JAI MAHAVIR COMMERCE CLASSES

SYBCOM
SUBJECT – ADVERTISING

Q.1 Integrated Marketing Communication: (IMC)

Ans:
Definition: William Stanton defines Integrated Marketing Communication “as the
element in an organization’s marketing mix that is used to inform, persuade &
remind the market regarding the organization &/or its products.”
Features of IMC:
The main features of IMC are:
1. Process: IMC is a process of communicating messages to target audience in
order to promote firm’s goods & services. The process includes the
following steps:
 Identifying target audience
 Determining communication objectives
 Instituting (developing) IMC plan

2. Main Objectives: IMC is undertaken to achieve certain well defined

objectives which may include:
 Creating awareness
 Developing attitudes
 Developing brand image

3. Continuous in Nature: IMC is a continuous activity. There is a constant

need to undertake IMC activities to face challenges of the competitors in the
market.

4. Elements of IMC: IMC involves a number of elements that can be used to

communicate commercial messages to the target customers. The various
elements include:
 Publicity
 Advertising
 Sales Promotion

5. Creativity: Creativity is vital in all the elements of IMC. For instance, a

good deal of creativity is required to create effective ads. Creative
advertisers always make efforts to bring out creative ads, something more
exciting, entertaining & effective – different from the existing ads.

6. Art & Science: IMC is an art because it requires creative talents to produce
effective commercial messages. It is a science, because commercial
messages are planned & prepared after systematic study of target audience,
product, competitors, etc.

7. Target Audience: IMC is normally directed at select target audience. The

marketer must select the right target audience & direct the messages to
create a positive impact on them so that they buy & repeat the purchase of
the marketer’s brands.

8. Influences Diverse Groups: IMC is primarily directed at the present &

potential customers. However, while designing IMC, firms must also
consider the various groups that IMC may have an impact.

Elements of IMC:
1. Publicity
2. Advertising
3. Sales Promotion
4. Sponsorships
5. Personal Selling
6. Public Relations
7. Packaging
8. Trade Fairs & Exhibitions
9. Direct Marketing

Q.2 Features of Advertising:

Ans:
Definition: The American Marketing Association. It defined advertising as “any
paid form of non-personal presentation & promotion of ideas, goods or services by
an identified sponsor.”
Features of Advertising:
1. Process: Advertising is a creative & systematic process. The process of
advertising involves:
 Planning of advertising
 Preparation of advertising
 Placing the ads

2. Paid/Controlled Form: The advertiser pays for the time & space used in
the media. Therefore, the advertiser exercises control over the advertising
process – i.e., what to say in the ad, where & when to put up the ad, & so on.

3. Non-personal Presentation: Advertising is non-personal presentation of

commercial messages through the media like press, TV, radio, outdoor,
digital, etc. Generally, advertising is not done face-to-face on individual
basis, except in the case of interactive advertising.

4. Ideas, Goods & Services: Advertising is undertaken to promote ideas,

goods or services.

 Goods such as FMCG like tea, toothpaste, toilet soaps, etc., are
promoted through advertising.
 Services such as banking, insurance, telecom, etc., are advertised to
gain competitive advantage.
5. Identified Sponsor: In advertising, the sponsor is always identified, either
by the firm’s name &/or by brand name. In earlier days, there was more
emphasis on brand name. A strong corporate name often benefits the
company to introduce new products, to secure funds from the capital
markets, to attract & retain competent personnel, & so on.

6. Art, Science & Profession: Advertising is an art because it requires creative

talents to produce good ads. It is a science as ads are planned & prepared
after systematic study of the target audience, product, competitors, etc.

7. Elements of Promotion-Mix: Advertising is an important element of

promotion mi. The other elements of promotion-mix include publicity,
salesmanship, sales promotion, sponsorships, etc.

8. Influences Diverse Groups: Advertising is primarily directed at the present

& potential customers. However, when designing advertising, firms must
also consider the various diverse groups include the ad critics, the
distribution channels, employees, shareholders, & the society at large.

