Advertising - S.Y.B.Com. Semester III (CBCS) PDF

S.Y.B.COM. SEMESTER - III (CBCS) ADVERTISING SUBJECT CODE : UBCOMFSIII.5.01  © UNIVERSITY OF MUMBAI Prof. Suhas Pednekar Vice-Chancellor, University of Mumbai, Prof. Ravindra D. Kulkarni...

S.Y.B.COM. SEMESTER - III (CBCS) ADVERTISING SUBJECT CODE : UBCOMFSIII.5.01  © UNIVERSITY OF MUMBAI Prof. Suhas Pednekar Vice-Chancellor, University of Mumbai, Prof. Ravindra D. Kulkarni Prof. Prakash Mahanwar Pro Vice-Chancellor, Director, University of Mumbai, IDOL, University of Mumbai, Programme Co-ordinator : Prof. Rajashri Pandit Asst. Prof. in Economics, Incharge Head Faculty of Commerce, IDOL, University of Mumbai, Mumbai Course Co-ordinator : Mr. Sambhaji Shivaji Shinde Assistant Professor, IDOL, University of Mumbai, Mumbai Course Writers : Dr. Subhash D’souza ST. Joseph College, Vasai : Dr. Vinod Kamble Bal Bharati’s MJP College of Commerce Kandivali (West), Mumbai. : Ms. Anitha Menon Institute of Distance and Open Learning, University of Mumbai. : Dr. Megha Juvekar Nirmala Memorial Foundation College of Commerce and Science, Kandivali (East), Mumbai. Jully 2021, Print - I Published by : Director Institute of Distance and Open Learning , Universityof Mumbai, ipin Enterprises Vidyanagari, Mumbai - 400 098. Tantia Jogani Industrial Estate, Unit No. 2, Ground Floor, Sitaram Mill Compound, DTP Composed : Mumbai UniversityMarg, J.R. Boricha Press Mumbai - 400 011 Printed by Vidyanagari, Santacruz (E), Mumbai  CONTENTS Unit No. Title Page No. Module - I 1 Integrated Marketing Communications 1 2 Advertising 22 3. Classification of Advertising 41 Module - II 4. Advertising Agency - I 58 5. Advertising Agency - II 73 Module - III 6. Economic and Social aspects of Advertising 93 Module - IV 7. Brand Building and Special purpose Advertising 109   I S.Y. B.Com. SEMESTER - III (CBCS) ADVERTISING Course Objective: 1. To highlight the role of advertising for the success of brands and its importance within the marketing function of a company. 2. It aims to orient learners towards the practical aspects and techniques of advertising. 3. It is expected that this course will prepare learners to lay down a foundation for advanced post-graduate courses in advertising Sr. No. Modules 1 Introduction to Advertising 2 Advertising Agency 3 Economic & Social Aspects of Advertising 4 Brand Building and Special Purpose Advertising Sr. No. Modules 1 Introduction to Advertising  Integrated Marketing Communications (IMC)- Concept, Features, Elements, Role of advertising in IMC  Advertising: Concept, Features, Evolution of Advertising, Active Participants, Benefits of advertising to Business firms and consumers.  Classification of advertising: Geographic, Media, Target audience and Functions. 2 Advertising Agency  Ad Agency: Features, Structure and services offered, Types of advertising agencies , Agency selection criteria  Agency and Client: Maintaining Agency–Client relationship, Reasons and ways of avoiding Client Turnover, Creative Pitch, Agency compensation  Careers in advertising: Skills required for a career in advertising, Various Career Options, Freelancing Career Options - Graphics, Animation, Modeling, and Dubbing.  II 3 Economic & Social Aspects of Advertising Economic Aspects: Effect of advertising on consumer demand, monopoly and competition, Price. Social aspects: Ethical and social issues in advertising, positive and negative influence of advertising on Indian values and culture. Pro Bono/Social advertising: Pro Bono Advertising, Social Advertising by Indian Government through Directorate of Advertising and Visual Publicity (DAVP), Self-Regulatory body- Role of ASCI (Advertising Standard Council of India) 4 Brand Building and Special Purpose Advertising Brand Building: The Communication Process, AIDA Model, Role of advertising in developing Brand Image and Brand Equity, and managing Brand Crises. Special purpose advertising: Rural advertising, Political advertising-, Advocacy advertising, Corporate Image advertising, Green Advertising – Features of all the above special purpose advertising. Trends in Advertising: Media, Ad spends, Ad Agencies, Execution of advertisements References : 1. Advertising and Promotion : An Integrated Marketing Communications Perspective George Belch and Michael Belch, th 2015, 10 Edition, McGraw Hill Education 2. Contemporary Advertising, 2017, 15th Edition, William Arens, Michael Weigold and Christian Arens, Hill Higher Education 3. Strategic Brand Management – Kevin Lane Keller, 4th Edition, 2013 – Pearson Education Limited 4. Kleppner’s Advertising Procedure – Ron Lane and Karen King, 18th edition, 2011 – Pearson Education Limited 5. Advertising: Planning and Implementation, 2006 – Raghuvir Singh, Sangeeta Sharma –Prentice Hall 6. Advertising Management, 5th Edition, 2002 – Batra, Myers and Aaker – Pearson Education 7. Advertising Principles and Practice, 2012 - Ruchi Gupta – S.Chand Publishing  III 8. Brand Equity & Advertising- Advertising’s role in building strong brands, 2013- David A. Aker, Alexander L. Biel, Psychology Press 9. Brand Positioning – Strategies for Competitive Advantage, Subroto Sengupta, 2005, Tata McGraw Hill Publication. 10. The Advertising Association Handbook - J. J. D. Bullmore, M. J. Waterson, 1983 - Holt Rinehart & Winston 11. Integrated Advertising, Promotion, and Marketing Communications, Kenneth E. Clow and Donald E. Baack, 5th Edition, 2012 – Pearson Education Limited 12. Kotler Philip and Eduardo Roberto, Social Marketing, Strategies for Changing Public Behaviour, 1989, The Free Press, New York. 13. Confessions of an Advertising Man, David Ogilvy, 2012, Southbank Publishing th 14. Advertising, 10 Edition, 2010 - Sandra Moriarty, Nancy D Mitchell, William D. Wells, Pearson  PAPER PATTERN 1. Explain the terms (any five) 10 2. Answer the following (any three) 30 3. Write short notes (any two) 10   1 1 INTEGRATED MARKETING COMMUNICATIONS Unit Structure: 1.0 Objectives 1.1 Introduction to Integrated Marketing Communication (IMC) 1.2 Elements of IMC 1.3 Features of IMC 1.4 IMC planning process or steps involved in IMC planning process 1.5 Role of advertising in IMC 1.6 Summary 1.7 Exercise 1. 0 O B J EC TI V ES After studying the unit the students will be able to:  Define the term Integrated Marketing Communication  Explain the various Components, Features and Elements of an Integrated Marketing Communication  Discuss about the major Objectives or Purpose of Integrated Marketing Communication and  Explain the Role of Advertising in an Integrated Marketing Communication 1.1 INTRODUCTION TO IMC 1.1.1 Meaning Integrated Marketing Communication is a simple concept. It ensures that all forms of communications and messages are carefully linked together. Integrated Marketing Communication plays an important role in the marketing of goods and services. It is used to influence customer behaviour in favour of the product. At its most basic level, integrated marketing communication refers to integrating all the methods of brand promotion to promote a particular product or service among target customers. In  2 integrated marketing communication, all aspects of marketing communication work together for increased sales and maximum cost effectiveness. Integrated Marketing Communication is defined as “a marketing mix element used to inform, persuade and remind people about an organization and/or its products.” In this cluttered and fragmented media environment, only advertising in traditional media (or a mix of one or two other promotional tools) does not enable marketers to reach their target market. Thus, integrated marketing communications (IMC) are required. IMC involves strategic synchronization of various forms of persuasive communication programs with customers and prospects over time. The goal of IMC is to convey a company's marketing messages in a consistent and coherent manner through different promotional channels. The utmost task for IMC is ensuring consistency in messages and executions so that the target audience is able to connect any execution to the brand in the end. 1.1.2 COMPONENTS OF IMC Let us go through various Components of Integrated Marketing Communication: 1. The Foundation - As the name suggests, foundation stage involves detailed analysis of both the product as well as target market. It is essential for marketers to understand the brand, its offerings and end-users. You need to know the needs, attitudes and expectations of the target customers. Keep a close watch on competitor’s activities. 2. The Corporate Culture - The features of products and services ought to be in line with the work culture of the organization. Every organization has a vision and it’s important for the  3 marketers to keep in mind the same before designing products and services. Let us understand it with the help of an example. Organization A’s vision is to promote green and clean world. Naturally its products need to be eco-friendly and biodegradable, in lines with the vision of the organization. 3. Brand Focus - Brand Focus represents the corporate identity of the brand. 4. Consumer Experience - Marketers need to focus on consumer experience which refers to what the customers feel about the product. A consumer is likely to pick up a product which has good packaging and looks attractive. Products need to meet and exceed customer expectations. 5. Communication Tools - Communication tools include various modes of promoting a particular brand such as advertising, direct selling, promoting through social media such as Facebook, Twitter, Orkut and so on. 6. Promotional Tools - Brands are promoted through various promotional tools such as trade promotions, personal selling and so on. Organizations need to strengthen their relationship with customers and external clients. 7. Integration Tools - Organizations need to keep a regular track on customer feedbacks and reviews. You need to have specific software like customer relationship management (CRM) which helps in measuring the effectiveness of various integrated marketing communications tools. Integrated marketing communication enables all aspects of marketing mix to work together in harmony to promote a particular product or service effectively among end-users. 1.1.3 OBJECTIVES: Once they have developed products and services, organizations must communicate the value and benefits of the offerings to both current as well as potential customers in both business-to-business and business-to-consumer markets. Integrated marketing communications (IMC) provide an approach designed to deliver one consistent message to buyers across an organization’s promotions that may span all different types of media—TV, radio, magazines, the Internet, mobile phones, and so forth.  