MODULE I Introduction: Definition: The word advertising owes its origin to the Latin word Advertiser, which means

s to turn to. However, the American Marketing Association (AMA) defines the term advertising as: Any paid form or non-personal presentation or promotion of ideas, goods or services by an identified sponsor. Objectives: The specific objectives of a company for advertising may include one or a combination of the following: To increase the number of units purchased. To introduce new products. To counteract competition. To increase the number of product uses. To increase sales in off-season. To maintain brand loyalty. To build a positive business image. To obtain a dealer support. To secure leads for salesman. To announce a product modification. To announce a price change. To announce a new pack. To make a special offer. To invite enquiries.

To announce location of the stockiest.

To educate customers. To expand the market to new buyers. Functions: Followings are the functions of advertising: 1. Differentiate the product from their competitors : The identification function of advertising includes the ability of advertising to differentiate a product, so that it has its own unique identity or personality. There are four additional ways to differentiate companys offering from the competition and increase your differentiation. Leveraging the brand. Innovating the service company is offering. Designing the product. Packaging. 2. Communicate product information : Products attributes. Location of sale. Communication should not grant as persuasion by the consumers. Improve the believability of the advertisement. (Appoint celebrities / experts) 3. Urge product used : Induce consumers to try new product. Give constant reminders. Sampling (free distribution of the samples)

4. Expand product distribution : Provide the product all over the market. It is necessary to make sure that product should be accessible to everyone. Availability of product effect the distribution. Accessibility is major factor for successful product. 5. Increase brand preference and loyalty : According to need change, preferences are changed. (99% girls who are not married will not look at the AD of pampers or any milk powder for children but when they will get married, their interest will automatically move towards such AD). 6. Brand loyalty : Brand loyalty is a long term customer preference for a particular product or service. Brand loyalty can be encouraged by advertising. Customers often make purchasing decisions based on how a brand makes them feel emotionally rather than based on quality or other objective evaluations. For Ex: Just do it strikes a chord with an athlete, he will buy NIKE : the decision may have little to do with quality. 7. To reduce overall sales cost : Teaching consumers about the product. Create new demands. Advertisement have to create new demands, they should educate the consumers about more and more new things coming up in the market. Classification of Advertising:

Classification based on function:

1. Informative advertising: This type of advertising informs the customers about

the products, services or ideas of the organization. For Ex: Vishal Megamart is offering 2kg sugar for every Rs. 1,000/- purchase every day.
2. Persuasive advertising: This type of advertising persuades or motivates the

prospective buyers to take quick actions to buy the products/services of the organization. For Ex: Buy one get one free by Big Baazar.
3. Reminder advertising: This advertising reminds the existing customers to

become medium or heave users of the products/services of the organization. That they have been purchased by them at least once. This type of advertising exercise helps in keeping the brand name and uses of the products in the minds of the existing customers.
4. Negative advertising: This type of advertising dissuades target audience from

purchasing such products and services which would not only harm then but also the society in general. For Ex: Advertisements of various organizations against alcohol, tobacco and narcotics. Classification Based on Region:
1. Global advertising: It is executed by the company in its global market. Like :

Sony, Coke, Philips, Pepsi etc.

2. National advertising: It is executed by the company at the national level. It is

done to increase the demands of its products and services throughout the country.

3. Regional advertising: It is the manufacturer who confines his advertising to a

single region of the country. Than its promotional exercise is called regional advertising. Like: Telegraph, the statesman for eastern part of the country, for advertisements.
4. Local advertising: When advertising is done only for one area or city, it is

called local advertising. It is also called as retail advertising. Like: local FM channels. Classification Based On Targeted Markets:
1. Consumer product advertising: This is done to impress the ultimate

consumer. Ex: Shirts, cosmetics, tooth paste, hair oil.

2. Industrial product advertising: This is also called business-to-business

advertising. This is done by industrial manufacturer to increases the demand of industrial products. It is directed towards the industrial consumers.
3. Trade advertising: This is done by the manufacturer to persuade wholesalers

and retailers to sell his goods. Different media are chosen by each manufacturer according to his product type, nature of distribution channel and resources at his command.
4. Professional advertising: This is executed by manufacturers and distributors

to influence the professional of a particular trade/business. These professionals recommend/prescribe the products of these manufacturers to the ultimate buyers. Ex: Doctors, architects
5. Financial advertising: Banks, FIS and Corporate houses issue advertisements

to collect funds from markets. Classification based on the Media used for Advertisements:

1. Audio advertising: It is done through radio, auto rickshaw promotions and

four wheeler promotions.