Objectives/Functions of Advertising:
1. To create Awareness
2. To Develop & Reinforce Attitude
3. To Develop Brand Image
4. To Differentiate the Product
5. To Persuade Customers
6. To Support Other Elements of Promotion-Mix
7. To Promote Social Welfare
8. To Stimulate Demand
9. To Act as Reminder
10.To Enhance Corporate Image
11.To Gain Competitive Advantage
Active Participants in Advertising:
1. Advertisers
2. Advertising Agencies
3. Audience
4. Advertising Media
5. Advertising Production Firms
6. Government Authorities
7. Research Firms
8. Self-Regulatory Bodies

Q.3 Features of Ad-Agency:

Ans:
Definition: “An independent business organization, composed of creative &
business people, who develop, prepare & place advertising in advertising media for
sellers seeking to find customers for their goods & services.”
Features of Ad Agency:
1. Independent Organization: An ad agency is an independent organization
composed of creative people like art directors, copywriters, layout designers,
media planners, & so on.
2. Intermediary between Advertiser & Media: The ad agency acts as an
intermediary between the advertiser & the media. For instance, it books time
& space in the media on behalf of the client. After preparation of ad
campaign, the ads are placed in the media.
3. Services Offered: Ad agencies offer a range of services to its clients to
promote their products. The services of ad agencies include:
 Planning & preparing ad campaigns
 Booking of timings/space in the media
 Placing the ad campaigns in the media.
4. Size of Ad Agencies: The ad agencies are of varied sizes mainly depending
on the business turnover. There are very large agencies that earn billions of
dollars in annual revenue.
5. Contributes to Marketing Success of Clients: Ad agencies contribute to
the marketing success of its clients. They come up with innovative ideas to
advertise & promote the products. Innovative ideas create a memorable
impact on the minds of target customers, which may lead to higher sales
turnover.
6. Creative Inputs: The success of an ad agency largely depends on the
creative inputs relating to client’s advertising. The creative inputs are
generated by its creative team consisting of art directors, copy directors &
others.
7. Agency Accreditation: In India & elsewhere in the world, the ad agencies
need accreditation from the association of television channels, radio stations,
& print media.
8. Agency Compensation: Ad agencies get a commission from media
publishers/broadcasters (which is about 15% of the bill charged for
time/space used to advertise the product by the advertiser).

Q.4 Skills Required for Career in Advertising:

1. Conceptual Creative Skills: Advertising people, especially, the copy writers, &
art work people. Conceptual skills enable people to visualize, analyze, &
understand the various aspects of problems or situations.
2. Communication Skills: Advertising people, especially, the creative people
(copywriters & art directors) need good amount of communication skills. They
should know:
 What to communicate
 When to communicate
 Whom to communicate
 How to communicate

3. Human (People) Skills: It refers to interpersonal skills. Human skills are

required to lead, to communicate, to motivate, to develop team spirit, & most of all
to work with people in a team.
4. Stress Resilience Skills: There are deadlines & work pressures. The advertising
people have to work for long hours even during the weekends. Clients want the
advertising to be completed ‘day before yesterday’.
5. Time Management Skills: Every professional requires effective time
management skills. Time management skills enable the advertising people in
timely completion of ad campaign, & other related activities.
6. Problem Solving Skills: Advertising is a complex puzzle, which has no right or
wrong answers, but there are many possible solutions to ad problems. Therefore,
ad people must have right problem solving skills to solve the puzzle & to create &
implement effective advertising.
7. Persuasion & Negotiating Skills: Advertising people must have a good deal of
persuasion & negotiating skills. Persuading refers to convincing effectively to
accept what you say or what you offer.
8. Leadership Skills: The advertising managers in an ad agency must be good
leaders as well. They should lead by example, & motivate the subordinates.
9. Other Skills: There are several other skills, which are required by ad
executives:
 Presentation skills
 Critical thinking skills
 Team building skills
 Conflict resolving skills, etc.

