Introduction to Advertising (Semester 3) PDF

INTRODUCTION TO ADVERTSING – I in the market and fast changes in technology, (SEMESTER 3) we find fashion and taste in the customers QUESTION BANK ANSWERS Q.1) What is advertising? Explain its features. The word...

INTRODUCTION TO ADVERTSING – I in the market and fast changes in technology, (SEMESTER 3) we find fashion and taste in the customers QUESTION BANK ANSWERS Q.1) What is advertising? Explain its features. The word advertising comes from the Latin word "advertere” "to turn one's attention to" or "to direct attention toward". ❖ FEATURES OF ADVERTISING Definitions According to American Marketing Association: "Advertising is any paid form of non-personal 1. Communication: 2. Information: presentation and promotion of ideas, goods and ▫ Advertising is a ▫ Advertising services by an identified sponsor". means of mass informs the communication buyers about reaching the ▫ the benefits they masses. would get when ▫ It is a non- they purchase a Advertising is used for communicating personal particular business information to present to communication product. prospective customers. because It provides information about the advertising ▫ It is addressed to the masses. firm, its product qualities, place of availability of its products, etc. Advertising is necessary for both the sellers and the buyers. It is more important for the 3. Process sellers. In the modern age of large-scale production, ▫ Advertising is a creative and systematic producers cannot think of pushing sale of process. It involves: their products without advertising them. ▫ Planning of advertising - what to advertise, Advertising helps personal selling to a great why to advertise, when and how often to extent. advertise, where to advertise, in which media Advertising has acquired great importance in to advertise, and how funds to be incurred on the modern world where tough competition advertising.  ▫ Preparation of advertising — creation of ads Ideas through public awareness campaigns by factors like nature of the product, nature like family welfare campaigns, environment of target audience, competition, etc., protection campaigns, etc., are undertaken ▫ Placing the ads in the appropriate media. by Govt. authorities, NGOs and others to create social awareness. 4. Paid/Controlled Form 6. Persuasion: ▫ The advertiser pays for the time and space used in the media. ▫ The advertiser expects to create a favorable ▫ Therefore, the advertiser exercises control attitude which will lead to favorable actions. over the advertising process - i.e., ▫ Any advertising process attempts at ▫ what to say in the ad, where and when to put converting the prospects into customers. up the ad, and so on. ▫ It is thus, an indirect salesmanship and ▫ This feature differentiates advertising from essentially a persuasion technique. publicity. Publicity is not paid. ▫ In case of publicity, a company may write a positive news story about its new product or 7. Profit Maximization: performance and send it to the media for publication or for transmission. ▫ True advertising attempts to maximize profits ▫ If no payment is made to the media, the not by increasing the cost, but by promoting published story is not advertising but the sales. publicity. ▫ This way It won't lead to increase the price of the product. ▫ Thus, it has a higher sales approach rather than the higher cost approach. 8. Non-Personal Presentation: 5. Ideas, Goods & Services ▫ Salesmanship is personal selling whereas Advertising is undertaken to promote ideas, goods advertising is non-personal in character. or services ▫ Advertising isn't meant for one individual but Examples include: for all. ▫ There is an absence of personal appeal in Goods such as FMCG like tea, toothpaste, advertising toilet soaps, etc., are promoted through advertising. Services such as banking, insurance, telecom, etc., are advertised to gain competitive advantage.  ▫ Advertising has proved to be of great utility in selling goods and services. ▫ Large manufactures spend crores of rupees on ▫ Advertising. 9. Identified Sponsor: 14. Influences Diverse groups ▫ A sponsor may be an individual or a firm who ▫ Advertising is primarily directed at the pays for the advertisement. present and potential customers. ▫ The name of a reputed company may ▫ However, when designing advertising, firms increase sales or products. must also consider the various diverse ▫ The product gets a good market because of groups that advertising may have an its identity with the reputed corporate body. influence on the various groups include ▫ the ad critics, ▫ the distribution channels, employees, 10. Consumer Choice: shareholders, and the ▫ society at large. ▫ Advertising facilitates consumer choice. ▫ It enables consumers to purchase goods as per their budget requirement and choice. ▫ Right choice makes consumers happy and satisfied. 15. Universal Usage 11. Art, Science and Profession : ▫ Advertising can be used by any individual or ▫ Advertising is an art because its a field of by any organisation. creativity. ▫ Advertising can be used by Govt. authorities, ▫ Advertising is a science because it has a body ▫ NGOs, business firms and others. The of organized knowledge. organisations may be operating at local level ▫ Advertising is profession is now treated as a or even at international level. profession with its professional bodies and ▫ Business organizations and non-business code of conduct for members. organisations can advertise to promote not only goods and services but also ideas. 