4 Some important Objectives of IMC are as follows: 1.2 ELEMENTS OF IMC: Integrated marketing communication is the process of coordinating all the activities across different communication methods. Effective marketing communication is goal directed, and it is aligned with an organization’s marketing strategy. It aims to deliver a particular message to a specific audience with a targeted purpose of altering perceptions and/or behavior. Integrated marketing communication (IMC) makes this marketing activity more efficient and effective because it relies on multiple communication  5 methods and customer touch points to deliver a consistent message in more ways and in more compelling ways.  6 Publicity’s primary purpose is to get specific information across to as many people as possible within the shortest time frame. To record any sale of products or services, customers have to be aware they exist, and they also have to know the attached benefits. As the number of people aware of a product or service increases, the potential for additional sales also increases. While publicity is a key component of marketing strategies, it is different from  7 marketing because there often is no message beyond letting an audience know that the product or service in question exists. A publicity campaign might be built around making a product or brand visible through strategies such as product placements or logos on vehicles that are seen around town. This strategy typically does not share or describe a product's specific benefits, but it puts it in front of as many eyes as possible. Advertising is any paid form of communication from an identified sponsor or source that draws attention to ideas, goods, services or the sponsor itself. Most advertising is directed toward groups rather than individuals, and advertising is usually delivered through media such as television, radio, newspapers and, increasingly, the Internet. Ads are often measured in impressions (the number of times a consumer is exposed to an advertisement). Sales promotions consist of other types of promotions—coupons, contests, games, rebates, mail-in offers, and so forth—that are not included as part of another component of the communication mix. Sales promotions are often developed to get customers and potential customers to take action quickly, make larger purchases, and make repeat purchases. Many stores now place coupons next to products to encourage consumers to select a particular brand and products. Sponsorships go hand-in-hand with events, as organizations affiliate themselves with events and organizations by signing on to co-sponsor something available to the community. Sponsorships cover the gamut: charitable events, athletes, sports teams, stadiums, trade shows and conferences, contests, scholarships, lectures, concerts, and so forth. Marketers should select sponsorships carefully to make sure that they are affiliating with activities and causes that are well managed and strategically aligned with the public image they are trying to cultivate. Personal selling is an interactive, paid approach to marketing that involves a buyer and a seller. The interaction between the two parties can occur in person, by telephone, or via another technology. Whatever medium is used, developing a relationship with the buyer is usually something the seller desires. Both the buyer and seller have objectives they hope to achieve. Although business-to-business markets utilize more personal selling, some business-to-consumer markets do as well. If you have ever attended a Tupperware party or purchased something from an Amway representative, you’ve been exposed to personal selling.  8 Public relations (PR) help improve and promote an organization’s image and products by putting a positive spin on news stories. Public relations’ materials include press releases, publicity, product placement, and sponsorships. Companies also use PR to promote products and to supplement their sales efforts. PR is often perceived as more neutral and objective than other forms of promotion because much of the information is tailored to sound as if it has been created by an organization independent of the seller. Many companies have internal PR departments or hire PR firms to find and create public relations opportunities for them. As such, PR is part of a company’s promotion budget. Packaging of the product is equally part of the product, since the packaging can covey in little words what the product is. The main purpose of packaging is to protect the content of the product from its environment, but it can also perform other functions such as to; inform customers of price, ingredients and product use, brand and product recognition, attract attention, break through competitive clutter at the point of purchase and ultimately motivate consumers’ brand choices etc. Direct marketing involves delivering personalized promotional materials directly to individual consumers. It provides an interactive approach for organizations to reach consumers in hope of getting consumers to take action. Materials may be delivered via mail, catalogues, Internet, e-mail, telephone, or direct-response advertising. Several benefits of direct marketing include the ability to target a specific set of customers, measure the return on investment (ROI), and test different strategies before implementing to all targeted consumers. However, direct marketing is very intrusive and many consumers may ignore attempts to reach them. Digital Marketing is an umbrella term for using a digital tool to promote and market products, services, organizations and brands. As consumers and businesses become more reliant on digital communications, the power and importance of digital marketing have increased. The direct marketing section of this chapter already discussed two digital tools: email and mobile marketing, which fit into both categories. This section will discuss other essential tools in the digital marketing tool kit: Web sites, content marketing and search-engine optimization (SEO), and social media marketing. 1.3 FEATURES OF IMC By integrating tools such as advertising, direct mail, social media, telemarketing and sales promotion, you provide clarity, consistency and maximum communications impact, according to the American Association of Advertising Agencies’ definition.  9 a) Receive Better Results In the traditional approach to marketing communications, businesses and their agencies plan separate campaigns for advertising, press relations, direct marketing and sales promotions. Integrated campaigns use the same communication tools to reinforce each other and improve marketing effectiveness. In an integrated campaign, you can use advertising to raise awareness of a product and generate leads for the sales force. By communicating the same information in press releases and feature articles, you reinforce the messages in the advertising. You can then use direct mail or email to follow up inquiries from the advertising or press campaigns and provide prospects with more information. To help convert those prospects to customers, you can use telemarketing to sell directly or make appointments for the sales team. An active online presence on social media sites like Facebook and Twitter provide a further set of tools for reaching out to your customer base. b) Creative Consistency throughout Channels In an integrated campaign, the different tools feature the same creative treatment. By repeating the headlines, key phrases and images in each communication, you ensure that prospects and customers receive consistent messages each time they see one of the elements of the campaign. Creative consistency helps reinforce the basic campaign themes by increasing the number of times prospects see or hear the same message. By working consistently through several different channels, you can better build awareness of your business name, brands, offers, catch phrases or other messages you emphasize. c) Overall Cost Savings Creative consistency in your integrated campaigns can also save you money. By using the same images and adapting the same copy for different media, you reduce copy-writing, design and photography costs. Expensive video production output can be used in multiple media like television, YouTube and Facebook. If you work with external communications suppliers, you may be able to reduce agency fees by working with a single firm that offers integrated communications services, rather than separate specialist agencies. d) Aligning with Customer Preferences An integrated campaign helps you provide customers with information in the format they prefer. Consumers and business customers can specify if they want to receive product information via email, direct mail, text message or telephone. Clients that you do not reach directly can still benefit from your campaigns by viewing your print ads or hearing your radio and TV spots.  10 Integration ensures that customers and potential customers receive the same information in all communications. You can also meet the needs of customers who search the Internet for product information by integrating your website design and content with other communications. 1.4 IMC PLANNING PROCESSOR STEPS INVOLVED IN IMC PLANNING PROCESS Step 1. Review of Marketing Plan: Before developing a promotional programme, it is important to understand where the company’s (or the brand) current position is in the market, where it intends to go and how it plan to get there. A marketing plan is a written document describing the overall marketing strategy and programme developed for the organization, a particular product line or a brand.  Marketing plan included the following basic elements: 1. A detailed situation analysis that consists of an internal marketing audit and an external analysis of the market competition and environmental factors. 2. Specific marketing objectives that provide direction, a time frame for marketing activities, and a mechanism for measuring performance. 3. A marketing strategy and programme that include selection of target market(s) decisions and plans for the four elements of the marketing mix. 4. A programme for implementing the marketing strategy, including determining specific tasks to be performed and responsibilities. 