Q.5 Economic Impact of Advertising:

Ans: Advertising does have impact on various economic issues. It affects the value
of the products, the price of goods & services, the competition in the market, the
business cycle & the consumer choice. The economic impact of advertising is
explained as follows:
1. Effect on the Value of Products: Are the advertised products functionally
better than those that are not advertised? Not necessarily. But in consumers’
mind, advertising can give added value to the brand.
2. Effect on Profits: Advertising may lead to higher demand. Higher demand
leads to large scale production & distribution. The large scale production &
distribution bring economies of scale.
3. Effect on Prices: Some advertised products do cost more than unadvertised
products, but the opposite is equally true. This is because; when advertising
leads to increase in demand, producers go for large-scale production &
distribution.
4. Effect on Product Life Cycle: Advertising may extend product life cycle.
For instance, due to heavy advertising, the growth stage may get extended.
For instance, Colgate Palmolive with its heavy advertising have extended the
growth stage of its toothpaste brand in India.
5. Effect on Production Costs: Advertising has an indirect effect on
production costs. Due to advertising, the firm may get higher demand, which
may lead to economies of large scale production. Thus, the cost of
production per unit may decline.
6. Effect on Distribution Costs: Advertising has a direct effect on distribution
costs. Advertising generates demand, which leads to increase in production,
& consequently increases in distribution.
7. Effect on Consumer Demand: It is true that the promotional activities
including advertising affects consumer demand. But, it is also true that many
social education level, changes in lifestyles, etc., are equally significant to
affect consumer demand.
8. Effect on Competition: Some critics are of the view that advertising
restricts competition, because small firms or newcomers find it difficult to
compete with the huge advertising budgets of large firms.
9. Expansion of Markets: Advertising helps to expand the markets. For
instance, a local advertiser may expand to regional markets & form regional
to national & international markets.
10. Effect on Economic Growth: Advertising increases economic growth of a
nation. Effective advertising may lead to higher demand. Increase in demand
leads to higher production of goods & services.

Q.6 Effect of Advertising on Consumer Demand:

Ans: Advertising can have a range of impacts on consumer demand for a product
or service. With reference to effect of advertising on consumer demand, the
following aspects are to be noted:
1. Primary & Selective Demand: Advertising can create primary demand for
generic or new products. For instance, an ad may provide information &
make people aware of the benefits of generic products, which may increase
primary demand.
2. Evolving Experiences: Effective advertising creates an emotional
experience for the consumers that induce them to increase demand for the
advertised brand.
3. Social Media & Demand: Social media may also help the advertisers to
increase the demand for their products. Online audiences have a more direct
& interactive experiences with marketers. Online ads contribute to an
ongoing relationship with consumers through likes, comments, shares,
contents, survey participation, & votes.
4. Professional Advertising: Some business firms depend largely on
professional people to increases the demand for their products. Therefore,
advertisers must undertake professional advertising or influence the
professionals by personally approaching them for their recommendations.
5. Creativity in Advertising & Demand: Advertisers need to come up with
creative ads to influence & induce people to buy the products. Creativity is
an-going process. For instance, Amul Butter comes up with creative ads
based on current events.
6. Effect of Advertising on Competition & Demand: Advertising may
stimulate increase in competitive activities. Advertising makes competitors
active & alive. Due to stiff competition, the competitors may come up with
sales promotion techniques such as special discounts, free samples, gifts,
extended warranties.
7. Demand from Market Segments: Demand can be increased from certain
segments of the markets by creating a new ad campaign that suits or
influences the specific type of market segment.
8. Temporary Increase in Demand: Advertising may help to increase the
demand temporarily. For instance, if a firm wants quick infusion of cash or
wants to quickly liquidate old stock to make room for new stock, advertising
can come to the rescue of the firm.
9. Increase in Specific Product’s Demand: A firm having a broad product
line & usually advertises the business in general, rather than specific goods
or services; the firm can increase the demand for a specific brand through
specific brand’s advertising.
10. Advertising & Decreases in Demand: Advertising may lead to decrease in
demand or sales. If advertising gets backfired, the firm may lose the demand
in the market. For instance, controversial ads may lead to decrease in
demand.
Q.7 Ethical Issues in Advertising:
Ans: Ethics is a branch of social science that deals with moral principles & values.
It differentiates what is good & what is bad. What is good should be followed &
what is bad should be discarded or avoided.
There are various ethical issues in advertising ranging from the questions of
validity of claims made in the ads to the matter & manner of presentation. Often
vital issues are raised such as:
 Advertising of harmful products,
 Advertising to children,
 Ads in poor taste
 False claims made in the ads,
 Unhealthy brand comparisons,
 Use of Testimonials, etc.
Even though some ads might increase sales, an ethical advertiser should avoid the
use of offensive, double meaning tone of the ads & also the truth should not be
stretched too far. When making a claim about the product one should not malign
competitors’ product, when your product is basically the same as that of the
competitors.
Advertisers must address themselves the following few questions:
 Who should & should not be advertised to?
 What should & should not be advertised?
 What should & should not be the content & tone of the advertising message?
 Where should & should not be advertised?

