INTRODUCTION TO INTRODUCTION TO ADVERTISINGADVERTISING

ASST PROF. JONLEN DESAASST PROF. JONLEN DESA

Advertising means to inform, to make public aware about the existence of something.

Advertising creates demand and also maintains demand for a good.

INTRODUCTION

The American marketing association (AMA) defines advertising as

“any paid form of non-personal presentation and promotion of ideas, goods or service by an identified sponsor.”

DEFINITION

FEATURES OF ADVERTISING

OBJECTIVES OF ADVERTISING

The Firm who’s product is being advertised

Target audience

Advertising Agencies

Advertising production people (artists) Government authorities: ASCI ( Advertising Standard

Council of India), ABC (Audit Bureau of Circulation) Advertising production firms.

PARTICIPANTS IN ADVERTISING

BENEFITS OF ADVERTISING1. Benefits of Advertising to Manufacturers

2. Benefits of Advertising to Middlemen

3. Benefits of Advertising to Consumers

4. Benefits of Advertising to Salesmen

5. Benefits of Advertising to Society

1. BENEFITS OF ADVERTISING TO 1. BENEFITS OF ADVERTISING TO MANUFACTURERSMANUFACTURERS

• Facilitates large scale production and marketing• Promotes new products• Creates new demand• Facilitates easy personal selling• Builds brand image• Ensures survival in competitive markets• Higher sales and profits for the manufacturer

2. BENEFITS OF ADVERTISING TO 2. BENEFITS OF ADVERTISING TO MIDDLEMANMIDDLEMAN• Attracts local consumers• Faces market competition effectively• Maintains store image• Makes his shop attractive to prospects• Creates loyalty among customers• Facilitates quick turnover• Executes sales promotion programmes

3. BENEFITS OF ADVERTISING TO 3. BENEFITS OF ADVERTISING TO CONSUMERSCONSUMERS• Provides Information & Guidance

• Acts as a reminder in marketing

• Provides benefits of market competition

• Raises standard of living

• Provides cost benefits

• Facilitates quick shopping

• Protects interest of the consumers

4. BENEFITS OF ADVERTISING TO 4. BENEFITS OF ADVERTISING TO SALESMENSALESMEN• Reduces the work

• Provides more customers

• Quick and easy selling

• Provides feedback from customers

• Removes middlemen

• Time saved

• Higher income

5. BENEFITS OF ADVERTISING TO 5. BENEFITS OF ADVERTISING TO SOCIETYSOCIETY• Provides employment

• Improves standard of living

• Higher revenue

• Growth of the economy

• Provides public service

• Bridges gap

LIMITATIONS OF ADVERTISING LIMITATIONS OF ADVERTISING • Advertising encourages materialism

• Advertising compels people to buy things they do not need

• Advertising transfers business from one to another

• Advertising increases the cost of goods

• Advertisements can be false, misleading and deceptive.

• Advertising confuses people with too many products

• Wrong portrayal of women

• Advertising is vulgar in taste

• Consumption of harmful products

• Advertising develops monopolies

INTEGRATED MARKETING INTEGRATED MARKETING COMMUNICATIONCOMMUNICATION

Integrated Marketing Communications (IMC) is defined as customer centric, data driven method of communicating with the customers.

Integrated marketing communications (IMC) is a process for managing customer relationships.

Also termed as promotion mix

ELEMENTS/ TOOLS• Advertising

• Publicity

• Sales promotion

• Personal selling

• Packaging

• Trade fairs and exhibitions

• Direct marketing

• Internet

FACTORS INFLUENCING GROWTH OF FACTORS INFLUENCING GROWTH OF ADVERTISINGADVERTISING• All round growth of media• Invasion of branded products• Growth of media business• Rise of animation era (All out, Toothpaste)• Increase of advertisers• Advertising linked with sports and tourism (Pepsi, Nissan,

Hyundai, Indian States)

• Rapid change in IT• Demographic factors• Social factors• Opening up of the economy• Rise of professional bodies (ABC, AAAI, ISA)

FACTORS SUGGESTING A BRIGHT FUTURE FACTORS SUGGESTING A BRIGHT FUTURE FOR ADVERTISING IN INDIAFOR ADVERTISING IN INDIA• Industrial Growth• Urbanization• Rise of middle class• Popularity of credit cards• Mobile advertising• Greater use of link language• Rising literacy rate• Popularity of Internet• Online advertising• Changes in lifestyle• Expansion of markets• Market competition• Introduction of SMS

ETHICS IN ADVERTISING• Ethics is a science of moral principles.

