTISING MEDIA

Unit Structure:

4.0 Objectives of the lesson

4.1 Introduction
4.2 Determinants of Advertising Media
4.3 Radio Advertising
4.4 Internet Advertising
4.5 Television Advertising
4.6 Press Advertising
4.7 Film Advertising
4.8 Purchase Point Advertising
4.9 Specialty Advertising
4.10 Video Advertising
4.11 Outdoor or Mural Advertising
4.12 Emerging Media options
4.13 Display or Indoor Publicity
4.14 Summary
4.15 Questions

4.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand:
Determinants of Advertising Media,
Radio Advertising : Advantages and disadvantages, demerits or
limitations of Radio Advertising, FM Radio broadcasting
Internet Advertising : Types, advantages and disadvantages of
Internet Advertising
Television Advertising : Merits and demerits of Television
Advertising
Press Advertising : Merits and demerits of Newspaper
Advertising
Magazine and Journal Advertising : Advantages and
disadvantages
Outdoor or Mural Advertising : Types of Outdoor advertising,
merits and demerits
38

4.1 INTRODUCTION
The most brilliant and original advertising ideas will be wasted
if they are not presented through the right media in the right place
at the right time to the right people. Hence the selection of right
media is an important for achieving the objectives of advertising.
However, before explaining the factors which should be kept in
mind for selecting the right advertising media, it is essential that we
must know the meaning of advertising media. An advertising media
is a means or vehicle of delivering a definite message. It is a means
through which an advertising message or information is passed on
to the prospective customers, readers, viewers, listeners or
passers-by. For instance, a producer seeks through advertisement
media to keep in touch with old customers as well as to attract new
customers. Medias are subject to intensive buying and selling
activity. Examples of media are newspapers, magazines, radio,
television, direct mail, posters, film, catalogues etc.

4.2 DETERMINANTS OF ADVERTISING MEDIA

Selection of a right type of advertising media is a difficult task.

Any media that is selected must be capable of accomplishing at
least the three main objectives :
1. It must reach the largest number of people possible.
2. It must attract their attention.
3. It must be economical.

But in practice there is hardly any single media that satisfies

the above three objectives. There are number of advertising media
choices available to the company in India. However, the real
managerial task is to identify from among them the one (s) which is
relevant for the company. For this purpose the management should
consider the following factors:

1. The Nature of the Product : The nature of the product

determines the choice of the advertising media. For instance,
cinema, television, colour periodicals would be the obvious choice
for products like fabrics and toilets requiring visual presentation. In
this connection, management should develop a product-media
match.

2. Market Requirements : While selecting advertising media, the

company‟s market requirements should be considered. When they
meet these requirements, they lend themselves to good use. For
example, specialised high fashion colour magazines would be the
proper media for consumers with high income groups and
sophisticated tastes. Similarly, outdoor media would be appropriate
when consumer action is to be induced at the point of purchase.
39

3. Advertising Objectives : The advertising objectives also

determine the type of media to be selected. For example, the press
is preferred to project corporate image while radio and television is
relevant for product advertising.

4. Distribution Strategy : The advertising media should be

compatible with the distribution strategy adopted by the company.
For example, if the company is selling through middlemen-
wholesalers and retailers etc., then outdoor advertising media duly
supported by television, radio and cinema etc. may help to pull the
product out of channel.

5. Nature of the Message and Appeals : The nature of advertising

message appeal also determines the advertising media for a
company. The media should be able to carry the message and
appeal to the right persons in the perspective. For example, if time
is the essence of communication, daily newspaper and radio may
be the best choice. Mass consumption items like soaps,
toothpastes, hair oil etc. may determine television, newspapers as
the best selection.

6. Budget : The budget available for advertising purpose will

decide the choice of media of advertising. For example, a
manufacturer having comparatively large funds for advertising may
choose television or radio or both as a media of advertising. On the
other hand a medium or small sized businessman may prefer
newspaper and magazine as an advertising media.

7. Competitors Choices : A company should also take into

account the wisdom of competitors media choices despite
differences in advertising objectives and appropriations. It is not
desirable to outright dismiss their choices. Generally, the
advertising media used by competitors are preferred so as to make
an impressive appeal for the product.

8. Media Circulation : The company should take into account the

circulation of the advertising media. Media circulation must match
the distribution pattern of the product. This applies to the press
media. Circulation should not be confused with readership.
Circulation means the number of copies sold after deduction of free
copies, returns and other differences between the total number of
printed copies and total number sold at full price. The advertising
media selected should have maximum circulation, such as
Hindustan Times etc.

9. Media Availability : The question of media availability is quite

relevant while considering advertising media alternatives because
not all medias are available to a company at all times whenever
40

required. For instance, in 1973, and 1974, owing to acute newsprint

shortage, space availability in national dailies was a real problem.

10. Penetration : How can we penetrate the market most

thoroughly or how can we reach the greatest number of potential
customers is also an important factor influencing the choice of a
particular advertising media. Shall we reach housewives at the
kitchen-sink by means of television or radio and which is likely to
have the greater impact ? This fact should be considered.

11. Size and Nature of the Business Enterprise : The size and
nature of the business enterprise also play an important part in
making a choice for the advertising media. Different media will suit
to departmental stores, chain stores, small shops, manufacturers
and producers etc. A big business enterprise may make use of
television, radio and newspapers having national network, whereas
a small unit may prefer local newspapers and cinema-slides etc.

Thus the above factors are generally considered while

selecting the advertising media for selling the products.

4.3 RADIO ADVERTISING

Today, radio has emerged as one of our major advertising

media. It provides a very large coverage of audience in urban and
rural areas. Now almost every family has a radio set in our country.
Radio advertising in India was started in 1967 when a commercial
service on „Vividh Bharati‟ was started. Commercial broadcasting is
now undertaken by Delhi, Bombay, Madras, Calcutta, Poona,
Nagpur and Bangalore stations etc. of All-India Radio. Ceylon
Radio Commercial Broadcasting is quite popular throughout the
country. Commercial broadcasting is a major source of income.
Today, radio advertising is extremely popular with both trade and
industry as the demand exceeds the time. Radio advertising may
be described as „word of mouth advertising on a wide scale‟. The
advertiser delivers the message orally and not visually. It makes
appeal to the ear and not to the eye with the effect that the
message is conveyed to the masses whether literate or illiterate.
4.3.1 Advantages or Merits of Radio Advertising
Radio advertising is quite popular in India on account of the
following advantages:

1. It has a wide coverage. Even illiterate people are covered under

this media. It can convey message even to small remote areas.
2. It is quite flexible as it can be used on a national or local level
according to the need.
41

3. It gives message of the advertiser at the door of the prospects

when they are in a respective mood.
4. It easily catches the attention of the people.
5. Today radio advertising is a major source of income.
6. It claims the advantage of memorising value. In this connection,
psychologists say that anything learnt through the ears is not
easily forgotten.
7. Radio advertising affords variety of programmes including
entertainment on account of which the goodwill is developed.
People buy the product advertised by radio because they enjoy
the free show.
8. Radio advertising has human touch unequalled by any other
media.

4.3.2 Disadvantages, Demerits or Limitations of Radio

Advertising

Radio advertising has the following disadvantages, demerits or

limitations :
1. The message given by radio advertising is short-lived.
2. It is costly and is beyond the reach of small and medium sized
advertisers.
3. It only appeals to the sense of hearing and thus does not portray
visually a picture of the package of the product.
4. It is not suitable for all kinds of products, such as industrial goods
which are not needed by the average radio listener. It is useful
only for the goods of common use.
5. Radio advertisements are very brief and thus details cannot be
elaborated.
6. Since there is a multiplicity of advertisements in a very short
time, it is most likely that the listener may forget the name of the
product.
7. There is no possibility of demonstration in case of radio
advertising.
8. It is a selective media of advertising.

FM broadcasting : FM broadcasting is a broadcast technology

pioneered by Edwin Howard Armstrong that uses frequency
modulation (FM) to provide high-fidelity sound over broadcast
radio.

The term "FM band" is effectively shorthand for "frequency band

in which FM is used for broadcasting". This term can upset
42

purists because it conflates a modulation scheme with a range

of frequencies.

Modulation characteristics : Frequency modulation (FM) is a

form of modulation which conveys information over a carrier
wave by varying its frequency (contrast this with amplitude
modulation, in which the amplitude of the carrier is varied while
its frequency remains constant). In analog applications, the
instantaneous frequency of the carrier is directly proportional to
the instantaneous value of the input signal. This form of
modulation is commonly used in the FM broadcast band.

Pre-emphasis and de-emphasis :

Random noise has a triangular spectral distribution in an FM

system, with the effect that noise occurs predominantly at the
highest frequencies within the baseband. This can be offset, to a
limited extent, by boosting the high frequencies before transmission
and reducing them by a corresponding amount in the receiver.
Reducing the high frequencies in the receiver also reduces the
high-frequency noise. These processes of boosting and then
reducing certain frequencies are known as pre-emphasis and de-
emphasis, respectively.

The amount of pre-emphasis that can be applied is limited by

the fact that many forms of contemporary music contain more high-
frequency energy than the musical styles which prevailed at the
birth of FM broadcasting. They cannot be pre-emphasized as much
because it would cause excessive deviation of the FM carrier.
Systems more modern than FM broadcasting tend to use either
programme-dependent variable pre-emphasis; e.g., dbx in the
BTSC TV sound system, or none at all.

4.4 INTERNET ADVERTISING

The Internet facility has developed around for some 30 years. It

actually began in the early 1960 in USA, where the US Department
of Defense saw it as a means of supercomputer communication for
researchers and military facilities across the country. Until it
commercial explosed in 1990s, the Internet remained a relatively
obscure network of linked computers - mostly by academics,
military researchers, and scientists around the world to send and
receive electronic mail, transfer files, and find or retrieve
information from databases –

At present, Internet the fastest growing medium in history,

offers incredible opportunities for a wide range of people in both
43

business and advertising. For advertisers, there is a whole new

world of potential customers.

4.4.1 Type of Internet Advertising :

Ads on the Internet can take a variety by forms. Most
advertising on Internet can be classified as websites, banners,
buttons, sponsorships, interstitials, Meta ads, classified ads, and e-
mail ads.

Websites : Some companies consider their whole website as

an ad. However, a website is more than an ad - it‟s an
alternative location where customers, prospects, shareholders,
investors, and others can come to find out more about the
company, its products and services. Some companies use their
website like an extended brochure to promote their goods and
services. Others treat their website as an online catalog store,
conducting business right on the Net. Still other website act in
information and entertainment provides. Website typically
consist of a home page and an indefinite number of subsequent
pages that users can visit for further information. A web page
refers to a single HTML (hypertext markup language) file, which,
when viewed with a browser, may actually be several screens
long. A large website may have hundreds of these pages of
information. This means the site contains hundreds of different
documents of various lengths (from 1 to 10 or more screen),
each probably covering a different subject.

Banners : The ad banner is the basic form of web advertising.

A banner is a little billboard that spreads across the top or
bottom of the Web page. At present one comes across larger
banner ads that can dominate the screen or even provide
television commercials. When users click their mouse pointer on
the banner, it sends them to the advertiser‟s site or a buffer
page.

Buttons : These are similar to banners. They are small version

of the banner those often look like an icon usually provides a
link to an advertiser‟s home page. Since they take less space
than banner, they are less expensive.

Sponsorships : A form of advertising on the Internet that is

getting popular is the sponsorship of Web pages. Corporations
sponsor entire sections of a publisher‟s Web page or sponsor
single events for a limited period of time, usually calculated in
months. In exchange for sponsorship support, companies are
given extensive recognition on the site. Sometimes an added-
value package is created by integrating the sponsor‟s brand with
44

the publisher‟s content. For instance, a Web page on Olympics

or some other spots can be sponsored by a business firm.

Interstitials : This is a dynamic form of Net advertising. It is a

catch all term for a variety of animated ads that pop up on the
screen while the computer downloads a website that the user
has clicked on. There are now many types of interstitials
including pop-up windows, splash screens, superstitials, etc.

Meta Ads : Used in search engines (such as Yahoo, Google,

etc.), a met ad is an advertisement displayed on the results
page of a search, specific to the searched item. Meta ads are
also referred to as keyword advertising. This method enables an
advertiser to target a specific audience. Advertisers can pay
search engines to display their banners only when relevant
keywords are searched for by a user. For example, if a user
searched for the term “handicrafts and handlooms”, the Meta
ads displayed might be for handicrafts and handlooms items.

Classified Ads : Another growing area for Internet advertisers

in the classified ad websites. Some of these websites offer free
classified advertising opportunities because ad banners of other
advertisers support them. They are similar to newspaper
classified ads. You can search for homes, cars, jobs, toys,
shoes etc.

E-Mail Advertising : Advertisers can send e-mail advertising to

customers who have asked for it. It is similar to direct mail
advertising, and therefore, it is the most effective form of
internet advertising. However, there is too much of span via the
e-mail. Span refers to unsolicited, mass e-mail advertising for
product or service that is sent by an unknown entity to e-mail
addresses.

4.4.2 Advantage of Internet Advertising:

1. Interactive Medium : It allows consumers to directly interact

with an advertiser, thereby establishing future relationships.

2. Enormous Audience : With an audience of about 500 million

people world wide (some estimates put the figure at 1 billion
people), the internet is the only true global medium, providing
information and commercial opportunities that are immediately
accessible around the world.
45

3. Immediate Response : Products and information are available

on demand made by the consumer, thereby, providing instant feed
back for the advertiser.

4. Selective Targeting : Advertisers can reach the right target

audience, especially through the Meta ads.

5. Proximity to Purchase : It may be the greatest advantage of

Internet advertising. Purchasers can be targeted right wither they
are, right at the moment when they are considering of making a
purchase.

6. Affluent Market ; Most of the Internet users belong to middle-

upper class or upper class audience. Therefore, Internet medium
enables to reach the affluent market of the society.

7. Provides In-depth Information : Internet provides in-depth

information about a company and/or products. Commercial
websites provide detailed information about products or services to
the Internet users seeking information.

8. Reaches Business-to-Business Users : The Internet medium

can reach to B2B users when they are still at work, not only
business related information, but also consumer products
advertising while they are working.

4.4.3 Disadvantages of Internet Advertising:

1. Lack Mass-Media Efficiency : Internet is not a mass medium as

the case of radio and television. Therefore, it may never offer mass
media efficiency. Most marketers in developing countries like India,
may find it as too complex, too cluttered or not worth the time and
efforts.

2. Slow Downloads : The downloading of websites is very slow in

many parts of the world, including India. The ads that pop up in
between only irritate the Internet users.

3. Problem of Span : There is too much of Spam via the e-mail.

Therefore, e-mail users do not consider going through even the
responsible ads.

4. Problem of Online Purchases : In India, most consumers

would like to physically inspect the goods before purchases.
Therefore, they may not place orders online. Again, most people do
not believe the internet as a sage place for financial transaction.
46

5. Untested Medium : There is hardly any research to test the

effectiveness of Internet advertising. Therefore, a good number of
markets in India do not give much importance to Internet
advertising.

4.5 TELEVISION ADVERTISING

Television Advertising : It is said that to-day television advertising

is the best selling media ever invented. It has a potential advertising
impact unmatched by any other media. It is a means of bringing
actual demonstration in the homes of the prospects and is therefore
more effective media when compared with radio. That is why the
position of radio advertising has now being gradually taken by
television advertising.

Commercial television advertising was introduced in India on

January 1, 1976 on the pattern of All India Radio. Thus, as an
advertising media, television is of recent origin in India. It is also
known by the name of „Doordarshan‟ in India. Television makes full
use of sight, sound and motion and thereby maximises impact on
audience. On colour TVs, now colour may also be used to add to
the impact. The coverage of television is increasing at a rapid pace
in India. This media is particularly advantageous for those
advertisers whose products require demonstration. Sponsored
programmes have also been started on television in India.

4.5.1 Advantages or Merits of Television Advertising

Television advertising has the following advantages :

1. The main advantage of television advertising is that it combines

the advantages of both radio and cinema. Thus it is a most
powerful audio-visual media.
2. It makes the message more attractive and impressive.
3. It is most advantageous to those advertisers whose products and
service require demonstration.
4. It is a source of major income to Doordarshan.
5. It possesses geographical selectivity. An advertiser can place his
advertisements on selected few stations as per his
requirements.
6. It has a wide coverage. At present television services are
available to more than 80% of India‟s population.
47

4.5.2 Disadvantages or Demerits or Limitations of Television

Advertising
Television Advertising is subject to the following demerits or
limitations :
1. It is very expensive advertising media and would certainly
exclude the small advertisers.
2. Television message is short-lived.
3. The range within which the telecasting reaches the audience is
very limited.
4. In case of India, an average Indian cannot afford television as it
is quite costly.
5. Television advertisements are very brief due to high cost of
advertising on television.
6. Television advertising is a very deliberate media, requiring long
term planning, the gaining of approval from the authority and
also lacking flexibility.

Check Your Progress

1. “The most brilliant and original advertising ideas will be

wasted if they are not presented through media.” Discuss.
2. Explain the following types
a. Website
b. Sponsorship
c. Banners
d. F.M. Broadcasting

4.6 PRESS ADVERTISING

4.6.1 Meaning of Press Advertising

Press advertising is the most popular and effective method of
publicity today. It has become the part of the culture and political
life of people today. Press, also referred to as print, is an
advertising media comprising all those vehicles owned by others
and which can carry the advertising message in print to be read by
target customers. In India, this media is very commonly used by
companies and account for nearly 70 per cent of their total
expenditure on advertising media.

4.6.2 Forms or Types : Press advertising takes the following two

major forms :

1. Newspapers : NP Newspapers are bought largely for their news

values. Newspapers may be national/local daily/weekly. These are
48

a good vehicle to pass on information about new products, current

products and price-off deals. They can be used for local, national
and regional market coverage. In India, there are a number of
newspapers both in English and also in regional languages. Many
newspapers in English and Hindi have nationwide coverage. So a
message given in newspapers may have a better impression on the
minds of the people and it may be more specific, clear, complex
and lengthy. Currently, 1173 daily newspapers and 5280 weekly
newspapers are published in India, out of which the largest number
is accounted for by the Hindi language newspapers followed by
Urdu, Marathi and English newspapers in terms of number, and
English, Hindi, Malayalam, Marathi and Gujarati in terms of
circulation. Among the states, the largest number of newspapers
are published in Uttar Pradesh followed by Maharashtra and
Karnataka. Among the prominent national English language dailies
are the Times of India, Hindustan, Indian Express, Statesman and
Economic Times etc., whereas among the national Hindi language
dailies include Hindustan Times, Navbharat Times, National Dunia
and in Rajasthan - Rajasthan Patrika. However, among the different
language groups, companies in India, both in the state and private
sector, largely use English dailies as their advertising media. Small
enterprises prefer local newspapers as their advertising media. The
newspapers charge on the basis of column centimetre space used
by the advertiser. They also charge premium for special positions
and provide concession for space booking on contract. However,
these rates vary from newspaper to newspaper as per their circular
and coverage.

Advantages or Merits of Newspaper Advertising Media :

The advantages of merits of newspaper advertising media may
be summed up as under :
1. Their coverage is high as they reach every nook and corner in a
very short time.
2. They offer a lot of flexibility. According to the convenience and
necessity of the advertiser, the shape, size and appeal may be
frequently changed to suit the need of the advertiser.
3. High frequency enables speedy preparation and publication of
advertisement.
4. It is the cheapest media of advertising as far as its cost per
reader is concerned.
5. The daily newspaper have strong repetitive value as it offers an
opportunity to the advertiser to repeat is message at a short
interval of only one day.
6. The public response towards newspaper advertising is very
quick.
49

7. By inserting local advertisements (in local newspapers), the

effectiveness of advertising copy could be tested quite easily.
8. By inserting frequent advertisements in the newspapers, their
visual appeals may be created very easily.
9. The reputation of the newspapers is available to the advertisers
and their products also. Leading newspapers provide space to
reputed and reliable concerns only.
10. Newspaper advertising provides geographic selectivity.

Disadvantages or Demerits or Limitations of Newspaper

Advertising Media : The following are the disadvantages or
demerits or limitations of newspaper advertising media :
1. The life of a newspaper is very short, i.e., only for the day. It is
said, “Nothing is alive as today‟s newspaper” and “Nothing is
dead as yesterday‟s newspaper.”
2. There is waste of circulation. The advertisement is carried even
to those places where there is no market existing nor the
possibility of creating a new market in the near future.
3. If the customers are limited in numbers, advertising in
newspapers may be ineffective and costly too.
4. Visual effects may not be created in practice as the newspapers
are generally printed on cheap newsprint.
5. There is lack of uniformity in advertising requirements. Lack of
uniformity of publishers‟ requirements with respect to rates, size,
type of copy and so on.
6. Newspaper advertising is less popular in undeveloped countries
where the masses are illiterate ignorant and poor.

2. Magazines and Journals: Another media under press

advertising media is magazines and journals. They offer selective
circulation throughout the country at a cost within reasonable
budget limits. These are published periodically at regular intervals,
i.e., weekly, fortnightly, monthly, quarterly or annually. Magazines
and Journals are read at leisure and with care when the reader is
mentally prepared to receive the advertisements. It has a long
effective life. From the advertiser‟s point of view, magazines may
be classified under five groups : (i) Special Interest Magazines; (ii)
Trade Magazines; (iii) Technical Magazines; (iv) Professional
Magazines; and (v) Regional Magazines.

Advantages or Merits of Magazines and Journals : The

following are the advantages of magazines and journals as an
advertising media :
50

1. The life of magazine is considerably longer than that of

newspapers. These are kept ready for weeks and months.
2. Better reproduction of advertisement than newspapers is
provided.
3. Magazines are highly selective in nature and waste of circulation
is avoided.
4. Magazine advertising create prestige, reputation and an image of
quality.
5. The number of readers per copy in case of magazine advertising
is quite high. There is multiplicity of readership.
6. Magazines are ideals for introduction new ideas.
7. Magazine readership is usually a leisurely home readership for
enjoyment relaxation, and „with guards down‟.
8. The printing, paper, colour combination is more attractive in case
of magazine advertising than newspaper advertising.
9. Magazines reach specialised groups conveniently and
effectively.
10. The cost of utilising magazines for advertising is quite low.

Disadvantages or Demerits or Limitations of Magazine and

Journal Advertising :
As compared to newspaper advertising, the magazine and
journal advertising have the following disadvantages, demerits or
limitations :
1. The chief demerit of magazine advertising is its low flexibility.
2. Preparation costs for magazine copy are usually rather high and
sometimes exceed the cost of the space used in trade
magazines.
3. The circulation is limited as compared to newspaper advertising.
4. It takes more time in printing etc. than newspaper advertising.
5. The size of magazines differs widely and hence the advertiser
has to prepare the copy of advertisement according to the size
of the magazine and journal.
6. Change in appeal cannot be effective quickly.

4.7 FILM ADVERTISING

4.7.1 Meaning :
Film is an audio-visual medium of communication and offers
wide opportunities to the advertiser to screen commercial films and
slides produced by them. Today cinema is an important and
51

effective media of advertising. Suitable short films may be prepared

to create a lasting impression upon the audience. These may be
presented in the form of a story or a cartoon. Through the merits of
the product are presented to the audience effectively. Such films
may be shown before the start of the feature film or during interval.
At present there are three kinds of films used as media of
advertising :

4.7.2 Kinds of Films :

1. Straight Advertising Films : These are most common now-a-

days. These concentrate on advertising message relating to only
one product of a particular company, such as Hindustan Lever,
Tata Oil Mills (toilet preparations), D.C.M., Gwalior Rayon, Calico
etc. These are of short duration lasting from 3 to 5 minutes.

2. Documentary Films : Documentary films are mainly used for

publicity aspect and in most cases is educative in character. They
are used to show various aspects of an industry as a whole.

3. Sponsored Advertising Films : It is a very good combination of

advertisement and entertainment. Cartoon films come under this
category.

In India, cinema has practically reached in all the parts of the

country. Bombay has become the hub of advertising films and
slides production. With all these, cinema as an advertising media
holds great opportunities particularly, for those companies which
are poised to penetrate the rural market of our country. It is
particularly relevant for advertising consumer-products and farm
inputs.

4.7.3 Advantages or Merits :

1. It has a quite wide coverage.
2. It is able to explain and demonstrate the use of a product quite
conveniently.
3. Appeal is made to all sections of the society.
4. It is never wasted as no advertisement can escape the attention.
5. It is effective and may pay rich dividend to the advertiser.

4.7.4 Disadvantages, Demerits or Limitation :

1. The films are too short and need changes frequently.
2. Production cost of a film is quite high.
52

3. The audience may not like to waste time in seeing such films
repeatedly. They resent to it as they come for entertainment
only.
4. Restrictions are imposed against screening of films, e.g., there is
censoring.
5. For screening films, the cooperation of theatres is a must which
is not easily available.

4.8 PURCHASE POINT ADVERTISING

Purchase point advertising is that advertising which is

undertaken at the premises of the manufacturer or the dealer for
attracting the customers. This is a direct method because the
advertising process is either undertaken by the manufacturer
directly or through the dealer. Under this method, goods are
displayed at the counters, windows or in almirahs. It is observed
that the point of purchase is the exact point where the prospects
are reminded finally about a product. It is considered as a powerful
media now a day.

4.9 SPECIALTY ADVERTISING

Under this media of advertising, manufacturers provide

various articles of low value free of cost to the existing and
prospective customers. The articles constitute calendars, ball-pens,
diaries, cigarette cases, bags and other executive gifts. Such
articles bear the name and address of the advertiser. It is felt that
recipients will do business with the firm in the near future even
though articles are given on no obligation basis. It is also called
Novelty Advertising. These articles are given to targeted customers.

4.10 VIDEO ADVERTISING

It is now considered as the latest media of advertising. Under

this method, video-cassettes ad-films are prepared. Nearly 22
million people around the world watch Indian films on video. India
alone has video-audience of about 30 millions which is increasing
day by day. There are more than 50,000 video-libraries and about 1
lakh video-parlours/clubs in India. The video-cassettes released in
India are also being screened in thousands of luxury buses.
Besides the feature film they contain advertisements which are
displayed at short intervals.
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Check Your Progress

1. “Press Advertising is the most popular and effective method
of publicity today.” Explain.
2. Explain the following terms.
a. Film Advertising
b. Documentary Films
c. Sponsored Advertising Films
d. Purchase Point Advertising
e. Video Advertising

4.11 OUTDOOR OR MURAL ADVERTISING

4.11.1 Meaning of Outdoor or Mural Advertising:

Outdoor or mural advertising is the oldest form of advertising
and remains the most common media even today. It is also called
„wall advertising‟. Outdoor advertising consists of a display of
advertisements out of door which may be in the form of posters,
painted signs, field signs, neon light signs, hoardings and posters
carried by sandwitchmen. This is also referred to as mural
advertising as posters consisting of a picture, are often placed on
walls particularly a large one, printed directly on a wall or large
photograph attached directly to a wall. Small playcards or posters
placed outside or inside carriages such as trams, delivery-vans,
buses, railway carriages etc. also come under this category. The
new form of advertising by using balloons, kites and smoke-writing
in the sky is also a part of outdoor advertising. Outdoor advertising
is not always argumentative but suggestive. The effectiveness of
such advertising materially depends on its positions. Therefore,
outdoor advertisements must be placed in such a way as can be
seen by a large number of prospective customers with ample
attention. The articles suited for such advertising are those which
the masses can buy, such as food products, soaps, medicines,
cigarettes, shoes, clothes and other domestic requirements.

4.11.2 Main Characteristics of Outdoor Advertising

1. It is a widespread popular advertising media which makes the
goods and services of interest to mass appeal.
2. It has a comparatively longer life.
3. It has a high coverage.
4. Most outdoor advertisements are big and dominant so it is a very
powerful eye-catching media.
5. It is a very flexible advertising media so that the advertiser can
retain sites where he needs them most.
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6. It is the oldest advertising media.

7. It also consists of suitable and popular slogans which can be
easily remembered by the prospects.

4.11.3 Types, Forms or Kinds of Outdoor Advertising

Outdoor advertising may take any of the following forms :

1. Posters : This is the most common and popular form of outdoor

advertising. These are exhibited on a hoarding or on walls, roofs,
fences, chimneys etc. A really commanding effect can be produced
by posters which cost less than any other advertising media.
Design is the basis of all poster-advertising. These mostly contain
pictures. Advertising for a movie is done in this way. Even where no
pictures are used, the proper arrangement of lettering is important.
The posters should be simple, attractive and capable of telling its
story at a glance. Posters also give considerable scope for the use
of suitable and attractive colours. Humour can also be used with
advantage in poster-advertising.

2. Advertising Board : These are also posters which are kept at

certain fixed places especially at points where people frequently
assemble, such as bus stops, railways, crossings etc. Generally
these advertising boards are made of metallic sheet enclosed in a
wooden frame and fixed with a panel having specified height at
main junctions. These are fixed and well set with flood-lights.

3. Vehicle Advertising : It refers to moving advertisement. It

consists of placing posters or playcards inside or outside vehicles
such as trams, buses, taxies, delivery-vans, railway carriages etc.
The main advantage of this system is the small space available for
such posters. These posters are fairly sighted by the eyes and can
be easily read. This method is a very common media and is
considered to be very effective.

4. Electric Displays and Signs : Signs illuminated by electricity

are today to be seen in large number in cities. This is the most
modern and the most attractive form of outdoor display. It may
consist of wooden letters studded with bulbs. Sometimes with a
view to attract the attention, coloured bulbs are used and the
colours are changed at short intervals. Another device used to
attract attention is to turn on the light on each letter at a time to give
the impression of the sign being written by an invisible hand.

5. Neon Signs : There are brilliantly coloured tubes available in

various shades. These can be of the still or the flashing type. These
signs are more attractive and interesting than the signs built up by a
number of electric bulbs.
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6. Sky Advertising (Sky Writing) : Sky advertising is another

modern form of outdoor advertising. In this form of advertising
media an aeroplane writes the name of the product or the producer
in the sky. It is also known as „smoke writing‟ because the message
is written in the sky by means of smoke. Large sized printed
balloons are also dropped from the aeroplane in the sky. Usually,
near the circus-tents, a large sized balloon is floated on which the
name of the circus is written.

7. Sandwitchmen : They are hired persons and properly dressed

who walk in the streets in a procession with boards, posters and
notices placed about them. The idea is to attract the attention of the
public. The cinema-theatres usually arrange this kind of advertising
media when a new picture is released.

8. Stickers : It is also an important form of outdoor advertising. In

this case, the advertiser enters in a contract with the popular
players that whatever they will wear or use during the match will
bear the sticker of the advertiser.

9. Puppet Shows : This is purely an Indian outdoor advertising

media which provided entertainment while conveying a message.
Now-a-days it is used widely in the family planning campaign in
India mostly in villages. One such show tells how a rich man of the
village who has large family, rejects the family planning campaign.
But his wife has twins and there are complications. He calls in the
midwife who tells him that his wife will not survive more births. He
accepts the family planning advice and so becomes the innovator in
his village.

The above are the most common forms of the outdoor

advertising. However, there ay be other forms of this type of
advertising.