Q.8 Role of Advertising in Developing Brand Image:

Ans: A major objective of advertising is brand building. Brand building involves
developing brand’s core values in the minds of target audience.
The brand image concept is the brain work of David Ogilvy, who is considered as
the father of image advertising.
Ogilvy states:
“Every advertisement is not a one-time shot, but a long term investment in the total
personality of their brands.”
What is a Brand Image?
Brand image is a mental picture or perception of a brand in the mind of the
consumers.
Sometimes or the other, someone must have asked you-How’s the product? & your
reply was either positive or negative. The moment you, say the product is really
good-this means you have a good image of the product, at least for the time being.
Ways of Developing Brand Image:
Marketer can develop brand image of the product through several ways. The
various factors that play an important role in building brand image are as
follows:
A. Advertising Related Factors:
1. Creativity in Advertising
2. Brand Ambassadors
3. Media Selection
4. Media Scheduling Strategy
5. Symbols
6. Sponsoring of Events
7. Size/Length of Ad
8. Humour in Advertising

B. Non-Advertising Related Factors:

1. Distribution
2. After-Sale-Service
3. Product Performance
4. Price
5. Company
6. Packaging
Q.9 Brand Equity:
Ans: David Akar defines “a set of brand assets & liabilities linked to a brand, its
name & symbol, that add to or subtract from the value provided by a product or
service to a firm &/or to that firm’s customers.”
Factors Influencing Brand Equity:
1. Brand Loyalty: Customer’s brand loyalty is the vital of a brand’s equity. It
is true that it is expensive to gain new customers & relatively inexpensive to
keep existing ones – provided the existing customers are satisfied with the
brand.
2. Brand Name Awareness: Brand awareness is the ability of a potential
buyer to recognize of recall that a brand belongs to a certain product
category. In other words, it is a process of linking product class & brand.
3. Perceived Quality of the Brand: Perceived quality is the customer’s
perception of the overall quality or superiority of a product as compared to
other competing brands.
4. Brand Associations: A brand associations is anything “linked” to a brand.
The underlying value of a brand name often is based upon associations
linked to it. Like perceived quality, brand associations do influence purchase
decisions & brand loyalty.
5. After-sale-service: The after sale-service provided by the company can
make a difference in brand equity. Nowadays, most of the durable products
are more or less standardized.
6. Brand Ambassadors: Some marketing experts claim that brand
ambassadors can enhance brand equity. For instance, the Lux soap is
associated with female film stars & positioned as the beauty soap of film
stars.
7. Brand Patent: Companies can obtain brand patents for new & innovative
products. They need to register under the Patent Act of respective countries
where they want to patent it. For instance, in India products may be
registered under patents (Amendment) Act 2005.
8. Brand Logo: Brand Logo can enhance brand equity. The brand logo like
brand names facilitates instant identity of the brand. Some of the brands that
have unique logo include Apple, Nike, McDonalds, Mercedes, Audi (4
rings), Reebok, Pepsi, & so on.
Advantages of Brand Equity:
1. Marketing Programs
2. Brand Loyalty
3. Price & Profit Margins
4. Brand Extensions
5. Trade Leverage
6. Competitive Advantage

Q.10 Rural Advertising:

Ans: India has a population of over 1250 million, 70% of which lives in rural
areas. The sheer number of the rural population necessities that marketers reach out
to them through advertising & other means of marketing communication.
Advertising Media for Rural Markets:
1. Traditional Media:
 Puppetry, dance-drams, rural specific art forms are performed at
village melas & temple festivals.
 Word of mouth
 Mike announcements, processions
 Folk theatre
 Ads on delivery vans
 Audio-visual vans or publicity vans