5. A process for monitoring and evaluating performance and providing feedback so that proper control can be maintained and any necessary changes made in the marketing strategy or tactics. A promotional programme is an integral part of the marketing strategy. It will give an idea of the role of advertising and other promotional mix element will play in the overall marketing programme. Step 2. Promotional Programme Situational Analysis: The next step in developing promotional plan is to conduct the situation analysis. A situation analysis involves the internal analysis and external analysis. Internal analysis assesses relevant area involving the product/service offering and the firm itself.  11 The capabilities of the firm and its ability to develop and implement a successful promotional programme, the organization of promotional department and the success and failures of past programmes are reviewed. The analysis studies the relative advantages and disadvantages of performing the promotional functions. For example, the internal analysis may indicate the firm is not capable of planning, implementing and managing certain areas of the promotional programme. If this is the case, it would be wise to look for assistance from an advertising agency or some other promotional facilitator. If the organization is already using an advertising agency, the focus will be on the quality of the agency’s work and the results achieved by past and/current campaigns. The other aspect of internal analysis is assessing the strengths and weaknesses of the firm or the brand from an image perspective. Often, the image of the firm brings to the market will have a significant impact on its promotional programme. Another aspect of the internal analysis is the assessment of the relative strengths and weaknesses of the product or service in comparison to its competitors, unique selling points or benefits it has, its price, design, packaging to help the creative personnel to develop advertising message for the brand. External analysis focuses its attention on the firm’s customers, market segments, positioning strategies, and competitors. An important part of the external analysis is a detailed consideration of customers in terms of their characteristics and buying patterns, their decision processes, and factors influencing their purchase decisions. Attention must also be given to consumer’s perceptions and attitudes, lifestyles, and criteria used in making purchase decisions often. Marketing research studies are necessary to answer some of these questions. A key element of the external analysis is an assessment of the market. The attractiveness of various market segments must be evaluated and the decision made as to which segment (s) to target. Once the target markets are chosen, the emphasis will be on determining how the product should be positioned? What image or place should it have in consumers’ minds? The external phase of the promotional programme situation analysis also includes an in depth examination of both direct and  12 indirect competitors. While competitors were analyzed in the overall marketing situation analysis, even more attention is devoted to promotional aspects at this phase. Focus is on the firm’s primary competitors; their specific strengths and weaknesses; their segmentation, targeting and positioning strategies; and the promotional strategies they employ. The size and allocation of their promotional budgets, their media, strategies, and the messages they are sending to the market place should also be considered. Step 3. Analysis of Communication Process: This stage involves to know how the company can effectively communicate with consumers in its target market. It involves the communication decision regarding the use of various sources, messages and channel factors. It involves the analysis of effects of various types of advertising messages might have on consumers and whether they are appropriate for the product or brand. An important part of this stage of the promotional planning process is establishing communication goals and objectives. Communication objectives refer to what the firm wants to accomplish with its promotional programmes Russel Colley have identified 52 possible advertising objectives. The communication objectives may include creating awareness or knowledge about a product and its attributes or benefits, creating an image or developing favorable attitudes, preferences or purchase intentions. Step 4. Budget Determination: In budget determination, the two basic questions that should be asked includes what will the promotional programme’s cost? How will these funds be allocated? Budget determination procedure involves selecting the various budgeting approaches and integrating them. At this stage, the budget is often tentative. It may not be finalized until specific promotional mix strategies are developed. Step 5. Developing the Integrated Marketing Communications Programme: At this stage, decisions are made regarding the role and importance of each element and their coordination with one another. Each promotional mix element has its own set of objectives and a budget and strategy for meeting them.  13 Decisions must be made and activities performed to implement the promotional programmes. Procedures are developed for evaluating performance and making any necessary changes. Two important aspects of advertising programme are the development of the message and media strategy. Message development, often referred to as creative strategy, involve deter- mining the basic appeal and message the advertiser wishes to convey to the target audience. Media strategy involves determining which communications channels will be used to deliver the advertising message to the target audience. Decisions must be made regarding which types of media will be used (e.g., Newspapers Magazines, Radio, Television, bill boards etc.) as well as specific media selections such as a particular magazines or TV programme. This task requires careful evaluation of the media options’ advantages and limitations, costs, and ability to deliver the message effectively to the target market. Once the message and media strategies have been determined, steps must be taken to implement them. Most large companies hire advertising agencies to plan and produce their messages and to evaluate and purchase the media that will carry their advertisement. However, most agencies work very closely with their clients as they develop the advertisements and select media, because it is the advertiser that ultimately approves (and plays for) the creative work and media plan. Step 6. Mentoring, Evaluation and Control: This stage determines how well the promotional programme is meeting communication objectives and helping the firm accomplish its overall marketing objectives. This stage is designed to provide managers with continual feedback concerning the effectiveness of the promotional programme which is used as input to subsequent promotional planning and strategy development. 1.5 ROLE OF ADVERTISING IN IMC Advertising is one of the important elements of integrated marketing communication. It's the part that involves getting the word out concerning your business, product, or the services you are offering. Advertising and marketing are key elements in a company's success. One cannot be used without the other.  14 This essentially is charged with having a product or service and creating a need or a perceived desire of the consumer to buy it. The message is designed to create awareness that the product exists, how it will be of value to the consumer or make their lives easier because they have it and explain why they should buy it immediately. This only equals one piece of the pie in the strategy. All of these elements must not only work independently but they also must work together towards the bigger goal. In today's oversaturated, fragmented media landscape, word-of-mouth marketing remains a cost-effective part of many advertisers' marketing mix. Advertising is to "display" one’s wares. It is entirely passive. It is a single aspect of marketing, which involves spreading the word about a business, product, or service offered to the public. Strategy is definitely a key part here, as there are many avenues to use. Advertising can serve for marketing well if it is suitable for the marketing strategy. It is a way to marketing the products or service of a company. Advertising is one of the keys to a successful business. It isn't what it used to be. Media has changed dramatically. Advertising builds brand awareness, which builds trust and credibility. Of course, that translates to more purchases. Advertising and promotions managers may travel to meet with clients or representatives of communications media. At times, public relations managers travel to meet with special-interest groups or government officials. It reaches people through varied types of mass communication. In everyday life, people come into contact with many different kinds of advertising. Advertising Trojans make clandestine connections to ad servers behind your back, consume precious network bandwidth and may compromise the security of your data. The latest versions of these "ad-viruses" operate in full stealth and are nearly impossible to detect without advanced knowledge of the system environment. 