4.11.4 Advantages or Merits of Outdoor Advertising Media

1. It has a wide coverage.
2. It is capable of gaining more attention of the public.
3. Outdoor advertising is more useful for local dealers. Its results
can be more readily secured by using this form of advertising.
4. In big cities and high traffic areas, outdoor advertising is the
most effective form of advertising.
5. Outdoor advertising is more flexible.
6. It offers greater selectivity because it can be used locally,
regionally or even nationally.
7. It can be easily remembered.
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8. It is quite economical.
9. It has comparatively long life.
10. It is a very good media to stress brand names and package
identity.

4.11.5 Disadvantages or Demerits or Limitations of Outdoor

Advertising Media

The outdoor advertising media possess the following

disadvantages, demerits or limitations and thus is subject to
criticism :

1. It is subject to adverse reaction of the public on the ground that

the walls of the houses are used for writing outdoor advertisement
even without the permission of the owner of the house.

2. The message written under this type of advertising is too brief.

3. The exact effect created on prospects is difficult to measure.

4. The language used in writing on the wall advertising is usually

defective and sometimes immoral too. It has an adverse effect on
the public.

4.12 EMERGING MEDIA OPTIONS

4.12.1 Meaning
There are several Media Options which have emerged due
to increased popularity of advertising. Advertising through cell
phones and marketing through social sites are some of the
Emerging Media Options.

4.12.2 Alternative Media Options

We shall discuss the following Alternative Media Options

Car Cards : Car cards are small size thick papers or posters
placed inside the vehicles like the buses or railway trains. They
are also posted on the window screens or the side glasses of
motor cars. The main purpose is to remind the travelers about
the product. However, it is possible that many travelers may not
look at the cards while travelling.

Traveling Displays : These car cards are posted outside the

vehicles or local trains. Their purpose is to attract the attention
outside public or of those who are standing on railway platforms.
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Sandwich Boards or Tall Man Advertising: Sandwich boards

advertisement is carried by a man with two posters hung on his
two sides. The man is known as a sandwich man as he is
sandwich between two boards. He moves form one street to
another and attracts the attention of the passerby. To add the
unusual site, sometimes, a tall man carrying the boards walks
with the support of long sticks and with funny mask and clothes
and attracts the passerby.

Sky Writing or Sky Balloons :

In this type, a painted balloon or a plastic sheet having
advertisement message may be attached to the tail of the flying
aeroplane. This being very unusual thing. People are attracted
towards it.

Advantages :
1. It acts as a supporting or supplementary to press media
effectively.
2. It is constantly reminding prospects of the products.
3. It is colourful and has a pleasing appearance. So, prospects
welcome this form of publicity.
4. It has a wide appeal. At attracts all human population of literates
and literates and illiterates.
5. This media is more permanent compared to newspapers, films,
magazines etc.
6. It provides scope for talents, skill and art.

Disadvantages :
1. It is difficult in measuring response as it appeals to the general
public and not in particular.
2. Selection of wrong sight, wrong materials, wrong methods etc.
wastages may arise. Also, due to damages to the posters,
hoarding etc. wastages are created.
3. This media can be used only as a supporting media to the others
like T.V. Radio etc.
4. It is alleged that the posters, hoardings, neon signs etc. spoil the
natural beauty of the places.

4.13 DISPLAY OR INDOOR PUBLICITY

To display the goods means to show the goods to the people in

order to induce them to enter the shop to buy them. It is a device by
which customers and people are attracted to the shop.
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4.13.1 Importance of Display :

1. It is only the part of publicity which allows the people to
touch the products, to handle them or to actually see them. It is
more realistic in salesmanship.

2. Another importance of display is that display is an important

dealer aid. The display technique helps the dealers to conduct an
effective publicity.

3. The third importance factor that has given importance to

display is that, it attracts the attention of the prospects and makes
the people walk into the shops.

4. Lastly Display is importance to its effects not only on

prospects but also on suspects. It makes the message directly to
the prospects through their eyes.

4.13.2 Different Forms of Displays :

(a) Window Display : If refers to showing of goods in the

window of the shop. Window of a shop means a part of the front
portion of the shop which can be seen from outside. Windows are
meant for outsiders to keep in. Window display technique is used
by retailers or small businessman because they can‟t afford to
spend on other Medias. Window display is used for all types of
consumer goods. It makes people eager to know and see the
products.

Following are the rules for the shopkeepers while

displaying the goods in windows:

1. Normally, the windows of rectangular shapes are selected and

not the vertical one‟s because they provides for adequate space
and easy movement of vision.

2. The items should be arranged horizontally and not vertically

because this allows easy gaze movement. The background of
window should be attractive and pleasant.

3. The windows should not be over-crowded with items because it

strains the eyes of the viewers.

4. The position of the items displayed should be changed from time

to time to create variety.

5. Proper lighting and illumination of the window should be done so

that they focus on the special features of the product.
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6. The display technique should not violate the basic rules of

decent approach. There should not be overcrowding of expensive
good in too fashionable setting otherwise, the respects would be
frightened and the result would be negative.

(b) Interior Decoration : It refers to the various designs and

equipments used by a retailer inside his shop. Showcases,
counters, lighting arrangement, ventilation etc. It creates a pleasant
atmosphere for the prospects and increases their comforts.
Effective interior decoration does not require lot of space but it
makes appropriate use of the available space to provide for easy
movement and get up.

(c) Counter Display: It refers to arranging the products located

within the shop. Counter display helps the customer to know about
all the items which are available in the shop. Such a facility is not
available in window display because all the items cannot be
presented in the window.

A good salesman must see that he should not show any goods
which may go against the window display. Secondly, counter
display must bring out as many varieties as are related to the
particular type displayed at the window. Thirdly, the salesman must
see that goods are not placed one upon the other.

(d) Showcases : In this type, the items are presented in a

cupboard with glass front of cabinets with glass front. These are
similar to window display in the sense that, the showcases should
be rectangular, items should be placed horizontally. In showcases,
items of similar nature and even size should be grouped together
so that, the customer knows the varieties of the same type
available. The showcases should contain all the items available in
the shops.

(e) Showrooms : A showroom is used by many producers or

dealers not only to expose goods for sale but also demonstrate the
uses and the working of the articles. It is meant for presentation of
technical products, sophisticated goods etc. which require lot of
explanation before buying the products.

Showrooms have technically qualified persons to assist the

customers when they visit the showrooms and also advice and
guide them to understand the goods better.

(f) Exhibitions : The trade exhibitions are meant for

introducing new products or latest innovations in the fields of
business. They are organised by Trade Associations of Chamber of
Commerce. The main idea behind exhibitions is that various
60

traders, manufacturers etc. can be induced to visit and get

information about the products displayed.

In exhibition there is only presentation of the products and no

sale takes place. For this purpose, the stalls are decorated and the
items are presented in an attractive manner. Exhibitions have mass
approach because many people visit them.

(g) Trade Fairs : Trade fair is similar to exhibition except that in

the trade fair not only the items are exhibited but are also sold.
Besides, entertainment items are staged to attract hundreds of
people. Thus, there is business and fun in the trade fairs.

4.14 SUMMARY

Selection of right media is important for achieving the

objectives of advertising. Selection of right type of advertising
media depends on the factors like the nature of production, market
requirement, advertising objectives, distribution strategy, budget,
competitors‟ choice, media availability etc.

There are a number of advertising media choices available

in India like Radio, FM Radio broadcasting, Internet, Television,
Press, Magazine and Journals, Mural advertising act. But not any
single media can satisfies all the objectives of the company.

4.15 QUESTIONS
1. What is Advertising Media? Explain the main factors to be kept
in mind while selecting advertising media.
2. What is Advertising Media? Explain the determinates of
advertising media.
3. What do you understand by Radio Advertising? Explain its
merits and demerits of Radio Advertising.
4. Radio Publicity has become a „must‟ of the Modern Business”.
Comment.
5. What is FM broadcasting? Explain modulation characteristics of
FM Radio broadcast
6. What is Internet Advertising? What are the types of Internet
Advertising?
7. What are the advantage and disadvatanges of Internet
Advertising.
8. Television Publicity has become a must of the Modern
Advertising.” Comment.
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9. What is Television Advertising? Give its Merits and Demerits.

10. What is Press Advertising? What are its Forms? Describe the
Advantages and Disadvantages of each.
11. What is Mean by Press Advertising Media? Discuss the Various
Forms of Press Advertising. Explain the Merits and Demerits of
each
12. Write notes on : (a) Film Advertising (b) Point of Purchase
Advertising (c) Speciality Advertising (d) Video Advertising
13. What do you understand by Outdoor Advertising Media? What
are its Forms? Explain its Merits and Demerits
14. What do you Mean by Mural Advertising? Discuss its Merits and
Demerits.
15. What is Meant by Outdoor Advertising? What are its Main
Characteristics? Discuss its Advantages and Disadvantages.
16. What are different forms of Displays?


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5
MEDIA PLANNING

Unit Structure :

5.0 Objectives of the lesion

5.1 Introduction
5.2 Steps in Media Planning
5.3 Media Vehicle choice
5.4 Significance of Reach Frequency and Continuity in media
planning
5.5 Zipping and Zapping
5.6 Summary
5.7 Questions

5.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand :

Media Planning : Process involved in Media planning

Major Media types - Media-Vehicle, Media Vehicle Choices
Significance of (a) Reach (b) Frequency and (c) Continuity in
media planning
Objectives of Greater Frequency : Media Mix
Zipping and Zapping

5.1 INTRODUCTION

Media planning is an exercise to find the best medium or

combination of media that will produce the best overall effect
relative to the needs of the advertised brand. Media planning in
general should involve optimum benefits in the long run. The media
mix, in terms of balance of usage for TV, radio and print media or
other types of media vehicles, should be such that the best utility of
the advertising budget is obtained, and duplication of audience is
avoided as far as possible.
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There is no single best media strategy that is applicable in

varied situations or sometimes even in similar situations. Media
strategies also differ because of changing situations. For example,
the state of the economy changes just as consumers‟ tastes
change. Advertisements for luxurious cars would therefore not be
effective during times of economic depression. Similarly,
advertisements about blue jeans, when jeans are not in fashion,
would not have much impact.

To select the right media and to search the right target

audience for a desired response the advertiser or his advertising
agency should go for a systematic media planning.

5.2 STEPS IN MEDIA PLANNING

The following are the steps in media planning:

1. Decide Target Market : It is necessary to decide specific

market where planned efforts can be directed.

2. Media Objectives : Media objectives are often stated in

term of reach, frequency, gross rating points and continuity.

(a) Reach : It refers to the number of different persons or

household exposed to a particular media schedule at least once
during a specific time period.

(b) Frequency : It refers to the number of times within the specified

time period that an average person or household is exposed to
message.

(c) Gross Ratings Points : It refers to the total weight of a media

effort in quantitative terms. GRP‟s are equal to each multiplied by
average frequencies. E.g. 80% of the homes watch Chitrahar and
they are exposed on average 2.5 times within the 4 week period.
The total impact or GRP‟s = 80 × 2.5=200.

(d) Continuity : It refers to the timing of the media insertions.

3. Selection of Media Types :

Every media plan requires that specific media types to be
selected. There are a number of advertising media available to the
advertiser for advertising the goods etc. These may be grouped
under the following heads:
1. Press Advertising Media - (a) Newspapers and (b) Magazines
and Journals.
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2. Outdoor or Mural Advertising Media - (i) Posters, (ii) Advertising

Boards, (iii) Sandwich Boards, (iv) Electric Display, (v) Vehicular,
(vi) Sticker, and (vii) Sky Writing.

3. Direct Mail Advertising Media - (i) Circulars, (ii) Price-lists, (iii)

Booklets, (iv) Leaflets, and Folders, (v) Business Reply Envelops
and Cards, (vi) Gift Novelties, and (vii) Personal Letters.

4. Broadcast Advertising Media - (a) Radio, (b) Television

5. Promotional Advertising Media - (i) Window Display, (ii) Show-
Room, (iii) Exhibitions and Fairs, (iv) Interior Display, (v) Trade
Shows, (vi) Samples, Coupons and Premiums etc.

6. Miscellaneous Advertising Media - (a) Cinema and Cinema

Slides, (b) Speciality Advertising, (c) Purchase Point Advertising,
and (d) Video Advertising etc.

4. Selecting Specific Media Vehicle : Once a decision is

made on media types, specific media vehicles within each medium
must be chosen.

Media Mix: Once the media selection is decided upon, the next
step is to determine the mix of the media one must use. This will be
arrived at by considering the advertising company‟s marketing
objectives, its target market, media characteristics, and its matching
with the target market. The overall advertising budget also
influences the nature of such mix, in addition to the available
audience. For example, to achieve certain advertising objectives,
one may require to use a mix of 50% newspaper, 25% magazine
and the rest 25% television. However, more than one mix may fulfill
the advertising objectives, and yet be within the overall budget cost.
But one should aim at balanced mix.

Some advertisers prefer to concentrate on one media type mix

whereas others like to have a widely varied mix. While the former
offers the advertiser an opportunity to make a great impact on a
specific market segment, the latter, being an assortment of media,
can deliver different messages about the same product in different
market segments more effectively.

Media Buying : The specialist who is the counter part of the media
sales representative is the media buyer. Most of these specialists
work for advertising agencies, although some are retained by
advertisers and some work for firms of media specialists who offer
media buying services to both advertising agencies and
advertisers. Media buying service is likely to be more personal and
direct.
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The media buying specialist helps to decide what media should

be used for a product, purchases the media, and controls and
evaluates the performance of the media purchased.

There is growth of Media Buying Units (MBUs) throughout the

world. Advertising Agencies merge and form a group and then set
up an independent MBU to buy advertising space. The MBU
benefits not only the advertising agencies, and the advertisers
because of cost-effective rates, but also the media sellers. The
media sellers can negotiate for rates, with one media buying unit on
behalf of a group of ad agencies.

5. Allocation of Funds : The planner should than decide on the

amount of funds that would be allocated to each media type and
vehicle.

6. Media Scheduling : Media scheduling could be used

depending upon the requirements of the advertisers.

5.3 MEDIA-VEHICLE CHOICE

After indemnifying the various advertising medias, as

available for a company, the subsequent managerial task is to
evaluate each media vehicle against certain criterion and then only
to decide which of the particular vehicles are suitable for him. For
such a decision, he has to evaluate the available media vehicles
against certain criterion. The major vehicle evaluation criterion are
as follows :

1. Coverage : It is the most important and powerful criterion for

evaluating vehicle media. Coverage refers to the number and
spread message outlets provided by the media vehicle. When the
media vehicle provides large coverage, the changes of message
exposure to customers is also greater. Thus a media vehicle
providing larger coverage should be more acceptable. For example,
in case of a newspaper, the coverage refers to the circulation of
that particular newspaper. But this is not enough. We must also
consider other criteria which are as follows.

2. Consumer Confidence : It is also an important criteria for

evaluating the selection of a vehicle media. Consumer confidence
refers to the credibility of media in the mind of target customers. It
is a relevant criterion for evaluating a media vehicle since the
credibility of advertising message is positively related to the media
vehicle‟s credibility. For example, a recent study in India revealed
that newspapers and magazines are considered to be the most
credible of all media, scoring high on usefulness and information.
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3. Reach : Reach as an evaluation criterion refers to the vehicle‟s

access to different homes or individuals over a given period of time.
In case of press media, it is indicated by readership which is arrived
at by multiplying circulation of the paper with the average number of
readers per copy.

4. Cost : Cost is also an important criterion against which each

media vehicle choice should be evaluated. Cost refers to the
money spent on using a particular vehicle media. In order to make
a decision, it is suggested that the advertiser should make out an
inter-vehicle cost comparison.

5. Timing : The last but also equally important criterion for

evaluating vehicle media choice is the timing of advertisement. The
reasons for the importance of the decision may be two-fold - (i)
Seasonalability of product sales, and (ii) staggered effects of
advertising. The advertiser should, after considering these two
elements, decide on the scheduling of advertisements to improve
the effectiveness.

5.4 SIGNIFICANCE OF REACH, FREQUENCY AND

CONTINUITY IN MEDIA PLANNING

Media planning means devising a programme in such a

manner as to optimally use the advertising space, the broadcast
time, or other advertising media, in exposing an advertiser‟s
message to potential consumers. There are basically three
concepts that are generally incorporated in most planning
processes:

(a) Reach : Advertisers are mainly interested in the percentage of

the total market that they can reach their messages through the
media in a given area of coverage. Reach refers to the total
number of households that will be exposed to a message through a
particular media vehicle over a set period of time. This period of
time may very from advertiser to advertiser, but generally, four
weeks is considered adequate for calculation purposes. Reach is
usually expressed as a percentage of the total number of
households in a prescribed area that have been exposed to the
advertising message. For example, if there are a total number of
1000 households and 200 of these have been exposed to the
message then the reach is calculated to be one-fifth or 20 per cent.

Objectives of Greater Reach : The purpose of reach is optimal

exposure. The idea behind the strategy for greater reach is that the
advertisement be received by as many people as possible in the
first instance. A strategy for greater reach would be desirable under
the following circumstances :
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1. When a new product is introduced the idea is to initially expose

the product to as wide an audience as possible, irrespective of
whether they immediately remember the product or not.

2. When introducing a new use for the product in order to expand

its share of the market. If a product is already known but a new
aspect of the product needs to be advertised, then greater reach is
desirable. For example, if a well established brand of toothpaste
adds mouthwash ingredients to it, it would call for greater reach so
as to inform a wide audience about this additional feature.

3. When seeking to increase the recognition of the company

through a campaign or to promote the image of the company. For
example, the advertising campaigns for Godrej made the name of
the Godrej Company, a household name for quality and variety of
product.

4. When the creative message is so dramatic that most people will

react to it and retain the message after only the first exposure. For
example, when a famous film star is promoting a product or when
the message is unique, eye-catching, attention getter, then reach
becomes more important than the frequency.

(b) Frequency : Frequency is the average number of times in a

give period that each person has been exposed among the target
audience by the brand‟s advertising. If the message reaches the
audience by the brand‟s advertising. If the message reaches the
audience just once, is it enough to influence their buying or should
they be exposed to the message more than once in order to
reinforce the message? If so, then how many times should a
household be exposed to the same message? Thus, frequency
refers to the number of exposures to the same message that each
household supposedly receives. Since the frequency may differ for
different sets of households, an average frequency is calculated by
the following formula :

Average frequency = Total exposures for all households

Reach

If the total number of exposures is 400 and the reach is 50 then

the average frequency is 8. This means that the average household
is exposed to the same message eight times.

Objectives of Greater Frequency: Frequency primarily means

repetition of the same message and the objective of greater
frequency is to promote interest and desire for the product on a
continuous basis instead of a simple awareness. Even though
frequency is achieved at the expense of reach, it is advisable to go
for frequency under the following situations:
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1. When the competitor is using high frequency to reach the same

segment of the market. For example, in the case of soap and
detergent commercials, a competitor has a distinctive edge, if he
continuously reinforces the quality and utility of his product in the
customers minds by repeated advertisements. This offensive can
only be countered by frequency of advertising rather than reach.

2. When a reaction is desired within a limited time period. For

example, a sale on for just one week would necessitate advertising
the same message on the radio or TV repeatedly or in daily
newspapers everyday. Continuous repetition of a message that
includes the warning „sale ends on Friday‟, provides a sense of
urgency. Similarly, the message accompanied by „first come, first
served‟ would excite more immediate sales for a given product.

3. When the message is not easy to remember, for example, if the

advertising message consists of prolonged explanation of the
product‟s features, then the audience should be exposed to the
message a number of times so that people become aware of all
aspects of the product.

4. If the product or brand is not sufficiently differentiated from

products and brands of competitor. For example, a distinctive brand
of Maruti of Premier can does not necessarily require greater
frequency. But a specific brand of soap or toothpaste that does not
have any distinguishing characteristics does require greater
frequency.

(c) Continuity : The message should be relayed continuously

to the potential households. A long period of abstinence from
advertising (that is, lack of exposure) will jeopardize the
advertisement investment of the firm. It is necessary to have a
continuous programme of advertising. When customers continue to
hear about the product and the company at the time of „need.‟
Continuity has a cumulative effect of advertising on the customer.
Continuity refers the length of time the advertisement runs, or
whether it is periodic.

Check Your Progress

1. “Media planning is an exercise to find the best medium to
produce the overall effect related to the advertised brand.”
Discuss.
2. Explain the following vehicle evaluation criterion:
a. Coverage
b. Reach
c. Timing
69

3. Define the following terms:

a. Media Buying
b. Media mix
c. Continuity
d. Reach
e. Frequency

5.5 ZIPPING AND ZAPPING

5.5.1 Meaning :

We can trace the concept of zipping and zapping to the era of

VCRs and remote controls, each of these devices brought a
change not only in the TV viewing habit but also led to a
proliferation in the number of TV channels. When VCRs launched
they also introduced time shifting viewing pattern and the remote
control helped evolve TV viewing beyond a family setting. By the
1960s TV sets were cheap enough to afford more than one per
household and with that it also brought about the beginning of
different channels that catered to more varied taste. The remote
control made it easier for the viewers to zap through commercials
i.e. viewers could now change channels during the commercials
thereby avoiding ads. Some experts argue, ad avoidance was in
existence even before the remote, people would leave the room
during the commercial break.

DVRs also cause similar concerns, how attentive are the

viewers to the ads, if at all? But time shifting helps find new
audiences as well, people who otherwise would have missed the
show. VCRs gave viewers more control, and so do DVRs that have
helped viewers watch more of programming they like, i.e. they are
therefore more likely to be engaged hence more willing to pay
attention. However, we are still not addressing the problem of ad
avoidance behavior.

5.5.2 Could Game play Combat TV Ad Zapping and Zipping

Game play during commercials may be an effective way to get
more people to pay attention to sponsored ads on broadcast
television. Interestingly, it is very rare to see any type of contest or
game-like promotion to reward people for watching commercials,
even though that behavior is highly desirable to broadcast
advertisers.

Can game play be used as incentives for attentive T.V..

commercial viewing? Could games help television advertisers
cultivate the interactive engagement and motivation that lead to
direct response after ads are viewed?
70

Are commercial games rare because games were not effective

in this role in the past? Or is it because so many marketers assume
any type of game has to involve an expensive prize or legal
consultation to make sure the promotion is on the right side of
gambling and lottery laws?

What types of games would be compelling during live

broadcast commercial breaks? What issues would need to be
addressed to prevent people who did not watch the commercial
from simply scraping the commercial contents from a web resource
after the actual broadcast?

5.5.3 Zapping and Zipping Commercials into Extinction :

Since the development of the home VCR, advertisers have

been concerned with zipping-fast forwarding through commercials
during recordings of sponsored television programs. Newer
technologies have only increased advertiser paranoia that
television viewers are prerecording shows and then skipping the
commercial breaks. A similar concern was raised with the advent of
remote controls which let users change the channel during
commercial breaks with very little physical effort (zapping).

When advertisers complained, the television networks

produced studies that showed viewers were already avoiding
annoying or boring commercials by leaving the room or otherwise
diverting attention during commercial breaks regardless of the
remote control or recording devices. The general result was that big
brands had to make more interesting commercials or utilize product
placement and other clever ways to integrate ad messaging into
television programs.

More Watchable Commercials = More Expensive Commercials

Commercial production values are often very good. Feature-
film quality t.v. commercials are not uncommon today and some
commercials are enjoyable enough that they can function as short-
form programming (these top-shelf commercials tend to go viral
online too). Many commercials have been episodic or featured
some type of comedy skit to keep viewers from zapping or zipping
away.

5.6 SUMMARY

There are a number of advertising media available to the

advertiser for advertising the products. But not a single media can
satisfies all the needs of various time periods.
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Media planning means devising a programme in such a

manner as to optimally use the advertising space, the broadcast
time, or other advertising media, in exposing an advertiser‟s
message to potential consumers. Systematic media planning is the
responsibility of advertiser or the advertising agency. It is a proper
process which includes the steps like deciding target market and
media objectives, selecting specific media vehicle, allocating funds
etc.

5.7 QUESTIONS

1. What is Media Planning? Explain the process involved in Media

planning
2. What are the steps in Media Planning
3. What are the Major Media Types? Explain in brief.
4. What can be the Possible Media of Business Advertisement?
Explain each in Brief.
5. While Making Media-Vehicle Choice (s) Coverage is but an
Inadequate Decision-Input. Do you agree? What other Decision
Inputs are required for Making Media Vehicle Choices?
6. What is the significance of (a) Reach, (b) Frequency and (c)
Continuity in media planning?
7. What are the objectives of Greater Frequency
8. Write short note on : (a) Media Mix (b) Zipping and Zapping


72

6
MEDIA RESEARCH

Unit Structure:

6.0 Objectives of the lesion

6.1 Introduction
6.2 Role of Media Research
6.3 Audit Bureau of Circulation (ABC)
6.4 Television Rating Points (TRPS)
6.5 National Readership Survey (NRS)
6.6 Media Survey
6.7 Summery
6.8 Questions

6.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand:

Media Research and its importance

Audit Bureau of Circulation (ABC)
Television Rating Points (TRPS)
National Readership Survey (NRS)
Media Survey
Syndicated Research Services

6.1 INTRODUCTION

„Media Research‟ involves the collection of data about the

various advertising media, surveying consumers on their media
preferences and habits, and carrying out primary and secondary
research on effectiveness of each medium for selling particular
types of products. Few advertising agencies or advertising
departments in India have „media research departments‟; where
these exist; it is the department's responsibility to draw up media
plans and strategies. Most advertising agencies, however, have a
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„media department or media division‟ which carries out the task of

media planning. The majority of agencies depend upon outside
marketing agencies to conduct readership or audience surveys for
them.

Media research is concerned with advertising reach, frequency

and the effectiveness of different media and combination of media
(media-mix) in reaching target audience. Media research attempts
to finds out the most suitable media or media-mix that would suit
the needs of the advertiser.

6.2 ROLE OF MEDIA RESEARCH

The role of media research can be stated as follows :

1. Readers‟ Profile : Media research helps to understand the

profile of the readers, listeners and viewers. Readers‟ profile relates
to the data on the age, income, occupation, buying pattern and
other demographic and socio economic details. Such profile helps
to draft effective ad messages to the target audience.

2. Selection of Media : Proper media research helps to select the

most suitable media mix that would be required by the advertiser
depending upon the type of product, prospects, ad budget etc. The
advertiser will select that media which has maximum readership or
viewership or listenership of the target audience.

3. Booking of Time and Space : Media planning department or

the media operations department can book time and space in the
media depending upon the programmes viewed or articles read by
the target audience.

4. Importance to Media Owners : The media research helps the

media owners to improve their programmes or editorial contents so
as to increase listenership, viewership and readership. It also helps
the media owners to fix charges for their time and space that would
be used by the advertisers. For example, if the research indicate
that the programme has increased the viewership by 50% then the
advertisers will have to increase frequency of advertise.

5. Sponsorship of Programmes : It helps the advertiser to select

a particular programme for sponsorship. The advertiser may elect
the sponsorship of that programme which is mostly viewed or
listened by the target audience.

6. Benefit to Audience : Audience get better editorials and

programmes as the media owners make every effort to improve
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their contents. The media owners try to improve their programmes

or editorials, so as to attract the attention of large number of
readers, listeners, or viewers. This would bring them more
advertising revenue.

7. Benefit to Media Planners : It helps the media planners to

understand the rating from the various programmes on TV
channels and on radio through Television Rating Points (TRP)
reports. Again, it helps them to understand the circulation trends of
newspapers and magazines through Audit Bureau of Circulation
Reports.

8. Benefit to Research Organisations : Media research enables

the research Organisation such as Indian Marketing Research
Bureau (IMRB), the Operations Research Group (ORG) and others
to keep their activities moving in the right direction.

6.3 AUDIT BUREAU OF CIRCULATION (ABC)

Audit Bureau of Circulation is research agency operating in

India for more than 44 years, which for a fee does circulate
assessment for newspaper and magazines. Media Research
agencies are specialised agencies which collect information about
various advertising media (Operations, circulations, popularity, cost
etc.) and supply necessary information to their clients. ABC is one
of such agencies operating in India. Initiative for establishing ABC
was taken by people from advertising profession. As a result of
their efforts, the ABC was established in 1948 as a voluntary, self
regulatory, co-operative association of advertiser and publisher.

The ABC is incorporated in 1948 as a non-profit making

organisation with liability limited by guarantee. The management of
ABC is by a council of management. Equal representation is given
to nominees of publishers on the one hand and to advertisers and
advertising agencies on the other hand. ABC is a co-operative
agency or an association of advertisers, advertising agencies and
publishers of periodicals and disseminates information about
newspapers and periodicals. For this, each publication supplies
periodical information to this Bureau.

All important publications are the member of this Bureau and

nearly every daily, newspaper circulation is audited by ABC. Only
those publishers where publications are paid by the readers can
become the member of ABC. These publications, which are
distributed on free basis, cannot become the members of this
Bureau. ABC charges a fee and every six months it provides its
members with Audited Circulation Certificate in respect of important
newspapers and periodicals published in the country.
75

6.3.1 Functions :

The ABC performs the following important functions:

1. The ABC has its own field force that collect circulation figures of
its member published by contacting newspaper and magazines
distributors.

2. It disseminates the information relating to the circulation figures

of various periodicals and publication member of advertisers and
agencies.

3. It conducts its own tests and readership surveys to assess the

reading habits of particular publication.

4. The ABC also assesses the impact of various available media on

different segment of the society. Thus, an advertiser can obtain
reliable comparative picture of effectiveness of different media.

5. The certified figures published by ABC are taken as the true

Index of the circulation and popularity of the newspaper / magazine.

6. The ABC collects its data from the vendors of the periodicals and
publications by using standard techniques of mail interviews or
personal interviews.

The ABC plays an important role in providing reliable and

authentic data relating to the circulation of newspapers and
magazines. This information becomes the basis of buying space, in
different newspapers and magazines.

The membership of ABC is purely voluntary and any publisher

willing to follow the rules and procedures of ABC regarding his
circulation data can join its membership.

6.4. Television Rating Points (TRPS)

The TRP system was introduced in July 1986 to provide quick

feedback on the viewership of different television programmes.

TRP is conduced by Indian Market Research Bureau (IMRB). It

is conducted in 9 major cities of India - Mumbai, Kolkata, Delhi,
Chennai, Hyderabad, Bangalore, Kanpur, Ahmadabad and
Trivandrum. The TRP system involves collection of viewership data
in respect of TV programmes on a weekly basis from a panel of
sizeable number of respondents. The member of the panel record
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their viewership of different TV programmes daily in a special diary

provided to them. The filled diaries are collected every week from
the panel members and the data is analysed.

6.4.1 TRP panel members belong to either of the two groups :

1. Primary Audience : Adults from TV owning house-holds

(irrespective of their TV viewing habits).

2. Secondary Audience : Adults from non-TV owning households

who view TV at least once a week. Programme rating is the
percentage of the panel members who viewed that programme.
One TRP is equal to one per cent of TV audience. For example, if
60% of the audience viewed Crime Petrol, then Crime Petrol gains
60 TRPs.

6.4.2 TRP report: TRPs report is as under :

(a) TRP Weekly Reports : The TRP Weekly Reports provide data
on weekly viewership of different programmes by cities. The
viewership details are provided separately for primary audience and
for the total audience (Total Audience = Primary Audience +
Secondary Audience). Weekly viewership data is given across sex,
age and income of the viewers.