2. Visual advertising: It is done through POP (Point of Purchase) displays,

leaflets, cloth banners, brochures, electronics hoarding, simple hoarding, running hoarding, mobile vans, rail coach etc.
3. Written Advertising: It is done through letters, articles and documents, space

marketing features in newspaper.

4. Internet advertising: The World Wide Web is used extensively to promote

product and services of all categories. ADVERTISING AGENCY Functions and Structure of Modern Agency: An advertising agency is a service business dedicated to creating, planning and handling advertising for its clients. An AD agency is independent from the client and provides an outside point of view to the effort to selling the clients products or services. An agency can also handle overall marketing and branding strategies and sales promotions for its clients. Functions: 1. To accelerate economic growth and create public awareness.
2. To provide a total, professional, experienced service this is very personal in its

nature. 3. To take the advertisers message and convert it into an effective and memorable communication. Structure: The structure of agency may vary from one agency to another. The principal forms of organization structure are based on: Sub-functions of advertising o Copy writing

o Art works Communication media Geographical spread Product End-users Irrespective of the specific form, the agency has to perform several functions. Functions of the Advertising Department: Functions of the advertising department also varies from one organization to another. Few of the major functions are: 1. Determine in consultation with top management the advertising goals, the advertising budget and the advertising plan. 2. Select the appropriate advertising agency. 3. Setup a plan of activity, allocating which work is to be done by the agency and which by the advertiser. 4. Transmit the policy and problems of management to the agency, keep it informed of changes in marketing strategies and other related areas. 5. Approve the plans for advertisements by the agency and by others who work on the advertising problems.
6. Keep the sales force informed of forthcoming advertising.

7. Prepare portfolios of advertising for the salesmans use in showing advertising to the trade and to other distributors. 8. Work with the sales department in preparing special programs. 9. Prepare instruction manuals for those who will sell and use the product. 10. See that all mail enquiries are answered with mailing as required.

11. See that all bills are properly checked. Keep an account of funds and prepare proper reports for management. Functions of Advertising Manager: The AD manager in charge of an advertising department has both managerial and operational functions. Prepare budgets and estimates the components of the advertising campaign. Meeting with clients and officials across departments to coordinate campaigns. Forming and negotiating contracts. Coordinating activities across the various departments of the agency. Developing contacts for promotional campaigns. Collecting information to build advertising campaigns. Evaluating the results of campaigns to determine their effectiveness. Keeping up with industry trends. Acting as an agent for advertising accounts. Supporting presentations and product demonstrations when lunching new campaign. Motivating and mobilizing the campaign team to meet objectives. Drawing up and implementing advertising strategies for companies and clients. Engaging in public relations activities Training new employees. Marketing the services of the agency to present and potential clients. Conducting product research and development. Representing the company at industry conferences and other events.

Client-Agency Relationship (CAR): Life cycle of the agency-client relationship from the prospective of the client includes four stages: Pre-relationship Development Maintenance Termination For a long term relationship, any company who is looking for an agency should have certain outlooks, while short-listing one agency among few. Short-listing: Core Competency:

Is the agency geared to handle the nature of jobs at the clients end?

Service orientation Category expertise Current portfolio Resource allocation Remuneration Location Size of the agency Maintaining Relationship: There should be a spirit of partnership in the relationship. Agree on a clearly defined objective of the advertising you wish to create. Give the agency the opportunity to be totally absorbed in your product, culture and people.

 Create an environment of experimentation and be prepared to pay for the failure. Treat the agency people well. Keep approvals simple. Be honest. Be specific. Be kind. Make the agency responsible for the advertising and give them the authority it needs to do it. Makes sure the agency makes a fair profit.

Perform evaluations of each other at least annually and even more often in the beginning of the relationship.

Selection of Agency: 5 things company should not do: Do not limit your search geographically. Do not screen out agencies based on size. Do not make industry experience a requirement. Do not ask for or even entertain speculative work. Do not let a checklist make your decision. How to select then?

Do determine what you need?

Do notice the advertising that you admire. Do initiate a conversation.

 Do invite the agency to your place to review a handful of case-studies. Shortlist two/three agencies and spend time at their agencies. Assignment: Trace out 10 best advertising agencies in India. Trace out 10 best global advertising agencies across the globe.