1.6 SUMMARY With the development of technologies and the increased popularity of social networks, integrated marketing communication has moved from telling and selling approach to one of listening and learning. Integrated marketing communication saves time which is often lost in figuring out the best marketing tool.  15 The use of IMC tools for sustainability enables a business to create the product consumption value, i.e., sufficient information for consumers and the need for sustainable products, deliberate and well- through- out buying decisions, buying, etc. Integrated marketing communication goes a long way in creating brand awareness among customers at a minimal cost. Integrated marketing communication plays an integral role in communicating brand message to a larger audience. From the forgoing it can be adjudged that Integrated Marketing Communication is a basic necessity in the business of establishing and maintaining a brand. Integrated Marketing Communication involves combining tools or elements used to communicate a brand to the public. In communicating the attributes of a brand, an integrated approach is imperative. Therefore, an organization that wants to achieve brand awareness must without fail integrate their communication process. Integrated marketing communication scores over traditional ways of marketing as it focuses on not only winning new customers but also maintaining long term healthy relationship with them. 1.7 EXERCISE (A) QUIZ TIME (check your progress) 1. As marketers embraced the concept of integrated marketing communications, they began to reply primarily on media advertising. (TRUE or FALSE) 2. The integrated marketing communications approach calls for a centralized messaging function so that everything a company says and does communicates a common theme and positioning. (TRUE or FALSE) 3. The goal of integrated marketing communications (IMC) is to generate both short-term financial returns and build long-term brand and shareholder value. (TRUE or FALSE) 4. The non-personal nature of advertising means that there is generally ample opportunity for immediate feedback from the message recipient. (TRUE or FALSE) 5. An advantage of publicity over other forms of promotion is its credibility. (TRUE or FALSE) 6. The first step in the IMC\ planning process is to review the marketing plan and objectives. (TRUE or FALSE)  16 7. According to the American Marketing Association's definition of marketing, which of the following statements is true? A) Most marketers are seeking a one-time exchange or transaction with their customers. B) The focus of production- driven companies is on developing and sustaining relationships with their customers. C) Successful companies recognize that creating and delivering value to their customers is extremely important. D) Though marketing plays an important role in developing relationships with customers, it does not help in maintaining them. E) By definition, a marketing transaction has to involve the exchange of money. 8. The process of assimilating mass-media advertisements with other promotional elements such as direct marketing, public relations, and sales promotion is known as A) Media fragmentation. B) Micromarketing. C) Integrated Marketing Communications. D) Social Media E) Digital Advertising 9. The primary goal of an integrated marketing communications program is to A.) Have a company's entire marketing and promotional activities project a consistent, unified image to its customers. B.) Control all facets of a product's distribution. C.) Communicate with customers primarily through mass-media advertising. D.) Have complete control over all the channel partners in the distribution channel and to slow down the rate of diffusion of a new product among the customers. E.) Create a strong distribution network, via marketing, that is capable of destabilizing any competition. 10. The best-known and most widely discussed form of promotion is A.) Personal Selling. B.) Sales Promotion. C.) Direct Marketing. D.) Advertising. E.) Publicity/Public Relation. 11. ____________is a tool of direct marketing that is used to call customers directly and attempts to sell them products and services or qualify them as sales leads. A.) Bait advertising B.) Buzz marketing  17 C.) Telemarketing D.) Switch marketing E.) B2B marketing 12. ___________ includes those marketing activities that provide extra value or incentives for purchasing a product, such as coupons and premiums. A.) Direct Marketing B.) Advertising C.) Public Relations D.) Sales Promotion E.) Publicity 13. Sales promotions targeted at the ultimate users of a product, such as sampling, coupons, contests, or sweepstakes, are part of ________________. A.) Consumer-oriented Sales Promotion. B.) Trade-oriented Sales Promotion. C.) Buzz Promotion. D.) Bait-and-Switch Sales Promotion. E.) Channel-initiated Sales Promotion. 14. _________refers to non-personal communication regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. A.) Advertising B.) Sales Promotion C.) Publicity D.) Public Relations E.) Telemarketing 15. When an organization systematically plans and distributes information in an attempt to control and manage its image and the nature of the publicity it receives, it is engaging in a function known as A.) Buzz Marketing. B.) Reactive disinformation. C.) Bait-and-switch Marketing. D.) Public Relations. E.) Sales Promotion. (B) THEORY QUESTIONS Q.1) Define Integrated Marketing Communication (IMC). Q.2) State the main tools of Integrated Marketing Communication. Q.3) State the importance of Integrated Marketing Communication. Q.4) What are the steps involved in framing Integrated Marketing Communication?  18 SOLUTION to the QUIZ: 1. As marketers embraced the concept of integrated marketing communications, they began to reply primarily on media advertising. FALSE As marketers embraced the concept of integrated marketing communications, they began asking their ad agencies to coordinate the use of a variety of promotional tools rather than relying primarily on media advertising. A number of companies also began to look beyond traditional advertising agencies and use other types of promotional specialists. 2. The integrated marketing communications approach calls for a centralized messaging function so that everything a company says and does communicates a common theme and positioning. TRUE The integrated marketing communications approach seeks to have all of a company's marketing and promotional activities project a consistent, unified image to the marketplace. It recognizes that every customer interaction with a company or brand across a host of contact points represents an opportunity to deliver on the brand promise, strengthen customer relationships, and deepen loyalty. 3. The goal of integrated marketing communications (IMC) is to generate both short-term financial returns and build long-term brand and shareholder value. TRUE Integrated marketing communications is a strategic business process used to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communications programs overtime with consumers, customers, prospects, employees, associates, and other targeted relevant external and internal audiences. The goal is to generate both short- term financial returns and build long-term brand and shareholder value. 4. The non-personal nature of advertising means that there is generally ample opportunity for immediate feedback from the message recipient. FALSE The non-personal nature of advertising means that there is generally no opportunity for immediate feedback from the message recipient (except in direct-response advertising). Therefore, before the message is sent, the advertiser must consider how the audience will interpret and respond to it.  19 5. An advantage of publicity over other forms of promotion is its credibility. TRUE Consumers generally tend to be less\ sceptical toward favourable information about a product or service when it comes from a source they perceive as unbiased. 6. The first step in the IMC\ planning process is to review the marketing plan and objectives. TRUE The first step in the IMC planning process is to review the marketing plan and objectives. Before developing a promotional plan, marketers must understand where the company (or the brand) has been, its current position in the market, where it intends to go, and how it plans to get there. 7. According to the American Marketing Association's definition of marketing, which of the following statements is true? A.) Most marketers are seeking a one-time exchange or transaction with their customers. B.) The focus of production- driven companies is on developing and sustaining relationships with their customers. C.) Successful companies recognize that creating and delivering value to their customers is extremely important. D.) Though marketing plays an important role in developing relationships with customers, it does not help in maintaining them. E.) By definition, a marketing transaction has to involve the exchange of money. 8. The process of assimilating mass-media advertisements with other promotional elements such as direct marketing, public relations, and sales promotion is known as A) Media fragmentation. B) Micromarketing. C) Integrated Marketing Communications. D) Social Media E) Digital Advertising 9. The primary goal of an integrated marketing communications program is to  20 A.) Have a company's entire marketing and promotional activities project a consistent, unified image to its customers. B.) Control all facets of a product's distribution. C.) Communicate with customers primarily through mass-media advertising. D.) Have complete control over all the channel partners in the distribution channel and to slow down the rate of diffusion of a new product among the customers. E.) Create a strong distribution network, via marketing, that is capable of destabilizing any competition. 10. The best-known and most widely discussed form of promotion is A.) Personal Selling. B.) Sales Promotion. C.) Direct Marketing. D.) Advertising. E.) Publicity/Public Relation. 11. ____________is a tool of direct marketing that is used to call customers directly and attempts to sell them products and services or qualify them as sales leads. A.) Bait advertising B.) Buzz marketing C.) Telemarketing D.) Switch marketing E.) B2B marketing 12. ___________ includes those marketing activities that provide extra value or incentives for purchasing a product, such as coupons and premiums. A.) Direct Marketing B.) Advertising C.) Public Relations D.) Sales Promotion E.) Publicity 13. Sales promotions targeted at the ultimate users of a product, such as sampling, coupons, contests, or sweepstakes, are part of ________________. A.) Consumer-oriented Sales Promotion. B.) Trade-oriented Sales Promotion. C.) Buzz Promotion.  21 D.) Bait-and-Switch Sales Promotion. E.) Channel-initiated Sales Promotion. 14. _________refers to non-personal communication regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. A.) Advertising B.) Sales Promotion C.) Publicity D.) Public Relations E.) Telemarketing 15. When an organization systematically plans and distributes information in an attempt to control and manage its image and the nature of the publicity it receives; it is engaging in a function known as A.) Buzz Marketing. B.) Reactive disinformation. C.) Bait-and-switch Marketing. D.) Public Relations. E.) Sales Promotion.   22 2 ADVERTISING Unit Structure: 2.0 Objectives 2.1. Introduction to Advertising 2.2. Features 2.3. Evolution of Advertising 2.4. Active Participants 2.5. Importance of Advertising 2.6. Conclusion 2.7. Exercise 2.0 OBJECTIVES After studying the unit the students will be able:  To understand the basic concepts of advertising by learning it’s characteristics, objectives and types.  