(b) TRP Monthly Reports : The Monthly Reports present

additional analysis like frequency of viewing, duplication in
viewership between leading programmes, cumulative reach gained
over several episode of the same programme and the profits of
readers.

(c) Special Reports : They provide rating for a specific event of

programme.

The TRPs are very useful in media planning.

(a) It assists in selecting the programme that is to be sponsored.
(b) It helps in placing the spot ads before a particular programme.

6.5 NATIONAL READERSHIP SURVEY (NRS)

The history of NRS in India dates back to 1970. Since then,

four NRSs have been conducted. The first was carried out by ORC
in 1970. The second jointly by IMRB and ORG in 1978. The third
was conducted solely by IMRB in 1983-84, and the Fourth NRS
jointly by IMRB and MARG in 1990.
77

6.5.1 Objectives :

The objective of NRSs is to provide advertisers, ad agencies,

publishers and others with estimates readership of major
publications and to make broader comparisons exposures to press,
cinema, radio and television.

The objectives of NRS can be broadly divided into two :

1. Primary Purpose : The primary purpose is to provide

information that can be used as the basis for buying and selling
advertising space in the press medium.

2. Secondary Purpose : The secondary purpose of the NRS is to

provide the media users with data on comparative exposure levels
to other major mass media namely, television, video, cinema and
radio.

6.5.2 Information Areas Covered by NRS :

The NRS provided information on the following areas :

1. Readership estimates for various selected publications.

2. Listenership of radio.
3. Viewership of television, video and cinema.
4. Inter-media duplication (i.e. those persons who are exposed to
more than one media), and
5. Duplication between publication (duplication means those
readers who read more than one publication magazine or
newspaper).

The survey is conducted only on urban readers across the

country. The country is primarily divided into four zones i.e. North,
South, East and West. For instance, the survey in West Zone
covered towns in Gujarat, Madhya Pradesh, Maharashtra and Goa.

The NRS-IV has covered Urban India excluding all off-shore

territories (such as Andaman & Nicobar Islands), Punjab, Jammu &
Kashmir, and Himachal Pradesh. Punjab and Jammu & Kashmir
were excluded because of the uncertain law and order situation.
Himachal Pradesh could not be included since the sample size
after the exclusion of Jammu & Kashmir was too small to provide
representative estimates of readership habits and media exposure.
78

The selection procedure of respondents for the survey was

made using a two-step procedure, which are:

(a) A sample of voters was first drawn from the electoral rolls in
group of a pre-determined size.

(b) The addresses where the selected voters were residing were
located. Within each such contacted household, adults‟ age 15+
years constituted the frame for randomly selecting an individual for
the readership interview.

6.5.3 Publication :
A special Publications Committee, comprising of senior media
controllers and directors from advertising agencies, decides on the
Publications to be included in the NRS. The Committee identifies
and includes those publication covered by ABC depending on their
circulation figures. They use their collective judgment to include
publications not covered by the ABC. NRS III covered 322
publications, whereas NRS IV included 288 publications.

It is to be noted here that Operations Research Group (ORG)

did conduct a similar study in 1989-90 called ORG-NRS, which
covered 604 publications and interviewed readers in both urban
and rural areas.

6.5.4 Social-Economic Classification : For the first time, NRS-IV

provides the distribution of households by social class, according to
the new Socio-Economic Classification (SEC) system that has been
developed by the Market Research Society of India (MIRSI). This
system, which is based on the occupation and education of the
chief wage earner of the household, has been created so as to
provide an alternative to household income which has so far been
the basis of classifying households.

The socio-economic classification as developed by MRSI

consists of eight socio-economic classes labeled as A1, B2, C, D,
E1 and E2, A1 denotes the upper most socio-economic class, and
E2 stands for the lowest socio-economic class.

Check your progress:

1. Give the full forms of:
a. NRS
b. ABC
c. TRPs
d. IMRB
e. ORG
f. SEC
g. MIRSI
79

2. Fill in the blanks

a. The history of NRS in India dates back to ------------------.
b. The TRP system was introduced in -----------------------.
c. The ABC is incorporated in --------------.
d. Media research is concerned with advertising reach, ------
------- and ------------------ of different media and
combination of media.
e. The second NRS has been conducted jointly by --------
and ------------ in 1978.

6.6 MEDIA SURVEY

Media survey refers to the research survey conducted on

various facets of media such as press circulation and readership
exposure levels to television, video, cinema and radio. Media
survey provides useful information about readership for various
publications, viewership of television, video and cinema,
listenership of radio etc.

There are several organisations which conduct media survey

on a regular basis for their clients. They conduct marketing
research according to the requirements of their clients on payment
basis and supply them useful data. Such services in marketing
research are known as syndicated research.

Syndicated research is conducted in the area of movement of

consumer and products through retail outlets, advertising audit by
measurements of newspaper readership, survey of TV viewing etc.,
periodic survey of consumers‟ attitude and behaviour research.
These studies choose a number of samples from the all India
market and obtain estimates of the consumer response (e.g.,
brands consumed, newspapers/magazines read viewership of
particular TV programmes etc.) at different point of time on regular
basis. Such surveys are of great help in estimating the marketing
potentials.

6.6.1 Syndicated Research Services : The following agencies

offer syndicated research services :

1. National Readership Survey (NRS) : Five NRS studies have

so far been conducted. The first one was conducted by ORG in
1970, second NRS was jointly done by ORG and Indian Market
Research Bureau (IMRB) the third and the fourth NRS was
conducted exclusively by IMRB. The third NRS was conducted
in 1985. The following NRS conducted in 1990 whereas the fifth
NRS was completed in 1995.
80

2. Businessmen‟s Readership Survey (BRS) : IMRB has

initiated a syndicated research about the readership habit of
professionals engaged in various activities in India. It mainly
highlights the newspapers read, the place of reading and
obtains some profile of the readers from about 8,800
respondents located in twelve large cities in India.

3. Television Rating Point (TRP) : IMRB conducts a panel based

study of about 3000 households in 9 cities about their television
viewing patterns. It cross-classifies the viewership data on age,
six, income basis for each television programme watched.

6.7 SUMMERY

Media research is concerned with advertising reach,

frequency and the effectiveness of different media and combination
of media (media-mix) in reaching target audience.

Media research is helpful to understand the profile of the

readers, listeners and viewers, to select the most suitable media
mix, to book time and space in the media, to improve media
owners‟ programmes or editorial contents, it helps the advertiser to
select a particular programme for sponsorship, it helps the media
planners to understand the rating from the various programmes on
TV channels and on radio through Television Rating Points (TRP)
reports.

ABC is a Media Research Agency. These are specialised

agencies which collect information about various advertising media
and supply necessary information to their clients.

The TRP is a system which provides quick feedback on the

viewership of different television programmes.

The objective of NRSs is to provide advertisers, ad agencies,

publishers and others with estimates readership of major
publications and to make broader comparisons exposures to press,
cinema, radio and television.

Media survey provides useful information about readership

for various publications, viewership of television, video and cinema,
listenership of radio etc.
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6.8 QUESTIONS

1. What is Media Research? Explain its importance

2. Audit Bureau of Circulation (ABC)? Explain its functions
3. What are Television Rating Points (TRPS)? Explain in brief
4. Write short note on National Readership Survey (NRS)?
5. Explain the objectives of National Readership Survey. Also point
out Information Areas Covered by NRS.
6. What is Media Survey?
7. What is Syndicated Research Services?


82

EMERGING MEDIA OPTIONS

Unit Structure :

7.0 Objectives of the lesson

7.1 Introduction
7.2 Media Options
7.3 Marketing through Social Sites
7.4 Marketing Through Social Networking Sites
7.5 Advertising though Cell Phone
7.6 Summary
7.7 Questions

7.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand :

Media options available to Indian viewers

Satellite Television : Advantages and limitation
Cable Television : Limitations
Marketing through Social Sites : Objectives of marketing
campaigns on social networks
Marketing Campaigns on Social Networks
Advertising through Cell Phone

7.1 INTRODUCTION

There are several media options available to viewers. The

viewers today have not only a greater choice but freedom to
choose as well. There has been an influx in the media market over
200 different TV channels both Indian and foreign are now beaming
in. By one estimate, they deliver a total of 750 hours of TV footage
every day.
83

7.2 MEDIA OPTIONS

The various media options are as follows:

1. Transit Advertising
2. Satellite television.
3. Cable television
4. FM channel.
5. Video advertising.

7.2.1 Transit Advertising : Transit advertising also called vehicular

advertising. We fined advertising in the mainline trains, suburban
trains, buses, taxis, auto-rickshaws, etc.

Suburban railways in Mumbai has allowed out side

compartments of local trains for advertising purpose. BEST buses
carry advertising messages in the buses. They generate revenue to
the advertiser. Thus advertising in any form through transit media is
called transit advertising.

7.2.2 Satellite Television : With satellite TV, and plethora of new

channels, Indian viewership base is expanding. It is estimated that
the viewers would have more than 500 satellite channels by 2010
A.D.

Advantages :
The following are the main advantages of satellite
television.

1. Global Recognition : Satellite television has provided global

recognition to Indian business. It has facilitated global publicity of
domestic goods.

2. Global Contacts : Satellite television has brought Indian

business community within the functional life of the whole world.

3. Open Door Policy : Satellite television accepts advertisement of

products which are banned on doordarshan such is cigarette and
liquor.

4. Mass Appeal : Satellite television have become very popular

among the masses because of contents and coverage.

5. Prime Time : It was generally believed that television has prime

time viewership, but the experience of satellite television has shown
that a television channel can broadcast all 24 hours.

6. Variety of Programmes : Satellite television provides a variety

of programmes. They include serials, shows, teleplay, children
84

programmes, talk shows, game shows, fashion shows, chat shows

etc.

Limitations : There are several problems associated with

satellite television.
1. The first one is the lack of talent. Since the TV explosion is so
recent, the competent people happen to be with the existing
houses. This has led to a lot of turnover involving huge spurts in
manpower costs.

2. The second difficulty is to assess what the consumers want. It is

difficult to get a clear picture of the target audience their attitude
and likings.

3. Another important problem of satellite television is the entry of

groups with virtually no synergy with media operations. For
examples from the diversified Chennai based NEPC group to the
London based hinduja group all are new to the field.

7.2.3 Cable Television

Cable Television (CATV) stands for community antenna
television and is popularly referred to as cable television. It was
introduced to provide good video reception for people who could
not otherwise receive signals well.

The concept of cable television is also changing. Originally, it

paid a copy right charge, picked up net work and independent
stations‟ broadcasts and delivered them to home that were wired
for cable for a subscription fee. As cable systems grew in size and
sources they acquired the rights to movies, television reruns, and
sporting events which they transmitted to their subscribers. These
offerings usually took the form of pay television – subscribers paid
a special fee for programmes without commercials.

Advertising expenditure for cables is increasing day by day and

the cable TV has opened up various avenues for the advertisers to
promote their products. Most of the advertising currently on cable is
in the form of spots sold to national advertisers. Cable offers the
local advertises an opportunity to create innovative advertisements.
In future cable advertising will be extensively used by regional and
national advertisers for promoting their products.
Limitations : The following are the limitations of Cable
television:
1. C-TV is at its infancy. It has not been developed as an
organised activity in India.
2. Each new entrant encounters a series of reach restricting filters.
85

3. The ability of the cable operators to receive beams from the

particular satellite.
4. The willingness of the operator to expand their capacity to
actually deliver the service.
5. The major problem remains with the TV set itself. More than half
of the TVs in metro centres can tune in to only 12 channels.

7.2.4 FM broadcasting :
FM broadcasting is a broadcast technology pioneered by
Edwin Howard Armstrong that uses frequency modulation (FM) to
provide high-fidelity sound over broadcast radio.

The term "FM band" is effectively shorthand for "frequency

band in which FM is used for broadcasting". This term can upset
purists because it conflates a modulation scheme with a range of
frequencies.

7.2.5. Video advertising

It is now considered as the latest media of advertising.
Under this method, video-cassettes ad-films are prepared. Nearly
22 million people around the world watch Indian films on video.
India alone has video-audience of about 30 millions which is
increasing day by day. There are more than 50,000 video-libraries
and about 1 lakh video-parlours/clubs in India. The video-cassettes
released in India are also being screened in thousands of luxury
buses. Besides the feature film they contain advertisements which
are displayed at short intervals.

7.3 MARKETING THROUGH SOCIAL SITES

Marketing on social networks require the use of Facebook,

MySpace or private label social networks.

Social Networks are attractive because consumers are

connecting with other consumers and the trust tends to be higher.
There is a tremendous amount of buzz from the media for this
newest form of marketing. There is lots of folks using social
networks.

The main objectives of marketing campaigns on social

networks are as follows:

1. Meets a business objective: First and foremost, any marketing

campaign or activity should match with a business objective,
regardless of the tools being used.
86

2. Supports Community Goals: Every community is different, and

each has unique goals (from supporting products, to each other, or
to just be entertained) the campaign focus should therefore meet
the needs of the community, before the needs of the marketer.
Effective campaigns will first understand the core drivers, interests,
and rituals of the community and learn how to meet those desires.

3. Member Interaction: The most successful social networking

campaigns and efforts involve the audience.

4. Quickly scale: Social networks are designed for information to

quickly move from member to member, so campaigns that lean on
these capabilities perform the best. These attributes known as
Velocity, Viralness, and Spread are key.

5. Utilize Media: In some campaigns, the best way to get members

to return is to offer them media. Depending on demographics and
community needs, this could be audio, videos, or demos

6. Self-expression or communication: Members in social

networks like to communicate with each other, or self-express. As a
result, campaigns should satisfy these needs with the appropriate
tools

7. User satisfying : This encompasses the overall experience of

the campaign, the content and navigation items should be where
expected, the language familiar to the audience, and overall look
and feel of the site appeasing.

8. Provide longer term utility: Successful campaigns have a

longer term value, rather than a short term 'disposble campaign".
These campaigns add value by being a useful application to the
members, rather than just quick dose of entertainment.

9. Enhance Value as Community participants: As more people

contribute or interact with the campaign, the value is increased.
This can be in the form of content that is created by the community,
contests, voting, or games.

10. Integration with other marketing activities: Successful

marketing campaigns aren't single channel, in fact they utilizie
multiple channels and mediums to enhance the overall activity. The
same thing applies to marketing campaigns on social networks,
those that are promoted from other locations such as (corporate
websites, email newsletter, blogs, podcasts) outside fo the social
network have a great chance for success.

11. Maintain agility during the campaign: Social networks are

living, breathing organisms made up of real people connecting with
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each other. Marketing campaigns also should share these

attributes and show be flexible to change in-flight, yield to legitimate
requests or complaints of the community. Those campaigns that
reflect the same dynamic behavior as human interaction have a
higher chance to be interacted -and accepted -by the community.

12. Company Participation: In some cases, companies that

participate in the discussions or conversations will yield to a more
successful marketing campaign. Activities can range from
recognition, company interaction, or attention to members perhaps
from a community manager.

7.4 MARKETING THROUGH SOCIAL NETWORKING

SITES

There are a myriad of different social networking sites and

practically everyone and anyone are part of these networking sites.
Such sites are great online marketing tool, one that you can use to
improve your business or career.

What is social networking? Similar to the traditional form of

socializing, social networking is getting to know people; the only
difference is that it's online and not face to face. If you like someone
or share similar interests, these people become part of your
network.

As your network grows and develops, it is advertising by word

of mouth. When people in your network, start discussing or talking
about you, the marketing has begun.

The wonderful thing of online networking sites is that people

are not restricted by geographical location, time or any other thing
for that matter. You can interact with people whom you want to and
when you want to.

Interacting on these social networking sites is relatively easy,

and there are a number of ways to do so. Also a lot depends on
your main reason for being part of the network. Are you looking for
exposure for your business or your website? What are your
business goals? Are you looking for work? Or are you a potential
employer looking to hire professional employees?

So basically your goals and objectives will dictate how you

want to present your profile, and more importantly whom you want
as part of your network. There are several different types of people
you should consider, who will help you out in different ways.
Consumers are people who will benefit from the service or products
you have to offer.
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People from large organizations, along with media will help to

spread the news about your or your company. Then there are the
consultants whom you may consider hiring.

There are number of social networking websites that you can

become a part of such as LinkedIn, MySpace etc.

7.5 ADVERTISING THOUGH CELL PHONE

Mobile phone advertising is the promotion of ring tones, games

and other mobile phone services. Such services are usually
subscription-based and use the Short Message Service (SMS)
system. Another method is broadcasting messages to the mobile
phone is idle-screen, enabling the mobile operators or advertisers
to reach millions in real-time. The advertising and sale of ring tones
in particular has seen a massive growth in recent years, with some
commercial breaks, particularly on music television channels and in
motor racing being dominated by such adverts.

While advertising via a mobile phone is still relatively new,

inventors have developed ways to use a mobile phone to present
advertising to persons standing near a mobile phone user while the
user speaks in a non-hands free mode.

A new approach to mobile content advertising is the use of viral

marketing. Through specially designed programmes users can
send recommendations for mobile content they like to their contact
lists.

Content advertising through mobile phone is a common event

and mostly all of the mobile phone users are greatly aware of it.
This feature is used to promote various products, ring tones,
games, quizzes, mobile accessories and many more things, either
directly associated or indirectly associated with mobile phone
features. In general, these types of advertising are solely
dependent on user-end subscription. Primarily this is done through
SMS messaging service; sometimes it is done through
broadcasting messages in the idle screen of the mobile phone.

The most common and easily customizable form of content

advertising is through displaying the logo of the mobile network
operator. This comes either in text message or in small
monochromatic image, which can easily be replaced with
customer's own customized text or images.

On the other hand, handset manufacturers introduced a better

method for advertising their product by developing specialized ring
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tones, which distinctively sets apart one brand to another. In their

websites, they also start advertising by supplying freely
downloadable ring tones of popular songs or melodies. They did it
either with a very low service charge or absolutely for no charge at
all. This leads to an increase in their rating and popularity among
the mass.

Also mass media campaign contributed greatly in terms of

content advertising. This form of advertising drew attraction of the
mass just within a limited time phase.

The first known operator to execute brand advertising

campaign was none other than AIS in collaboration with Honda, the
first international advertiser using the mobile's idle screen to display
advertisement.

The current trend includes the ad-supported content

advertising to the phone service model. Almost all renowned
network service providers offer their users to experience subsidized
service in exchange of viewing a specific amount of advertisements
in their mobile phones.

The content advertising method is continuously evolving and it

incorporates different features including approaches like 'one
person per presentation' or 'persons standing near'. In both of the
cases the objective is to provide the advertiser multiple views per
presentation within a specific demographic area, however, the
processes are somehow different.

7.6 SUMMARY

Now a day DD has not been remain the only option to the viewers.
The viewers have a greater choice and freedom to choose a proper
channel. Transit Advertising, Satellite television, Cable television,
FM channel, Video advertising are the main emerging options.

If you are using Face book or MySpace or private label social

networks for marketing it means you are marketing on social
networks.

Social networking means socializing or getting to know people

online and not face to face. If you like someone or share similar
interests, these people become part of your network. The wonderful
thing of online networking sites is that people are not restricted by
geographical location, time or any other thing for that matter.
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In today's world, we can see that mobile phone has become a

potential diamond mine for advertisers though which the advertisers
are able to reach to the potential customer following the most
personal and intimate way.

7.7 QUESTIONS

1. What are the media options available to Indian viewers?

2. What are the advantages and limitation of satellite television?
3. What is Cable television? Explain its limitations?
4. Write short note on Marketing through Social Sites
5. What are the main objectives of marketing campaigns on social
networks?
6. What makes a Successful Marketing Campaign on Social
Networks?
7. Write note on Marketing through Social Networking Sites
8. What are the advantages of advertising through Cell Phone


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8
ECONOMIC AND SOCIAL ASPECTS OF
ADVERTISING

Unit Structure :

8.0 Objectives of the lesson

8.1 Introduction
8.2 Effects of Advertising on Production Cost
8.3 Effects of Advertising on Distribution Costs
8.4 Effects of Advertising on Consumer Prices
8.5 Advertising and Monopoly
8.6 Wastes in Advertising
8.7 Social Aspects of Advertising
8.8 Ethics in Advertising
8.9 “Truth” in Advertising
8.10 Summary
8.11 Questions

8.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand:

Effects of Advertising on Production Cost

Effects of Advertising on Distribution Costs
Effects of Advertising on Consumer Prices
Advertising and Monopoly
Waste in Advertising
Advertising and Cultural Values
Advertising and Standard of Living
Ethics in Advertising
“Truth” in Advertising
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8.1 INTRODUCTION

A business has an optimum (or maximum) level of production

which it can manage, at any given time, at the lowest cost per unit,
depending on its present equipment and facilities. These factors
are the main determinants in deciding whether advertising raises,
or lowers down the cost of production.

8.2 EFFECTS OF ADVERTISING ON PRODUCTION

COST

Advertising is generally believed to lower down the production

cost. This opinion is based on the assumption that by stimulating
demand, it is quite possible for advertiser to reduce production cost.
If advertising leads to an increase in sales volume, the
manufacturer due to economies of large scale production permits
the producers to buy in large quantities and receive sufficient
quantity discounts from his suppliers. Economies of scale can also
include savings in transportation, in utilization of plant and
personnel, and in over head expenditure. The general experience
is that mass production reduces the real cost of products.
Advertising also lowers the overhead costs of production by
generating demand. Through advertising, a manufacturer with a
considerable seasonal demand may be able to expand the demand
over a broader time period. The producer can have economies of
reduced storage capacity, because he needs lesser storage space
for lesser period of time as the products are being sold over a
larger time period during the year. The larger turnover would mean
that during the season the storage space would be used
extensively. This in turn would mean that larger number of units of
production would be sharing the overhead costs and this would
help reduce that cost of production.

Every manufacturing unit has an optimum production, which

determines whether the advertising increases or decreases the cost
of production. The cost of production involves : (a) Material cost (b)
Labour cost, and (c) Overhead cost.

Suppose a unit having one machine in a room which is

operated by the owner himself produces 2,000 units per month.
The total production cost, inclusive material cost, labour cost,
overhead costs amounting to Rs.2,000. To produce 2,000 units the
owner spends Rs. 2,000. In this case the cost per unit is Re. 1/-.
However, the same unit can make an additional 2,000 units at a
marginal cost of Rs. 800 being the cost of advertising and other
inputs that would be required. Thus, it can be concluded that
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advertising can bring down the cost of production from Re. 1/- to
Re. 0.80/- per unit as is evident from Table.

Table 1 : Effect of Advertising on Production Cost

Particulars Before Advertising After Advertising
Units Produced 2,000 4,000
Advertising Expenses Nil 1,000
(a) Material Costs 1,200 500
(b) Labour Costs 500 700
(c) Overhead Costs 300 600
Total Cost of Production 2,000 2,800
Per Unit Cost Re. 1 = 00 Re. 0 = 80

Advertising increases sales which in turn demand large scale

production, thereby ensuring the benefits of economies of scale.
Further advertising expenditure do not constitute a part of
production cost, it will never increase the cost of production.
However, advertising can indirectly bring down the cost of
production capacity, provided advertising generates demand upto
the level of optimum production capacity.

The volume-cost-price relationship is quite complex and there

is no proof of what advertising does to a manufacturer‟s cost of
production. Advertising lowers total costs for some, increases total
costs for others. Advertising can help reduce per unit production
costs for certain manufacturers operating below plant capacity.
Total unit costs can be lower with heavy advertising than without it.

8.3 EFFECTS OF ADVERTISING ON DISTRIBUTION

COSTS

Advertising is generally believed to increase the overall

distribution costs. Distribution cost includes advertising and sales
promotion costs such as display, demonstration, dealers‟
commission and incentives etc. Since advertising expense is a part
of selling it will naturally add to the total selling and distribution
costs. Increase in advertising costs may not result into
proportionate increase in distribution costs, Sometimes, advertising
may reduce the distribution costs for the manufacturer, because
effective advertising cuts down the expenditure on personal selling,
thus making substantial savings in selling costs. Suppose a
business firm distributes 2000 units per month. The total distribution
cost inclusive salary to salesman and other distribution expenses
amounting to Rs. 1000. In this case the distribution cost per unit is
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Rs.0.50 before advertising. However, to distribute another 2000

units, an expenditure of Rs. 1600 is incurred after the product is
advertised. Here distribution cost per unit is Rs.0.40. It can be
concluded that the distribution cost per unit is reduced from Rs.0.50
to Rs.0.40. This is illustrated is Table 2.

Table 2 : Effect of Advertising on Distribution Cost

Particulars Before Advertising After Advertising

Units Distributed 2000 4000
Advertising Expenses Nil 1000
Sales promotion cost 900 1400
(Salary to Salesman) 100 200
other distribution exp
Total distribution cost 1000 1,600
Per unit cost 0.50 0.40

Advertising creates demand for the advertised product and

increase in demand reduces advertising cost.

Successful advertising helps to keep prices rigid (fixed).

Economists dislike price rigidity because of general, long-term
economic welfare, flexible price competition helps our economic
system.

The total cost includes costs of production and distribution.

Advertising costs are part of costs of distribution (or „selling cost‟ or
marketing cost‟). Advertising cost is one of the several costs the
other being finance, warehousing, transport, and distribution.

Costs of distribution show a yearly geometric increase, due to

sharp market competition. So, large sums are spent on advertising,
and other distribution aids, to „capture‟ the markets.

High advertising costs of a manufacturer may be beneficial to

the retailer. Manufacturer‟s advertising efforts may reduce the
distribution costs of the retailer because the product may be pre-
sold due to advertising done by the manufacturer.
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8.4 EFFECTS OF ADVERTISING ON CONSUMER

PRICES

Consumer price consists of production costs, selling and

distribution costs and profit margin of the seller. An expenditure on
advertising will increase marketing costs.

Consumers and buyers of the advertised goods and services

pay for advertising. If the consumer feels that he is not getting
desired utility from a brand, he switches to some other brand. But in
the long run, advertising may well work toward lowering down the
prices. Effective advertising increases sales volumes and lowers
down the prices. Many new products such as refrigerators, colour
T.V., washing machines, computers, electronic typewriters have
lowered down the price due to mass production distribution and
consumption. This growth gives the seller a large volume over
which to spread his overhead. This is also evident from the analysis
of data in Table 1 and 2 that advertising ensures economies of
large scale production and distribution. The effects of advertising on
consumer price are shown in Table 3.

Table 3 : Effect of Advertising on Consumer Price

Particulars Before After
Advertising Advertising
Per unit cost of production (Table 1)Rs. 1.00 Rs. 0.80
Per unit cost of distribution (Table 2)Rs. 0.50 Rs. 0.40
Profit margin Per unit (Assumed) Rs. 1.00 Rs. 1.10
Consumer Price Rs. 2.50 Rs. 2.30

Advertising affects consumer prices because:

(a) Price is fixed by adding the desired profit on costs of production.

Advertising is one of the elements of cost. Price of a product or
service, therefore includes advertising cost.

(b) Advertising is an element of distribution cost. An increase in

advertising cost increases, total cost which increases the price of
advertised goods or service.

(c) Advertising cost increases due to competition. So, prices rise.

However, under certain conditions, advertising checks prices.
Severe competition makes a producer struggle to increase his
market share by charging reasonable prices. So, even if a price-rise
occurs, his freedom to raise the price is controlled by competition.
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Raising prices is also difficult because of government rules on

trade and business. This forces a producer to reduce costs and not
to raise prices.

(d) Advertising acts negatively to keep prices down. It first creates

demand for a „brand‟ and, finally makes it popular. So, „brand
loyalty‟ emerges and the consumers want the specific brand only.
Therefore, since the producer enjoys the respect of consumers, he
cannot lose it by raising prices.

(e) Greater advertising may lead to greater demand and expansion

of markets. The producer then finds that greater demand permits
production only on a large scale, and with greater economies. If he
passes these economies to the consumers, prices fall. Here,
advertising is indirectly responsible for a fall in prices.

(f) Through good advertising, other selling costs may fall such as
cost of personal sales, point-of-sale displays. Therefore, prices fall.

(g) Advertising does raise price, but consumers are willing to pay it
for the brand of their choice. The consumer must pay a higher price
if he wants a better product. His reason, not his emotions, guides
him to choose a better product. So, advertising can succeed by
appealing to reason.

Competition comes from other advertised brands, unadvertised

brands, and private brands or from substitute and alternative types
of product. Competition is a powerful influence on a seller‟s prices.
Incidentally, unless there were advertised brands, the prices of
unadvertised brands would most probably be higher. The key issue
is not whether advertising adds to the consumer price of a product.
The key issue is whether advertising makes the consumer pay
more for the same amount of satisfaction.

8.5 ADVERTISING AND MONOPOLY

When a single firm is the only supplier of some goods or

services for which no close substitute is generally available and
when the firm is free from the treat of competition, it is called
monopoly; the monopolist can set his own prices and levels of
output.

Whether advertising leads to monopoly or not can be

understood from two different viewpoints:

1. Advertising acts to control consumers in such a way that the

advertiser has command over the consumer‟s mind and buying
actions. In this line of reasoning, any monopoly that results would
stem from a control of demand rather than of supply.
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2. A more strongly supported position which related advertising to

monopoly examines the ways in which advertising may act to limit
the number of firms competing in a specific industry. The large
companies can spend heavily on advertising to make their products
appear different for all other products. This win helps them to take
over sizable part of the market. In this way, advertising creates a
barrier to new firms and a high level of concentration result. High
monopolistic prices result in high monopoly profits.

Advertising is said to breed monopoly by restricting open

competition. Advertising aim at enjoying monopoly powers to
introducing a separate trade mark for their products. The reputation
attached to a, trade mark does not increasingly involve advertising
although advertising can play an important role. If people desire to
have a rational trade mark, they must invariably buy from the
marker. A manufacturer with brand of product differentiated form all
other brands in the same business enjoys monopoly of that brand.
He fully controls the supply and sells it at a profit. He tries to build
large and stable following for his brand.

A manufacturer who has been able to build a substantial

market may tend to hold his prices somewhat rigid. To the extent
that he can, he will compete on the basis other than price but he
cannot avoid price competition altogether. No manufacturer with or
without advertising has been able to obtain monopoly position for
himself. Because of this fact, no manufacturer can successfully
manipulate supply price at will.

Product differentiation, a phenomenon of imperfect

competition, would continue to exist even if there were no
advertising. In the absence of advertising, consumers might still be
induced to pay more because of product differentiation. However,
advertising occupies its important status in bringing product
differentiation to the attention of consumers. There should be no
objection about this if the advertising is truthful and informative. If
there were monopoly in advertising i.e., if advertising were available
to only one manufacture, it would be different matter.

8.6 WASTES IN ADVERTISING

8.6.1 Meaning :

Waste in advertising refers to the failure of the advertisement

or campaign to achieve its desired objectives. The main objective of
every ad is to attract the attention of the audience and then to
induce them to act upon the advertiser‟s message. If the ad fails to
attract the attention and induce the audience, then one can say that
there is waste in advertising. Some people talk of waste in
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advertising when they feel that more money is spent on advertising

than what is actually needed.