2. Mass Media:
 Television, especially Doordarshan & regional channels.
 Press & other print media including local/regional magazines.
 Radio
 Cinema Halls
 Point of Purchase ads
Strategies for Rural Advertising:
1. Influencing Strategy: Advertising under this strategy actually depend on
the convincing power of influential people &/or events in the villages to
communicate the commercial messages to the rural customers.
2. Participatory Strategy: Events like different festivals & different games &
sports competitors actually have a high participation level in the rural India.
The local events & shows offer great opportunity to effectively reach to rural
masses.
3. Show-N-Tell Strategy: Several firms are venturing into different ways to
educate the rural consumers about their brands & their usage through
different shows & events. This kind of initiatives actually creates huge
awareness about the brand among the interested people in the rural India.
4. Product Demonstration Strategy: Marketers may also use product
demonstration strategy to communicate the merits & features of the product.
The product is demonstration by trained & tactful persons conversant with
the local language.

Q.11 Common Green Marketing/Advertising Claims:

Ans: The following are some of the common green marketing/advertising claims
made by sellers, especially in development countries like USA, UK, Japan & so
on:
1. “Free Of” Claim: Companies may make a point to let the consumers know
that their products are “free of” any harmless chemical or other ingredient
that poses a risk to their health or lives.
2. VOC-Free: VOCs (Volatile organic compounds) which are found in paint,
household cleaning products, floor polishes, charcoal lighter fluid,
windshield wiper fluid, & some hair styling products, among other products.
3. Non-Toxic: Marketers may state that their products is “non-toxic” – safe for
both humans & environment.
4. Ozone-Friendly: The ozone layer in the upper atmosphere prevents harmful
radiation from the sum from reaching the earth. But ozone at ground level
forms smog & can cause serious breathing problems for some people.
5. Biodegradable: A company may state that its product or packaging is
biodegradable Something that’s biodegradable, like food or leaves, breaks
down & decomposes into elements found in nature when it’s exposed to
light, air moisture, certain bacteria, or other organisms.
6. Recyclable & Recycled Products: A company may say its recyclable or
recycled. Recyclable products are those which people can recycle the
package or product after use.
7. Carbon Offered Claims: A company can make claims that it takes actions
to reduce greenhouse gasses, like planting trees, or using green technology
& can get credits for those “carbon offset” activities.
8. Renewable Claims: A company may claims that it uses Renewable
Materials & Renewable Energy.

Q.12 Benefits of Business Firms & Consumers.

Ans:
 Business Firms
Advertising benefits the manufacturer in a number of ways. The importance of
advertising to the manufacturer can be briefly explained as follows:
1. Introduction of Product: Advertising helps a manufacturer at the
introductory stage. Through effective advertisements, the manufacturer can
create awareness in the minds of the target audience.
2. Modifies Attitude: Advertising helps to modify attitude towards the brand.
There are times when people develop either negative attitude towards a
particular brand or they may have a neutral attitude towards the brand.
3. Builds Image: Ads can develop the right image for the brand. The right
image or goodwill can be developed for the brand depending upon the
choice of models or personalities used in the ads, the type of programmes
sponsored, the use of the right words or language in the ads & so on.
4. Builds Loyalty: Ads enable the manufacturer to develop brand loyalty.
Brand loyalty results in repeat purchases by the existing customers, & the
existing customers may also recommend the product to their neighbours,
relatives & friends.
5. Market Expansion: Advertising enables market expansion for the
manufacturer. Through effective ads, the manufacturer can sell not only in
the local area, but also enter in the national market & even in the
international market.
6. Corporate Image: Advertising can develop corporate image for the
manufacturer. The manufacturer can develop corporate image through
institutional advertising or public relations advertising.
7. Economies of Scale: Advertising enables the manufacturer to generate
economies of scale. This is because advertising generates more demand for
the product. This requires more production.
8. Improvements in Quality: Advertising facilities improvement in the
quality of the product. Advertising can generate more sales. This brings in
more sales revenue & profits.