To study the various features and active participants of advertising  To study the evolution of advertising and its role in marketing mix  To learn the advantages and importance of advertising to a business firm and the consumers  To study the classification of advertising based on different aspects 2.1. INTRODUCTION TO ADVERTISING 2.1.1 Meaning and Definition Advertising is the action of calling public attention to an idea, good, or service through paid announcements by an identified sponsor. Advertising involves paying to widely spread a message that identifies a brand (product or service) or an organization being promoted to many people at one time. The typical media that organizations utilize for advertising includes television, magazines, newspapers, the Internet, direct mail, and radio. Businesses are also advertising on social media such as Facebook, blogs, Twitter, and mobile devices. Each medium (television or magazines or mobile phones) has different advantages and disadvantages.  23 According to Kotler – “Advertising is any paid form of non-personal presentation & promotion of ideas, goods, or services by an identified sponsor.” According to the Advertising Association of the UK – “Advertising is any communication, usually paid-for, specifically intended to inform and/or influence one or more people.” A simpler (and modern) definition of advertising can be – “A paid communication message intended to inform people about something or to influence them to buy or try something.” For example, mobile phones provide continuous access to people on the go although reception may vary in different markets. Radios, magazines, and newspapers are also portable. People tend to own more than one radio, but there are so many radio stations in each market that it may be difficult to reach all target customers. People typically are doing another activity (e.g., driving or studying) while listening to the radio, and without visuals, radio relies solely on audio. Both television and radio must get a message to consumers quickly. Although many people change channels or leave the room during commercials, television does allow for demonstrations. In an effort to get attention, advertisers have changed the volume for television commercials for years. 2.1.2 CHARACTERISTICS OF ADVERTISING  Paid Form: Advertising requires the advertiser (also called sponsor) to pay to create an advertising message, to buy advertising media slot, and to monitor advertising efforts.  Tool for Promotion: Advertising is an element of the promotion mix of an organization.  One Way Communication: Advertising is a one-way communication where brands communicate to the customers through different mediums.  Personal or Non-Personal: Advertising can be non-personal as in the case of TV, radio, or newspaper advertisements, or highly personal as in the case of social media and other cookie- based advertisements. 2.1. 3 OBJECTIVES: There are three main objectives of advertising. These are:  24 1. To Inform: Advertisements are used to increase brand awareness and brand exposure in the target market. Informing potential customers about the brand and its products is the first step towards attaining business goals. 2. To Persuade: A persuading customer to perform a particular task is a prominent objective of advertising. The tasks may involve buying or trying the products and services offered, to form a brand image, develop a favourable attitude towards the brand etc. 3. To Remind: Another objective of advertising is to reinforce the brand message and to reassure the existing and potential customers about the brand vision. Advertising helps the brand to maintain top of mind awareness and to avoid competitors stealing the customers. This also helps in the word of mouth marketing. Other objectives of advertising are subsets of these three objectives. Advertising plays role in marketing process to achieve followings things: 4. Brand Positioning: It helps in shaping or improving the image and perception that people have about the brand. 5. To Remind Audience: To make people recall the brand in case they have forgotten or to instil the brand’s name in people’s mind further. 6. To Excite or Create a Need: Advertising displays tempting, exciting or compelling content that makes people crave for the product. It’s also used to generate a need by telling people that they need the product or service. 7. To Generate Awareness: It helps in making people aware of the brand in case it is new or not too popular brand. 8. To Increase Outreach: It helps in spreading the word about the brand by creating a quality and viral content through Advertising. With the development of technologies and the increased popularity of social networks, integrated marketing communications have moved from the telling and selling approach to one of listening and learning With the development of technologies and the increased popularity of social networks, integrated marketing communications have moved from the telling and selling approach to one of listening and learning with the development of technologies and the increased popularity of social networks,  25 integrated marketing communications have moved from the telling and selling approach to one of listening and learning. 2.1.4 TYPES OF ADVERTISING Advertising activities can be categorized into above the line, below the line, and through the line advertising according to their level of penetration. Above the line advertising include activities that are largely non-targeted and have a wide reach. Examples of above the line advertising are TV, radio, & newspaper advertisements. Below the line advertising include conversion focused activities which are directed towards a specific target group. Examples of below the line advertising are billboards, sponsorships, in-store advertising, etc. Through the line advertising include activities which involve the use of both ATL & BTL strategies simultaneously. These are directed towards brand building and conversions and make use of targeted (personalized) advertisement strategies. Examples of through the line advertising are cookie based advertising, digital marketing strategies, etc. Advertising activities can also be categorized into 5 types based on the advertisement medium used. These types of advertisements are: Print Advertising: Newspaper, magazines, & brochure advertisements, etc. Broadcast Advertising: Television and radio advertisements. Non-broadcast: Cinema, CCTV, local cable TV, etc. Outdoor Advertising: Hoardings, banners, flags, wraps, etc. Transit or vehicular: Railways, Public transport buses and Tramps, etc. The point of purchase: Hangings on stores, Banners, Pamphlets, Stickers, Window Display, Painted signs, etc. Digital Advertising: Advertisements displayed over the internet and digital devices. Product/Brand Integration: Product placements in entertainment media like TV show, YouTube video, etc. Specialty media: Calendars, T-shirts, badges, caps, keychains, Diaries, etc. Virtual media: Online Blogs, forums, social media websites, email ads, etc. Miscellaneous: Direct mail advertising, Trolleys at the airport, Carts in departmental stores, etc.  26 2.2 FEATURES OF ADVERTISING Advertising is the art of influencing human action and awakening of a desire to possess products and services. It is a mass persuasion activity duly sponsored by the manufacturer, retailer, or dealer for whom the advertising is done. Following are the key features of advertising: 1. Provides information: Advertising's primary purpose is to provide information about products or services to the prospective buyers. The details of products such as features, uses, prices, benefits, manufacturer's name, so on; are in the advertisements. The key message and brand name are also there. The information supplied educates and guide consumers and facilitate them to make a correct choice while buying a product. 2. Payment of Money: One of the features of advertising is to pay the money for the advertising. Advertisement appear in the newspapers, magazines, televisions, cinema screens and website search engine pages because the advertiser has purchased some time/ space to communicate information to the potential customers. The advertiser must pay money for the advertising activities. He also decides the size, slogan, etc. given in the advertisement. Advertising is always a paid form of communication and hence commercial in nature. Thus, advertising can clarify be distinguished from publicity which is not paid for by the sponsor. 3. Non-personal presentation: Advertising is non-personal in character as against salesmanship, which is a personal or face to face communication. Here, the message is given to all and not to one specific individual. This rule is applicable to all media including the press. However, even in it, target consumers or target market can be selected for making an AD appeal. 4. Publicity: Advertising publicizes goods, services, ideas and event events. It is primarily for giving information to consumers. This information is related to the features and benefits of goods and services of different types. It offers new ideas to customers as its contents are meaningful. The aim is to make the popularize ideas and thereby promote sales. For example, an advertisement for family planning, family welfare, and life insurance is useful for placing new ideas before the people. 5. Primarily for Persuasion: Advertising aims at the persuasion of potential customers. It attracts attention towards a particular product, creates a desire to have it, and finally induces consumers to visit the market and purchase the same. It has a psychological impact on consumers. It influences their buying decisions. 6. Target oriented: Advertising becomes effective and result-oriented when it is target oriented. A targeted advertisement intensively  27 focuses on a specific market or particular groups of customers (like teenagers, housewives, infants, children, etc.). Here, the selection of a particular market is called a target market. 7. Art, science and profession: Advertising is art, science and a profession, and this is now universally accepted. It is an art as it needs creativity for raising its effectiveness. It is a science as it has its principles or rules. It is also a profession as it has a code of conduct for its members and operates within standards set by its organized bodies. In its field, AD Agencies and space brokers function as professionals. 8. The element of a marketing mix: Advertising is an important part of a marketing mix. It supports the sales promotion efforts of the manufacturer. It makes a positive contribution to sales promotion provided other elements in the marketing mix are reasonably favourable. It is alone inadequate for promoting sales. Many companies now spend huge funds on advertisements and public relations. 