8.6.2 Factors responsible for the Waste in Advertising :

A number of factors are responsible for the waste in

advertising. Some of which are explained below :

1. Introduction of Wrong Product or Service in the Market :

Waste advertising takes place, when huge amounts are spent on
an advertising campaign for a wrong product, or service introduced
without adequate research and testing as regards its quality. If the
quality of the product, or, service is such that it does not satisfy the
needs. Requirements and tastes of consumers, no amount of
advertising can boost its scale, and there will be a waste in
advertising.

2. Making Tall Claims in an Ad : Sometimes, tall claims are made

in advertising, that raises the expectations of consumers : far
beyond the performance of the advertised product. Disappointed
and disillusioned consumers never go far second purchase of the
product.

3. Target Market : Wrong Selection of Target Market (Consumers)

and Wrong Positioning of to be Product. Manufacturers,
sometimes, make a wrong selection of target market (consumers)
for the advertised product / service and its wrong positioning that
cause a waste in advertising.

4. Wrong Direction of Advertising : Wrong direction is allied to

wrong selection of target market. The target market (consumers)
may not be rightly selected; however, advertising efforts may not be
made in the right direction. If a fertilizer firm, for example, places
posters all over the city of Mumbai, to sell its fertilizers to farmers, it
is a case of wrong direction.

5. Wrong Timing of Launching : If an advertising campaign is

launched at a wrong time on television or on radio, it causes waste
in advertising. If an ad campaign for umbrellas, for example is
launched in the month of January or October, it will be a complete
waste.

6. Wrong Selection of Advertising Media : Wrong selection of

advertising media, causes a waste in advertising. If industrial
products, for example, are advertised in sports magazine, or, on
television, it is a case‟ of wrong selection of advertising media, as
the advertising message will not reach to the target consumers.
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7. Wrong Placing of Ads: If an ad on the posters or display boards

is wrongly placed, which can hardly be seen by the passerby, or, if
an ad in the newspaper is placed on a page, which is hardly read, it
causes a waste in advertising?

8. Wrong Selection of an Ad Agency : If an advertiser makes a

wrong selection of an ad agency. It causes waste in advertising.
The ad agency must be competent and experienced in the field.

9. Poor Planning of Advertising Campaign : The advertiser will

not receive the expected responses from the target audience
(consumers) if the advertising campaign is poorly planned. Poor
planning refers to (a) the lack of the required frequency of ads. (b)
lack of the required funds, to be allotted to a particular media and
(c) more advertising in one place to the total neglect of the other
market areas, where advertising is essential, such conditions and
bound to cause waste in advertising.

10. Poor Drafting of Ads : If an ad is poorly designed, drafted and

illustrated, due to lack of creativity and knowledge with an
inappropriate appeal, and / or, in an unsuitable language, on the
part of participants in the ad, like copy writers, artists, layout
designers, etc. it can cause waste in advertising.

11. Poor Sponsored Programme in Quality : If the programme,

sponsored on T.V. or Radio by an advertiser, is poor in quality So
that there are hardly any audience to view it, it is bound to cause
waste in advertising, as the message will not reach the target
audience.

12. Excessive Advertising : Some advertisers to excessive

advertising, i.e. much more than what is actually required. If the
markets for the advertised product are small, excessive advertising
cannot cause an increase in demand beyond a particular point.
There is bounded to be waste in advertising.

13. Lack of Follow-up Actions : A good advertising campaign can

go waste, if it is not fully supported by follow-up actions by other
departments of the firm, as for example, non-availability of the
advertised product in the market due to some distribution problem.
The result is inadequate response from consumers and waste in
advertising.

14. Unfavourable Marketing Environment : Finally, if the overall

marketing environment is not favourable for getting favourable
response to an advertising campaign, it is bound to cause waste in
advertising. In such a situation, advertisers are bound to lose a
good amount of money on ads.
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Check your progress :

1) “Advertising is generally believed to lower down the production
cost.” Explain.
2) Explain the effects of advertising on the following items.
Through table.
a) On production cost
b) On distribution cost
c) On Consumer price
3) Explain the following terms.
a) Waste in advertising.

8.7 SOCIAL ASPECTS OF ADVERTISING

Culture is total of tangible and intangible concepts that define a

way of life culture includes art literature, music (tangible) and
knowledge, morals, customs, laws etc. (intangible). It covers the
attitude and values of the whole society which are passed from one
generation to another.

Habits, customs, attitude, beliefs and values are thus, a part of

culture. Advertising is a product of culture. Advertising is an art of
persuasion, but still people buy only those goods and services
which they needs. What they purchase is the outcome of the
cultural values. The consumer‟s behaviour is influenced by his
family status, family life cycle, social relations, opinion leaders,
reference groups etc. The value system is ever changing with the
passage of time. With these changes on value system, the role of
advertising keeps pace with the changing times. Once a particular
set of values have been accepted by a society, the advertising as a
social and business process tries to bring all those goods and
services which are made to respect the value system.

Critics of advertising points out that mass media supported by

advertising have encouraged what is popular rather than what is
good and in doing so have encouraged materialistic values rather
than cultural ones. They cite the examples of films, serials that are
shown on TV and on the big screen, which depicts scenes of rape,
murders, and other acts of violence and crime.

However, there are various social, religious and educational

institutions to guide the people of a particular society in their
behaviour.

On the other hand, supporters claim that advertising do

upgrade the cultural values for the betterment of the society. They
cite the instances of advertising campaigns on family planning, drug
abuse, noise pollution and other such public awareness advertising.
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Thus it can be concluded that advertising upholds and

upgrades the cultural values in several respect but in some cases
advertising may be directly or indirectly responsible to the evil craze
of materialism.

8.8 ETHICS IN ADVERTISING

Ethics is a set of moral principles, norms or values. It is a

branch of social science. It deals with good and bad with reference
to a particular culture. It refers to the moral duty and obligation and
advertiser has towards the society. Moral principles are the rules or
standards of what is “right” or “wrong”.

Every advertising tries to persuade the people. In the modern

competitive market each advertiser wants to win over his rivals by
effective advertising. In this process, there are chances of hiding
truth and facts in order to succeed in increased sales and profit. But
the advertiser has social and moral duty or obligation towards
consumers. An advertiser should maintain a high degree of ethical
stands i.e. he must inform the facts or truth to consumers. An
advertisement with false claims may succeed in short run but it will
definitely give a bad name to the product in long run. Because one
can fool some people all the time, and all the people for sometime,
but one can not fool all the people all the time.

If unethical practices are continued they will destroy the image

of the business as a whole and advertising itself will become less
effective. Some of the moral codes developed in advertising are :

1. It should avoid attacking competitors unfairly.

2. It shall be free from offensive to public decency.
3. It shall make clearest claims regarding price reduction
guarantees etc.

Ethics, as a tool of communication, plays a significant role both

in business as well as in the profession of advertising, norms or
ideals, that are accepted and upheld by the society as essential to
good life should be followed while advertising any products or
service, or, idea.

1. Ethics in advertising means that the advertisers should do only

good advertising, meaning thereby honest advertising. It means
that only true facts, no exaggeration and no lies, about the product,
service, idea or institution should be stated, in clear Tenos, in
the ad.

2. Ethics in advertising also means that only good products,

services and ideas should be advertised and that too to the right
consumers. Advertising for products like cigarettes, beer, whisky,
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rum, gin, tobacco, pan parag and other harmful products should be
avoided.

3. Ads showing testimonials should be restricted to competent

persons, who must express honest views and choices.

4. Ads in poor taste and offensive to public decency with double

meaning tone must be avoided.

5. Ads should avoid attacking unfairly competitors. In sum,

advertising should be honest, objective, informative and persuasive
in contents.

8.9 “TRUTH” IN ADVERTISING

Truth refers to facts which can be observed and verifiable. In

law, truth means a swear taken by each person entering a witness
box. This truth is the whole truth and nothing but the truth.

Advertising is said to render greatest service by presenting the

commercial knowledge. It has to be good and true because it can
not afford to be bad or untrue. Advertisements carrying correct and
true information will be build confidence in the minds of consumers
and build goodwill of the product. A wrong or untrue information
presented by advertising damage the image of the company. They
are different ways of presenting untruth in advertising.

1. Misrepresentation : This is a deliberate attempt to tell untruth. It

takes place by attributing to good qualities which the products may
not possess quoting names of users not in existence, giving
statistics of assumptions not justified by the facts. In
misrepresentation, there may not be international twisting of the
facts but still misrepresentation in advertising undesirable.

2. Make-Believe Statistics : The idea in these is to give such

statistics as to make the readers believe that the figures are
concise and precise while actually they may not be so. Such
statistics mislead the consumers.

3. Total Lies : Advertisements of products which claim mirage e.g.,

reduction of 10kg. weight in 8 days or white hairs will become black
within one month.

4. Misuse of Testimonials : Advertisements in which testimonials

of firm stars and sportsmen are used simply for sales promotion.

5. Alcohol and Tobacco Advertising : Advertising which induce

people to use tobacco and alcohol are harmful to human life e.g.,
pan masala and gutka.
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6. Vulgar Taste : Advertisements in which undue importance is

given to women or sex objects are unethical.

7. Awards / Prizes : Advertisements wherein consumers are asked

to send entries against which awards / prizes and free gifts are
offered are unethical.

8. Undue Emphasis : In this, information is carried beyond truth.

Emphasis is laid on certain factors which may not be in reality
existing or pertaining to the company concerned.

9. Misleading Names and Brands : Name of persons, areas or

countries well-known for certain things are associated with the
names of goods in order to create favourable impressions about the
attributes of such goods.

10. Fantastic Claims : By fantastic claims, minor virtues are

magnified. Small things are exaggerated beyond limits.

8.10 SUMMARY

Due to advertising total cost of the production increase but it

reduces the production cost, distribution cost, per unit. Finally the
consumers can get the product comparatively at low price due to
advertising.

Waste in advertising refers to the failure of the advertisement

or campaign to achieve its desired objectives. A number of factors
are responsible for the waste in advertising like Introduction of
Wrong Product or Service in the Market, Making Tall Claims in an
Ad, Wrong Selection of Target Market, Wrong Timing of Launching,
Wrong Selection of Advertising Media, Poor Planning of Advertising
Campaign and Poor Drafting of Ads etc.

Truth refers to facts which can be observed and verifiable.

Advertisements carrying correct and true information will be build
confidence in the minds of consumers and build goodwill of the
product. But through Misrepresentation, Make-Believe Statistics,
Misuse of Testimonials, Vulgar Taste, Undue Emphasis, Misleading
Names and Brands untruth has been presented in advertising.

8.11 QUESTIONS
1. Explain the effects of advertising of (a) Production cost, (b)
Distribution cost and, (c) Customer price.
2. Write short notes on the following :
(a) Effects of Advertising on Production Cost
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(b) Effects of Advertising on Distribution Costs

(c) Effects of Advertising on Consumer Prices
3. Does Advertising Create Monopoly ?
4. What is waste in Advertising? Explain the factors responsible for
the Waste in Advertising
5. How does Advertising affect Cultural Values?
6. Explain the affects of Advertising on Standard of Living.
7. What are ethics in Advertising?
8. What is “Truth” in Advertising?
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
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REGULATION AND CONTROL ON

ADVERTISING

Unit Structure :

9.0 Objectives of the lesson

9.1 Introduction
9.2 Advertising Standards Council of India (ASCI)
9.3 Doordarshan code
9.4 Ministry of Information and Broadcasting
9.5 Summery
9.6 Questions

9.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand :

Advertising Standards Council of India (ASCI)

Codes of ASCI
Doordarshan Code
Organisation of Ministry of Information and Broadcasting
Criticism and Controversies about ministry of I&B

9.1 INTRODUCTION

There are Regulation and Control over Advertising business.

The Government of India has setup separate ministry to promote,
regulate and control over advertising. We shall discuss each of
regulatory and controlling agencies of advertising separately as
follows :
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9.2 ADVERTISING STANDARDS COUNCIL OF INDIA

(ASCI)

There are certain laws, standards and codes which provide

guidelines for ethical and professional management of business.
These laws are called self regulation laws.

These self-regulation laws provide guidelines for the

advertisers, publications and advertising agencies. These laws
mainly prohibit those aspects of advertising which art either untruth
or harmful to the society.

There are more chances of being wrong or untruth

advertisements in the market, which mislead the consumers.
Unethical advertisements not only harm the consumers but it also
produces losses to the society. In long run such advertisements do
not succeed.

9.2.1 Codes of ASCI :

The main objective of the code is to control the content of every

advertisement. This is helpful to manufactures also as it regulates
their ads. Because of these codes the consumers are mostly
benefited as they are not supplied wrong information and they are
not misled.

9.2.2 Objectives:

The codes of ASCI have following objectives:

1. It ensures the truthfulness in the advertisements and checks that

no misleading information is presented.
2. It puts control on offensive ads of public decency.
3. It ensures true and fair competition and avoids artificial
competition.
4. It restricts ads of hazardous products from the society.

9.2.3 Characteristics:
The codes laid-down by ASCI have following characteristics:

1. Extent of Application : The codes applies to all the

advertisements that appear by any media. For example it may be
on television, over radio, in cinema or posters.
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2. Code and Consumers : The code does not permit any ad

misleading the consumers. The untruthful advertisements with false
information‟s are not allowed. If any such ad is presented, the
consumers can bring it to the notice of ASCI.

3. Aim of Code : The code is laid down with the aim to ensure the
public protection and guard them against false and untruthful
advertisements.

4. Responsibility of Media Owner : Any media owner must view

each advertisement offered for publication to them from the point of
view of the code. If the feels that any particular ad is against the
code, he can approach to ASCI and inform accordingly. If ASCI
finds the violation of code, the media owner must not publish the
advertisement.

5. Ads for Children : The ASCI code also keeps control on ads
meant for children. Such ads should not contain any information or
idea either in illustration or words, which might cause moral,
physical or mental harm to children.

6. Code and Foreign Ads : The ASCI code is limited to

advertisements Published in India only. It does not apply to
advertisements on foreign medias.

7. Identical Ads : The code also requires that an ad should not be

just a copy of other advertisements. It should not be identical in
respect of general layout, copy clogs, visual, presentation, music,
etc. This restriction is put in order to avoid confusion and
misleading of consumers.

9.3 DOORDARSHAN CODE

Advertising should be designed as to conform to the laws of the
country and should not offend against morality, decency and
religious susceptibilities of the people.

1. No advertisement should be permitted :

(i) To derides any race, caste, colour, creed, nationality except
wherein such usage would be for the specific purpose of
effective dramatisation, such as combating prejudice;
(ii) Which is against any of the objective principles, or provision of
the constitution of India;
(iii) Which will tend to incite people to crime or to promote disorder,
violence, or breach of law or glorifies violence or obscurity in
any way;
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(iv) Which presents criminality as desirable;

(v) Which would be adversely affect friendly relations with foreign
States;
(vi) Which exploits the national emblem, or any part of constitution,
of the person or personality of a national leader of State
Dignitary;
(vii) No advertisement shall be permitted the objects whereof are
„hi1o11y or mainly of a religious or political nature.
Advertisements must not be directed towards any religious or
political end or have any relations to any industrial dispute;
(viii) Advertisement for services concerned with the following are
not acceptable : (a) Money lenders; (b) Chit Funds and Savings
Schemes other than those conducted by nationalised banks; (c)
Matrimonial agencies; (d) Unlicensed employment services; (e)
Fortune-tellers or sooth-Sayers, etc., and those with the claim of
hypnotism would be excluded from advertising on TV;
(ix) Betting, tips and guide books, etc., relating to horse-racing or
other games of chance shall not be accepted;
(x) No advertisement shall contain reference which are likely to lead
the public to infer that the product advertised or any of its
ingredients has some special property or quality which is
incapable of being established, e.g., cure for baldness;
(xi) Scientific or statistical excepts from technical literature, etc.,
must be used only with a proper sense of responsibility to the
ordinary viewer. Irrelevant data and scientific jargon must not be
used to make claims appear to have a scientific basis they do
not possess. Statistics of limited validity should not be
presented in such a way to make in appear that they are
universally true;
(xii) Advertisers of their agents must be prepared to produce
evidence to substantiate any claims or illustrations.

2. No advertisement message shall in any way be presented as

News.

3. The items advertised shall not suffer from any defect or efficiency
as mentioned in Consumer Protection Act, 1986.

4. No advertisement shall contain the words „Guarantee tee‟ or

„Guaranteed‟, etc., unless the full terms of the guarantee are
available for inspection by the Director General Doordarshan, and
are clearly set out in the advertisement and are made available to
the purchaser in writing at the point of sale or with the goods.
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5. In its depiction of women no ad shall violate the constitutional

guarantees to all citizens such as equality of status and opportunity
and dignity of the individual. In particular, no advertisement shall be
permitted which projects a derogatory image of women. Women
must not be portrayed in a manner that emphasizes passive,
submissive qualities and encourages them to pay a subordinate,
secondary role in the family and society. The portrayal of men and
women should not encourage mutual disrespect. Advertiser shall
ensure that the portrayal of the female form is tasteful and
aesthetic, and is within the well established norms of good taste
and decency.

6. No advertisement for a product or service shall be accepted if it

suggests in any way that unless the children themselves buy or
encourage other people to buy the products or services, they will be
failing in their duty or lacking in loyalty to any person.

7. No advertisement of any kind of jewellery or precious stones

shall be accepted. Also no ad should be permitted on cigarettes,
alcohol, tobacco products and other intoxicants.

8. Information to consumer in matters of weight, quality or prices of

products where given shall be accurate.

9. Any such effects which might startle the viewing public must be
incorporated in advertisements. For example the use of the
following sound effects will not be permitted:
(i) Rapid gunfire or rifle shorts (ii) Sirens
(iii) Bombardments (iv) Screams
(v) Raucusus laughter and like

9.4 MINISTRY OF INFORMATION AND

BROADCASTING

The Ministry of Information and Broadcasting, a branch of the

Government of India is the apex body for formulation and
administration of the rules and regulations and laws relating to
information, broadcasting, the press and films in India.

The Ministry is responsible for the administration of Prasar

Bharati-the broadcasting arm of the Indian Government. The
Censor Board of India is the other important body under this
ministry being responsible for the regulation of motion pictures
shown in India.
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Organisation
Broadcasting
FM Radio Phase(FM Radio Broadcasting Services Through
Private Agencies)
Conditional Access System (CAS)
Community Radio Stations
Prasar Bharati
Doordarshan
Akashvani (All India Radio)
Broadcast Engineering Consultants India Limited
Uplinking/Downlinking of TV Channels
Content Regulation on Private TV Channels
DIRECT TO HOME(DTH)
Internet Protocol Television (IPTV)
Headend-in-the-Sky (HITS)
Digital television transition
Radio And Television Licence Around The World
Broadcasting Authority of India
Information
Directorate of Advertising and Visual Publicity (DAVP)
Directorate of Field Publicity
Photo Division
Publications Division
Research Reference & Training Division
Song & Drama Division
Office of the Registrar of Newspapers for India (RNI)
Press Council of India
Press Information Bureau (PIB)
Indian Institute of Mass Communication (IIMC)
Films
Directorate of Film Festivals (DFAI)
Films Division (FD)
Central Board of Film Certification
Children's Film Society, India
Film and Television Institute of India (FTII)
Film Certification Appellate Tribunal
National Film Archive of India (NFAI)
Satyajit Ray Film and Television Institute
National Film Development Corporation
Mandate
The mandate of the Ministry of Information & Broadcasting are:
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News Services through All India Radio (AIR) and

Doordarshan(DD) for the people
Development of broadcasting and television.
Import and export of films.
Development and promotion of film industry.
Organisation of film festivals and cultural exchanges for the
purpose.
Directorate of Advertising and visual publicity DAVP
Handling of press relations to present the policies of
Government of India and to get feed-back on the Government
policies.
Administration of the Press and Registration of Books Act,
1867 in respect of newspapers.
Dissemination of information about India within and outside the
country through publications on matters of national importance.
Research, Reference and Training to assist the media units of
the Ministry to meet their responsibilities.
Use of interpersonal communication and traditional folk art
forms for information/ publicity campaigns on public interest
issues.
International co-operation in the field of information & mass
media.

Criticism and Controversies : The Ministry has often been

criticized for the actions of the various bodies under it:

Doordarshan: This is the Indian Public Television Broadcaster. It

has posted losses for several years despite being granted exclusive
access to several events including cricket matches and having the
largest terrestrial network in the country.

The decision of the Censor Board of India to censor some films

due to political reasons like foreign ones while allowing several
others which may often contain several suggestive and deeply
disturbing scenes has been questionable.

Arbitrary actions taken in the past to ban television channels

which ostensibly showed explicit scenes, as well as actions taken
to ban general use websites like Yahoo Groups, have been widely
criticized in most quarters of the country.

All India Radio is the only radio broadcaster allowed to

broadcast news within India, though this is likely to change with the
recommendations of the TRAI.
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9.5 SUMMERY

There are more chances of being wrong or untruth

advertisements in the market, which mislead the consumers. The
self-regulation laws mainly prohibit those aspects of advertising
which are either untruth or harmful to the society.

9.6 QUESTIONS

1. What is Advertising Standards Council of India (ASCI)

2. Explain the codes of ASCI
3. What are Doordarshan Code?
4. Explain the Organisation and functions of Ministry of Information
and Broadcasting
5. What are the Criticism and Controversies against Ministry of
Information and Broadcasting?


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10

ADVERTISING AGENCY

Unit Structure :

10.0 Objectives of the lesson

10.1 Introduction
10.2 Meaning and Definition
10.3 Service Rendered by an Ad Agency
10.4 Agency Selection Criterion
10.5 Agency Accreditation
10.6 Agency Client Relationship
10.7 Organisation Structure of an Advertising Agency
10.9 Changing of Advertising Agency
10.10 Career Options in Advertising
10.11 Summary
10.12 Questions

10.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand :

Advertising Agency and its functions

Criteria for Selection of an Advertising Agency
Structure of an Advertising Agency
Services rendered by an Advertising Agency
Advantages of the Advertising Agency to the Firm
Methods of remunerating Advertising Agencies
Agency Accreditation
Agency-Client Relationship
Client Turnover
Career Options
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10.1 INTRODUCTION

An Advertising Agency is selected by a manufacture or trader

to present the advertisement on his behalf. The advertiser who
does not have the capacity of carrying out advertising activities take
the help on services of advertising agencies who are specialized in
those fields.

10.2 MEANING AND DEFINITION

The advertising agency carry out the activity on behalf of their

client against remuneration called fees. They conduct market
research, consumer research, product research etc. They advice
the manufacturer on product design or package design, pricing of
product channels of distribution. Besides, they advice on the market
condition from time to time.

Advertising agency conduct the production activities of

visualization, layout, illustration, headlines, copy etc. They also help
in the selection of proper media and the frequency at which the
advertisement should be presented.

Thus, the advertising agency relieves the burden of the trader

or manufacturer of the responsibility of advertising, production and
distribution.

Definition :
The American Association of Advertising Agencies (AAAA)
defines an advertising agency as : “An independent business
organization, composed of creative and business people, who
develop, repair and place advertisements in advertising media for
sellers seeking to find customers for their goods and services”.

10.3 SERVICE RENDERED BY AN AD AGENCY

The main function of advertising agency is to see that its

client‟s advertising leads to greater profits in the long run. The
agency thus plans, prepares and places with advertising with the
objective. The main function of a full-service advertising agency are
as follows :

1. Selection of Clients : The first and the foremost function of an

advertising agency is to contact and select clients who are desirous
of advertising their products, services or anything which they want
to sell. The preference in contacting and choosing the clients is
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given to those firms which have sound values, able management,

efficient operative products and services. The financial position,
size and nature of business, efficient management and operative
products etc. must be given due weight.

2. Media Selection : Media selection is another major function of

the advertising agency. In making a media selection several factors
such as cost, circulation, population which it serves, audiences,
nature of the product, types of customers and above all needs of
the clients should be kept in mind.

3. Advertising Planning : The third as well as the major function of

advertising agency is the advertising planning for its clients. For this
purpose, the advertising agency requires a detailed knowledge of
the firm‟s products, its advertising history, market conditions,
channel of distribution, knowledge of competitors‟ products and
their advertising techniques, field to be covered, nature and type of
consumers etc.

Next planning job is to decide about the advertising medium in

which the advertisement is to appear. The advertising message
must be adapted to the medium in which it is to appear.

4. Creative Function : The creative function starts when the

planning function ends. It includes the preparation of an advertising
copy, layout, illustration, photographs, advertising messages,
theme of advertisement etc. These functions are performed by a
varied group of creative people including writers, designers, artists,
producers, photographers and graphic art specialists employed by
the advertising agency.

5. Research Function : It is the fifth major function of an

advertising agency. It supports the decisions taken in the media
and creative areas. In this connection the advertising agency
gathers and analyse actual information about the product, extent of
market, competitors‟ strategies and buyers‟ habits etc. that may
help the creative personnel to make the advertising copy more
attractive and effective.

6. Approval of the Client : As soon as the advertising copy etc.

are prepared, the next function of the advertising agency is to show
the copy to his client and obtain his approval. In case if any
changes are suggested by the client, the same may be
incorporated and thus the final approval should be taken from the
client.

7. Marketing Function : The advertising agency also performs

marketing functions such as selecting target consumers, designing
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products and packages, developing channels of distribution

strategy, determining prices and rate of discount etc. It gives useful
advice to its clients with regard to the nature and trend of the
market conditions. Accordingly, the client produces goods keeping
in his mind the prevailing conditions in the market.

8. Evaluation Function : Simply drafting advertising copy and

handing over the same to the media is not enough. The next major
function of the advertising agency is to have an exhaustive
evaluation of the advertising effects for the benefit of his client. In
case of any deficiency, necessary suggestions should be given and
the same be made effective after approval of the client.

9. Coordination Function : The last but not the least important

function of the advertising agency is to establish effective
coordination with client‟s sales force and distribution network to
ensure the long running success of the advertising campaign. Each
time the advertising agency contacts the client regarding
advertising media to be used and the number of times the
advertisement is to be repeated after giving effect to changes, if
any, as suggested by the advertiser.

10.4 AGENCY SELECTION CRITERION

Following are some points to be taken in account while selecting

the advertising agency:

1. Suitability : The advertising agency which suits the requirement

of manufacturer or trader is selected depending upon the type of
advertisement, location of agency, credit policies, etc.
Normally, an agency which is located near the advertisers
place is selected. This helps in approaching the agency. Secondly,
the size of agency in terms of personnel, projects, and services
provided is considered. Thirdly, the connections and relations with
the various media. Fourthly, the policies like conservative policy,
outgoing policies etc. are taken into account. Finally, the advertising
also considers whether the agency has competitors account or not.

2. Facilities and Services Provided : Some agencies have

modern facilities of photography, type setting, printing, filming etc.
The agencies which provide maximum services with minimum
costing preferred.

3. Imagination : Imaginations and creative skills of the personnel

of agency is duely considered. Creativity in photography, layout,
copy writing, media etc. creates an identity and unique for the
products and services of the advertiser.
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4. Past Record : Past records of the agency in terms of number of

clients, effectiveness, credit reputation etc. helps in selecting the
agency. The advertiser enquires about the agency‟s timeliners,
punctuality, past record helps to show whether the agency is
reliable or not.

5. Reputation : The reputation of the advertising agency helps in

selection. The popularity of the agency depends upon timeliners,
successful presentation, good relations, prompt services etc.

6. Management : Proper selection of advertising agency depends

on the ownership and management and their policies. Their policies
may be either conservative or dynamic which influence the
selection.

7. Rates Charged : The advertiser considers the rates charged by

the agency. Normally, the rates depend on reputation, facilities
provided techniques adopted etc. Therefore, an advertiser will
select such agency which will provide facility according to his
requirement and which suits its budget.

8. Size of the Agency : The size of the advertising agency must be

considered. The larger the size, the more it is preferred, however,
at times, small is beautiful because a small agency may give more
attention to its client‟s work.

10.5 AGENCY ACCREDITATION

The principle of accreditation by the Indian Newspaper Society,

Doordarshan and All India Radio, ensures professional status to ad.
Agencies. Accredited agencies enjoy credit from the media owners.
They pass this benefit to their clients who also enjoy credit facilities.
Moreover such agencies have to follow the code of ethics laid down
by the media owners. This ensures that the client gets a minimum
standard of the Ad Campaign.

The granting of accreditation to an agency means that the

agency has fulfilled the following criteria:

(a) The agency has fulfilled the minimum business limits with
Doordarshan / AIR and the Indian Newspapers Society.

(b) The agency has proved its creditworthiness during the

period of its provisional accreditation status.

(c) The agency has adhered to the rules of accreditation as

specified by the media.
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10.6 AGENCY CLIENT RELATIONSHIP

Agency client relationship must be that of mutual trust and

confidence. The perfect relationship results in optimum advertising
effectiveness at a reasonable cost and reasonable compensation
for the agency. It is characterized by continuous and complete two
way communication between individuals in the two organizations in
an atmosphere of mutual trust. Interdependency of the advertiser
and the agency helps in creating effective advertising as part of the
company‟s marketing effort.

What the clients have to do? :

1. Treat the agency with courtesy at all times.
2. Provide all possible information about the product that is to be
advertised and about the organization. This facilitates the
agency to do their job much better.
3. Not unnecessarily bargain for the fees charged by the agency.
4. Motivate the agency to do a good work. Agency charges such as
media bills, fees and other costs must be paid well in time. In no
way the client should wait for the agency to remind of payment.
5. Not change the agency for the sake of change.
6. Approve the proposals submitted by the agency. The client
should not argue for the sake of arguing.
7. Give sufficient time to the agency to develop a good advertising
campaign. The client should not put the agency unnecessarily in
deadline crisis.
8. Reduce disputes to a minimum.
9. Finalise well in advance the charges for a particular plan or
campaign.
10. Up-date the agency with any information from his side that
would help the agency to serve the client better.
Yet, whenever something goes wrong, the brunt of criticism
comes on the agency and many times the relationship terminates.
Many a times, there is a change just for the sake of change.
Advertisers prefer an agency that is currently popular in the market,
such as the Lintas and the Everest in India. Sometimes the agency
itself voluntarily resigns from an account on some ground or the
other. There may be different puritans, opinions, thoughts, etc., or
the agency may be wanting to accept another competitive account.
Usually an agency keeps on abandoning consistently losing
accounts, i.e. those advertisers who make losses over the years. It
may also resign when a client becomes over-bearing. May creative
people in the field of advertising do not like to be simply dictated by
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their clients about their own professional work. If things go too far,
such clients may be abandoned. However, client turnover is not a
healthy practice as it puts both the parties to a loss. But under the
unavoidable circumstances, there may be no other alternative but
to turnover too another client.

10.7 ORGANISATION STRUCTURE OF AN

ADVERTISING AGENCY

10.7.1 Meaning :

The organization structure differs from agency to agency

depending upon functions performed and size of the business.

Because of the highly personalized nature of the advertising

agency business, it is difficult to say which type of organizational
structure would be suitable for it. Many agencies are organized
according to the personal preferences of the management. Most
large and medium sized agencies followed one of the two systems,
the group system and the departmental system and some combine
them.

1. Group System : Under this system the writers, artist, media

planners, buyers and other specialists are assigned to a group of
accounts. All are under the general direction of an account
executive or group head.