• It refers to the moral duty and obligation and advertiser has towards the society.

• Guide actions of advertisers

• Create sense of responsible behavior.

• Advertisements must have the quality of being true.

• Ethics in advertising means truthfulness and the absence of misrepresentation of facts in the advertisements.

Some of the moral codes developed in advertising are :

•It should avoid attacking competitors unfairly.

•It shall be free from offensive to public decency.

•Ads showing testimonials should be restricted.

•Ads in poor taste and offensive to public decency must be avoided.

•Care should be taken while advertising children's products.

•Advertisers should tell the truth and express an honest opinion.

FORMS OF UNETHICAL FORMS OF UNETHICAL ADVERTISINGADVERTISING• Exaggerated claims

• Unverifiable claims

• Misleading labels

• Alcohol & Tobacco Advertising

• Misuse of Testimonials

• Vulgar Tastes

• Total lies

• Advertising for children

• Soft targets

FORMS OF UNETHICAL FORMS OF UNETHICAL ADVERTISINGADVERTISING

• Damaging ecological balance

• Display of violence & nudity

• Awards / Prizes

• Exploitation of elderly customer

• Surrogate Advertising

• Wrong Statistics

• Unfair comparison of competitor's product

• Ads- Orbit, Red bull, Mountain Dew, Chota Bheem, Tyres, Coke & Pepsi, Reynolds, Colgate & Pepsodent etc.

ADVERTISING & SOCIAL RESPONSIBILITYADVERTISING & SOCIAL RESPONSIBILITY

• Social responsibility is the obligation that a firm has towards society.

• Business depends on society for its existence and growth.

• A firm has got CSR towards various stakeholders.

• Advertisers too are responsible towards different sections of society.

• Advertisers should take care about their ads.

• Should not hurt the sentiments of any section of society.

• They should take responsibility for their actions.

ADVERTISING & SOCIAL ADVERTISING & SOCIAL RESPONSIBILITYRESPONSIBILITY

• Show ads that will benefit the community or ads that are in in the interest of the public.

• Avoid misleading or ads with false promises.

• Ads should be supported by facts and true claims.

• Do not give false promises.

• Do not disturb the environment because of ads.

• Self regulation is very important.

• Educate, not exploit customers.

ADVERTISING & CONSUMER ADVERTISING & CONSUMER PROTECTIONPROTECTION

• Customers purchase products to satisfy a need.

• Companies should see that their advertisements are in the interest of the public and in no way it should threaten the health, well being & safety of its customers.

• They should ensure full consumer protection.

• Advertisements should not be deceptive or false.

• Every consumer should be aware of his rights

• Consumers should be educated about their rights and advertisements can play an important role in doing the same. (Jagoo Grahak Jagoo).

CONSUMER RIGHTS• Right to safety

• Right to be informed

• Right to be heard

• Right to choose

• Right to redress

• Right to healthy environment

• Right to basic needs

• Right to consumer education

CONSUMER PROTECTION IS NEEDED CONSUMER PROTECTION IS NEEDED BECAUSE OF:BECAUSE OF:• Protection against unfair trade practices

• Protection against monopoly powers

• Protection against adulteration of food

• Protection against shortage in weights & measures

• Protection against inferior goods

• Protection against misleading advertisements

• Protection against deceptive packaging

• Protection against pollution

• Protection against advertising & selling harmful drugs.

ADVERTISING & CONSUMER ADVERTISING & CONSUMER PROTECTIONPROTECTION

• Goods are hardly produced keeping in mind the likes and dislikes of the customers.

• In India, many customers are illiterate.