9. Creativity: Advertising is a method of presenting a product in an artistic, attractive and agreeable manner. It is possible through the element of creativity. The creative people (professionals) introduce creativity in advertisements. Without it, the Ads won't succeed. Therefore, creativity is called the ‘Essence of Advertising.’ 2.3 EVOLUTION OF ADVERTISING In the ancient and medieval world such advertising as existed was conducted by word of mouth. The first step toward modern advertising came with the development of printing in the 15th and 16th centuries. In the 17th century, weekly newspapers in London began to carry advertisements, and by the 18th century such advertising was flourishing. The great expansion of business in the 19th century was accompanied by the growth of an advertising industry; it was that century, primarily in the United States, that saw the establishment of advertising agencies. The first agencies were, in essence, brokers for space in newspapers. But by the early 20th century agencies became involved in producing the advertising message itself, including copy and artwork, and by the 1920s agencies had come into being that could plan and execute complete advertising campaigns, from initial research to copy preparation to placement in various media. Advertising developed in a variety of media. Perhaps the most basic was the newspaper, offering advertisers large circulations, a readership located close to the advertiser’s place of business, and the opportunity to alter their advertisements on a frequent and regular basis. Magazines, the other chief print medium, may be of general interest or they may be aimed at specific audiences (such as people interested in  28 outdoor sports or computers or literature) and offer the manufacturers of products of particular interest to such people the chance to make contact with their most likely customers. Many national magazines publish regional editions, permitting a more selective targeting of advertisements. In Western industrial nations television and radio became the most pervasive media. Although in some countries radio and television are state-run and accept no advertising, in others advertisers are able to buy short “spots” of time, usually a minute or less in duration. Advertising spots are broadcast between or during regular programs, at moments sometimes specified by the advertiser and sometimes left up to the broadcaster. For advertisers the most important facts about a given television or radio program are the size and composition of its audience. The size of the audience determines the amount of money the broadcaster can charge an advertiser, and the composition of the audience determines the advertiser’s choice as to when a certain message, directed at a certain segment of the public, should be run. The other advertising media include direct mail, which can make a highly detailed and personalized appeal; outdoor billboards and posters; transit advertising, which can reach the millions of users of mass-transit systems; and miscellaneous media, including dealer displays and promotional items such as matchbooks or calendars. In the 21st century, with an intensely competitive consumer market, advertisers increasingly used digital technology to call greater attention to products. In 2009, for example, the world’s first video advertisements to be embedded in a print publication appeared in Entertainment Weekly magazine. The thin battery-powered screen implanted in the page could store up to 40 minutes of video via chip technology and automatically began to play when the reader opened the page. For an advertisement to be effective, its production and placement must be based on a knowledge of the public and a skilled use of the media. Advertising agencies serve to orchestrate complex campaigns whose strategies of media use are based on research into consumer behaviour and demographic analysis of the market area. A strategy will combine creativity in the production of the advertising messages with canny scheduling and placement, so that the messages are seen by, and will have an effect on, the people the advertiser most wants to address. Given a fixed budget, advertisers face a basic choice: they can have their message seen or heard by many people fewer times, or by fewer people many times. This and other strategic decisions are made in light of tests of the effectiveness of advertising campaigns. There is no dispute over the power of advertising to inform consumers of what products are available. In a free-market economy effective advertising is essential to a company’s survival, for unless consumers know about a company’s product they are unlikely to buy it. In criticism of advertising it has been argued that the consumer must pay for the cost of advertising in the form of higher prices for goods; against  29 this point it is argued that advertising enables goods to be mass marketed, thereby bringing prices down. It has been argued that the cost of major advertising campaigns is such that few firms can afford them, thus helping these firms to dominate the market; on the other hand, whereas smaller firms may not be able to compete with larger ones at a national level, advertising at the local level or online enables them to hold their own. Finally, it has been argued that advertisers exercise an undue influence over the regular contents of the media they employ—the editorial stance of a newspaper or the subject of a television show. In response it has been pointed out that such influence is counteracted, at least in the case of financially strong media firms, by the advertiser’s reliance on the media to convey a message; any compromise of the integrity of a media firm might result in a smaller audience for the advertising. 2.4 ACTIVE PARTICIPANTS IN ADVERTISING: Participants are individuals/ organizations that are actively involved in advertising.  30 1. Advertiser: The advertiser can be any firm, individual, Government or social organization who wants to advertise their products, services or highlight any social issues or ideas to general public to raise their awareness levels and promote their products and ideas. This group also includes retailers as they also display various products in their shops for selling them to the customers. 2. Target Audience: Target audience refers to the desired audience to whom a manufacturer wants to target for promoting and selling his products. Target audience may include only a particular segment of customers or mass audience. Through advertising, that manufacturer tries to arouse interest in its desired audience so that they get attracted towards his products and ultimately get persuaded to buy them. Thus, the target audience refers to the recipient of the messages advocated by the advertisements. 3. Advertising Agencies: Advertising agencies consist of highly creative and professionalized people who are entrusted with the task of designing, developing and producing ads and showing and printing them through appropriate media i.e. T.V., magazines, newspapers, radio, publications, etc. These agencies are service based business and so charge their clients for producing and popularizing their products, services or ideas amongst masses through advertisements. Advertising agencies are creative teams consisting of layout designers, editors, photographers, copywriters, artists, etc. These agencies even undertake market research on behalf of their clients. In short, advertising agencies are the medium through which a firm, individual, social or Government organization can promote and communicate about its goods, services and ideas amongst the masses. 4. Advertising Production People: Advertising production people comprise of all those who are directly or indirectly concerned with production and development of advertisements. Attractive and persuasive advertisements are a result of the collective efforts put in by layout designers, editors, photographers, copywriters, artists, etc., who comprise the advertising production people. These people are  31 employed by ad agencies or their services are hired by ad agencies for carrying out the functions of designing and producing ads. It requires a high degree of creativity, skills and talent on the part of these people to plan and develop an advertisement that would spread the message of the advertisement effectively amongst the masses. 5. Target Audience (Readers, Listeners, Viewers and Present and Future Buyers): The target audience comprise of the readers, listeners, viewers and present and future buyers who are the recipients of the messages given by advertisements about any product, service or idea. The target audience can be grouped into three groups as follows: a) Consumers who are loyal to a particular brand and through advertisements they are persuaded to stick to the brand. b) Consumers who are loyal to a competitor’s brand and so through advertisements they are persuaded to switch to the brand advertised by highlight its better features, usage and benefits as compared to its competitor’s brand. c) Consumers who do not use any such product which is advertised. Thus, they too, are persuaded to buy the advertised product and gain benefits out of it. 6. Mass Media: Mass media includes T.V, newspapers, radio, magazines, publications, internet, websites, etc through which the advertising messages are to be highlighted and communicated to the masses. Depending on the type of the advertising message and the target audience, an appropriate medium for communicating the message is to be chosen by the advertising agencies. The main elements of mass media are listed as follows: (a) Print Media: It includes those sources which print and publish the advertising messages. Print media comprises of newspapers, magazines, publications, journals, etc. (b) Electronic Media: People can even obtain information about various products, services and ideas through electronic media which includes internet, ads shown on television, radio, multimedia, etc. (c) Outdoor Media: Outdoor media consists of neon signs, billboards, posters, hoardings, air balloons, handbills, etc. (d) Direct Mail: Advertising messages can even be communicated directly to the target audience by sending them letters, broachers, pamphlets, leaflets, etc. 7. Government Authorities: The advertising field is bound with certain well defined norms, standards and code of conduct laid down by various advertising regulating authorities. All advertising firms are bound to function within these standards and norms. The  32 Government frames various laws and regulations which all advertising firms are required to follow. In India, advertising regulating authorities include, The Advertising Standards Council of India (ASCI) and Audit Bureau of Circulation (ABC). 