2. Departmental System : Under the departmental system, same

type of specialists are grouped in the same department. For
instance, all writers in the copy department, all artists in the art
department and so on.

10.7.2 Organisation and Working of an Advertising Agency :

Since advertising agency is an independent business
organisation, it may be in the form of a sole proprietorship,
partnership or joint stock company form of organisation. However,
an advertising agency of reasonable size may naturally adopt the
Joint Stock Company form of organisation. In such a case, it may
have a Board of Directors under the Managing Director. Under the
Board of Directors we may have General Manager and the General
Manager may have a number of Departmental Managers under his
control. The number of Departmental Managers will vary from one
advertising agency to another advertising agency as per the nature
and size of business. The organisational structure of a large sized
or reasonably sized advertising agency is as follows :
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Advertising Agency Limited

Board of Directors
General Manager
Contact Media Copy Radio & TV Merchandising
Production
Department Department Department Department Department

Art Mechanical Research Finance Public

Relations
Department Department Departmen Department Department

10.7.3 Departments of an Advertising Agency

The organisation of an advertising agency may be divided in
various departments entrusted with a specialised function to be
performed under each departmental manager who is specialised in
the task allotted to him. The main departments of a large sized or
reasonably sized advertising agency are as follows :

1. Contact Department : Contact department works under a senior

executive officer known as the departmental manager. The main
function of this department is to contact the new clients on the one
hand and maintain the existing clients on the other hand. A number
of contact men work under him. They function as the liaison people
between the agency and the client. The contact men represent the
agency when in the advertiser‟s office, they study the advertiser‟s
need and inform the various departments what is required by the
respective clients.

2. Art Department : This department is headed by the art manager

who is assisted by artists, layout men and visualisers. A visualiser
is a person who prepares the rough layout of the advertisement
which is later developed into a comprehensive layout. The art
department is responsible for the physical appearance of the
advertisement for preparing layouts, illustrations, photos and for
specifying the types to be used.

3. Media Department : This is a very important department which

works under the supervision and control of a media manager. This
department is entrusted with the work of selection of media for the
advertiser according to the needs, directions and budget of the
client. He remains in constant touch with different medias.

4. Mechanical Production Department : It is also a very important

department which works under the control of a technical manager.
The main function of this department is to look after block-making,
printing, proof-reading and such other technical jobs.
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5. Copy Department : This department is headed by a copy

manager and is duly assisted by a number of copy-writers. This
department is concerned with the preparation of a copy for all
advertisements. Copy-writing requires flair and fluency of language,
imagination and a method of representation. The department works
closely with the art, research and accounts departments. It is also
an important department.

6. Research Department : In case of large sized advertising

agencies a separate research department is established under the
supervision and control of a research manager. The research
manager is assisted by a number of analysts, investigators,
marketing assistants, statistical clerks and librarians etc. The main
function of this department is to study markets, medias and other
subjects of interest to the advertising agency. It helps better
advertising for clients.

7. Radio and T.V. Production Department : In case the

advertising agency provides advertisements on the radio and
television, it would have a separate department for this purpose.
This department works under the supervision and control of a
manager who is duly assisted by a number of assistants, musical
consultants, script-writers etc.

8. Finance Department : The main function of finance department

is to arrange and control finance. Thus this department is
responsible for maintaining proper accounts, billing and collection
of dues from the clients, verifying whether the advertisement in the
different media actually appeared on the days it was scheduled, if
so whether correctly, and whether the text was properly printed and
also looking after all the routine matters relating to accounting,
recording etc.

9. Merchandising Department : In case of large sized advertising

agency, a separate merchandising department is established under
the supervision and control of a merchandising manager which is
specialist in displays, exhibits and preparation of various
advertising aids.

10. Public Relation Department : In case of a large sized

advertising agency, a separate public relation department is
established under the supervision and control of a public relation
officer - manager. The main function of this department is to
establish and maintain contact and mutual understanding between
the organisation and the public. It performs a liaison work between
the clients and the various sections of the public - customers,
employees and shareholders etc.
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10.8 METHODS OF REMUNERATING AN

ADVERTISING AGENCY

The method of remunerating the advertising agency has been

a subject of much discussion now-a-days at almost all the meetings
of advertising agency associations and advertisement clubs. There
are basically the following three methods of remunerating an
advertising-agency in practice in our country :

1. Commission Method : This is the oldest, and most common

method of remunerating an advertising agency. Under this method
the advertising agency has a fixed commission by the media
owners on the advertising bill for the advertising space bought by
the respective advertising agency. The fixed rate of commission is
15% in India as well as in U.S.A. Though the rate of commission
varies from media to media and from country to country but the rate
of 15% is almost universal. For example, an advertising agency
places a full age advertisement in a magazine at an agreed charge
of Rs. 50,000. The magazine will bill the agency for Rs. 50,000 less
15% i.e., Rs. 42,500 net. The advertising agency will bill the
advertiser for Rs. 50,000 (cost of advertisement charged by the
media). Thus the difference of Rs. 7,500 will be treated as the
remuneration of the advertising agency. Generally, a cash discount
@ Rs. 2% is also offered by the media for prompt payment within a
stated period. This cash discount is usually passed on to the
advertiser on similar terms by the advertising agency. The general
criticism of this method is that the advertising agency is always
tempted to recommend expensive media in order to draw a higher
remuneration.

2. Fee System : The fee system came into effect following a

controversy between the advertiser and the advertising agency.
The former argued that 15% commission was too high a rate,
whereas the agency took the stand that it was unremunerative in
view of many services rendered to the client by the advertising
agency. Under fee system, the agency payment consists only the
service charges which are to be computed on the basis of cost plus
system. Under the system a certain fixed percentage (flat rate) on
cost may be charged from the client as fee to be paid to the agency
along with the bill. This system enables the advertising agency to
make fair profits on services rendered by it and, in turn, the
advertiser pays for what he gets - nothing more and nothing less.
The fee system is generally used in radio and television-
advertising.

3. Service Charges : Under this method, service charges are

added to the cost of materials and services bought by the
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advertising agency for the client in art work, photography,

typography, plates etc. Normally, it is cost plus 15%.

In actual practice one of the above methods of compensation

or a combination of the fee-and-media-commission plan or a
method by which commission granted by the media are credited
against profession fee, is used. When a new product advertising is
involved, the advertising agencies are remunerated on a special fee
basis.

Check your progress:

1) Give the chart of organisation structure of an Advertising

Agency.
2) Explain the following terms.
a) Advertising agency
b) Agency Accreditation
c) Client Turnover
d) Copy Department
e) Art Department
f) Commission Method
2) “Advertising Agencies relieves the burden of the Manufacturer
or Trader”. Explain.

10.9 CHANGING ADVERTISING AGENCY OR CLIENT

TURNOVER

10.9.1 Meaning :
When an advertiser leaves one advertising agency, and shifts
to another, this practice is termed as client turnover. Highly frequent
rate of client turnover results in great loss to advertisers. When an
agency is changed the advertiser suffers on two counts, on having
to do away with the old agency and another with the new one. It is
very much like an employer suffering financial and other kinds of
losses on account of high „rate of labour turnover in his enterprise.
Productivity is the main factor of loss of the employer as well
advertiser. Just as the old employee‟s experience with organization
is an important factor in policy decisions and implementation.
Similarly the old agency‟s experience in advertising the company‟s
product lines is a total loss in case of turnover to another agency.
The old agency must have already collected considerable data
about the company‟s product, the market, the nature and the extent
of competition the consumers and host of other subjects. Such a
mass of information and data cannot be easily transferred to the
new agency. Researchers have identified as many as forty factors
that influence the sale of a product, advertising being one of them.
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When an advertiser leaves one advertising agency and

switches over to another, it is known as „changing of advertising
agency‟ or „client turnover‟. The tendency to change advertising
agencies now and then is most common amongst many
advertisers. This may result in an reduction of the effectiveness of
their advertising campaign.

10.9.2 The main reason for changing the advertising agencies

may be summarized as under :
1. Dissatisfaction to the advertiser from the services of the
advertising agency.
2. The advertiser is interested in a new criteria with which the
present agency is not familiar.
3. The client and agency perceive the advertisement strategy in a
drastically different manner.
4. Change for the sake of change.
5. Lack of coordination between the top executives of the client
and the agency.
6. Loss of confidence.
7. Staff changes also lead to change of advertising agency.
8. Perceived unreasonabless of the other party.
9. Politics and nepotism also result in change of advertising
agency.

Changing of advertising agency is not always fruitful. The loss

might be more as compared to gain on account of the change. In
the first year the new agency has to digest the problems of the
advertiser, the nature of the products and the competitive situation
that exists. The first year of change may be referred to as the study
year. Thus change of agency amounts to leaving one which is quite
familiar with the advertiser‟s problems and going to a stranger at
least as far as the advertiser is concerned. In case of any
dissatisfaction with the existing agency, it is better to find out and
discuss it with the top management team of the agency so that the
misunderstanding, if any, may be removed and also to give a
chance to the agency for improving its services. The selection of an
advertising agency should be made carefully so as to avoid a
subsequent change. It should be kept in mind that the agency
advertiser relationship is like the physician-patient or the lawyer-
client relationship. The patient pays fee to the physician whether he
gets relief or not. The lawyer too takes fee, irrespective of the
judgement in the case. However, in both the cases they perform
their duties faithfully and therefore why make a change ? This fact
should be given due weight while taking any decision to change the
advertising agency.
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10.10 CAREER OPTIONS IN ADVERTISING

Advertising is an important profession and advertising industry

provides enormous opportunities for career development. The
advertising industry consists of the advertising agencies, the
advertisers, the media and the ancillary services. Each of these
active participants in advertising provide challenging career options
to the students to build up career in this fast developing industry.

1) Advertising Agencies : An advertising agency is a team of

professional advertisers appointed by client to plan, produce, and
place advertising campaign on the behalf of client.

The total number of advertising agencies in India is believed to

be around-4,000, including studios and non-accredited set-ups. The
accredited agencies or those with partial accreditation account for
550. The number of new advertising agencies especially one-man
or owner-manager type ad agencies are increasing at a faster rate.
This is because advertising business provides ample scope for
growth and development. Advertising is most suited profession for
strongly motivated individuals, who have high degree of conviction
and belief to make their endeavour a success whatever may be the
odds.

Advertising agency has grown by leap and bound and now they
account for billing over Rs. 2000 crores per annum. They are
constantly in need of talented and creative staff in their following
functional departments:

2) Account Executive : The word „Account‟ in advertising

terminology means „Client‟ and an Account Executive is the man on
the agency staff responsible for handling a particular client. He
approaches different potential clients for seeking new business for
the ad agency which he represents. He is the main link between
the agency and the client.

Account executive is an important career option in ad agency.

He explores the possibilities to book new business by approaching
new clients. Successful account executives are promoted upto the
positions of Account Director.

3) Copywriter : Copywriting is an art and the persons with

good communication skills stand a fair chance to be copywriters.
They contribute to the theme of an advertisement. In most ad
agencies, there are creative teams headed by either a copywriter or
a visualizer.

A good copy can be destroyed if the words are badly set.

Equally, unwise choice of type faces, sizes and weights can destroy
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the layout. Creation of an effective copy for the client establishes

them as copywriter.

It is the job of the copywriter to conceive advertising themes of

copy flat forms, and to write the wording, including heading
headlines and slogans.

4) Visualisers : Visualisers are those artists who translate the

imaginations of the copywriter on the paper. Visualisers help
shaping an effective ad. The visualisers usually have professional
degree in fine art or commercial art. It is not essential for a good
visualiser to have professional degree or diploma. Visualizing and
layout is an important career option.

5) Creative Department : Creative department is the key

department in an ad agency. It is in this department that the idea or
theme behind the advertising campaign is born and the complete
advertising plan is executed. Creative Director is the head of
creative department. The department comprises of visualisers,
creative artists and copywriters and their duty is to create
advertisements. The creative director coordinates the copy-writing
and designing.

6) Production Department : Production department also

provides good opportunities for career building. The production
department can be divided into two sections: one section is
responsible for the mechanical preparation of the advertisement or
the printed material, and the other for the administration of the
detail work. The mechanical production section has many people to
deal even technically with block-makers, printers, photographers,
DTP operators in designing print outs. Many production
departments also handle the job in different languages and need
people to assist the advertising job.

7) Art Department : The approved layout pass into the hands

of artists to prepare finished drawings for reproduction. Art
department is in the charge of an Art Director and it is his duty to
co-ordinate the work to select the correct type of treatment so as to
prepare the visuals and then the final art-work.

8) Free Lancers : These are professionals who work in

dependently and have a successful track record. They are
copywriter, jingle singers, radio announcers, artists, visualizers,
technical writers, etc.

Thus, advertising can be an exciting and rewarding career,

provided those in this profession understand the full social
implication of advertising and their responsibilities to the profession.
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10.11 SUMMARY

The Ad Agencies conduct market research, consumer research,

product research etc. for the manufacturer or trader.

A full-service advertising agency provides various services like,

Media Selection, Advertising Planning, Preparation of an
advertising copy, layout, illustration, photographs, advertising
messages, theme of advertisement etc., showing the copy to his
client and obtain his approval, Selecting target consumers,
designing products and packages, developing channels of
distribution strategy, determining prices and rate of discount,
exhaustive evaluation of the advertising effects etc.

While selecting the advertising agency some points are to be

observed such as Location, Facilities and Services Provided,
Imaginations and creative skills of the personnel of agency, past
records of the agency, the reputation of the advertising agency,
Rates Charged, the size of the advertising agency etc.

Since advertising agency is an independent business

organisation, it may be in the form of a sole proprietorship,
partnership or Joint Stock Company form of organisation.

Some of the departments of advertising agency are Contact

Department , Art Department, Media Department, Mechanical
Production Department, Copy Department, Research Department,
Radio and T.V. Production Department, Finance Department,
Merchandising Department, Public Relation Department etc.

Advertising is an important profession and advertising industry

provides enormous opportunities for career development. The
advertising industry consists of the advertising agencies, the
advertisers, the media and the ancillary services.

10.12 QUESTIONS

1. What is an Advertising Agency? State and explain the functions

of an Advertising Agency.
2. What is meant by an Advertising Agency? What are its main
functions?
3. What factors are considered for selection of advertising agency?
4. Outline the Organisation of an Advertising Agency.
5. State and explain the functional organisation of Advertising
Agency.
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6. What are the services rendered by an advertising agency?

7. Explain the Organisation and Working of an Advertising Agency.
8. What Factors would you keep in mind while Selecting an
Advertising Agency?
9. What should be the Criteria for Selection of an Advertising
Agency?
10. Discuss the Advantages of the Advertising Agency to the Firm
11. State and explain the Methods in which Advertising Agencies
are Compensated for the Services Rendered by them
12. Write short notes on the following :
a) Agency-Client Relationship
b) Client Turnover
c) Agency Accreditation


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11
PLANNING AN ADVERTISING CAMPAIGN

Unit Structure :

11.0 Objectives of the lesson

11.1 Introduction
11.2 Process of Planning the Advertising Campaign
11.3 Market Segmentation
11.4 DAGMAR Model
11.5 AIDA
11.6 Unique Selling Proposition (USP)
11.7 Advertising Appeal
11.8 Summary
11.9 Questions

11.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand :

Importance of planning the Advertising Campaign

Process of Planning the Advertising Campaign
Factors influencing the Planning of an Advertising Campaign
Bases of Market Segmentation
Importance of Market Segmentation
DAGMAR Model, AIDA, Unique Selling Proposition (USP)
Appeals used in Advertising

11.1 INTRODUCTION

Advertising campaign can be defined as a series of

advertisements with an identical or similar message, place in one or
more of the advertising media over a particular period of time.

An advertising campaign must be co-ordinate with other

marketing efforts and activities. This means the campaign must be
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correlated with the personal selling activities of the sales force,

those of the distributors of the product and with the various other
promotional efforts, which may be a part of marketing mix.

11.2 PROCESS OF PLANNING THE ADVERTISING

CAMPAIGN

11.2.1 Meaning :

The campaign planning is the joint effort of both the advertiser

and his ad Agency. The advertiser supplies much information about
the product, the channel of distribution, competition the product,
and the firm. The agency may collect other information from the
market, in respect of target audience etc.

Advertising campaign planning simply means planning the

advertising campaign. Advertising campaign planning concerns
many people in the advertising agency, but mainly concerns the
advertising manager (for the client), account executive, marketing
manager, creative director, media planner, and PR manager. They
design and plan advertising campaign for the client.

11.2.2 Steps in Advertising Campaign Planning : The main

steps in advertising campaign planning are as follows :

1. Prototype Stage : Let us assume that a manufacturer has the

prototype of a new product. The basic product has been thoroughly
tested, but the packaging has not been determined, it has no name,
no price, and perhaps no defined market. In some respects this
seems to contradict modern marketing principles. This situation is
not uncommon. The company now wish to advertise its new
product and appoints an advertising agency and calls it to explore
the possibilities to promote the sales.

2. Initial Briefing by Client : The most likely procedure is for the

managing director to ask his advertising manager to fix up a
meeting with the account executive of the advertising agency. This
first meeting may be held at the factory, at the company‟s head
office, or at the advertising agency. Probably the best venue will be
where the account executive can see the product and meet the
people who have been involved in its development. The factory
might be the best place, but much depends on how the company is
organized.

For this initial discussion, the right choice of venue can be

important to the account executive‟s clear understanding of the
proposition. It can be dangerous for the advertising agency to start
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off on the wrong foot because of inadequate or faulty interpretation

of policy and problems. The need then is for best possible
understanding at the beginning. This is the joint responsibility of the
advertising manager and the account executive.

3. Contact Report : Whenever a meeting has been held with a

client a contact report should be written at once and circulated to all
those present at the meeting, with additional copies for others not in
attendance who should be informed, both inside the company and
inside the agency.

The importance of a contact report lies in its confirmation of

agreed action, so that nothing depends on people‟s memories, and
if it is submitted directly after the event it serves to remind of
necessary action that must be taken by people present at the
meeting. Agreed contact reports, when placed in a file or binder as
instructions to proceed, may be referred to as the facts book.
Should a dispute occur, reference can be made to the respective
contact report: at the end of the year these reports from the basis of
a report to the client on the year‟s work.

4. Account Executive‟s Report to Agency Management : The

account executive will also give his superiors - the account director
and perhaps the agency managing director - a verbal report. If new
business is coming into the agency it may be necessary to make
changes in the deployment of staff, engage extra staff, and
consider the use or expansion of equipment and premises.

5. Account Executive‟s Briefing to Agency Department Heads :

The account executive now writes up a detailed, factual but as far
as possible unbiased report on the assignment, setting out his
understanding of the product and the client‟s requirements. In this
report he should try to avoid expressing any personal observations
because the object is to inform others whose ideas and opinions
are being sought. Each department head is asked to study the
report and to attend a plans board meeting.

6. Proposition : At this stage, the account executive invites the

managing director of the client company to attend a meeting at
which the scheme is presented in report form with a presentation of
ideas in rough visual form. At this meeting the client party may
consist of the managing director, marketing manager, sales
manager and advertising manager and the members of the agency
party may include the account director, account executive and the
marketing director. Once the scheme is approved and adopted in
principle the agency will be instructed to prepare a full visual
presentation at the client‟s expense.
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Now, the agency will engage in actual copywriting,

photography and drawing. Detailed media scheduling will now be
done by the media buyer.

7. Presentation to Client : At this stage the complete campaign is

demonstrated to the client. The campaign is presented visually.
Advertising campaign planning must be flexible. Moreover, at such
a meeting with the client there will be a number of company
directors and executives present who disagree with one another as
well as with the agency over what makes an advertising campaign.
Everyone likes to argue about advertising! The account executive,
supported by the advertising manager in deal circumstances, must
sell his campaign on the basis of sales and readership figures of
publications, show the results of copy testing, and offer alternative
media plans with evidence of the reasoning behind them. Much of
the comment and criticism from the client side will often represent
arguments which were considered and rejected in the agency much
earlier. This has to be expected, accepted courteously and gently
dismissed by means by persuasive reasoning and statistics which
reveal that the agency has really taken pains to produce not just a
clever scheme but one based on businesslike thinking.

Once the scheme has been approved, the account executive

and his companions will return to the agency, ready to execute the
campaign. At this stage when the media start buyers, creative staff,
print buying production and traffic takeover, working under the
direction of the account executive.

11.2.3 Factors Influencing the Planning of an Advertising

Campaign :
1. The Organisation its reputation, position in the market.
2. The product e.g. Consumer (Perishable, durable or speciality)
goods, or industrial goods etc.
3. The market the nature of customers, their income, their buying
behavior, and their location.
4. The competition.
5. The absolute price of the product, Competitor‟s price etc.
6. The channels of distribution.
7. The budget, the advertising theme, etc.
8. The media, the advertising schedule etc.
9. The Govt. regulations and controls, restriction on certain
products, restriction on certain media to carry out certain ads.
Etc.
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11.3 Market Segmentation

11.3.1 Meaning :

Market Segmentation is a technique of dividing the market of a

product into several homogenous groups. Under this technique,
customers of a product are divided according to such common
characteristics as age, sex, income level rural urban composition.
The concept of market segmentation is based on the assumption
that markets of all commodities are heterogeneous. For every
product, there is a group of customers having different nature,
buying habits, and attitudes. Two customers are not alike. They
differ each other. On the basis of their characteristics, customers
may be divided into several groups. These groups are formed on
the basis of some similar qualities and such division is called
Market Segmentation.

11.3.2 Definition of Marketing Segmentation : The term „Market

Segmentation‟ has been defined by several authors as follows :

Philip Kotler, „Market Segmentation is the sub-dividing of a

market into homogeneous subsets customers, where any subsets
may conceivably be selected on a market target to be reached with
a distinct marketing mix.‟

William J. Stanton, „Market Segmentation consists of taking

the total heterogenous market for a product and dividing it into
several sub-markets or segments, each of which, tends to be
homogeneous in all significant aspects.‟

Market segmentation are grouping of consumers according to

such characteristic as income, age, sex, urban rural, etc. This helps
forming the market into a meaningful buyer group.

11.3.3 Bases of Market Segmentation:

Market segmentation divides the whole market of a product
into several different groups. Segmentation is the process of
partitioning a large heterogeneous market into smaller groups of
people or businesses which show similar needs and/or
characteristics thus resulting into similar purchase behaviour.

Techniques of Market Segmentation: Markets can be segmented

on the basis of the total demand for the product, the desire and the
interests of a group of buyers which exhibits certain characteristics.
They can be based on geographical, demographic, psychographic,
status, volume entities. The entire market of a country is sub-
divided into marketing zones. The most commonly used bases for
segmenting consumer goods markets are as follows
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1. Geographic Segmentation : Many organisation segment their

market into different geographic units such as nation, states,
districts, regions, cities and taluka places. Geographic
segmentation is based on the assumption that consumer needs
and responses vary geographically. National newspapers, for
example, are published from different cities and also in different
languages to meet the readers spread all over the country. Different
market locations have different costs, demand and other features
which are considered while formulating an appropriate marketing
strategy. In geographic base, regional differences in terms of
geography, climate, population and its density are used as base for
market segmentation. Most of the national manufacturers split up
their sales areas into sales territories either state wise or district
wise.
2. Demographic Segmentation : Demography is the study of
dynamics of population change. The markets are segmented
according to demographic characteristics such as age, sex,
income, occupation, education, language, religion, race, nationality
and rural urban base. Demographic variables are used commonly
and extensively by large number of producers for market
segmentation. Demographic segmentation is comparatively easy as
required data are available in census and other published reports.
Demographic data on population distribution by sex help
segmenting market for male and female population. Titan have
segmented their market on the basis of sex and are manufacturing
wrist watches for male and female buyers separately. Watches of
different price in both the categories are brought in the market.
Producers of confectioneries segment their markets on the basis of
age. The same is the case with toys. In the case of certain products
like bicycles, women demand special styles and manufactures
adjust their production to suit male as well as female. This gives
more turnover and satisfaction to buyers. Demographic
segmentation is important as the nature of demand is closely
related to the size and composition of population by age, sex, rural
and urban base.
3. Socio-Economic Segmentation : The segmentation, here is
done on the basis of income group, consumption levels, and other
cultural aspects. The population is differentiated for marketing
efforts on these considerations. In a country like India, such type of
segmentation is necessary as the society is divided into different
groups on socio-economic cultural factors. In India, people follow
different cultural background. Naturally, suitable segmentation for
the purpose of marketing is useful. Socio-economic segmentation is
used extensively as information in this regard is more easily
available. The lower class, middle class, working class is one
example of economic classification. Since market potential is
intimately connected with the ability to buy, this segmentation is
meaningful in deciding buying patterns of a particular class.
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4. Psychographic Segmentation : Psychographics attempts to

segment according to psychographical profiles of people in terms of
their life style and attributes. Psychographics attempt to segment
according to psychological profiles of people in terms of their life
style and attitudes. In this type of segmentation, certain
psychological variables such as social class, life-styles or
personality characteristics are used for segmentation.
Manufacturers of cars, textiles and home furnishings divide buyers
on the basis of social class and life styles. Such segmentation is
also possible on the basis of reading habits and leisure activities.
Marketing efforts are adjusted according to such variables. It may
be pointed out that in the case of geographic, demographic and
socio-economic bases, the required data for segmentation are
either readily available in census and other reports or can be
collected through survey. However, in the case of psychological
variables, relevant information is not readily available and has to be
collected through behavioural research. Moreover, market
segmentation on psychological variables is complicated as it is
always difficult to expose individuals to a battery of psychological
test and to find out their specific personality traits. Moreover,
consumers behave or react differently from what they say, if new
benefits or bundles of benefits are offered to them. Psychographic
segmentation can be made on the basis of (a) Social class (Upper
class, upper middle, lower middle class, etc.) (b) Personality (Self-
confidence, ambitious, aggressive, sociable, etc.) and (c) Life-style
(Liberal, conservative, religious, health and fitness-oriented, etc.)

5. Behaviouristic Segmentation : Here, the buyers are grouped

or separated on the basis of their knowledge, attitudes, views, or
response to the product. This is useful in order to find out what role
price or package or colour or service can play in influencing buying
decisions. This segmentation is also called product related
segmentation as the response of consumers dividing into different
convenient groups for the purpose of marketing. In India, the supply
of consumer items, electronic goods, two-wheelers, cosmetics etc.
is fast increasing. The supply is more as compared to demand. The
income of people of all categories are also increasing. People are
also willing to spend more. They get information about new
products from different media. This creates proper background for
behaviouristic segmentation is similar to but slightly different from
psychographic segmentation.

6. Product Segmentation : When the segmentation of markets is

done on the basis of product characteristics that are capable of
satisfying certain special needs of customers, such a method is
known as product segmentation. The products, on this basis, are
classified into (1) Prestige products, (Automobiles and jewellery (2)
Maturity products. (Cigarettes and Blades), (3) Status products,
(Most Luxuries), (4) Anxiety products, (Medicines, Soaps and
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Perfumes) and (5) Functional products, (Fruits and Vegetables).

This type of product segmentation is directed towards differences
among the products which comprise markets.

7. Benefit Segmentation : Under this method the potential buyers

form the basis of segmentation. They are interviewed to learn the
importance of different benefits they may be expecting from a
product. These benefits or utilities may be classified into primary
utilities and secondary or evolved utilities. Toothpaste has primary
utility of cleaning and secondary utility of good tasted breath
freshening and rightness. Likewise, Shampoo has primary utility of
cleaning and secondary utility of shiny hair and thickening hair.

8. Volume Segmentation : Markets can be segmented into bulk

users, medium users and unit users. This method is based on the
volume of purchases. The heavy users may constitute a small
percentage of the numerical size of the market but forms a major
percentage of the unit volume consumed. This analyse is also
capable of showing the buying behaviour of different groups.

9. Status Segmentation : Markets can be differentiated into non-

ex-users, users, potential users, first-time users and regular users
of a product. High market share companies like the DCM generally
look for potential users, whereas small competitive companies are
contended to concentrate on regular users who always patronise
their products and tend to remain to their brands.

11.3.4 Importance of Market Segmentation :

Market segmentation is a technique of dividing the market of a

product into several homogeneous groups on the basis of their
common characteristics. The concept of market segmentation is
based on the fact that markets of all the commodities are
heterogeneous. On the basis of their characteristics, customers
may be divided into several groups. These groups are formed on
the basis of some similar qualities and such division is called
market segmentation.
Following points explains the importance of Market
Segmentation :

1) Market segmentation are grouping of consumers according

to such characteristics as income, age, sex, urban, rural, etc. This
helps forming the market into a meaningful buyer group.
2) Market segmentation ensures certain advantages. Infact
market segmentation is the most important factor in media planning
because the decision of the media selection would depend mostly
upon the people who comprise the market. However, it is not a very
difficult task to provide precisely the necessary facts.
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Where the market is restricted and clearly demarcated, as a

particular section of the community such as doctors, architects,
engineers, hoteliers or even telephone or car owners, the media
strategy can be simple and straight forward, making use of the
selective media like direct mail, etc., depending of course, on the
budget available.

It is only when a wider mass market is to be reached that the

problem of selection of media becomes complex. Here the problem
arises because a mass market does not permit its definition as
precisely as is required to make corresponding media selection
predictable.

3) Markets for a new product or the existing products may be

divided into segments on the basis of geographic, demographic and
psychographic variables. Good segmentation involves the division
of a market by a succession of variables. The market manager
must always be open to the possibility of finding new segmentation
variables and combinations that will reveal fresh marketing
potentialities.

4) The market may also be divided into different locations such

as nations, states, districts, talukas, etc. It could be recognised that
market potentialities and cost vary with market location. Thus, it
determines the geographical markets which could serve best.

5) Marketing manager may also segment a market on such

criterion as the age, sex and marital status of the population. A
product for use of infants will have high sales potentiality in suburbs
or extended suburbs where the level of fertility is expected to be
high as compared to the city. Likewise toothpaste will have better
market in urban rather than rural areas. As such market will be
segmented on the basis of urbanisation.

11.3.5 Markets are segmented due to following reasons :

1. It would be in a better position to spot and compare marketing

opportunities. It can examine the needs of each and every
segment against the current competitive offerings and
determine the extent of current satisfaction. The segment with
lower levels of satisfaction from current offerings represents
good opportunities.

2. It can make finer adjustments of its product and marketing

appeals. The seller can evolve a separate marketing
programme to meet the needs of different buyers.

3. Marketing programmes and budgets could be chalked out on

the basis of response characteristics of specific market
138

segments. Funds may be allocated efficiently to bring out the

desired effects in different parts of the market.

4. Market segmentation is undertaken with the purpose of locating

the tastes, temperaments and buying habits of different groups
or segments. The behavioural scientists feel that all buyers are
different. They are keenly interested in segmenting the market
as the significant differences in market behaviour between the
various segments of society rarely exists. In this background,
the formulation of marketing policies or programmes or tactics
for all segments becomes urgent.

5. Market segmentation is done with the purpose of locating new

markets. The group wise or segment wise study of buyer‟s
tastes, temperaments, living habits and so on help a marketer,
while searching for new market.