• It is hence necessary to several ways to protect consumers.

• Consumer protection is the need of the hour.

• 3 main agencies- Consumer Organization, Business Association and Government Legislations.

ADVERTISING MEDIA• A channel of communication through which an

advertisement is transmitted to the target group of customers.

• Media of advertising are the different means/channels/vehicles used for the purpose of advertising.

• A company has a wide choice of advertising media.

• Each channel has its own advantages and disadvantages.

• Coverage is very important.

• Print media, electronic media, online advertising, outdoor advertising, point of purchase advertising etc are some of the advertising media channels that can be used for the purpose of advertising.

SR.NO. CLASS OF MEDIA

TYPES INCLUDED

1. Print Newspapers, Magazines, journals, and other publications.

2. Broadcast Radio, TV(National Network), STAR TV,DD Satellite Channels.

3. Outdoor Posters, Hoardings, Neon Signs, Sky advertising, etc.

4. Transit/Vehicular Taxis and railway trains, Buses and Trams, Taxis and Auto-rickshaws, Private vehicles, tec.

5. Point of Purchase Banners, Hangings, Packaging, Stickers, Painted Signs, Window display.

6. Specialty Media T-shirts, buttons, caps, stickers, badges, diaries, calendars, key chains, etc.

5. Miscellaneous Direct mail advertising, Trolleys at airports, etc.

ADVERTISING MEDIA

1. NEWSPAPER ADVERTISING• Wide coverage.

• Classified based on frequency ,language and area covered.

• The choice of the paper depends on its circulation, readers, area, cost and general reputation of the paper.

• Extensively used medium of advertising

• TOI, Economic Times, Herald, GT, Indian Express etc

FEATURES/ADVANTAGES• Popularity• Selectivity• Flexibility• Variety• Revenue earning• Benefit of Mobility• Detailed Information• High Coverage

LIMITATIONS• Short life span.• Not suitable for illiterate.• Poor quality.• Small in size or print.• Demonstration of product not possible.• Limited attention by readers.• Newspaper Ads are normally black & white.• Cannot advertise industrial products

• Magazines are periodical publications.

• They may be weekly, fortnightly, monthly or quarterly.

• Trade and technical journals for professional use.

• Special magazines for men, women, teens and children are also published.

2. MAGAZINE ADVERTISING

MERITS

• Long life.

• High quality.

• Attractive and agreeable.

• Wide coverage.

• Better acceptance

• Economical due to limited frequency

LIMITATIONS

• Limited circulation.• Lack flexibility.• Costly.• Daily repetition is not possible.• Difficulty in giving publicity to new

product.

3. BROCHURE ADVERTISING

• Another form of print media.

• Used on a large scale in the automobile sector, electronic goods.

• Provides valuable information about the product, its features and performance.

• Conveys important information to the customer about the product.

• It makes use of text and pictures.

• Conveys key messages quickly and concisely• Gives a vast layout of projects, products, concept.• May have lasting and reference value. • Given to visitors as a keepsake or information

gathering.• Can be descriptive.

ADVANTAGESADVANTAGES

• Expensive to make • Can add to junk • If not creative enough can get discarded • Forgetable

DISADVANTAGESDISADVANTAGES

• Advertising messages are broadcast in-between the programmes.

• USA- 1920, India- 1957.• Radio ads in India covers 98.8% of the

population.• Vividh Bharathi & FM Channel• More than 100FM radio stations have been

approved.• Use of RJs

4. RADIO ADVERTISING

• Human appeal (Voice)

• Wide choice in presentation like spot announcements.

• Appeal to all listeners including illiterate persons.

• Interesting and attractive.

• Mobility

ADVANTAGES OF RADIO ADVANTAGES OF RADIO ADVERTISINGADVERTISING

• Pictorial presentation not possible.• Costly medium.• Very short life.• Limited attention.• Not suitable for financial, industrial or corporate

ads• Product demonstration is not possible.• Faulty transmission may make ads inaudible.

DEMERITS OF RADIO ADVERTISING

• Fastest growing medium of advertising.

• Appeals to the eye as well as the ear.