 Benefits to the Consumers

1. Information: Advertising informs the consumers about the availability of
products & services in the market. The consumers can also get information
in respect of the features, price, operational instructions, etc.
2. Acts as Reminder: The ads remind the consumers of their requirements, so
that they can plan their purchase well in time. For instance, an ad of
umbrella may remind the buyers to purchase umbrella well before the rains.
3. Lowers Product Prices: Consumers can get goods at reduced prices due to
economies of large scale production & distribution. The producers often pass
on some of the benefits of large scale production to the buyers.
4. Better Quality Products: Since advertising stimulated competition, every
producer makes every possible effort the improve the quality of goods &
services. This results in improved quality of goods & services.
5. Higher Standard of Living: Consumers can improve their standard of
living. This is because advertisements makes possible a wide range of
products & services which add to the satisfaction.
6. Guards against Substitutes: Advertising warns against the cheap
substitutes that are available in the market. Reputed companies often insert
advertisements for the benefit of consumers, regarding the harmful effects of
cheap substitutes.
7. Education to Consumers: Ads not only informs the consumers, but also
provides education. The ads educate the consumers regarding the handling
of the product, the uses of the product, side-effects of the product, if any, in
case of drugs, etc.
8. Modifying Attitudes: Ads try to change attitudes of the consumers towards
certain products. For example, many people in India have negative views on
women’s menstrual cycle (Period Taboos).

Q.13 Classification of Advertising.

Ans: Advertising can be classified in many ways. Some of the ways in which it
can be classified are as follows:
CLASSIFICATION OF ADVERTISING

Area Audience Media Functions

- Local - Consumer - Press -Direct/Indirect

- Regional - Industrial - Broadcasting -Primary/Selective
- National - Trade - Outdoor - Product/Image
- International - Professional - Others

I. On the Basis of Geographic Area:

1. Local Advertising: This is also known as retail advertising. This is
undertaken mostly by retailers in a local area which can be a village, a town
or a city or even in a small locality. The response expected is “Buy at my
Store”.
2. Regional Advertising: This type of advertising is done in a particular
region, say western region, etc. There are certain marketers who concentrate
their marketing efforts in a particular region & as such they concentrate their
advertising effort in such region.
3. National Advertising: This type of advertising is undertaken by marketers
who sell their products throughout the nation. Examples include Colgate
Palmolive, HUL, Godrej, P & G, etc. The response expected is “Buy my
brand”.
4. International Advertising: This is undertaken by MNCs, airlines, hotels &
exporters who promote their products/services in different countries.
Examples include advertising by Philips, Taj Hotels, Suzuki Motors, etc.

II. On the Basis of Audience:

5. Consumer Advertising: It is directed at the consumers. Such advertising is
done to create awareness & to induce action on the part of consumers, i.e.
purchase of goods & services or some other action.
6. Industrial Advertising: It is undertaken by sellers of industrial products.
They advertise to business people to purchase the products & services that
they can use such items in their business activities.
7. Trade Advertising: It is undertaken by manufacturers of consumer goods as
well as industrial goods. It is undertaken to influence the dealers to stock &
promote the products.
8. Professional Advertising: It is undertaken to influence the professionals
like doctors, lawyers, architects, professors, etc. The media used can be
direct mail, Mostly, the professionals are approached personally by sales
representatives to prescribe or recommend the product.