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IS ADVERTISING ONLY FOR THE BIG BOYS? Indian advertising has grown by leaps and bounds since liberalization in 1991. And so has the Indian economy. Small and medium enterprises (SMEs) constitute a large part of the Indian business environment. Yet they comprise a very small segment of the organized consistent "brand-building" advertising market in India. Advertising is still dominated by the big multi-national and national boys like Unilever, Proctor and Gamble, Cad-bury, Vodafone, Nokia and Asian Paints to name a few. The average SME hesitates to put big bucks, consistently over a period of time, into large advertising campaigns, often restricting it to small-time tactical efforts largely to create brand recognition at local level. Why is that so? Every big boy today was a small boy not so long ago. One of the first registered brands in the world was made by a small boy called William Hasketh Lever way back in the 1880s. The brand was called Sunlight. He actually created a "silent" commercial for cinemas for the brand in 1907 and ran a series of press advertisements to create pull for his product when he was developing the market for branded soap in an era when people were using homemade product for cleaning both themselves and their laundry. This small boy" later grew to found (with his brother) the now famous Unilever a large brand company with big advertising spends! Even back home, India has its share of stories about SME that branded and advertised early. Zodiac was a pioneer in this field. Mr. Noorani created the Zodiac man (The man with a beard) way back in 1961 to create a premium brand of ties. He later diversified into ready wear and the brand remains premium in a highly competitive and crowded market even today. Nirma, Moov, D cold, Hi-design, Tortoise and Fevicol are other braids from the SME segment that placed their faith in advertising early. Some created strong brands that have been able to take on the "big boys" and create new markets in India. Others have successfully managed to stomp out competition and define the category in which they operate. Yet such examples are few and far between. On average, the Indian SME has been shy to play the big

advertising game. The reasons lay perhaps at both the advertiser and the advertising industry end. The Indian entrepreneur is different from his western counterpart. In India; entrepreneurship is a means' to "survive" rather than "thrive". Culturally, he is happy being a "local" maharaja rather than want to dominate and be a national player. Historically, Indians have been insular not driven to go out and conquer (Hinduism remains predominantly an Indian religion). This has made them risk averse reluctant to dream big. Every entrepreneur who has dreamt big has behaved differently - Nirma, Airtel and Fevicol being strong examples of the same. Given the conservative mindset, advertising tends to be seen as an "expense" rather than an "investment" - and a heavy one too - especially given the cost of mass media. All big boys invested big upfront to reap the benefits later - that's the way advertising works. However, with limited-scale dreams, cost becomes a big deterrent to actually advertise big. Further, given the power of affiliation in Indian society, trade management is the bigger focus for a local player. It makes greater "immediate sense" to invest in relationship-building and push his product rather than depend on "consumer pull" to drive sales at a later date. Finally, there is a lack of appreciation of how branding can help the SME business. Given that the average SME is long-termoriented - it is in the business for the long haul - its view of advertising is often short term. This is where the advertising industry reasons come in. The industry has not taken the efforts to help this segment understand the value of advertising and how it works. Given the boom in the last two decades business has been relatively ea to come by for the "big boys" in the advertising industry and the challenge has been to deliver. There has been no pressure to develop the SME market. The current big agency models are also not geared towards managing the SME market. The advertising industry has not been able to find a way to monetize the value of its idea or find a fair way of being compensated by market results. Both the commission and the retainer fee compensation models are "daunting" for the average SME player. The result: the only advertising experience of the SME is often with local players who end up doing

"informative" advertising rather than "conscious" brand-building work, leading further to the SME skepticism about the power of advertising. Finally, B2B is a big section of the SME market, and the Indian industry has not developed adequate specialized skills to cater to branding in this segment - it is still nascent in evolution. However, as we move into the future, the SME segment provides the next big opportunity. The development of new media - specifically the Internet - gives branding and advertising an opportunity to be more targeted at more efficient rates. Television too is getting segmented. It provides a prospective SME a chance to play the big game if it is willing to think big and dream big. It provides the advertising industry the next frontier to provide services to a new segment and get growth. There has to be the will to invest for the SME; there has to be the inclination to partner for the agency. If that happens, it could provide the next wave of creativity and excitement in advertising. Historically, the Indian entrepreneur has been more creative in his work when he has dared to advertise. A small glue manufacturer, way back in 1989, decided to advertise his product above-the-line on television even though it was never seen by the end consumer and was a small proportion of the cost of the furniture in which it was used. This farsighted businessman created a brand called Fevicol which today is iconic in the furniture market, in the world of brands and the advertising space.

Prof. L. N. Das =0=

MODULE II (ADVERTISING AS MASS COMMUNICATION) The Communication Mix: It consists of six elements of communication. Advertising Sales promotion Personal selling Public relation Publicity Propaganda Building of Advertising Programme: Creative strategy: The agencys creative department holds the responsibility for generating alternative advertising ideas and for picking up one or a few that will be sent forward for production. The creative department comprises copy, writers and artists. Creative Process: a) Fact finding :

Problem definition: Picking up and pointing out the problem. Preparation: Gathering and analyzing the data.

b) Idea finding :

Idea production: Thinking up tentative ideas as possible leads. Idea Development: Selecting from the resultant ideas.