• It is the latest addition to the existing media of advertising.

• Started in January 1976.

• Ads on different channels, in different languages.

• Targets different age groups.

5. TELEVISION ADVERTISING5. TELEVISION ADVERTISING

MERITS OF TELEVISION MERITS OF TELEVISION ADVERTISINGADVERTISING

• Wide coverage

• Audio-visual media• Product demonstration

• Use of specific film stars, sportsmen and fashion models makes TV popular

• Power impact.

• Multi-color facility

• Arouses interest among viewers

• Directed towards target group

DISADVANTAGES

• Costly

• Viewers feel TV advertising interferes with their entertainment

• Short span

• Short life

• Repetitive ads irritate people

• Offensive, vulgar, deceptive ads

• Possibility of skipping the advertisement

OUTDOOR MEDIA• Advertising messages are given when consumers are

out of their homes.• Outdoor advertising consists of short promotional

messages on billboards, posters, and electrical display.

• Signs on buses, railway coaches and public vehicles.• Posters are pasted on walls at important public

places.• Colorful electronic signs or neon signs

ADVANTAGES OF OUTDOOR MEDIA• Capable of gaining more attention.

• Long time.

• Coverage is greater.

• Cost is low.

• Provides Reminder value

• Flexibility

• Very attractive & appealing

• Different sizes, colour background

DISADVANTAGES• In brief. Lacks detailed explanation.

• Not suitable during rainy season.

• Difficult to measure the exact effect created on prospective customers.

• Used as a supplement to other kinds of advertising.

• Spoils beauty of the environment.

• Sometimes, may lead to traffic jam.

1. POSTERS, BILLBOARDS, PAINTED SIGNS• Poster is a sheet of paper or cloth, pasted on a cardboard,

metal or wooden plank with an advertising message.

• Boards of different sizes are displayed.

• Mostly found on walls or poles.

• Billboards are huge boards found along highways.

• Painted signs are paintings on walls.

• All these should be of proper size, color combination, theme, brand name etc.

TYPES OF OUTDOOR ADVERTISING1. POSTERS/ BILLBOARDS

2. PAINTED SIGNS

3. NEON/ELECTRIC SIGNS• Mostly used in cities to communicate advertising message.

• Cost is very high.

• Electric signs are used by departmental stores in front or at the side of their shops.

• Neon sign is an example of electric display.

• The tubes are filled with gases like neon and start glowing when current passes.

• They switch on and off during intervals.

• They are more attractive than posters.

• Used late evenings and night.

3. NEON SIGNS/ELECTRIC SIGNS

4. SKY ADVERTISING/ BALLOON ADVERTISING• Sky advertising is writing the advertising message in

the sky.

• It’s an example of aerial advertising.

• Recent form of outdoor advertising.

• Sky advertising can be in the form of sky balloons and sky banners.

• Makes use of planes & jets.

• They are costly but attractive.

4. SKY ADVERTISING/ BALLOON ADVERTISING

5. FILM/ CINEMA ADVERTISING• Film/Cinema advertising is a medium of

advertising in which short film or slide on a product is prepared and screened at cinema hall.

• Film advertising is also called as screen publicity.

• Ad is played before, after and during the break

ADVANTAGES OF FILM ADVERTISING Economical. Direct and personal appeal. Lasting impact. Film advertising is suitable to all categories of

people

LIMITATIONSLIMITATIONS.Costly.Short span.Short life.Absence of flexibility

6.TRANSIT ADVERTISING• Also termed as transport advertising

• Makes use of transport vehicles like buses, cars, trains, trams for advertising purpose.

• Advertising gets done throughout the day.

• It gets the attention of the travelers.

• In India, 40% of the advertising expenditure is on transport advertising.

6.TRANSIT ADVERTISING

7. SANDWICH MAN ADVERTISING• A man with two posters hanging on both his sides, moves

slowly through busy streets.

• He is sandwiched between 2 boards, hence the term sandwich man.

• The boards carry an advertising message.

• Because of it is unusal, it attracts attention from the public.

• People of different heights are selected and given funny costumes to attract customers.