III. On the Basis of Media:

9. Press Media: In includes the use of newspapers & magazines. In 2021, print
media had a share of 22% of the total ad spend in India. Over 90% of the
print advertising is commanded by newspapers & the remaining share is that
of magazines.
10.Broadcasting Media: In includes advertising on radio & on television. In
India, television advertising has gained importance & is ranked number one
in terms of advertising expenditure. In 2021, TV media had a share of 38%
of the total advertising expenditure in India.
11.Outdoor (Out of Home OOH) Media: It includes posters, neon signs,
transit, point of purchase (POP) etc. Outdoor advertising can be a good
supporting media to other forms of advertising.
12.Internet Media: Internet as a medium of advertising is the fastest growing
among the major media in India. It is growing at the rate of 50%. In 2021,
the growth rate of internet advertising was over 50% & its share in the total
advertising expenditure of India was 34% in 2021.
IV. On the Basis of Functions:
13.Direct Action & Indirect Action Advertising:
Direct action advertising is undertaken to obtain immediate response or
action of target audience. Examples include discount sales advertising, sale
with free gift offers, use of coupons, etc. The media used is mostly
newspapers, & television.
Indirect action advertising, is undertaken to influence the audience towards
advertiser’s brand. The advertiser expects the target audience to prefer his
brand as compared to competitors whenever a buying decisions arises in
future.
14.Primary & Selective Advertising:
Primary advertising is undertaken by trade association or by cooperative
groups. It is undertaken to create generic demand for products & services.
Selective Advertising is undertaken by marketers of branded products. The
advertiser intends to create selective demand for his brand. Examples
include Tata Tea, Nescafe, etc.
15.Product & Institutional Advertising:
Product advertising is undertaken to promote the sale of products – branded
or unbranded.
Institutional advertising is undertaken to build name & goodwill of the
organization. It is also known as corporate advertising or image advertising.
It is mostly undertaken by large firms.

V. On the Basis of Stages:

16. Pioneering Stage: Advertising done during the introductory stage to make
the audience aware of the new brand is called pioneering type. However, in
real sense pioneering advertising refers to advertising of a newly launched
innovative products. Examples: ads of electric razors, electric toothbrushes,
liquid tea, etc.
17.Competitive Stage: Once the product survives the introductory stage, it has
to face a number of competitors. Advertising undertaken to face competition
is called competitive advertising. Most of today’s advertising is competitive
in nature.
18.Retentive Stage: It is also known as reminder advertising. When a brand is
used by a major part of the market, the advertising is so designed as to
maintain brand loyalty. It is undertaken to remind the buyers to repeat the
purchases of the advertised brand.
Q.14 Agency Compensation
Ans: Agencies can be compensated in the following ways:
1. Agency Commission: Traditionally advertising agencies have been paid a
percentage of the gross billing charged by media. The commission has been
15% of gross billing (although some media in the press & outdoor sector
may offer higher commission, some publications offer discount). If the
agency pay media bills on time say within 10 days, after running the ad, they
are offered cash discount.
2. Agency Charges: There are other out-of-pocket costs to the agency beside
the cost of space or time. An agency may have to pay finished artwork,
comprehensive layouts, television & radio storyboards, etc.
3. Agency Fees: Agency income is also derived from the fees it charges. In a
fee system, the advertiser & its agency negotiate a flat sum to be paid to the
agency for all work done.
4. Cost-Plus System: Cost-plus system is mostly used when media billings are
relatively low & a great deal of agency service is required by the client. For
instance, the client may develop a new product for the market.
5. Bonus/Incentives: The client may also give bonus or additional incentives
to the agency, which were not agreed upon earlier at the time of contract.
This is especially when the ad campaign has met with good success at the
market place.

Q.15 Creative Pitch

Ans: Creative pitch refers to presentation by ad agency to a client to secure ad
account. The creative pitch emphasizes on creative advertising strategy to be
followed by clients (advertisers) to achieve advertising objectives.
This steps in preparing & presenting creative pitch involve:
1. Identify Prospective Clients: The ad agency may locate the clients who are
in need of advertising services. Sometimes, the clients directly approach
advertising agencies for their advertising requirements.
2. Meeting with the Prospective Client: The ad agency may hold a
preliminary meeting with the client to discuss the client’s requirements in
terms of creative advertising services or any other services required in
relation to integrated marketing communication (publicity, public relations,
sales promotion, etc.)
3. Preparation of the Brief: The ad agency must prepare a brief. The brief
can be obtained from the client at the preliminary discussion. Even if the
client hasn’t provided the brief, it is always advisable to prepare a brief of
the ad project. A brief makes clear the client’s objectives.
4. Selection of Pitch Team: The ad agency needs to select the pitch team to
make a presentation to the client representatives. Generally, two or more
team members must be present during a pitch.
5. Prepare an Outline of the Pitch: The advertising agency makes an outline
of the pitch like a story board for a film – series of frames. The creative
person must write the story to achieve objectives of advertising.
6. Rehearsals: The rehearsals should be done before the final pitch. The
rehearsal team must focus on the keywords of the ad campaign such as the
headline & the tagline.
7. Presentation of the Pitch: The advertising agency makes the presentation
with special emphasis on the central idea of the campaign. The ad agency
must make sure that the ad campaign is creative, clear, & convincing. The ad
agency must make the presentation as simple as it can be.
8. Follow up: The advertising agency may follow-up the creative pitch to find
out whether it has bagged the client’s account or not. The ad agency must
take the initiative to contact the client to know the outcome of the
presentation.