Fact finding should include the detail information about:

 Company Product

Competition

Target Audience o Needs o Motivation o Desire o Language It also includes: Advertising objectives Generation of the new alternatives Any constraints Formulation of any new objectives. Idea finding consists of: Create a large number of ideas (through brain - storming) Evaluating the ideas Choose an alternative Copy: All the written or spoken words in an advertising including the headlines, slogan and even the address of the sponsor constitute the copy. A good copy can boost the sales level, on the contrary a bad copy can ruin the good product and well integrated marketing programme.

 Copy is not only important but also very expensive. Hence a slippage in the copy means not only the loss of market for the product but also the wastage of the huge amount of money invested in copy creation, production and execution. Message: Any advertising message must passes through the following stages: Drawing conclusion Repetition Two sided communication Order of presentation Advertising Appeals: A huge amount of time, energy and money go into developing advertising appeals to influence the buying behavior of consumers. The purchase decisions of prospective customers are attempted to be influenced by advertisers rationally or emotionally by use of appeal of various kinds. The AD appeals aim at influencing consumer perception of the advertised product or brand and change their attitude towards the product. AD appeals can be either product - oriented or consumer oriented. Appeals can be broadly classified as: Rational Emotional Moral Rational: Rational appeals are those appeals, which are directed at the thinking process of audience.

It involves some sort of deliberate reasoning process on the part of the receiver of the advertising message: which he/she believes would be acceptable to other members of his/her social group.

 In such cases, the product is expected to yield the functional benefit that is wanted of it. Few circumstances of buying considered as rational appeals : o Low quality o Low price o Long life o Performance o Re-sale value Emotional Appeal:

Emotional appeals are designed to agitate some positive or negative emotions in the minds of the people which are expected to motivate product interest or purchase.

Emotional appeals can be both positive and negative. Researcher shows that negative emotional appeals have greater impact than the positive ones.

Fear appeals or the threat approach is probably the most common and effective of the negative appeals. Ex: Bad breath of mouth by tooth paste companies o Insurance companies o Public message to wear helmet or stop smoking

Positive appeals use the strategy of reducing a persons anxiety about buying and using a product whereas negative appeals use the strategy of increasing a persons anxiety about using a product or service.

 A positive appeal emphasizes the positive gains to a person from complying with the persuasive message, while the negative appeal emphasizes on his loss if he fails to comply. The products are of little interest to consumers if fear appeals are used and when products fulfill a generally recognized need, positive appeals are used. Moral Appeals: Moral appeals are those appeals which related to the sense of right or wrong of the audience. Appeals to donate generously for the earthquake victims in India. Messages intending to arouse favorable response to social causes like prohibition, adult literacy, rural development, equal rights for women, use moral appeals. UNICEF strongly uses moral appeals in its advertising for positive response towards its programs for the upliftment of the downtrodden the world over. Advertising appeals can further be classified into direct or indirect appeals. Direct Appeal: It clearly communicates with the consumer about a given need. Indirect Appeal: It does not stress on a human need, but refer to a need indirectly. Indirect appeals can be either product-oriented or consumer-oriented or both combined. Product-Oriented: These appeals can be of three types:

Feature-oriented Appeals : (About products features, attributes and characteristics)

User-oriented Appeals :

(Post-operation advantages Anne French hair

remover lotion which removes hair painlessly)

Product comparison Appeals : The basic message stresses on the differences between the advertised brand and the competing brands in this comparison process the intension is to show that the advertised brand has more advantages over the competing brands.

Consumer Oriented Appeals:

Attitude oriented appeals: The basic message is structured in a manner to be in line with the consumers attitude, belief and value system.

Significant group oriented appeals: The message stresses on the group which uses or approves of the advertised brand. The group may be a reference group, a social group or a peer group.

Lifestyle oriented appeals: The basic message emphasizes an identifiable life style relevant to a defined target market.

Subconscious oriented appeals: These messages are aimed at the buyers dream world, where the need is unconscious.

Image oriented appeals: This appeal purposefully tries to create a brand image of specific type, which suits to the specific image of the target market.

AIDA Concept : A B D A = = = = Attention Interest Desire Action

AIDA developed in the 1920s is also a hierarchy-of-effects model. Robert Lavidge and Gary Steiner developed this model basing on social psychological theory. Attention: In order to persuade the viewer/reader buy a product, his attention must be attracted first or else the advertisement gets lost.