11.4 DAGMAR MODEL

DAGMAR model for arousing consumer interests was

developed by Russen Colley in his study entitled “Defining
Advertising Goals for Measured Advertising Results.” The name
DAGMAR model is derived from the study‟s title. The study begins
from a point where the prospect is not aware about the existence of
the product. From this point of non-awareness the prospect
advances ahead towards awareness. He will have to go through
the following steps :

1. Awareness : When the prospect is asked to mention the name

of a brand of product, perhaps he is in a position to recollect the
name of a specific brand only.

2. Comprehension : The prospect is conscious about the main

sales theme of a brand of product. When asked upon, he is able to
associate a brand with the sales theme, which is already known to
him.

3. Conviction : At the stage of conviction, the prospect is able to

foresee how the benefits of the brand of goods will serve his need.
He is convinced that if he purchases this brand of goods it would be
a right decision.

4. Motivation : Having been convinced, the prospect is motivated

to buy a specific brand of goods.

DAGMAR model suggests that all consumers will not be at the

same stage but they would be at different stages. The advertising
efforts required to move on person from non-awareness to
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awareness could be very taxing as compared to the efforts involved

in moving persons from conviction to motivation. DAGMAR model
also illustrates the success of means of communication. After
advertisements have been carried out, how people associate
themselves with a specific brand of product.

Check your progress :

1) Explain the following terms,

a) DAGMAR
b) Market Segmentation
c) Benefit Segmentation
d) Behaviouristic Segmentation
e) Psychographic Segmentation
f) Advertising Campaign
g) Advertising campaign Planning

2) “The advertising Campaign Planning is the process of

collective efforts made by the advertiser and the Advertising
agency.” Explain.

11.4 AIDA

AIDA is a functional formula devised by E.K. Strong. It is the

acronym for Attention (A), Interest (I) Desire (D), and Action (A).
Strong postulated that before becoming a user of a product to an
Interest in it. Form this stage he develops a Desire for the product
and this then result in.

1. Attention : The main function of an advertisement is to attract

attention of the consumers. It is because of this fact that the
advertiser will use various devices like the use of attractive colour,
headlines display and overall layout.

2. Interest : An advertisement is designed to create interest for the

goods or services of the advertiser, interest is closely related to
attention. An advertiser has to take note of these two aspects while
developing an advertisement. A good advertisement starts with a
point of interest to the reader and proceeds to a point of interest to
the advertiser.

Advertising aims at stimulating primary demands for a new

product. It is used for existing product to bring a greater bit of the
marketing share. It is also used to remind the consumers about
their needs. A good advertisement should arouse interest of the
prospects in the advertised product.
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3. Desire : A good advertisement should be able to create desire in

the minds of the readers about the product. It is not enough for a
good advertisement to attract attention create interest but also
arouse desire in the heart of the prospect to have the product. The
advertiser should make use of proper appeals and selling points
while creating desire for the product. Making use of proper appeal
will depend on the seasonal consumption of the product. For
example, the sale of rain-coats in monsoon will emphasise self-
protection against rains. It is through the sales appeal that the
advertiser creates a desire for the product.

4. Action : This is an important stage where the advertiser can

study the impact of his advertisement. If the advertisement has
attracted attention, aroused interest, created desire, then the
advertisement should appeal the prospect to act i.e., to come
forward for making purchases.

The advertiser should tell the prospect about the product, their
main features, how they can be consumed and where they are
available. For example, the prospect who wants to book new
scooter should get such information in the advertisement as: place
of display, place and date of booking. Every advertisement normally
carries such basic information to guide the prospective buyers. It is
this stage which plays a decisive role in generating the sale of the
advertiser‟s product.

11.6 UNIQUE SELLING PROPOSITION (USP)

Unique Selling Proposition (USP) is an offer an advertiser

makes to his target customers which is unique in relation to
competing offers and promises to deliver a certain distinctive
benefit or satisfaction. Unique selling proposition is a creative
approach and style which was originated at the Ted Bates
Advertising Agency in the early 1940s. Its originator, author and
copy-writer was Rosser Reeves. He developed this central idea of
Unique Selling Proposition (USP). This concept has been adopted
by many agencies all over the world. It is the combination of three
words - (i) Unique, (ii) Selling, and (iii) Proposition. In order to make
the concept clear, the meaning of these three words is given below
(i) Unique : The word unique describes an attribute or feature
which the product or brand only possesses or no claim of the
attribute or feature is currently being made by any other competing
brand.
(ii) Selling : Selling refers to sales value. The claim whatever it is -
must be strong enough, important enough, believable enough to
convince consumers that it is absolutely in their interest to purchase
the product or brand in question.
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(iii) Proposition : Proposition is a promise made by the advertiser

that the product, if purchased, will satisfy the needs of the
consumers. The proposition should be strong enough to move the
mass millions, i.e., pull in new and old customers to your product or
brand.

11.7 ADVERTISING APPEAL

11.7.1 Meaning :

An advertising appeal is a statement designed to motivate a

person to act. The appeals which the advertiser makes usually
focus the buying motives of the consumers. Pleasing total quality of
a radio becomes basis to motivate the music and the vitamin
contents of a drug form an appeal to motivate public and listen to
people to preserve their health. However, numerous appeals may
be made for any product.

11.7.2 Essentials of a Good Advertising Appeal : The following

are the essentials of a good advertising appeal :

1. It must be Communicative : An advertising appeal must

successfully tell what it wishes to convey. As far as possible, the
message must be communicated in a simple language.

2. It must have a Good Theme : A good theme means there must

be something which has to be told to the prospects. Only
meaningful words become effective in conveying the story.

3. It must be Distinctive : An advertising appeal must be

distinctive. It should present a product in a distinctive way. If it is a
new product, then „new‟ alone makes it distinctive.

4. It must be Interesting : A good advertising appeal must be

interesting. An advertisement must provide interest to the readers
or the listeners or viewers and this can be done by telling the story
of an advertisement in an interesting manner.

5. It must be Believable : The theme of an effective advertising

appeal must be believable. The message which is doubted can
never be effective. Only facts are presented in an interesting
manner.

6. It must be Complete : An advertising appeal should be

complete and must not be superfluous. Such information which is
likely to confuse the prospects in making buying decision should be
avoided.
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11.7.3 Types of Appeals Used in Advertising : The following are

the appeals widely used in advertising :

1. Emotional Appeals : Emotional appeals are used in advertising

the consumer product. They are used for inducing initial interests
and arousing interest in the advertised product. Goods like toys for
children and baby food are sold on emotional appeals.

2. Intellectual Appeals : These appeals are free from emotional

touch and are based on intelligence. Intellectual appeal are used
for selling high priced industrial goods. They are based on rational
thinking. Emotional appeals work fast to create interest and desire
but it is intellectual appeal of the Bombay Dyeing advertisement
where a young and beautiful girl is shown wearing eye-catching
prints. The picture of the girl and prints provide emotional appeal
but the headline „icy summer prints‟ provide and atmosphere of
coolness and appeals to the intellect.

3. Human Instincts Appeal : Human beings are guided by such

instincts as: self-preservation, parental care, food, clothing,
curiosity and so on. When a copy makes proper appeal to the
appropriate instinct, it will create a desire in the minds of the reader
to buy the article. For an appeal to the self-preservation instinct
health, food, woolen clothes and physical fitness courses are
appropriate articles. Baby food can be sold more easily by making
an appeal to the parental instinct and the natural affection of the
parents for their children.

4. Physical Sense Appeal: Appeals to physical senses evolve

greater response. For example, food and beverage products are
sold by inciting taste appeal. During summer, cold drinks can be
effectively advertised with pictures of cool, refreshing summer
drinks but during winter this advertisement would be a misfit if
appeal is made to the sense of taste alone, a more viable approach
would be to appeal to the instinct of self-preservation.

5. Positive Appeal: Appeals that follow positive approach are

called positive appeal. They create situations under which
prospects are likely to attain happiness and peace of mind with the
possession of advertised goods.

With a view to arouse product interest, the following positive

emotional appeals are used e.g., appeals to comfort, healthy, living,
family affection, pleasure, personal appearance, sympathy, love,
pride etc. These appeals are positive because they create
awareness under which prospects are likely to attain happiness and
the mental satisfaction of possession of materials.
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6. Negative Appeal : Negative appeals are those which follow

negative approach. They normally include feelings like jealousy,
anger, pain and fear. These are the unpleasant feelings and no
prospect would desire to associate himself with frustration

It would be unwise to assume that negative appeals are

ineffective. Sometimes they work very fast. We shall present a few
negative appeals from illustrative advertisements. For example,
Motwane Manufacturing Co., in its advertisement for Motwane
Digital Millimeters used the negative appeal which gave striking
impact.

11.8 SUMMARY

Advertising campaign planning concerns many people in the

advertising agency, but mainly concerns the advertising manager,
account executive, marketing manager, creative director, media
planner, and PR manager. They design and plan advertising
campaign for the client. Planning is a process it includes various
steps like, Prototype Stage, Initial Briefing by Client, Contact
Report, Account Executive‟s Report to Agency Management,
Account Executive‟s Briefing to Agency Department Heads,
Proposition, Presentation to Client etc.

The reputation of Organisation, product, nature of

customers, competition, price of the product, Competitor‟s price,
channels of distribution, budget, Govt. regulations and controls etc
are the various factors which affects on the Planning of an
Advertising Campaign.

Market Segmentation is a technique of dividing the market of a

product into several homogenous groups. Under this technique,
customers of a product are divided according to such common
characteristics as age, sex, income level rural urban composition.
The concept of market segmentation is based on the assumption
that markets of all commodities are heterogeneous. For every
product, there is a group of customers having different nature,
buying habits, and attitudes. Two customers are not alike. They
differ each other. On the basis of their characteristics, customers
may be divided into several groups. These groups are formed on
the basis of some similar qualities and such division is called
Market Segmentation.

Segmentation is the process of partitioning a large

heterogeneous market into smaller groups of people or businesses
which show similar needs and/or characteristics. Markets can be
segmented on the basis of different geographic units, demographic
characteristics, Socio-Economic aspects, psychographical profiles
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of people, behaviou, product characteristics, different benefits that

the consumers are expecting from a product, volume of purchases
etc.

11.9 QUESTIONS :

1. What is Advertising Campaign? Explain the importance of

planing of an Advertising Campaign.
2. Explain the Process of Planning the Advertising Campaign
3. What are the steps in Advertising Campaign Planning?
4. What are factors influencing the Planning of an Advertising
Campaign?
5. What are the bases of Market Segmentation?
6. Explain the importance of Market Segmentation.
7. Write short note on the following : a) DAGMAR Model b) AIDA c)
Unique Selling Proposition (USP)
8. What are the essentials of a good advertising appeal? Explain
the different types of appeals used in advertising.



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12
ADVERTISING BUDGET

Unit Structure :

12.0 Objectives of the lesson

12.1 Introduction
12.2 Meaning of Advertising Budget
12.3 Process of Advertising Budget
12.4 Methods of Framing the Advertising Budget
12.5 Approaches to Advertising Budget
12.6 Summary
12.7 Questions

12.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand :

Advertising Budget
Steps involved in preparing an Advertising Budget
Methods of Framing the Advertising Budget
Approaches to Advertising Budget

12.1 INTRODUCTION

Some people think that money spent on advertising is

expenditure. Some consider it a waste of money. Some are of the
opinion that we spend money on advertising because our
competitors spend a lot of money on it. They consider advertising
as an evil. Here we do not intend to discuss the benefits of
advertising and its necessity for business growth and survival.
Nowadays, money spent on advertising is treated as a long term
investment in the image of a brand. Planned advertising
expenditure is required to build a consumer franchise for the
advertised brand, apart from its being of direct return. That is why
every business enterprise spends a lot of money on advertising
campaign every year out of its budget provisions.
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12.2 MEANING OF ADVERTISING BUDGET

Advertising budget is an estimation of total expenses that are

to be incurred on advertising during a given period of time. The
advertising budget includes items of expenditure relating to
advertising programmes, cost of space, advertising material
(including advertising copy) production expenses, media expenses,
agency commission and advertising research etc. In the most
elementary form, it states the proposed advertising expenditure and
informs and suggests the company management of the anticipated
cost of executing the advertising plan. It is the translation of
advertising plan into money. The advertising budget must be
realistic, flexible and adequate for the advertising programmes. The
advertising budget must consider the advertising goals and the size
must relate to advertising needs. It should be tailored to suit the
needs of the business enterprises. An advertising budget will show
also how much, where and for what purposes the amount provided
in the budget is to be spent. The amount provided in the advertising
budget is not fixed arbitrarily but is determined on scientific lines
keeping in view the nature of the product, size of the market to be
covered by the enterprise, types of consumers and the strategy of
the competitors etc. it is a plan for the company‟s future advertising
programme. It provides a programme of the best assortment of
types of advertising to be undertaken along with its time table and
frequency. In addition to planning function, the advertising budget
also serves as a control of advertising expenditure.

12.3 PROCESS OF ADVERTISING BUDGET

Advertising budget is prepared by the advertising manager of

the company. The advertising budget process includes the
following major steps:

1. Collection of Data and Preparation of Advertising Budget :

The starting point of any advertising budget process is the
determination of the size of advertising appropriation. The requisite
information keeping in view with the products, packaging, target
markets, advertising copy, new product introductions, types of
consumers, extent of competition along with the competitors‟
strategy, media selection etc. is gathered. Having decided upon the
above variables, the advertising manager takes a decision on the
very important issue „how much to spend‟ for advertising. Once the
total expenditure is arrived at, the next step is the apportionment of
this fund among various advertising units over a period. By
advertising unit, we mean a specific advertisement delivered
through various media vehicles. The fund allocation has to take into
account the market potential within various segments, the time
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period and the geographical areas over which advertising will be

spread in accordance with the overall advertising strategy.

2. Presentation and Approval of the Budget : After the

preparation of advertising budget, the next step in a budget making
process, is to present the same before the top management
through the chief of the marketing division for necessary approval.
In some organizations, there is a separate budget committee,
comprising of the representatives of the financial and other
functional areas. The budget committee or the top management, as
the case may be, will evaluate such proposed expenditure to
achieve the targeted sales in a given budgeted period. Since
advertising budget is employed to increase sales, the advertising
budget must be compatible with the sales goals of the company.
Besides increasing sales, it should be adequate enough for the new
product to make a successful entry in the chosen segment of the
market. After considering all these factors if satisfied, the budget
committee or the top management, as the case may be, will finally
accord his approval over the budget proposals and thus will return
the same to the advertising manager for execution.

3. Budget Execution : After the approval, the next step in budget

making process is the execution of the budget. During the
execution of the budget, the advertising manager has to exercise
monitoring control so that the funds that have been allocated are
spent in accordance to the approval plan and in economical
manner. Whenever there are critical changes in the marketing
situation, necessitating an adjustment in the advertising support,
the necessary modifications should be effected in the advertising
budget. That is why, advertising budgets should be flexible and
provision is made for the contingency account to face the critical
changes in the marketing environment. The advertising manager
should be duly authorized by the budget committee or the top
management for making the required modifications etc. as and
when required.

4. Control of Budget : The fourth and the last step in the budget
making process is to have a control over the budget. It is the prime
duty of the advertising manager to see whether the actual
expenditure coincide with the budgeted expenditure or not. The
advertising manager should also see that the amount appropriated
for advertising is being used only on the item and activity as
expressed in the budget.

Determining Advertising Appropriation

Advertising appropriation is that part of company‟s budget
which is to be spent or, say, invested on media, men and other
advertising material so as to impersonally communicate with the
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target-prospective customers. Determining the appropriation

advertising outlay is essential for the development of creative
media strategies because in a large measure the tempo and tenor
of the advertising campaigns depend on how much is available for
spending. However, from the managerial point of view, it is the
most difficult work.

Cost factor is one of the deciding factors in determining the

advertising appropriation. A cost analysis study of different media of
advertisement and their effectiveness should be considered while
determining the advertising appropriation.

12.4 METHODS OF FRAMING THE ADVERTISING

BUDGET

Actually there are no scientific methods available which can be

employed in determining the amount of the advertising fund to be
spent during a given period. However, there are several
approaches which may serve as guidelines to advertising
appropriation decisions. These approaches are called methods.
These should not be employed blindly because there is no single
method which is applicable to all the situations and may provide
correct results. The popular methods which are commonly used in
determining advertising appropriation or for framing the advertising
budget are as follows :

1. Affordable Method : In this method one has to find out what the
company can afford in a given business situation. Particularly,
those companies which have limited resources use this method.
When funds availability is a constraint, a limited fund is allocated
after other unavoidable expenses have been duly met. Under this
method it is usually assumed that advertisers do not spend too
heavily. Under this method, advertising activity is blocked-up at last.

Merits and Demerits (Weaknesses) : Since the company does

not spend more than it can afford and, therefore, there is an
element of financial discipline in this method. Nevertheless, this
method suffers from the following weaknesses:

(i) The budget decisions are left to the whim of the

management and thus are not based on rational business needs.
Whims are most irrelevant and subjective rather than based on an
objective approach.

(ii) It overlooks the contributory rule of advertising in the

achievement of marketing objectives.
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(iii) It also ignores the need, importance, nature of

advertisement and other factors like long-range planning of
advertising investment.

On the whole, affordable method is not a scientific one and

hence is used by small companies only.

2. Percentage of Sales Method : Under this method, the amount

to be appropriated to advertising is arrived at by multiplying the
value of past year‟s sales or the projected sales for the budget
period with a pre-determined percentage. It may be explained as
under :

Adverti sin g
= Past year's sales or anticipated sales or both X Pre - determined percentage
Appropriation

The sales on which advertising appropriation is based may be

historical – immediate past year‟s or an average of past years or
anticipated or both. Percentage figures, on the other hand, may be
arrived at on the basis of management‟s historical experience,
judgement or industry practice.

Merits : This method is most popular with managements on

account of the following reasons :
(i) It is a very simple, workable and relatively safe method.
(ii) Since it directly relates advertising expenditure to sales, it
seems to be very satisfactory for many advertisers.
(iii) It encourages management to think in terms of the relationship
between advertising expenses, prices and profits.
(iv) By relating appropriation to sales, this method ensures that the
advertiser will spend only what he can afford. Advertising will
earn its share out of sales.
(v) It helps the industry in preventing advertising wars because
advertising expenses are proportional to market share/sales.

Demerits or Weaknesses : Inspite of being the most popular

method of framing advertising budget, this method is subject to
criticism on account of the following weaknesses :

(i) It considers advertising as the result of sales whereas the fact is

that it is the cause of sales.
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(ii) It discourages experimentation with counter-cyclical advertising

and aggressive selling.
(iii) It does not provide a logical basis for the choice of a multiplier,
i.e., percentage.
(iv) It militates against the planning of long range advertising
programmes.
(v) It represents a static approach to advertising and does not allow
it to repond to market needs and advertising opportunities. For
example, when sales decline for some reasons a better course
of action might be to maintain the level of promotional activity
until the sales decline can be corrected.
(vi) It is not a scientific method.

Inspite of the above weaknesses and criticism, percentage of

sales method is very popular and is widely used in Indian industries
also.

3. Competitive Parity Method : This method envisages

determination of advertising appropriation in such a way that a
company maintains a parity with its competitors‟ advertising
outlays. This method is based on the principle that you are at par
with competitors. Spend as much as the competitors do. Here,
advertising is taken as a defensive device and not an offensive tool
to achieve marketing objectives. Advertisers want to spend as
much as their competitors are spending so that they are not placed
at any disadvantage. For this purpose, company has to collect
relevant data about competitors‟ advertising appropriation, for
example, previous year‟s absolute figures, advertising/sales ratios
etc.

Merits :
(i) This method is most appropriate where competition is rigorous
as the management is supposed to keep itself in line with its
competitors. Under this method, the management always keeps
himself alert.
(ii) It reduces considerably the possibilities of advertising wars
amongst competitors.
(iii) It enables the management to maintain or increase its share of
the market in accordance with the objectives of the company.
(iv) It enables the management to monitor the marketing
programmes of its competitors. Thereby the marketing strategy
may be changed accordingly.
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Demerits or Weaknesses :
(i) It is not a rational method because the need, size, problem,
opportunities and resources of every company vary
considerably from each other. These are hardly similar to each
other.
(ii) There is no empirical or other evidence to suggest that
competitive parity in advertising appropriations has prevented
advertising wars.
(iii) The use of competition as a yardstick for appropriation makes it
easy for a company to ignore the needs of analyzing the
realities of its own competitive situation and to visualize the
possibility of other and better available strategies.

4. Objective and Task Method : Objective and Task Method for

framing the advertising budget is considered to be the most
desirable and realistic method. It is also known as „research-
objective method‟. It envisages appropriation of advertising funds
on the basis of objectives to be achieved and the task involved
therein. It means advertising objectives are set for the coming
budget period and the cost of achieving these objectives are
calculated in details in terms of task to be performed, the total of
which indicates the appropriation level. In short, this method
includes :

(i) Defining advertising objectives as far as possible in quantitative

terms.
(ii) Outlining and listing tasks to be performed in achieving these
objectives.
(iii) Estimating the cost of performing these tasks. This method
takes into consideration the fact that advertising is an
investment and an effective vehicle of achieving company‟s
objectives.

Merits :
(i) This method is more realistic, imaginative, objective, and
replaces the rule of thumb and customary thinking.
(ii) It forces the management to think in terms of advertising
objectives and awakens it to the need for their achievement.
(iii) It is flexible and may be adapted to changing company needs.
(iv) This method has a special merit in the introduction of a new
product.
(v) It does not operate on the inaccuracies of the percentage of
sales basis.
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Demerits or Weaknesses :
(i) This method is difficult to use, for it calls for adequate research
data and past experience.
(ii) This method is objective-oriented. However, its objectives are ill-
defined, the whole expenditure and the efforts will then go to
waste.
(iii) It is difficult to translate objectives into task that will lead to
objective achievement.

On the whole, this Objective and Task Method is more rational,

realistic, pragmatic and need based as compared to other methods.

5. Return on Investment Method : In this method money spent on

advertisement is considered as an investment and not an
expenditure. It is an investment in the sense that a certain return in
terms of profit is expected under this method. The advertising
budget is prepared; under this method by taking into account the
increased profits generated by an increase in sales and goodwill on
account of advertising. If sales and profits are higher, the excess
may be assumed to the result of advertising.

The major problem in this method, however, is that the return is

very often spread over a period of time, hence it may be difficult to
arrive at an appropriate budget appropriation on the basis of this
method. Inspite of this problem, the return on investment method is
no doubt a realistic way of approaching the problem because it co-
relates the sales and profits generated by advertising.

6. Judgement Method : Judgement method of framing an

advertising budget is based upon the judgement of experienced
managers of the company. This method is also referred as the
„arbitrary method‟ because it is based on the arbitrary thinking of
some experienced managers only, this not based on any scientific
lines. This method involves no clerical or statistical or field work. It
is solely based upon the experience and judgement of some old
and experienced managers. They frame the advertising budget
considering all situations, i.e., objectives, anticipated behaviour of
the customers and the competitors, market to be covered, types
and cost of media etc.

Although this method is very cheap and simple but is not

reliable as it is based on the subjective approach of its experienced
managers and is subject to bias and error.

7. Fixed Sum Per Unit Method : This method is similar to the

percentage of sales method except that a specific amount per unit
153

is appropriated rather than a percentage of the value of sales. The

advertising appropriation may be based on units of a product sold
in the previous period or on a forecast of unit sales in future period.
This method is most suitable in advertising appropriations for
industrial and durable consumer products. The most important
advantage of this method is that despite price changes advertising
appropriation may be kept unaltered.

From the above study, it is evident that no single method is

perfect and free from defects. Hence a mix of the above methods
may be used in accordance to the requirements and need of the
company for framing the budget keeping in view the marketing
objectives of the company.

Check Your Progress:

1) Explain the following terms.

a) Advertising Budget
b) Affordable Method
c) Percentage of Sales Method
d) Competitive Parity Method
e) Research Objective Method
f) Judgement Method

12.5 APPROACHES TO ADVERTISING BUDGET

Nothing except the mint can make money without

advertising. Mass production and mass distribution totally depend
on advertising. That is why the advertiser spends lakhs of rupees
every year on advertising campaign just to influence consumers
and prospective customers to purchase the company‟s products.
Now the question arises whether the money spent on advertising
should be treated as an expenditure or investment. Opinions differ
on this subject. These may be classified under the following two
heads:

1. Traditional Approach - Money Spent on Advertising is an

Expenditure : The traditional approach is that money spent on
advertising should be treated as an expenditure and hence should
be debited to Profit and Loss Account of the business enterprise at
the end of each year. Advertisers treat the cost of advertising like
other costs appearing on the debit side of the Trading and Profit
and Loss Account in order to earn more profits during a given
period. That is why most accountants list the advertising
expenditure as a business expense and the revenues authorities do
154

accept this view for income purposes also. They further argue that
press, radio and television advertisements have short life span and
thus why the money spent on advertisement should not be debited
to Profit and Loss Account in the same accounting year. The fruits
of the advertisement have already been derived in the form of
increase in sales during the concerning accounting year. In their
opinion there is no rational reasoning in carrying forward the
advertising expenditure onwards for a number of years.

3. Modern Approach - Money Spent on Advertising is an

Investment: The modern and the correct approach about the
money spent on advertising is that it is an investment because (i)
advertising contributes not only the current sales but the future
sales also; (ii) Creates image of the product or brand and of the
advertiser; (iii) builds goodwill and confirms acceptance for future
products also; and (iv) consequently serves as an investment
towards future profits also. Joel Dean, a leading business
economist, considered advertising as a capital investment rather
than a current expenditure. Like other capital assets, the
advertising provides larger returns in future also.

From the above discussions, we conclude that money spent

on advertising should be treated as an investment and not
expenditure. It is a capital investment like investment in other
capital assets.

12.6 SUMMARY

Mass production and mass distribution are the main

characteristics of today‟s business world. That is why the advertiser
spends lakhs of rupees every year on advertising campaign just to
influence consumers and prospective customers to purchase the
company‟s products.

Advertising budget is prepared by the advertising manager of

the company. The advertising budget process goes through the
steps such as Collection of Data and Preparation of Advertising
Budget, Presentation and Approval of the Budget, Execution of the
budget, Control over the budget etc.

Actually there are no scientific methods available which

determines the accurate amount of the advertising fund to be spent
during a given period. However, there are several approaches
which may serve as guidelines to advertising appropriation
decisions. No single method which is applicable to all the situations
and may provide correct results. Some important methods
are,1.Affordable Method, 2. Percentage of Sales Method,
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3.Competitive Parity Method, 4. Objective and Task Method, 5.

Return on Investment Method, 6. Judgment Method, 7. Fixed Sum
Per Unit Method.

12.7 QUESTIONS

1. What is Advertising Budget? Discuss the various steps involved

in preparing an Advertising Budget.
2. Define Advertising Budget and Explain methods of framing the
Advertising Budget.
3. What are the approaches to Advertising Budget?
4. What is meant by determining advertising appropriation?
Describe the methods of determining advertising appropriation.
5. What are the methods of framing the Advertising Budget?
Explain.
6. What are the Common Practices in use for determining the size
of an Advertising Budget?
7. What are the methods of framing the Advertising Budget.
8. “Money spent on Advertising is an Investment and not an
Expenditure.” Comment on this statement.
9. Do you think that money spent on advertising is an investment?
Discuss.

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
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13
CREATIVITY IN ADVERTISING - I

Unit Structure :

13.0 Objectives of the lesson

13.1 Introduction
13.2 Consumer Psychology
13.3 Buying Motives
13.4 Selling Points
13.5 Visualisation
13.6 Copy
13.7 Headline
13.8 Slogan
13.9 Logo
13.10 Summary
13.11 Questions

13.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand

Buying Motives and Selling Points

Factors Influencing Consumer Psychology
Process of Visualisation
Techniques of Visualisation
Essentials and types of a Copy
Elements of Copy
Functions and Forms
Characteristic of a good Slogan

13.1 INTRODUCTION

Creativity in advertising is an art. It is concerned with the

perception, attitude, values, personality, and motivation including
buying motives. It also include visualisation techniques, types of
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advertising copy and its elements such as headline, slogan etc. All
these elements must be creative in attracting the attention of
consumers.

13.2 CONSUMER PSYCHOLOGY

13.2.1 Meaning :

Consumer psychology deals with consumer behaviour.

Consumer psychology is the process whereby individuals decide
whether, what, when, where, how and from whom to purchase
goods and services. In consumer behaviour we consider not only
„why‟, „how‟, and „what‟ people buy but other factors also, such as
„where‟, „how‟ and „under what circumstances the purchases are
made‟.

The decisions taken by consumers in relation to the purchases

are influenced by various factors. They are aimed at solving
consumer‟s problems.

13.2.2 Factors Influencing Consumer Psychology

According to Philip Kotler, the major factors which influence

consumer psychology or behaviour are as follows:

1. Culture : The most important determinant of consumer

behaviour is the culture. In case of animals, their behaviour is
generally triggered by instinct, whereas in case of human beings,
behaviour is normally learned. When the child grows up, he is
largely influenced by all tose things which he sees around him. It
includes his family and the society as a whole in which he lives. His
preferences and behaviour patterns etc. are all influenced and
result in his behaving in a particular way. Marketers try to spot
cultural shifts so that they can aim their marketing activities
accordingly. For example, Indian culture emphasises the
purchasing and wearing of new dresses on festivals like Deepawali.
Naturally, there will be good demand of new dresses on the eve of
Deepawali. These are variables within the cultural aspect of
consumer behaviour.

2. Subculture : Within a culture group, there is a smaller group,

which has been termed as subculture by Philip Kotler. He gives as
illustrations, groups such as, Catholics and Jews; racial groups
such as blacks and whites having their different culture styles and
attitudes. Similar subculture segmentation can also be applied in
India where we have several types of linguistic, religious and
communal groups (Hindu, Muslim, Sikh, Christian etc.) as well as
behaviour patterns which vary from north to south and east to west.
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3. Social Class : It refers to several homogeneous groups that

exist in the society. For instance, take the case of caste system in
India. Different castes constitute different social groups. People
within such a social class tend to behave on similar lines as per the
caste pattern. They can be motivated by similar marketing appeals.

4. Personal Factors : According to Philip Kotler, personal factors

also influence buying decisions of the consumers. Personal
outward characteristics, such as age, income, occupation, life style
and personality also count. Tastes in clothes, furniture, food,
recreation etc. vary according to age and income of the individual.

As modern marketing is customer-oriented, the study of

consumer‟s behaviour is vital in framing production policies, price
policies, decisions regarding channels of distribution and above all
decisions regarding sales promotion.

Consumer psychology aims at understanding the consumers‟

behaviour, the factors responsible for such behaviour and the
factors that can influence decision of the advertisers. Each
individual customer has a different psychology. His character,
nature, status, taste, aptitude and inner forces are different.
Consumer behaviour analysis is useful in estimating the potential
size of a market for a product in the market segmentation, in
locating preferred trends in product development, in finding out
suitable communication methods with consumers and finally in
designing the most favourable media mix to achieve the advertising
objectives. A clear understanding of consumer behaviour is
essential in advertising planning.

13.3 BUYING MOTIVES

13.3.1 Meaning :

Buying motives are the urges which compete consumers to buy.