Q.16 Social Advertising by Government Through DAVP:

Ans: Directorate of Advertising & Visual Publicity (DAVP) is the nodal agency of
the Government of India for advertising by various Ministries & organizations of
Government of India including public sector undertakings & autonomous bodies.
Vision of DAVP
To Communicate important social advertising messages in an effective manner, to
empower the lives of the country’s citizens, & be the one-stop agency for the
advertising needs of all Central Government bodies all over the country, be it print,
audio-visual, outdoor or emerging media, & to provide services in a professional,
responsive, & quality-driven manner, at media-buying rates which are the most
competitive in the market.
Benefits of DAVP Campaigns:
The DAVP campaigns bring certain benefits to the members of the society:
1. Awareness: The DAVP campaigns create awareness of the various facilities
provided by the Govt. to the public such as drinking water facilities,
employment facilities under MGNREGA, etc.
2. Social Development: The DAVP campaigns can bring about social
development in the country. For instance, the campaigns on health &
education can improve literacy rate, life expectancy & also result in family
welfare.
3. Empowerment of Weaker Sections: The DAVP campaigns may highlight
the special facilities & benefits available to the weaker sections such as
scheduled castes, scheduled tribes, & others.
4. Standard of Living: DAVP campaigns highlight the employment facilities
available under MGNREGA & other schemes. Therefore, people in villages
& in semi-urban areas get employment.

Q.17 Green Advertising:

Ans: The concept of green advertising came into existence on account of green
marketing initiatives. Green marketing refers to marketing of eco-friendly
products. Thus, green advertising refers to promotional campaigns relating to eco-
friendly products. It also includes the green initiatives undertaken by business &
non-business organization to protect the environment.
Business firms able to capitalize on green products can see not only a large return,
but may be able to give something back to the environment simultaneously.
Features of Green Marketing
1. Meaning: Green advertising refers to advertising which is undertaken to
create awareness of eco-friendly products so as to protect the environment &
health of the public.
2. Purpose: Green advertising is undertaken to make people aware of the
benefits of eco-friendly products. It is also undertaken by business & non-
business organizations to create awareness of green initiatives undertaken by
such organizations to protect the environment.
3. Undertaken: It is generally undertaken by business organizations to create
awareness of the eco-friendly products marketed by them. At times, non-
business organizations may also undertake green advertising regarding the
green initiatives undertaken by them to protect the environment.
4. Frequency: The frequency of green advertising is generally limited.
However, in developed countries, large MNCs may advertise frequently &
spend huge sums of money on green advertising.
5. Media Used: The media used to promote green or eco-friendly products
depend on the funds available with the advertiser. Large MNCs may use
various media such as TV, newspapers, magazines, outdoor, digital, to
promote the eco-friendly products.
6. Green Advertising Claims: There are various examples of green
advertising claims such as:
 Non-Toxic Claims
 Ozone Friendly Claims
 Biodegradable Claims
 Carbon Offset Claims, etc.
7. Existence of the Concept: The concept of green advertising came into
existence especially in developed countries in 1980s. This concept came into
existence on account of Ozone layer depletion or high levels of
environmental pollution.
8. Public Support: Green advertising has gained public support in developed
countries such as Western Europe, USA, Japan, etc. However, in developing
countries, this concept has not yet gained much importance.
9. Effect on Corporate Image: Green advertising has a positive impact on the
corporate image of the firms, especially in developed countries.