8. Advertising Production Firms: As the name suggests, advertising production firms are engaged with production and development of advertisements. By securing the collective help and creativity of the advertising production people, these firms produce advertisements of their clients. The advertising production firm is responsible for planning, designing, and producing a final ad to transmit the advertising effectively amongst the masses. 2.5 IMPORTANCE OF ADVERTISING Advertising plays a very important role in today’s age of competition. Advertising is one thing which has become a necessity for everybody in today’s day to day life, be it the producer, the traders, or the customer. Advertising is an important part. Let’s have a look on how and where is advertising important: 2.5.1 ROLE OF ADVERTISING IN MARKETING MIX Advertising technically lies within the "Promotion" part of the Marketing Mix, but it applies to all the other "P's" as well. Promoting your business is one of the key ingredients to making your business successful. Promotion, along with a great product, key placement, and an affordable price, will help you work your way to the top. Promoting yourself does not mean leaving your advertising up to the word of mouth of your current customer. Word of mouth is not technically a form of advertising for a business because advertising is supposed to help your business. With word of mouth there are a few things you can't control, such as: (i) You can't control what is said about your company (ii) You can't control when your company is being talked about (iii) You can't control the accuracy of information given to others. Not being able to control these things may lead to the downfall of your company. Taking control of these three things is very important when it comes to the success of your business. That is why there is advertising made by your company for your company. Whether you choose a flyer, brochure, commercial, paper ad, or a website, getting your name out there in a good light, at the appropriate time and with correct information is the key to helping your business succeed.  33 The variables of marketing mix that are affected by advertising are: (a) 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. So, advertising plays the role of information and education. (b) 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 that case, price would be definitely high, but buyers may not be willing to pay. This is where advertising comes in. 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 product the job of advertising needs to stress the price advantage by using hard- hitting copy. It is not just enough to convince the byer, but it is desirable to persuade the buyers. In essence, advertising plays the role of conviction and persuasion. (c) 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 o market, advertising is very important. Effective advertising helps in effective product distribution and the market expansion. (d) Advertising and Promotion: Promotion consists of advertising, publicity, personal selling and sales promotion technique. Business people 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. (e) 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. When new bands are launched, advertising plays an important role of informing, educating and persuading the customers to buy the product. (f) Advertising and Packaging: The main purpose of packaging is protecting of the product during transit, and preservation of quality and quantity. Today, marketers make a lot of effort to develop and design attractive packages as they carry advertising value. A creatively designed  34 package attracts the attention of customers. It also carries an assurance of quality and creates confidence in the minds of customers to buy the product. (g) 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. Thus, we can conclude by saying, advertising is an essential part of the marketing mix and is used to promote sales, to introduce new products, to create a good public image for a company, assist in large scale of production of products, and for educating people about a new product. 2.5.2 Benefits of Advertising to the Business Firms There are number of advantages of advertising and without advertising today it has become hard to market your product. Advertising is an art of influencing the customers through paid non personnel presentation to purchase and possess a product. It is possible to formulate the definition of advertising as an instrument of marketing communication oriented to the dissemination of information with the aim of attracting customers to the goods and services of the company. Thus, advertising has the following advantages/ benefits to a business firm: 1. Awareness: Advertising increases the brand and product awareness among the people belonging to the target market. 2. Brand Image: Clever advertising helps the business to form the desired brand image and brand personality in the minds of the customers. 3. Product Differentiation: Advertising helps the business to differentiate its product from those of competitors’ and communicate its features and advantages to the target audience. 4. Increases Goodwill: Advertising reiterates brand vision and increases the goodwill of the brand among its customers. 5. Value for Money: Advertising delivers the message to a wide audience and tends to be value for money when compared to other elements of the promotion mix. 2.5.3 Benefits of Advertising to the Customers Advertising not only benefits the producers and traders but benefits the customer as well. Advertising provides awareness of the existence of the product to the customer. Customer satisfaction is of immense priority in modern marketing and the importance of advertising can’t be ignored as such. The importance of advertising to customers can be discussed under the following sub-head:  35 1. Convenience: When we know that we have to buy the product of a particular brand name, we shall not waste our time in searching out for the best one. We can make a choice even before we go to the market. 2. Education of the consumers: Advertisements help us to become aware of the uses of a new product and the functioning of the electronic items. If there are no advertisements, we shall never be able to know about the new companies that enter the market or the introduction of new and better products in the market. 3. Fair prices: Advertisements reduces the cost of the product by providing the firms with the advantages of economies of scale and the elimination of the middleman. As a result, customers get goods at lower prices. Many expensive products of yesteryears have come within the reach of the common masses due to continuous advertising and consequent reduction in prices. Prices of widely advertised products tend to be stable during adverse business conditions such as depression. 4. Better quality: As said earlier, the producers always try to retain their old consumers and make new ones by introducing some special changes in their product to make them differentiable from the others. Manufacturers are forced to maintain better standards of the commodity to retain consumers. 5. Contact between producers and consumers: Advertisements provide links or contact numbers of the product or the service so that the consumers can report their grievances against the use of certain products so that the quality can be bettered. Hence, it brings the consumers and the producers closer to each other. 2.5.4 Benefits of Advertising to the Society 1. Educate People: Advertising has a remarkable ability to reach masses and educate the society. Therefore, many Governments and even Non-Governmental Organizations (NGO) often take help of advertisements to reach and educate people on important social issues. Thus, advertising plays a very important role in society. Creative ads released in the public interest teach people about: Family planning, AIDS awareness, Saving water and electricity, Giving children compulsory education, Providing a right kind of nutrition to the mother and her new-born infant, Abolishing child labour, etc. 2. Provides Employment: Advertising helps to provide employment to persons engaged in writing, designing and issuing advertisements. Increased employment brings additional income with the people. It increases more demand in the market. Employment is further generated to meet the increased demand.  36 3. Promote the Standard of Living: Advertising helps to increase the standard of living of the people by increasing the variety and quality in consumption. It raises the standard of the people. As a result, it helps in sustained research and development activities by manufacturers. 4. Sustains the Press and Other Media: Advertising helps to sustain the press and other media by providing an important source of income to the press, radio, and television networks. The customers are also benefited because of the increased circulation of their publications. It also encourages commercial art. 2.6 CONCLUSION Advertising is the best way to communicate to the customers. Advertising helps informs the customers about the brands available in the market and the variety of products useful to them. Advertising is for everybody including kids, young and old. It is done using various media types, with different techniques and methods most suited. The advertising is a highly cost incurring method, its efficiency and effectiveness should be ensured. It is for this, purpose that concept of scientific advertising should be carefully planned and efficiently implemented and promptly monitored and controlled. 2.7 EXERCISE I.) QUIZ TIME to check your progress 1. The choice of medium of advertisement depends on the contents of the message. a) True b) False 2. The choice of medium of advertisement depends on the contents of the message. a) True b) False 3. Which of the following is true of advertising? A) Advertising attempts to create a personal relationship with the consumers. B) The nature and purpose of advertising is usually the same across various industries. C) Advertising is a valuable tool for building brand and company equity. D) Advertising is used only for the promotion of mass consumer products. E) One disadvantage of advertising is that it is extremely personal to consumers.  37 4. Advertising involves dissemination of information about a produce, service to induce people to take actions beneficial to _________________. A.) Advertiser. B.) Sponsor. C.) Marketing manager. D.) Firm. E.) Retailer. 