People buy the product because they need them. Thus need
motivates people to demand product. Hunger is a need which
motivates man to demand food and therefore, he purchases food
items.

Buying motive is a combination of two words buying + motive.

Buying means the urge for the satisfaction of which a consumer
makes such purchase. Motive is the force which inspires the
consumer to make a purchase and which directs his behaviour.
Thus, a buying motive is the force for the satisfaction of which a
customer purchases some goods and services.
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13.3.2 Classification of Buying Motives : Buying motives are

generally classified as follows:

(a) Primary Motives : They are the basic needs of men. An

individual has to satisfy such motives to some extent or the other.
They exhort the strongest influence. They are according to
psychologists „biogenic needs.‟ Examples of such motives are food,
drink, security etc.

(b) Secondary Motives : When a person overcomes the basic

needs than secondary motives come into existence. They are
developed or learned. Since they are developed or learned, they
vary with the conditions of learning. They may be less dependable
motives. Although for some products they may influence as strongly
as primary motives. The most commonly known secondary buying
motives are as follows:

1. Fear : This is a very powerful motive. It forces a person to do

many things which otherwise he would have not done. Fears may
be of several types. Thus there are fears of meeting with an
accident, fears of financial loss, fears of loss of wealth, fears of
uncertainly of human life etc.

2. Profit : This motive springs from a person‟s desire to have more

money. A person requires money to satisfy many wants. This
motive may take two forms: (a) to make money; and (b) to save
money.

The first form is positive whereas the second one is negative.

The persons of the first form will spend money in order to
accumulate it further but those of the first form will spend money in
order to accumulate it further but those of the second form may
prove misers as they want to save only.

3. Vanity : This is also an important motive. It also influences

Purchase of many articles. Normally women suffer from vanity.
They require to be flattered. The sale price of sarees, perfumes,
beauty aids, etc. depend upon the principle of vanity.

4. Habit : It is said “habit once formed become second nature.”

They are powerful forces to initiate purchases. Therefore this
motive is equally important. A person may chew paan or supari,
smoke cigarettes inhale snuff out of habits.

5. Curiosity : Man does many things out of curiosity. Man landed

on the moon out of sheer curiosity to find out whether life existed on
it or not. A person may put efforts to acquire knowledge out of
curiosity. Curiosity of children cannot be disputed.
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6. Sex : The most powerful motive is sex. It is powerful because it

has greater impact on human nature. All the changing fashions in
dresses owe their origin to this motive. Thus boys and girls dress
will to win over each other. The sale of fashionable articles is due to
sex.

7. Love : A man purchases household goods, toys, tonic, children‟s

food etc., out of love and affection towards his children. When we
analyse love as a motive, it may be parent‟s love for children and
their close kith and kin.

8. Comfort : It is said “man does not live by bread alone.” He wants

additional things over and above food, clothing and shelter.
Modern age has provided great comforts to man. Good furniture,
air-conditioners etc., are purchased by man in order to lead a
comfortable life.

9. Patronage Motive : In addition to the motives described above,

another set of motive spring up which are known as patronage
motives. Patronage motives exist out of buyers‟ desire to purchase
or patronise a particular seller rather than other sellers. A person
may patronise a particular store because of (i) Location of the store,
(ii) Services rendered by the store, (iii) Reputation of the store in
the locality, (iv) Attitude of the salesman, and (v) Goods available.

13.4 SELLING POINTS

13.4.1 Meaning :

Selling points refer to important features of a product that influence

the decision of people to buy it. They indicate the advantages
accruing to those who decide to buy the product. The unique
methods of production, and design, varied colours, suitable, sizes,
special merits, attractive packing, liberal discounts, competitive
prices and so on constitute the selling points of an article.

Selling points differed from product to product. Necessity goods

are sold on points of utility, durability and price, speciality goods are
sold on the basis of unique utility, economy, convenience, comfort.
Likewise, luxury goods are saleable on the score of the points
which underline fashion, prestige, variety and so on. If these selling
points are revealed to the prospects, they will motivate them to own
the product.

13.4.2 Essentials of Selling Points : The essentials of selling

points are as follows :
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1. It must be Truthful : A copywriter should try to create repeat

business for his firm through his copy. In order to achieve to
achieve the same, he has to include true facts in his copy. False
claims and misleading statements will destroy repeat business.

2. It should be Specific : It means, a claim made by a copywriter

should be supported by facts or explanations. Therefore
expressions such as „most delightful‟, „most dependable‟. „most
economical‟ etc., will be meaningless if they are not properly
amplified and supported by explanations.

3. It must be Believable : The facts and figures finished should be

such as can be easily believed by readers. Sometimes readers fail
to accept facts and figures though it is correct. Therefore the
copywriter should cautiously proceed with while giving details of the
product.

4. It must be Understood by the Reader : The copywriter should

have before him the prospects while writing the copy. Therefore the
ideas should be easily communicated, since a reader will not waste
much of his time in reading it. In short, the language used in the
copy should depend upon the type of readers.

Buying motives are concerned with the urges which compel the
prospect to buy. Selling points are the talking points for the
salesmen.

13.5 VISUALISATION

Visualisation is a mental process. Visualisation means „seeing

in the mind‟s eye the form of the idea as it would appear in the
advertisement‟. It is communicated to the prospects by way of an
advertisement. Fundamentally, visualisation is the process of
playing with different ideas. A visualiser must possess fertile mind
so as to develop worthwhile ideas. Later, these ideas are
transformed into effective advertising message.

Advertisement comprises of several component parts like

headline, sub-headline, slogan, body-text, illustration etc.
Visualisation is the skill to determine which elements an
advertisement should contain and also how they should be
featured. Through a gradual process, a visualiser imagines how his
advertisement will appear when it takes the final form. Visualisation
is generally undertaken by copywriters and art directors.
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13.5.1 Meaning :

Visualisation is the process of seeing through one‟s mind,s eye

about the construction of it. It is forming initially a mental picture of
the idea that would appear in the Advertisement. Visualisation is a
process of creating ideas about overall construction and contents of
the advertisement i.e. the layout, the contents, the size of
headlines, the colours etc. Visulation takes place before the copy is
thought of and before preparing illustrations. Visulation helps in
converting abstract ideas into concrete forms or shape of layout of
an advertisement.

Visulation thus, deals with language - language of vision which

is also a very powerful means of communication of one‟s thoughts,
emotions, feelings, ideas etc.

However, it differs from layout because it is an abstract form

whereas layout is a concrete physical arrangement of things in the
advertisement. Visualisation precedes layout and layout is the
result of visualisation.

13.5.2 Process of Visualization :

The process of visualisation is a team work of copy writers,

artists, producers etc. who work together to develop ad copies not
only for press media but even for Radio, TV. and other media.
Because of the importance of visualisation in introducing creativity
in ad copies, the process of visualisation has become a specialised
profession of some people who offer expertised services in
visualisation.

The visualiser may follow the following steps to conceptualise

an idea for advertisement :

1. Study the product / service to be advertised i.e. its features,

merits, uses, etc.

2. Study advertising objectives - the objective may be to

influence the consumer or it may be to influence the dealers to
stock the product or the objective may be to counter competitive
advertising.

3. Collect relevant information - about the product, competitors

products, prospects and other relevant information.

4. Conceptualise ideas by adopting various techniques such as

brain storming, juxtaposition and association, divergent thinking,
etc., talking into account the relevant information.
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5. Analyse the ideas from various angles-as to how the prospect

would view it and interpret it, how far it will be effective, what impact
it will make and so on.

6. Select two or three version or ideas which requires further

probing. The visualiser than passes on the ideas to the copywriter
and the artist.

13.5.3 Techniques of Visualisation

The well-know techniques of visualisation are as follows :

1. Identifying or Pinning Down the Problem : The matter to be

advertised must be in co-relation with the problem. Thus, the
problem must be first clearly laid down so that the advertising copy
can be accordingly prepared.

2. Forming Pool of Observations Facts Collected and

Information Gathered : Before preparing an advertising copy and
its construction, the several types of information has to be
collected. This collection should be properly arranged in sequence,
so that the entire amount of information can be used when needed.

3. Generating Brain Waves : This involves thinking on the part of

the copy-writer. In this process, the information collected is thought
over and a tank of storage collection is formed in the mind.

4. Brain Storming : It means group thinking and generating cross-

currents of ideas, thoughts and imagination. Group discussions are
arranged in which exchange of thoughts takes place and ideas of
each other are know.

5. Mediation : Then follows the analysis and synthesis of the ideas.

In this stage, the search for tranquility and calmness of mind takes
place, where a quiet churning of ideas after waves and storms
would lead to the obtaining of vision.

6. Rough Layout : A sketch of a rough work out is prepared of final

vision which is the preliminary stage of visualisation.

6. Giving Final Shape : Copy, art work, layout design and

illustrations are the products of final touches given to the vision that
is the idea is given the final form. All these techniques of
visualisation are time-tested.
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13.6 COPY

13.6.1 Meaning :

A „Copy‟ means a written matter in any advertisement. It may

consist only one word or many words. A copy consist of headlines,
subheads, captions etc. The copy supports the illustration and
contains description of the products merits, demerits, uses,
services etc.

A copy is the heart of an advertisement. It shoulders the

responsibility for influencing the buyers.

13.6.2 Characteristics of Copy :

(a) Brevity : A copy should be brief because readers have no time

to go through the lengthy text and they must be able to, read within
a short time. So a copy should use simple language and small and
easy words. The message should be concise and precise.

(b) Clarity : A copy should be self-explanatory. The message to be

delivered must be clear at first reading.

(c) Aptness : The message should be pointed towards the

prospects. It must have a tone agreeable to the respects. The
viewers‟ attention should be led to the product and the message
should be coached in such a way that it would create interest inn
the readers to read the message.

(d) Interesting : A copy should be interesting-provoking. It must

stimulate the readers‟ curiosity to read the message. The reader
should himself decide to read „0 the message in detail.

(e) Sincerity : Sincerity can be achieved by using acts and quoting

figures. Vague generalisations or stray opinions must be avoided.
Sincerity can be achieved if the copy contains one or two
illustrations so that the message will have an instantaneous appeal.

(f) Personal : The message should be directly addressed to the

readers so that every reader forms the opinion that it is directed to
him only. This kind of direct personal attitude catches and retains
the reader‟s or listener‟s attention.

(g) Convincing : A copy provides information with a view to create

in the mind of a reader first a desire and then a conviction to
possess the product. This means that the copy should be
persuasive enough to lead the readers towards buying the product.
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13.6.3 Types of Copy :

1. Scientific Copy : A Scientific copy is prepared for technical

products describing about the features, advantages, uses, contents
and all the technical details about it. It is prepared for machineries,
computers etc. Scientific copy is directed, towards well versed
customers who know about the product. For instance, a medicine
may be advertised to appeal to doctors. Thus, it explains the
ordinary people in general and professional men in particular about
the technicalities of the product.

2. Descriptive Copy : It is a non-technical copy presented in such

a manner that any layman can easily understand. It does not
require a professional expert to an the copy. It is just an ordinary,
announcement of a new items.

3. Narrative Copy : It is in the form of a fictitious story which

narrates the uses advantages, after effect etc., of the product. The
story narrated is humurous to make it interesting.

4. Topical Copy : This copy establish a connection between the

product and a particular happening e.g., A watch company may
advertise that those who were successful in climbing Mount Everest
had with them the watches of the company thus proving their
excellent quality.

5. Personality Copy : This copy takes advantages of the opinion of

an important personality. The statements are made by leading
personalities like sportsman, film actors, politicians etc. Their
statements act as certificates about the superior quality to increase
the sales.

6. Colloquial Copy : In this type, informal language may be used

to convey the message. The terms which are used in daily
conversation are in the copy.

7. Reasoning Copy : It is one which reasons to the customer as to

why he should buy a product. This copy explains to the customer in
detail all the particular product must be purchased.

8. Questioning Copy : In this type, the text asks one or more

questions to readers not for any answer but only for the sake of
response to it. For e.g. Do you want quient holiday in Summer?
(Then stay at Hotel ABC at the XYZ hill station).

9. Prestige Copy : In this type, the position and prestige of the

customer is emphasised. It creates a favourable atmosphere by
changing the position of the customer for the sale of product.
Normally luxury items are advertised by such copies.
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13.6.4 Elements of Copy : A copy normally includes the following

elements or parts :

1. Main Headline : Headlines is the starting or the top line of an

advertisement, usually printed in bold and of larger type size. The
prime function of the headline is to gain immediate attention.

2. Sub-Headlines : At times, some ads have more than one

headline. Of these, one is usually the main headline, and the others
are sub-headlines. There may be overlines - that precede the main
headline and there can underlines - that follow the main headline.
The subheadlines are used to support or to complete the meaning
of the main headline.

3. Body Copy : It refers to the text of the advertising message.

Favourable information about the product and its features is
provided in the copy text. It is through effective copy writing the
audience can be converted into prospects and the prospects into
customers.

4. Captions : Captions do form part of copy text. Captions are

small sentences that seem to come out the mouth of the people
shown in the ads. Comic strip type of copy make use of captions.
For example, you must have come across such captions in the print
ads of Tortoise Mosquito Coil.

5. Sloeans : Most ads do make use of slogan. It is a small catchy

phrase used to sum up the advertising message. Ideally the slogan
should be short, preferably 3 to 6 words. Many a times the slogan
says it all. For instance, „The best tobacco money can buy‟
Rothmans.

6. Logo : Logos or signature cuts are special designs of the

advertiser or its products which are used to facilitate identification.
There is no rule as to where a logo should be placed. However, in
most of the cases, the logo is placed at bottom right.

Check Your Progress :

1) “Each Individual customer has a different Psychology”.

Explain.
2) Explain the following Buying Motives -
a) Fear
b) Vanity
c) Curiosity
d) Comfort
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3) Explain the following terms.

a) Selling point
b) Visualization
c) Narrative Copy
d) Colloquial Copy

13.7 HEADLINE

13.7.1 Meaning :

A headline is a word or phrase printed in large letters above

the advertising message. Headline gives in brief a fair, idea of the
contents of the copy.

A good headline attracts attention and arouses interest. So that

the reader would be induced to read the advertisement.

Normally, the headline finds 10010 of the entire copy. Some

advertising men believe that 50% to 75% of the performance of an
advertisement must be credited to the headline.

As people go through a newspaper or a magazine the headline

is the only thing that attracts its attention. Thus the headline
carriages the heaviest burden of attracting readers to the
advertisement.

13.7.2 Role of Headline:

A headline plays a significant role in advertise by performing

the following important functions :

a. to attract attention of readers to the ad;

b. to attract attention of the target consumers easily and quickly
and to persuade them to read the whole of the ad;
c. to create curiosity and interest in the ad;
d. to make the illustration and the copy more meaningful;
e. to introduce a unique selling proposition;
f. to sort out useful ads from useless ads;
g. to serve as the essence of the whole ad copy.
In the words of David Ogilvy, the advertising guru, “The
headline is the most important element in most advertising. It is the
telegram, which decides for the reader whether to read the copy”.
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13.7.3 Essentials of a Good Headline :

1. Original : A good headline should be unique and should not be

an immitation of any other headline. Originality of headline creates
a separate interest in the minds of readers.

2. Concise : A good headline must be brief i.e. it should not have

more than 8 to 10 words and should form a maximum of two lines.

3. Specific : The headline should be relevant and appropriate to

the copy and illustration. It should convey the advertising message
specifically and not vaguely.

4. Provocative : A good headline should be forceful enough to

induce the readers to go through the copy and the entire
advertisement.

13.7.4 Classification of Headlines

1. Benefits Headline : Such headlines indicates the benefits of the

product or the service advertised.

2. News Style Headline : It emphasises on the quality,

performances, services, advantages of the product list this types,
words like „Now‟. „Atleast‟ etc. are added to the headline.

3. Advice Headline : It advices the customers to purchase a

product or avail of a service which will be beneficial to them. e.g.
“How to bake better cakes”.

4. Challenging Type of Headline : This type of headline

challenges the customer about the quality service, price,
performance etc. Such headlines emphasis on the superiority of the
advertisers product..

5. Selective Headline : A selective headline is directly appealed to

a selected group of customers. It may be specially directed towards
children, students, housewives to be used by those selected
customers.

6. Situation Headline : It puts the customer in a situation and

enquires whether the prefers to be in such a situation. Such
headlines supports the illustration.

7. Label Headline : A label headline announces not only about the

lable of the product but also the selling points. Such headlines are
„introducing type‟ or „warning type‟.
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13.8 SLOGAN

13.8.1 Meaning :

A slogan is phrase or sentence used repeatedly by a company

or an organisation or an advertiser to aid in the formulation of his
message. A slogan is repeatedly used to create certain kind of
effect on the minds of people. Slogan is an important part of
advertising copy. Like headlines and illustrations, slogans are
communication devices which are used to present an idea rapidly
and concisely. It may be used throughout an advertising campaign
or over a period of many years. Some advertisers develop and use
new slogans for each new advertising campaign. A slogan
suggests the thing and he advertises. It suggests the use of product
again and again or several times so that readers know it by heart.
Generally, slogans are used for headlines in advertisements. They
are similar in structure to the summarizing headlines and try to
summarise some advertising idea just as a headline does. Slogans
are mainly used in outdoor advertising. In such outdoor advertising,
a slogan becomes headline and the sales message. Slogans are
generally developed from incidents in the life of a product; such
incident that optimise the use or value of a product when the
incident is happily expressed in a pleasing phrase and is used in
advertising. The right frame having appeal becomes a good slogan.

A slogan sentence used repeatedly by a company of any

organisation to create an impression in the minds of the customers.

A slogan should suggest the thing it advertises. Slogans be

used fur headlines in advertisements because of the limitation on
the length of a copy in this medium. The slogan then becomes
headline and sales message all in one.

Good slogans are not invented monthly by the advertiser. But

they develop from incidents in the life of a product of clause of a
product etc. Then a incident is happily expressed in a pleasing
phrase and used in advertising, it becomes a good slogan e.g.

1. “Any surface that needs ainting needs Asian Paints”.

2. “A filter so true that the taste comes through”. (Bristol
Cigarette).

13.8.2 Characteristics of a Good Slogan :

A good slogan should :
1. Contain a definite sales idea :
2. Be compact in their construction :
3. Be hardly more than 7 words long :
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An ideal slogan is short, simple, easily remembered and filled

with pleasing suggestion of the product. The simplest slogans are
the hardest to create. To create a good slogan is to define what you
want to say in as many words as necessary.

13.9 LOGO

13.9.1 Meaning :

The word „logo‟ comes from the Greek word „logos‟ meaning
„simply the world‟. The noun „logos‟ also appears in the Bible
signifying „the word of God‟. Today the world logo is used in
marketing and in advertising parlance. From the coveted double „R‟
of Rolis Royce to the immediately recongrusable script that Coca-
Cola uses, logos are quickly identified by everyone. Apart from
large corporations in every country even the small businessman
and one-man enterprises have adopted the corporate logo as a
means for creating brand recognition and corporate image.

13.9.2 Need for Logo : The need for a logo arises from the need to
be different, followed closely by the need to be recognised.

Your own given name could be a good example of a logo. In

your childhood days, the name is a device to attract your attention
and to differentiate you from others. Over time as one grow up, the
name takes on newer meanings to yourself and finally becomes a
matter of great pride when you dash off a signature on a letter,
cheques or some other document. It is your expression (difference,
distinction and recognition) saying “this is me”.

The company‟s logo is the corporate signature. It reposes in

itself the collective pride of the company and is designed with great
care to represent the personality of the company and product.
Diversified Corporation use a variety of symbols as part of their
logos. ITC uses the upwards steeply, which also conveys the sense
of growth as well as excellence.

Welcome group uses unique folded hands symbols to denote

hospitality in the inimitable Indian style. Others too use Indian
leitmotifs like LIC which uses two supped hands to denote security
is care. Logos today go beyond just being mere symbols. They
represent the spirit, the belief, the raison„d‟ ere of companies and
brands. Logos the world over have their own logic which is
distinguishable, easily recognised and identifiable.
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13.10 SUMMARY

Consumer psychology is the process whereby individuals

decide whether, what, when, where, how and from whom to
purchase goods and services. In consumer behaviour we consider
not only „why‟, „how‟, and „what‟ people buy but other factors also,
such as „where‟, „how‟ and „under what circumstances the
purchases are made‟.

The decisions taken by consumers in relation to the purchases

are influenced by various factors such as culture, subculture, Social
Class, Personal Factors such as age, income, occupation, life style
and personality etc.

Buying motives are the urges which compete consumers to

buy. Buying motives are generally classified as (a) Primary
Motives (b) Secondary Motives: The most commonly known
secondary buying motives are fear, profit, vanity, habit, curiosity,
sex, love, comfort, patronage motive etc.

Selling points refer to important features of a product that

influence the decision of people to buy.

Visualisation is the process of seeing through one‟s mind‟s

eye about the construction of it. It is forming initially a mental
picture of the idea that would appear in the Advertisement.

Copy means a written matter in any advertisement. It may

consist only one word or many words. A copy consists of headlines,
subheads, captions etc.

Headline is a word or phrase printed in large letters above the

advertising message. Headline gives in brief a fair, idea of the
contents of the copy. As people go through a newspaper or a
magazine the headline is the only thing that attracts its attention.

Slogan is a sentence used repeatedly by a company of any

organisation to create an impression in the minds of the customers.

The word „logo‟ comes from the Greek word „logos‟ meaning
„simply the world‟. The noun „logos‟ also appears in the Bible
signifying „the word of God‟. Apart from large corporations in every
country even the small businessman and one-man enterprises
have adopted the corporate logo as a means for creating brand
recognition and corporate image.
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13.11 QUESTIONS

1. What is Consumer Psychology? Explain the main factors

Influencing Consumer Psychology.
2. What are Buying Motives and Selling Points?
3. What is Visualisation? Explain the process of Visualisation.
4. What are the techniques of Visualisation? Explain them in brief.
5. What is Copy? What are the essentials of a good copy.
6. What are the different types of Copy?
7. What are the main elements of Copy?
8. What is the Headline? Explain its functions.
9. What are the essential of a good copy?
10. Explain the different forms of Headlines
11. What is Slogan? What are the characteristic of a good slogan?



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14
CREATIVITY IN ADVERTISING - II

Unit Structure :

14.0 Objectives of the lesson

14.1 Introduction
14.2 Illustration
14.3 Layout
14.4 Summary
14.5 Questions

14.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand :

Essentials of a good illustration

Functions and Types of Illustration
Features of a Good Layout
Types of Layout Process of Layout

14.1 INTRODUCTION

Illustration is world of pictures. People have become visual

minded. People like to see more than to read or may even to hear.
Therefore, there is a good need for illustrations or pictures in the
advertisements.

14.2 ILLUSTRATION

14.2.1 Meaning :

An illustration is a picture, photograph or drawing that is used

in the advertisement to convey visually the idea or message of the
advertisement. An illustration, therefore, means a picture used in an
advertisement to tell the prospects the message of an
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advertisement. The presence or absence of a picture in an

advertisement can cause marked difference in its effectiveness.
With the help of illustration over-emphasis in the subject matter can
be avoided and display appeal can be made clear and direct. The
inadequacy of language is compensated for the use of an
illustration.

14.2.2 Essentials of a good illustration :

(a) It must support and compliment the copy theme and not detract
from it.
(b) It must be “faithful reproduction” of the advertised product, if the
illustration is that of the product.
(c) The use of colour combination in an illustration must be in
harmony with fundamental human nature, as it influences the
emotional behaviour of individuals.
(d) It must be simple enough to convey the ad message clearly,
easily and quickly.
(e) It must be suggestive in design and construction. Though
simple, it must be attractive, appealing and beautiful to look at.
(f) It must create a lasting impression on the mind of the reader.
(g) It must match with the lifestyle of the target consumer.
(h) It must occupy the proper place in the total layout of an ad.
(i) It must be capable of reproduction in the various advertising
media.
(j) It must match with the headline of an ad and convey the same
message to the reader.
(k) It must be original, unusual, and unique in design and
presentation in an ad.
(l) Multiple illustrations must be used with a purpose in an orderly
manner.
(m) Finally, illustrations must occupy and enjoy a dominant place in
outdoor ads like posters, or, billboards.

14.2.3 Functions of Illustration :

1. Quick Attention : Without illustration an advertisement may look

dull and unattractive. Illustration helps consumers to quickly
understand the message and motivates them to buy the product.
Therefore, illustration must capture the attention of the readers.

2. Demonstrate the Product : Illustration shows the product and

its features at a glance. Illustration indicates use of the product and
how it works. Demonstration is usually visual and it passes on the
message immediately.
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3. Creates Right Atmosphere : Illustration creates the right

atmosphere by using rainfall, river and forest with the picture of the
product. Such illustration has soothing effect on the consumers.

4. Communicate Message : Illustration can carry the advertising

message quickly e.g., a bottle of perfume conveys quickly the idea
that the perfume is being advertised.

5. Support to Copy : Illustration is an important part of copy.

Pictures carry message instantly and support the message given in
the copy.

6. Symbolize the Quality : The visuals used in the advertisement

indicates power, speed, value, strength, etc. e.g. MRF Tyres -
„Myscled Man‟, symbolizes strength and quickly of tyres.

7. Dramatise the Advertisement : Illustration dramatizes - story of

the product. Illustration supports the headline of the advertisement
by pointing out the details of the product.

8. Provides Technical Details : Many consumers buying

consumer durable products are interested to know the technical
details of the product. Advertisements of computers, washing
machines, refrigerators and cell phones gives many technical
details of the product through picture of the product.

9. Lasting Impact : Illustration can make lasting impact on the

mind of the consumers. Seeing is more convincing than being told.
Pictures represent reality.

10. Fights Illiteracy : In a country like our where a large number of

people are illiterate, picture of a soap immediately communicates to
all what the advertisement is about.

14.2.4 Types of Illustrations

There are various methods by which an illustration can be
prepared. They are :

1. Product Alone : In this type, major portion of illustration is

covered by the product for e.g. advertisement that show Colgate
tooth paste. The purpose is to give more importance to the product
and to create image in the minds of prospects.

2. Product in a Setting : In this type, the product is presented

along with a background which is favourable to it i.e. it is presented
in an atmosphere wherein it is used.
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3. Product in Use or Action : In this type, model may not be

shown using the product or the product may be shown in
movement for e.g. A Cigarette company does not show merely a
cigarette or packet but it shows a person smoking a cigarette of a
particular brand.

4. Result of a Products Use : In this type, the after effect of the

product may be shown. The attention is to emphasis advantages or
benefits more dearly. For e.g. an advertisement of a cupboard of a
cupboard will show the space available, various as shelves etc.

5. Dramatisation of a Headline : In this type, the illustration

supports the head line i.e. whatever is given in the headlines is
shown in action in the illustrations are combined, the effect is that
the interest and attention of the reader is attracted.

6. Dramatisation of a Situation : In this type, the illustration

presents a situation in which a customer will be if he uses the
product or if he does not use a product.

7. Comparison : In this type, the illustration compares two superior

products of the same or different type. The basic idea is to relate
the product to a concept which is established and familiar to
consumer.

8. Contrast : While shows the similarity between two ideas,

contrast emphasis the difference between two products of the same
type e.g. A modem appliance may be contrasted with an old
fashioned model.

9. Magnifying Details : In this type, the important features or

minute features are explained in details. It is used to embassies
specific advantages.

10. Symbolic Illustrations : This illustration shows a reorganised

symbol along with an idea, and the advertiser using a symbol may
hope to identify this product with what the symbol stands for in the
mind of the reader.

Check Your Progress :

1) “Illustration is the world of pictures”. Explain.

2) Explain the following terms.
a) Illustration
b) Product alone
c) Product in use or action
d) Contrast
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14.3 LAYOUT

14.3.1 Meaning :

A layout is a sketched plan of a proposed advertisement. It

includes the headline, rough illustration and copy which serves as
plan for the advertisement. Layout is a working sketched plan
showing the size, positions and colour weight values of the different
elements that make up the complete advertisement. Layout, thus
refers to the total exposure of an advertisement.

Layout is important in an advertising plan. It enables the

advertiser to visualize how the complete advertisement will look
when published. It also gives the printer the location of each unit in
the advertisement. Layout is usually prepared to seek approval of
the client and to see approval of the client and to see the overall
impact.

14.3.2 Features of a Good Layout :

Following are the main features of good layout:

1. Balance : Balance in layout means achieving a proper

distribution of weight through the arrangement of the elements.
Balance should be maintained in size, colour shape and density of
elements. There are two kinds of balance; formal and informal.

Formal balancing means placing of identical or similar items on

both the sides of optical centre. Informal balancing means
spreading of elements at different places in the advertisement or
have large illustration which cover a major portion from the optical
centre.

2. Movement : There should be mobility in the advertisement. It

provides a visual type of flow and sequence. It is more used in case
of items which are mobile in nature e.g. An advertisement of an
automobile should have illustration which shows mobility in it.
Movement guides the render‟s eye from one element to another
and makes sure that he does not miss anything. Movement should
start from the left hand top corner of the advertisement to the right
hand bottom corner.

3. Gaze Motion : It is the direction of movements of the reader‟s

eye. The element of advertisement should be placed in such a
manner that there is an easy flow in the movement of eyes of the
reader. An illustration showing a person walking in a particular
direction on will cause the render to look in that direction.
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4. Structural Motion : A good layout should. Utilize lines, arrows,

signs which will indicate or point out to the important elements of
the advertisement.

5. Proportion : It involves appropriate division of the space

between the various elements like the headline, illustration,
subheads, copy etc. In a headline oriented advertisement, headline
should be given major space and in an illustration oriented
advertisement, illustration will dominate the space.

6. Whide Space : Whide space is the area not occupied by copy.

Effective use of whide space helps to establish a sense of
proportion. Whide space helps in reducing a crowdy appearance
and brings prestige and luxury in an advertisement.

7. Unity : There should be unity between the elements i.e. there

should be proper correlation between the headline and copy or
illustration and copy. Unity is also achieved when the elements
appears as component part or a single unit.

8. Clarity : It implies that the various elements should be arranged

in such a manner that the message is understood clearly. The
layout should not be too complicated and tricky but must be easy to
read and understand. The type, size, design should be selected for
easy reading.

9. Simplicity : It implies that too many elements in an

advertisement should be avoided. Those elements. Which can be
dropped without destroying the message should be dropped. The
simplier the Layout, the clearer the message.

10. Emphasis : It implies that the important elements should be

given much emphasis. Emphasis must be brought about by placing
the most important feature at or near the optical centre. There
should be emphasis on the various selling points and the purpose
of advertising depending upon the requirements. Layout should
emphasis on education, information and persuasion.

14.3.3 Types of Layout :

1. Standard Layout : It consists of a dominant illustration,

headline, body copy and signature, generally in that order. It is
highly popular in the field of advertising.

2. Editorial Layout : The advertisement resembles editorial matter

or press reports in a publication. Main emphasis is on body copy.
Words dominate the advertisement and illustration may be missing
or given less importance.
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3. Poster Layout : Total stress is on the visual. Copy is very short

and illustration provides details e.g., advertisements of soft drinks
and chocolates.

4. Cartoon Layout : Cartoon type illustrations and matching copy

is used to attract attention e.g., advertisement of Amul butter and
Tortoise coil.