7. SANDWICH MAN ADVERTISING

8. TRADE SHOWS AND FAIRS• Trade shows and fairs are useful for advertising

consumer goods.

• Stalls are provided to manufacturers, goods are displayed, demos are showed and sales takes place.

• Organized throughout the year in big cities.

8. TRADE SHOWS AND FAIRS

9. T-SHIRT ADVERTISING

10. TRAMS & TROLLEYS

11. BADGES ADVERTISING

POINT- OF- PURCHASE ADVERTISING• It refers to the banners, posters and stickers displayed

at the point of purchase i.e. at the retail outlet.• Usually displayed on the glass or at the entrance.• It creates impulse buying.• Serves as a silent salesman.

• Forms of POP Advertising include banners, hangings, posters, cards, door signs, stickers and window displays.

ADVANTAGES - Reminds the buyers about the product - Inspires them to stock the goods- Increases sales- Benefits retailers- Attracts attention

DISADVANTAGES- Problem in creativity- Improper placement of material- Periodic display is costly

WINDOW DISPLAY

• Direct mail refers to ads that are sent directly at the addresses of a target group of customers.

• A mailing list is prepared of potential customers to whom the message is to be sent.

• The ad may be sent in the form of sales letters, price lists, catalogues, leaflets, brochures, post cards etc.

• E.g: Dominos, Cooking products

DIRECT- MAIL ADVERTISING

ADVANTAGES

•Message is directly sent to the prospects.

•Detailed information can be given.

•Feedback can be obtained.

•Sales campaign is hidden from the competitors.

•Linking of advertising & salesmanship

LIMITATIONS

•Expensive to print and post the mails.

•The mailing list becomes obsolete in a short span of time.

•Not suitable for illiterate people.

•Limited coverage

•May be considered as junk.

•Service of experts is required

• Also known as teleshopping.

• Television commercials that run as long as a typical television program.

• They can be as long as 30 minutes.

• Normally shown at a time other than peak hours. Such as late night or early in the morning.

INFORMERCIALSINFORMERCIALS

• It allows detailed demonstration of the product.

• Make use of catchy phrases or employ celebrities.

• Huge discounts offered

• However people may not be interested. They may change the channel when they see such infomercials.

• Contact details are provided

INFORMERCIALS

INFOMERCIALSINFOMERCIALS

ADVANTAGES- It saves time- High impact

DISADVANTAGES- Boredom in watching a 30-minute ad- Expensive to create the cad films

- People quickly change the channel

• Online or E-advertising is defined as the placement of electronic messages on a website or in e-mail to:

–Generate awareness for a brand–Stimulate interest/preference for a product or service–Provide the means to contact the advertiser for information to make a purchase

INTERNET ADVERTISINGINTERNET ADVERTISING

• Various means of Advertising:–E-mail advertising

–Display advertising

–Pop-ups

–Social network advertising

INTERNET ADVERTISINGINTERNET ADVERTISING

INTERNET ADVERTISING ADVANTAGES- Reach large number of buyers.- Accessed for all 24hours- Direct marketing is possible.- Interactive and targeted to specific people.DISADVANTAGES- Cost is high.- Visit the site.- Infancy stage

YELLOW PAGES• Printed directory of local business.• Its an important medium.ADVANTAGES1. One ad works all year long.2. It a method of locating and contacting.DISADVANTAGES1. Makes it easy to compare one product to another.2. Only effective when the prospects looks it in correct

classification.3. Placed along with competitors, hence comparison is

possible.4. Ads are clustered together

FACTORS INFLUENCING CHOICE OF FACTORS INFLUENCING CHOICE OF MEDIAMEDIA

• Nature of the product (Consumer & Industrial)

• Nature and size of the market (Local, National, International)

• Objectives of advertising

• Type of audience

• Type of message (Length & Life)

• Circulation of media

• Advertising budget

FACTORS INFLUENCING CHOICE OF FACTORS INFLUENCING CHOICE OF MEDIAMEDIA

• Media Life

• Media Availability

• Media used by competitors

• Media restrictions

• Media Merits & Demerits