5. Advertisement is a mass communication. It addresses to masses and it’s a form of ____________________________ communication. A.) Personal B.) Non personal C.) Direct D.) Indirect E.) None of these 6. With respect to consumer markets, advertising done by manufacturers of well-known brands on a countrywide basis or in most regions of the country is known as ____________ advertising. A.) Professional B.) Trade C.) Business-to-business D.) National E.) Direct-response 7. Which of the following is a primary difference between publicity and advertising? A.) Unlike advertising, publicity is done only by retailers B.) Unlike publicity, advertising does not utilize mass media. C.) Unlike advertising, publicity is not paid for by the sponsoring organization. D.) Unlike advertising, publicity is institutional in character. E.) Unlike publicity, advertising leads to less scepticism among consumers. 8. Which of the following is a similarity between publicity and advertising? A.) Both are nonpaid forms of communication. B.) Both are run by an unidentified sponsor. C.) Both involve non-personal communication to a mass audience. D.) Both are not directly paid for by the company. E.) Both frequently provide an opportunity for immediate feedback.  38 9. The development of the advertising message that the marketer wants to convey to its target audience is called the _______________. A.) Creative strategy. B.) Media Strategy. C.) Distribution Strategy. D.) Channel Strategy. E.) User Strategy. 10. Advertisement is a type of _________________. A.) Outdoor marketing. B.) Indirect marketing. C.) Share marketing. D.) Transaction marketing. E.) Relationship marketing. 11. The best advertisement is________________. A.) By emails. B.) Print media. C.) Television. D.) A satisfied customer. E.) Radio. 12. From the perspective of sales, advertisements are required for _______________. A.) Profit. B.) Loss. C.) Increasing sales. D.) Decreasing sales. E.) None of these. 13. “Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services by an identified person”. Who stated this? A.) Australian marketing Association B.) European marketing Association C.) China marketing Association D.) American marketing Association E.) Indian marketing Association 14. For making advertisements more effective, the manufacturers improve_____________. A.) Existing products. B.) Advertisement style. C.) Marketing channel. D.)Sponsors. E.) None of these.  39 15. If the aim of the promotion to introduce a new consumer product is to achieve high awareness levels, the firm will mostly likely make heavy use of ________________ in the promotional mix. F) Advertising G) Personal Selling H) Publicity I) Sales Promotion II.) THEORY QUESTIONS Q.1) Define Advertising and explain its nature and features. Q.2) Explain the importance of Advertising. Q.3) Enumerate the objectives of advertising in your own words. Q.4) State the Active Participants in Advertising. Q.5) What is the interface between Advertising and Brand building? Q.6) Explain the main approaches in Brand building. SOLUTION to the QUIZ 1) The choice of medium of advertisement depends on the contents of the message. Ans. True 2) The choice of medium of advertisement depends on the contents of the message. Ans. True 3) Which of the following is true of advertising? Ans. Advertising is a valuable tool for building brand and company equity. 4) Advertising involves dissemination of information about a produce, service to induce people to take actions beneficial to Advertiser. 5) Advertisement is a mass communication. It addresses to masses and it’s a form of Non personal communication. 6) With respect to consumer markets, advertising done by manufacturers of well-known brands on a countrywide basis or in most regions of the country is known as National advertising. 7) Which of the following is a primary difference between publicity and advertising? Ans. Unlike advertising, publicity is not paid for by the sponsoring organization. 8) Which of the following is a similarity between publicity and advertising? Ans. Both involve non-personal communication to a mass audience.  40 9) The development of the advertising message that the marketer wants to convey to its target audience is called the creative strategy. 10) Advertisement is a type of indirect marketing. 11) The best advertisement is a satisfied customer. 12) From the perspective of sales, advertisements are required for increasing sales. 13) “Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services by an identified person”. Who stated this? Ans. American marketing Association 14) For making advertisements more effective, the manufacturers improve existing products. 15) If the aim of the promotion to introduce a new consumer product is to achieve high awareness levels, the firm will mostly likely make heavy use of advertising in the promotional mix.   41 3 CLASSIFICATION OF ADVERTISING Unit Structure: 3.0 Objective 3.1. Introduction 3.2. Types of Advertising 3.3. Classification of Advertising 3.4. Other types of Advertising 3.5. Summary 3.6. Exercise 3.0 OBJECTIVES After studying the unit the students will be able:  To learn different types of advertising based on its role and functions  To study the broad classification of advertising based on different aspects: categorize advertising using function, region, target market, company demand and media used.  To understand: *Social Advertising, Political Advertising, Advocacy Advertising, Retail Advertising.  To explain Financial Advertising, Essentials for the success of financial advertising, Advantages of Financial advertising  To explain Corporate Image Advertising, Public Relations Advertising, Institutional Advertising  To explain Internet Advertising, Types, Advantage and disadvantages of Internet Advertising  To understanding Product Advertising, Service Advertising, National Advertising, Retail Advertising 3.1 INTRODUCTION Advertising intends to persuade an audience (viewers, readers or listeners) to purchase or take some action upon products, ideas or services. It includes the name of a product or service and how that product or service could benefit the consumer, to persuade a target market to purchase or to consume that particular brand. These advertisements serve to communicate an idea to the public in an attempt to convince them to take certain  42 action, such as encouraging environment friendly behaviours, and even unhealthy behaviours through food consumption etc. To advertise is to draw the public’s attention usually for the purpose of selling products, or services, through the use of various forms of media, such as print or broad cast and notices. Advertising is not only used as a means to promote a company’s products and services and to drive sales but as a means to build a brand identity and communicate changes of new product /service to the customers. Advertising has become an essential element of the corporate world and it is also the best known mass communication channel. Advertising provides a direct line of communication to the existing and prospective customers about the product or service. 3.2 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, and Charity 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 is intensively made during election times to gain favour of the voters. Such advertising promotes plans and policies of the concerned party. It also tries to expose weaknesses of the opposition with a view to convince the voters to vote for their party’s candidates. Some political advertisement is also made to assist the Government to implement its schemes for rehabilitation and national reconstruction. Advertisement issued by a political party is essentially a political advertising. 3. Advocacy Advertising: We often come across advocacy advertisement relating to the use of family planning methods, Conservation of scarce resources, maintaining green environment, etc. 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  43 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 served as advertisements. Companies can place advocacy advertisement 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. 4. 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. 5. 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 advertisements 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  44 establishing financial solvency of the company in the minds of the prospective investors.  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. (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: (g) Financial advertising transmits to target consumers all the material information about new investment opportunities for investment of savings, or, surplus funds. (h) It provides education and guidance to consumers in respect of their investments in shares, debentures, and public funds, off companies. (i) It serves as a reminder to consumers to take suitable follow up action on their part. (j) It helps to tap yet untapped rich areas in mini-metros, small towns, and even in villages for financial institutions. (k) 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. (l) Financial advertising serves as a backbone to brokers as well as underwriters, who are the “intermediaries” between the advertiser and the clients. (m)Finally, financial advertising indirectly aids and supports the economic and industrial growth of the country by mobilizing public funds for expansion and diversification of business. 6. Corporate Image Advertising: Corporate Image advertising is designed or aimed to create a proper attitude towards the seller  45 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 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. 7. Public Relations Advertising: It is a part of institutional advertising. The basic objective of public relations advertising is to establish cordial 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 eliminate wrong concepts about the company created by disinterested 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. (2) To secure and keep good suppliers. (3) To build goodwill of the dealers. (4) To arouse and serve customers in a better way. (5) To arouse interest of the present and potential shareholders. (6) To correct misconceptions about the firm during strikes. (7) To win confidence of its employees. (8) To render community service. (9) To make people aware of social evils, health hazards, etc. (10) To obtain public support for certain cause.  46 8. 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 advertisemen