5. Comic-Strip Layout : The layout follows the pattern of the comic

strip by telling a story with the use of sequence of drawings.

6. Picture Caption Layout : Pictures and captions are used to

explain different aspects of the product or services e.g.,
advertisement of automobile or mixer grander. It is suitable to
advertise costly consumer durable products.

7. Picture-Cluster Layout : The layout performs the same function

as in the case of picture-caption layout. Captions are not used.
Cluster of several vertical and horizontal rectangles are used.

14.3.4 Process of Layout : The final layout is the outcome of

several stages. The various stages are as follows:

1. Thought Sketch or Thumbnail Sketch : The first stage is the

thought sketch or thumbnail sketch. Many-a-times, artist begins
with small, rough sketches of possible layouts. These sketches
provide a quick and convenient way to get different design ideas. At
first the headline and illustration are roughly prepared. The location
of logo and body copy is indicated. The artist may prepare several
thumbnail sketches before arriving at one that holds promise for
further development.

2. Roughs Layout : The second stage is the rough layout, which is

a refinement of the thought sketch. Some artists prefer the start
with a rough layout, bypassing the thumbnail sketch stage. One or
more rough layouts may be prepared. In this case headlines,
slogan and illustrations are roughly drawn.

3. Finished Layout : When a final rough layout is selected, then it

is transformed into a finished layout. This layout is much more
detailed and carefully drawn than the rough layout. The illustration
is more or less finalised. Headlines are carefully executed, and
body copy is neatly ruled in the lines and blocks of copy of varying
lengths to indicate intention and paragraphs. This layout is normally
shown to the client for approval.
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4. Comprehensive Layout : Sometimes, the artist may prepare a

comprehensive layout. It is more complete in respect of art work,
headline and slogan. Some times such layout look more beautiful
than the final ad. If it is photograph, the artist will paste the
photograph on the layout. Comprehensive layouts may be prepared
to give the client a clear idea about the final ad.

5. Working or Mechanical Layout : Really speaking these are not

actually layouts. These are blueprints for production. The working
layouts indicate the exact placement of all the elements in the ad
specifies typeface and size and includes relevant instruction for the
typographer and engraver. The final ad is prepared from the
working layout.

14.4 SUMMARY

An illustration is a picture, photograph or drawing that is used

in the advertisement to convey visually the idea or message of the
advertisement. A good illustration must support and compliment the
copy theme having harmony colour combination, simple to convey
the ad message, suggestive in design and construction, creating a
lasting impression, matching with the lifestyle of the target
consumer, matching with the headline.

A layout is a sketched plan of a proposed advertisement. It

includes the headline, rough illustration and copy which serve as
plan for the advertisement. The main features of good layout are:
Balance, Movement, Gaze motion, Structural motion, Proportion,
Whide space, Unity, Clarity, Simplicity, Emphasis etc.

14.5 QUESTIONS

1. Define illustration and explain the essentials of a good illustration

2. What is illustration? Explain the functions of Illustration.
3. What are the types of Illustrations Explain them in brief.
4. What is Layout? What are features of a Good Layout?
5. What are the types of Layout?
6. What are the steps involved in process of Layout?


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15
ADVERTISING RESEARCH

Unit Structure :

15.0 Objectives of the lesson

15.1 Introduction
15.2 Advertising Research
15.3 Testing of an Advertisement
15.4 Pre-Testing Methods
15.5 Post-Testing Methods
15.6 Summery
15.7 Questions

15.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand :

Advertising research
Need and importance of Advertising Research
Types of Advertising Research
Testing of an Advertisement
Evaluating Advertising Effectiveness
Pre-testing and Post-testing methods

15.1 INTRODUCTION

Advertising research is the systematic, scientific and

continuous process of studying consumers within the context of
market situations, product attributes and competitors' strategies. A
well-conducted research programme provides inputs that are the
foundation of an advertising campaign.
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15.2 ADVERTISING RESEARCH

15.2.1 Definition
Advertising research is defined as the systematic gathering
recording and analysing of data relating to the effectiveness of
advertising.

15.2.2 Need for Advertising Research :

1. Target Audience : It can be identified through ad research and

accordingly the message can be directed to the right audience.

2. Media Mix : It enables to determine the proper media mix that

can be employed to run the ad campaign. Proper media is selected
to reach more effectively to particular groups of potential
customers.

3. Unique Selling Proposition (USP) : Advertising research helps

to discover USP that can be effectively presented in the ad.

4. Costly Errors can be Minimised : Advertising research can

prevent the advertiser from making costly mistakes. It can be over-
budgeting, selecting wrong media, directing the ad message to
wrong audience etc.

5. Budget Amount : Advertising research also enables to

determine the proper amount that can be effectively spent on
advertising. Proper budget amount can be allocated and utilised
using the ad at the right time and at the right frequency.

6. Layout, Copy and Illustration : It can help to develop effective

layout, copy and illustrations that would be most effective in gaining
consumer attention and in inducing effective readership of ad.

7. Appeals in Advertising : Through proper conduct of consumer

research, one can understand their likes and dislikes, tastes and
preferences. The study can be made of their buying motives.
Accordingly appropriate appeals can be developed to stimulate
demand among the various groups of prospects.

8. Competitive Advertising : Proper advertising research can help

to develop not only creative ads but also competitive ads. To face
the challenges posed by competitors claimed in their advertisement
and other marketing efforts.
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15.2.3 Importance of Research in Advertising :

Following points justify the need and importance of advertising

research :

1. Target Audience : Target market/audience can be identified

through ad research and accordingly the message can be directed
to the right target audience.

2. Media-Mix : It enables to determine the proper media/media-mix

that can be employed to run the ad campaign. Proper media is
selected to reach more effectively to particular groups of potential
customers.

3. Unique-Selling Proportion (USP) : Research may reveal a

unique buyer benefit that no one had thought of before. Advertising
research helps to discover USP that can be effectively presented in
the ad.

4. Costly Errors Can be Minimized : Advertising research can

prevent the advertiser from making cost mistakes. Mistakes can
often be committed in over budgeting, selecting wrong media.
Directing the ad message to wrong audience etc.

5. Budget Amount : Advertising research also enables to

determine the proper amount that can be effectively spent on
advertising. Proper budget amount can be allocated and utilized by
using the ads at the right time and at the right frequency.

6. Layout, Copy and Illustrations : It can help to develop effective

layout, copy illustration that would be most effective in gaining
consumer attention and in inducing effective readership / viewer
ship of the ads.

7. Appeals in Advertising : Through proper conduct of consumer

research, one can understand their likes, dislikes, tastes and
preferences. A study can be made of their buying motives.
Accordingly appropriate appeals can be developed to stimulate
demand among the various groups of prospects. And as such the
most effective ad campaign theme can be devised and used to
bring about desired response from the consumers.

8. Competitive Advertising : Proper advertising research can help

to develop not only creative ads but also competitive ads to face
the challenges posed by competitors claims in their advertisement
and other marketing efforts.
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15.2.4 Types of advertising research : Advertising research can

be sub-divided into the three major areas :

1. Budget Research : It is covered with the amount of money

allocated to advertising.

2. Media Research : It concerned with advertising research,

frequency, efficiency and the effectiveness of different media and
combinations of media in reaching target customers.

3. Copy Research : It deals with what is said and how it is said in

the employed media. All these areas are inter related and
interdependent. For example, the use of inappropriate media would
affect even the most effective advertising message. Media
effectiveness may also be influenced by the available budget.

15.3 TESTING OF AN ADVERTISEMENT

Ad testing deals with the measurement advertisement

effectiveness. What constitutes effectiveness? Which variables (s)
should be tested, or, measured to know the degree of advertising
effectiveness?

15.3.1 Meaning :

In practice, the following four categories of variables, are,

generally, tested viz. (1) message variables, (2) media variables,
(3) scheduling variables and (4) budgeting variables.

1. Message Variables : In the case of an advertising message in

an advertising message in a typical print advertisement the variable
to be tested would be the headline, the illustration, the body test,
the layout, and the typography, individually as well as severally. In
the case of television commercials, the variables to be tested would
be appeals, themes, propositions, rhetorical style, audio-visual
devices, format illustration technique, staging casting music, sound
effects, etc.

2. Media Variables : The media testing opportunities are

considered at the following four levels, viz.,

(i) The advertiser must decide the type of media, such as,
newspapers, magazines, television, radio or direct-mail, etc., he
intends to use.

(ii) The advertiser then, must decide the sub-class of media, he

is to use. For example, what king of newspapers : Daily Sunday,
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Evening or Morning Newspapers. Likewise, what kind of television

and / or radio : sport, Network, or, Regional channels, in the same
way, what kind of magazines : General, Women, Sports,
Healthcare, etc.

(iii) The advertiser, then must selected specific media vehicles,

what newspapers in Mumbai, which television channels in Delhi,
and what media mix is to be used?

(iv) Finally, he must determine space units i.e. full page, or, half
pages, or, quarter pages broadcast time units, such as 60 seconds,
20 seconds, and the position of the ad in print media as well as in
television.

3. Scheduling Variables : Consumer behaviour is generally

influenced by the time factor, such as season of the year,
occasions like Diwali, Christmas, Id day of month or week, etc.
timing of television commercials frequency continuity are also
important factors.

4. Budgeting Variables : Budget affects, and is affected by all

other advertising variable. How much money should be spent on
advertising? How should be the total amount of money be allocated
to markets, to media to sales territories and to specific items in the
product line? The advertiser must measure the relationship
between budgeting variables and profit yields.

15.3.2 Need of Evaluating Advertising Effectiveness :

1. Achieve Awareness : Testing of advertisement will show

whether there is an increased influence of the advertising message,
product or service advertised. Testing enables, the advertiser to be
aware of all the reasons why an advertisement has been effective
or otherwise.

2. Affects Attitudes : Testing enables the advertiser to know

whether the attitude of the prospects towards the advertised
product or service has been changed or not, it also enables him to
understand whether any message of the advertisement is
recollected by the customer.

3. Actuate Action : Advertisement testing enables the advertiser to

analyse the response by the prospects to an advertisements. It
gives him an idea of when, how, why a customers accepts a
particular products or rejects it. This will help him to present the
product in such manner that he (prospects) takes a favourable or
positive action.
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4. Judge Overall Effectiveness : Testing of advertisement-helps

the advertiser injudging the total effectiveness of a particular
advertisement in respect of their headlines, layout, copy,
illustrations, layout or any other quality that is important within the
advertisement.

Thus, advertising evaluation can be done before the campaign

is over. The main object of evaluating the campaign is “to get all the
bugs out” before sending precious money. When advertisements
are tested after the campaign it is called “postmortem” of an
advertisement effectiveness.

The advertising can be evaluate or tested before or after its

application. Both have got various advantages.

15.3.3 Pre-Testing Methods :

An advertisement can be tested at two stages namely: (a) prior

to the commencement, and (b) after the commencement of the
advertising campaign. The former stage is called „pre-testing‟ and
the latter „post-testing‟.
The following are the pre-testing methods :

1. Proposition Tests : Tests of creative strategies are called

proposition tests. Strategy refers to the alternative course which
can be tried to know most suitable course of action. For example,
the advertising campaign of a watch manufacturing company might
follow such strategies as: (i) It is stylish watch for fashion conscious
man. (ii) It is a dependable watch. (iii) It is an inexpensive watch
and looks like a watch that costs twice the price.

Each proposition reflects a different advertising strategy for

watches. Fashionable appearance, expensive appearance and
reliable. To choose which is the best representative sample of
prospective watch buyers would be shown all three on individual
cards as if they were different watches. The sample respondents
would then be asked to choose between the watches, and to give
their choices. The most widely acceptable proposition would be
established as an advertising strategy.

2. Concept Testing : Under this method, testing is carried out in

the same way as Proposition Testing, except that roughly drawn
advertisement concepts are used instead of placing alternative
strategies on the cards. As the public is not used to look at rough
advertisement concept, the respondents must be explained in
advance that what they are about to be shown are rough layout of
the artist. Headlines should be shown clearly and such irrelevant
details must be excluded as: Cufflinks on a shirt because this may
187

give a chance to worry the respondents about why they are there,
whether they are fashionable and so on. Concept tests are used to
measure the interest and credibility of different advertising
approaches.

3. Sales Area Testing : The most reliable method of testing the

effectiveness of any advertising is initially to run it in one or two
selected areas. This testing is used to facilitate launching
advertising campaign on a large scale, because effectiveness is
first tested in a smaller area.

4. Folio Tests : Folio tests are used for press advertisements that
are finished or near finished form. Test advertisement along with a
couple of advertisements is placed into a folder. The „Folio‟
composed in this way is then placed before the selected few
consumers who are expected to give their reactions. The rest
advertisement is singled out later in the interview and the consumer
is asked to discuss its appeal and motivational power in creating
interest, arousing desire and attracting attention. This method of
pre-testing spots out the most responsive advertisement.

5. Project Tests : Television commercials are sometimes tested in

consumers‟ home by means of portable movie projectors. Often the
commercial is inserted in a short sequence from an entertainment
film. After showing the film to the consumers, the interviewer asks
their opinion about the commercial.

6. Trailer Tests : In trailer testing, a trailer or van is parked in a

parking zone of a shopping centre and people are invited to come
in for interviews. Everyone who enters the trailer is shown a
television commercial on a rear screen projector and questioned
about it. This method is very economical for it costs less to bring
people into, the trailer for interview.

7. Consumer Jury Tests : Consumer jury tests are based on the

rating given on advertisement by a typical group of consumers.
Rating implies comparison of one advertisement with several
others. A consumer jury test is made in a variety of ways. The
usual procedure is to ask a relatively small group of consumers,
who represent potential buyers of the product to rate alternative
pieces of copy. Different data collection methods may be used in
implementing a consumer jury test. For example, personal
interviews may be used or a group may be assembled and the
members may be asked to rate on the alternative copy.

8. Rating Scales : This method of copy testing requires the

establishment of standards for effective copy and numerical
weights for each standard. The weights or values indicate the
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relative worth of a standard in the overall success of copy.

Advertisements are then rated according to scale value and a
numerical score is obtained.

9. Portfolio Tests : These tests are named after the manner in

which advertisements to be tested are packaged. A group of
advertisements usually a mixture of advertisements to be tested is
placed in portfolio. Sometimes, advertisements are actually placed
in dummy copies of newspapers and magazines. Respondents are
given the folio and asked to go through it, reading whatever
interests them and taking as much time as they want. After
completing this task, the respondents are asked to recall the
advertisements what they can remember.

10. Simulated Tests : Simulated tests are tests in which

consumers are exposed to alternative pieces of copies through
point of purchase displays of direct mail. These tests are simple
and less expensive to implement than actual sales tests. However,
they are artificial.

Benefits of Pre-Testing :
(i) To check clerical, grammatical, printing or technical errors.
(ii) To make communication more effective from readers points
of view.
(iii) Minimise waste in advertising.
(iv) To make it m ore meaningful and effective.
(v) It is simple, less time consuming, and less costly.

15.3.4 Methods of Post-testing :

Tests that are applied after the commencement of the

advertising campaign are called post-tests. Post-testing enables to
study the impact of advertising on the effective sales promotion.The
following are the methods of Post-testing :

1. Recognition Tests : Under this method the respondents are

asked to point out the contents of those advertisements which they
might have seen. The objective of this test is to know the degree of
effective impact of advertisement.

2. Recall Tests : Under recall tests the entire advertising campaign

is considered as against recognition tests. Where only specific
advertisements are considered Recall tests are applied to measure
the attention, interest and memory value of advertisements after
they have been launched.
189

3. Inquiry and Coupon Response : Under inquiry testing, the

advertiser sends a free sample to the reader, on request. The
reader is expected to mail the coupon to take advantage of the
offer. It is quite likely that such advertisements are given
simultaneously in different publications of the newspaper or
magazine. The advertisements are keyed in order to know which of
the several advertisements resulted into more response. It is
assumed that the advertisement which brings largest number of
inquiries is superior to others.

4. Split-Run Test : It is a modification of inquiry test. An advertiser

takes two advertisements in magazine offering split-run facilities.
The two advertisements differ in one respect only e.g., one
advertisement presents the cold drink in a transparent bottle and
the other advertisement presents the cold drink in a non-
transparent bottle. The advertisement is keyed. Now, in two
different markets i.e., cold drink marketed in transparent bottle is
more, it is taken for granted that this advertisement has been more
successful compared to the second one.

5. Psychological Tests : A variety of psychological tests are used

which include story telling, word association, sentence completion,
depth interviewing etc. This test attempts to find out what the
respondent has been in different advertisements and what they
mean to him. These tests can be conducted only by trained
interviewers.

6. Focus Interviews : In this method some selected consumers

are called and are asked to deliberate discussion on the
advertisements presented to them. The attention of the members of
the panel is focused on certain aspect of the advertisement. The
opinion expressed by the participants becomes the basis to study
the effectiveness of advertising.

7. Readership Test : This method attempts to study the impact of

advertising in increasing the product awareness by the consumers.
Readership test facilitates the relative importance and effectiveness
of advertisement published in national press. The readers are
asked to tell where have they read the advertisement and how it
has increased their awareness about the product.

The various methods used to study the effectiveness of an

advertisement provide information about the impact of an
advertisement on the product awareness and bringing about a
change in the attitude of the consumers.
190

Benefits of Post-Testing :
(i) To find out the extent to which the ad has been noticed,
seen or read.
(ii) To find the extent to which the message is understood by
the readers.
(iii) To measure the memory value of advertising.
(iv) To find the impact of advertising on consumer buying
behaviour.
(v) To see whether ad is accomplishing its objectives.
(vi) To evaluate the comparative effectiveness of different ads
in terms of appeals, layout illustration etc.
(vii) To improve future advertising efforts.

Check Your Progress :

1) “Well conducted research programme provides inputs for an

advertising campaign”. Discuss.

2) Explain the following terms.

a) Budget Research
b) Copy Research
c) Concept Testing
d) Folio Test
e) Consumer Jury Test

15.4 PRE-TESTING METHODS

Before the advertising campaign is undertaken, the advertiser

checks or test advertisement in respect to its effectiveness. The
main object of evaluating the advertisement before the campaign is
“to get all the bugs out” from it.

The pre-testing methods of checking advertising effectiveness

are as follows :

1. Check List Method :

It is simplest method of testing. In this method a questionnaire
is prepared by the researcher containing items that are commonly
found in all types of ads. Then he has to put a tick mark against the
item appearing in the ad.

This method can be used to find out attention value, interest

value, under-standing and education value etc. It is easy to
191

conduct, less time and money is consumed. But it is difficult to

judge consumer reactions by a mere check list.

The jury members of consumers are asked certain question like :

(i) Which of these ads would you notice first?
(ii) Which of these ads would you like most?
(iii) Which of these ads would make you to buy the brand?
(iv) Which of these ads can be easily read and understood?
(v) Which of these ads are more believable?

2. Consumer Jury Method :

A consumer jury is a small group of people who may be
considered typical buyers of the product or service advertised. The
advertiser enquires with them and their opinions on an
advertisement are sought. On the basis of their opinions, he may
accept or reject the advertisement campaign.

(a) Order of Merit Rating : In this case various ads are shown to
the jury of consumers at a time and asked to place them in rank
order. Each rank can be assigned certain points, then chart will be
prepared and maximum points to be assigned by all members will
be selected.

(b) Paired Comparison : In this type, a member of jury is shown

two ads at a time and is asked to select the better one. This
procedure will continue until each ad from the lot is paired with
every other ad. The final conclusion may be drawn.

Merits of Consumer Jury Test :

(i) It can be conducted within a short period of time.
(ii) Less costly.
(iii) It does not require actual running of ads.
(iv) Size of jury members need not be large i.e. 10 to 50
members.
(v) Members can be motivated to give unbiased replies.

Demerits of Consumer Jury Test :

(i) It is unrealistic as the ads are not seen in real life condition.
(ii) There may be biased opinion.
(iii) Selection of jury members is a real problem.
(iv) Test based on opinion rather than study.
(v) There may be inconsistency in ranking by different
members.
192

3. Sales Area Test :

In this method a campaign, is run with different appeals in
separate comparable markets (usually cities) for a particular period
of time, the effectiveness of the ad campaign is evaluated by
comparing actual sales made to consumers in different markets.
That sales are which is giving highest sales is considered as more
effective and accordingly ad copy is selected.

4. Procedure :
The procedure is to select two groups of cities (market area),
one group is called (Control group of cities) and other is called (The
test group of cities) each group contains three cities. The existing
ad campaign is continued in control group and new ad campaign is
run in test group.

The testing period is divided into three stages, ranging between

3 to 6 months.

First stage is called as Pre-test. During this period sales are

checked in several groups to determine the trends in sales in
normal conditions.

Second stage is called as “actual test period”, in which test

campaign is seen in the test group of cities.

The third stage is called as “Post-test period”, in which sales

are checked to find out effect of advertising campaign.

Now sales results of the control groups are compared with the
results of the test groups. If the sales show a better performance,
the new campaign is treated as effective and later on is run over
the entire market area.

Evaluation :
Ad. campaign is run on a small scale to find out - its
effectiveness before running the ad over entire market of this test is
conducted properly, it provides authentic results. However, (i) It is
time consuming, (ii) It is expensive, (iii) It poses a problem in
respect of selection of cities maintaining comparable situations.

4. Inquiry Coupon Response :

Under this, the advertiser sends an inquiry coupon through
newspapers or magazines which will have to be sent back to the
advertiser duly filled in by the respondent. The number of inquiries
or coupons sent back will ascertain the effectiveness of the
advertisement.
193

The enquiry test can also be conducted by direct mail. One of

the types of this test is called as split run test. In this case two Ads
are selected for the test. First ad is published in first half of the
number of copies and second Ad is given remaining half of the
number of copies. The ad showing maximum response is selected.

Merits :
1. It can be used to check the relative effectiveness of several
ads by remaining them on a limited basis.
2. It is easily implemented and comparable.

Demerits
1. It is time consuming. 2. It is expensive.

Other Methods :
There are several other pre-testing methods :

(a) Projective Technique : The purpose of this test is to avoid the

drawback of direct questioning and allow the respondent to reveal
his feelings about an advertising situation various types of
projective techniques are :

(i) Depth Interview : The respondent is given the advertising

material and is asked to express his opinion freely. The interviewer
studies the respondent about his feelings and motivation.

(ii) Word Association : The researcher presents a word and the

respondent is asked to reply with first word or throught that comes
to his mind. For example? What is the first things you think I say
toothpaste? Or automobile?

(iii) Sentence Completion : The researcher shows an incomplete

picture or puts an incomplete sentence and the respondent is
asked to complete the picture or sentence.

15.5 POST-TESTING METHODS :

Advertising evaluation can be done even after the advertising

campaign is over When advertisements are tested after the
campaign is over, it is known as “postmortem” of the advertisement
effectiveness.

The post-testing methods of advertising effectiveness are as

follows :
194

1. Recall Tests :
This test is made to measure the memory value of the reader
(respondent). The procedure is to select a group of respondents
and it is confirmed that they have read the particular issue of the
magazine. The respondents are given cards on which the names of
all products advertised in the issue are shown. The respondents
are asked to list each ad they think have seen and tell what it looks
like. Question can be asked on the message, colour, headline, etc.
to find out the impact value.

The merit of the test is to measure the depth of impression

which an ad leaves on the respondents mind. This test can also be
conducted with some aid and are called as “aided recall test”.

2. Readership Test :
This test finds out what the readers read and how well they
remember it. The advertisement to be tested is to be published in a
newspaper or a magazine. The an interviewer carrying a copy of
that medium asks the persons to be interviewed and asks them
which newspapers or magazines, they read, what advertisements
have been seen and remembered and their effectiveness. The
advantage of this method is that, a comparative evaluation is
possible and it focuses on the ways of getting attention.

However, the drawback of this method is that it assumes that

readership means sales. It is not always that whatever
advertisements we read we do buy.

Attitude and Opinion Test :

These tests are conducted to measure the attitudes and
opinions of the customers towards a firm‟s advertising, its products
and policies. For such tests measuring scales have been
developed to study the consumer attitudes and opinion.

Keying on an Advertisement
After preparation of an advertisement is over, it is to be
inserted in newspaper and/or magazines. Thereafter, the advertiser
has to check the effectiveness of the advertisement. For this
purpose, he has to adopt certain methods to ascertain what enquiry
is received from which advertisement. This process of identifying
the enquiries pertaining to a specific advertisement is known as
keying an advertisement. Advertisement can be keyed by inserting
coupons in the advertisement is known as keying an advertisement.
Advertisement can be keyed by inserting coupons in the
advertisement itself. This coupon is given a key number or some
identification mark which helps their sorting. The readers are
requested to fill in their names and addresses in the coupons and
mail them to the advertiser for getting a catalogue of further
195

information. The number of coupons received back gives an idea

about the effectiveness of the advertisement.

15.6 SUMMERY

Advertising research is the systematic, scientific and

continuous process of studying consumers within the context of
market situations, product attributes and competitors' strategies.

Advertising Research is essential as it identifies target

Audience, enables to determine the proper media mix, helps to
discover USP, prevents the advertiser from making costly mistakes,
enables to determine the proper amount that can be effectively
spent on advertising, develops effective layout, copy and
illustrations, and develops not only creative ads but also
competitive ads.

Advertisement testing deals with the measurement of

advertisement effectiveness. An advertisement can be tested at
two stages namely: (a) prior to the commencement, and (b) after
the commencement of the advertising campaign. The former stage
is called „pre-testing‟ and the latter „post-testing‟.

15.7 QUESTIONS

1. Define Advertising research.

2. What is the need and importance of Advertising Research?
3. What is testing of an Advertisement
4. Explain the need of Evaluating Advertising Effectiveness.
5. What is meant by Pre-testing? What are its methods?
6. What do you mean by post-testing? Explain its methods.
7. Write short note on the following :
a) Pre-Testing Methods
b) Consumer Jury Method


I

Advertising
(Applied component group)
At the S.Y.B.Com. examination
(Revised Syllabus w.e.f. academic year 2010-2011)
(Applicable in IDOL from year 2011-2012)

1. Introduction to Advertising 25 lectures

(a) Introduction to Integrated Marketing Communications -

Publicity - Public Relation - Salesmanship - Sponsorship -
Advertising - Sales promotion.
- Advertising - features, Active participants, Role of
Advertising in Marketing Mix, Communication and society.
- Advertising and brand building
(b) Classification of Advertising
On the basis - Area, Audience, Advertisers, Media,
Objectives.
Social Advertising, Political Advertising, Advocacy
Advertising, Retail Advertising, Financial Advertising,
Corporate Image Advertising, Primary & Selective
Advertising.
(c) Media in advertising
• Comparative analysis of Media options for advertising -
Television (cable / satellite / DD), Ratio (special
reference to FM), Internet, Print, Film (Product
Placement) and Outdoor advertising.
Emerging Media Options - New Options of Transit
Advertising, Marketing Through Social sites, Advertising
through cell phones
• Media planning - media scheduling strategies and
media objectives - Reach, frequency and GRP
• Concepts - Media buying, Media Selling, Media Mix,
Clutter, Zipping & Zapping, Need for media research
and Organizations conducting media research. Media
survey, National Readership Survey (NRS), Television
Rating Points (TRP)
II

2. Economic & Social Aspects of Advertising 10 lectures

(a) Economic aspects of advertising - impact on production,

distribution and consumer cost, advertising and
competition, waste in advertising.
(b) Social aspects of advertising - advertising and culture
(values, festivals, customs), standard of living, ethics in
advertising.
(c) Regulation and control on advertising in India - Advertising
Standard Council of India (ASCI), Advertising Agencies
Association of India (AAAI), Information & Broadcasting
Ministry.

3. Advertising Agency 10 lectures

(a) Advertising Agency - definition, types of services offered,

types of advertising agencies, structure of ad agencies,
agency selection criterion, ways of getting clients with
special reference to creative pitch, agency accreditation
and client turnover, current advertising agency’s scenario.
(b) Career options available in advertising field - advertising
agency, media, production houses, research and allied
fields - printing, graphics and animation, modeling and
dubbing.

4. Planning an advertising campaign 16 lectures

Meaning of advertising campaign

Important aspects of campaign planning
The target audience - need for segmenting the market and
bases of market segmentation
Objectives of a ad campaign - communication (DAGMAR)
versus sales objectives
Media Selection & factor determining selection of Media
Advertising budget - Factors affecting budget / Methods
Requisite of an advertisement - AIDA, role of persuasion
Determining the message theme - USP
Decision on advertising appeals and selling styles (soft
selling / Hard selling skills)
III

5. Creativity in advertising 16 lectures

(a) Psychology in advertising - perception , attitudes and
values, personality, motivations (including buying motives)
and beliefs.
(b) Visualisation techniques
(c) Copy - types and essentials
(d) elements of copy - headline (functions and types), overline,
underline, body copy, captions, taglines, slogans, call to
action, logo, company name and signature.
(e) Illustrations - functions and types
(f) Layouts - stages, functions, types and essentials
Types of advertising options - dramatization, animations,
testimonials, demonstration (informative, educative and
fantasy).
Copy writing for print, outdoor, ratio, web and television
(concept of storyboards)

6. Advertising research 13 lectures

Evaluating advertising effectiveness
Importance of research in advertising
Types of research copy. Copy research and behavioural
research
Pre-testing and post testing methods of evaluation -
- Pre-testing methods - methods for concept testing and copy
testing
- Post - testing methods - sales and response rates, recall
tests, recognition tests and attitude and opinion tests
31

S.Y.B.A / S.Y.B.Com.

ADVERTISING

(Under Distance Education Council Grant)

© UNIVERSITY OF MUMBAI

Dr. Rajan Welukar Dr. Dhaneswar Harichandan

Vice Chancellor, Professor-Cum-Director IDOL,
University of Mumbai University of Mumbai

Programme Co-ordinator : Ms. Madhura Kulkarni

Asst. Prof-cum-Asst. Director, IDOL,
University of Mumbai

Course Writers : Dr. R. R. Khan

K.P.B. Hinduja College
Mumbai - 400004

: Dr. S. R. Kamble
Dr. Ambedkar College
Wadala, Mumbai

: Prof. Rita Khatri

H.R. College of Commerce
Mumbai - 400020

Edited by : Dr. Suryakant Lasune

Lala Lajpat Rai College
Mahalaxmi, Mumbai

October, 2011 S.Y.B.A. / S.Y.B.Com.. ADVERTISING

Published by : Professor cum Director

Institute of Distance and Open Learning ,
University of Mumbai,
Vidyanagari, Mumbai - 400 098.

DTP Composed : Ashwini Arts

Gurukripa Chawl, M.C. Chagla Marg, Bamanwada,
Vile Parle (E), Mumbai - 400 099.

Printed by :
CONTENTS
Unit No. Title Page No.

1. Introduction Advertising 01
2. Integrated Marketing Communication 13
3. Classification of Advertising 22
4. Advertising Media 37
5. Media Planning 62
6. Media Research 72
7. Emerging Media Options 82
8. Economic and Social Aspects of Advertising 91
9. Regulation and Control on Advertising 105
10. Advertising Agency 113
11. Planning an Advertising Campaign 129
12. Advertising Budget 145
13. Creativity in Advertising - I 156
14. Creativity in Advertising - II 173
15. Advertising Research 181

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