12. Element of Promotion Mix: 16. Objectives of Advertising: ▫ Advertising is an important element of the promotional mix. Advertising is undertaken to achieve certain objectives such  To create awareness To develop positive attitude towards the brand/ firm. To enhance brand image. To develop brand loyalty. To improve corporate image To face competition, etc. Q.2) Briefly explain the FUNCTIONS OF ADVERTISING. Advertising is an important element of promotional mix. 1. Creates Awareness: ▫ Advertising creates awareness of products and services. ▫ Brand awareness is vital at the introduction stages. However, ads may be continued throughout the product's life cycle. ▫ It is vital to create Top Of Mind (TOM) awareness in the minds of targe customers. ▫ TOM awareness may facilitate the purchase decision, especially in the case of impulse products. ▫ Through various techniques such as: Repetition or hammering of ads. Use of celebrity as brand ambassador. Creative advertising like Amul Butter, Fevicol, Vodafone, etc. 2. Develops and Reinforces Attitudes: ▫ Advertising develops the positive attitude of the customers towards the product. ▫ When advertisers make honest claims in the ads, people Believe them and develop a favorable attitude towards the brand. ▫ Once, the attitude is developed; people may be induced to buy the brand depending on their requirement. ▫ The positive attitude needs to be reinforced.  ▫ Reinforcement strengthens consumer ▫ Nowadays, advertisers need to persuade behavior. customers to buy the products. ▫ Therefore, there must be continuous efforts This can be done in the following ways: by the advertiser to make honest claims and Testimonials and celebrity endorsements. to praise or appreciate the customers using Offering discounts and special offers. the brand. Product demonstration on the internet or TV ▫ Reinforcement may lead to brand loyaIty. ads, etc. 3. Develops Brand Image: 6. Supports Other Elements of Promotion- ▫ Advertising is a long-term investment in Mix: building brand image. ▫ Advertising supports and strengthens other ▫ Brand image is the perception of the brand in elements of promotion-mix. the minds of target customers and others. ▫ For E.g., advertising develops brand image ▫ Advertiser needs to develop intended brand and corporate image. image through effective advertising. ▫ Therefore, sales promotion offers would be considered as genuine and customers may There are several advertising related factors that buy the products. help to develop good brand image: ▫ Also, in the case of salesmanship, the salesperson can easily convince the The celebrity that endorses the brand. customer because of brand image developed The creativity of advertising content. through advertising. The media used to promote the brand, The media scheduling strategy adopted, etc. 4. Product Differentiation: 7. Social Welfare: ▫ Advertising facilitates product differentiation. ▫ Advertising promotes social welfare. ▫ The ads highlight the special features of the ▫ Social advertising by the Government product vis-å-vis competing brands. agencies and by business firms make people ▫ For instance, a particular brand of car aware of the issues. advertisement may convey fuel efficiency of ▫ People may get convinced and accept the the car by stating "30 kilometers to the liter'. ideas generated through social awareness ▫ Another ad may claim that the company campaigns such as: provides a 5-year warranty on its brand of  Child immunization campaigns. motor bike.  (Jago Grahak Jago Campaign) ▫ Such ads aim at communicating the superior  And-pollution campaign. image of the brand that can differentiate the  Anti-dowry campaigns. brand from its competitors.  Anti-corruption campaign.  Campaigns against child marriages. 5. Persuasion:  8. Stimulates Demand: ▪ toothpaste, 'its customers may switch over ▫ Advertising stimulates demand for generic to some other brand in the market that goods as well as for selective goods. undertakes advertising. ▫ Generic ads may help to increase the demand for generic (not branded) products such as milk, eggs, tea, and so on. 10. Enhances Corporate Image: ▫ For instance, the campaign to increase egg ▫ Advertising not only enhances brand image consumption was a big hit in India with Pie but also corporate image. tag line "Sunday Ho Ya Monday Roj Khao ▫ The advertisers through corporate image Ande" (institutional) advertising may highlight (Ad by National EU Co-ordination Committee). special features of the company, ▫ thereby building and maintaining a positive image of the organization. ▫ Also, effective brand advertising may have a ▫ Ads are mainly used by firms to stimulate positive impact on the image of the company. selective demand for their brands. ▫ With the help of creative ads, and repetition of the same, target audience may be induced to buy the products, which means ads 11. Competitive Advantage: stimulate selective demand for products. ▫ Advertising may enable a firm to gain a competitive advantage in the market. ▫ Creative ads and planned repetition of ads enable advertisers to effectively face 9. Acts as a Reminder: competition in the market. ▫ Ads act as a reminder to the customers to ▫ For instance, Colgate toothpaste brand buy the products. commands about 50% of the market share in ▫ Through repetition of ads, a business firm India despite competition from several other reminds its customers to continue buying its brands mainly on account of repetition of brands. creative ads. ▫ If the ads are not repeated, customers may forget the brand, and they may not repeat purchases of the same. ▫ For instance, nowadays, you may hardly come across the ads of 'Limca the lemon soft drink, which was once the leading soft drink (in 1980s) in India. ▪ However, Colgate-Palmolive constantly repeats its ads of toothpaste in various media, especially, television to remind the customers of the brand, and repeat the purchases of the same. ▪ If Colgate-Palmolive does not repeat its ads of  ▫ (i) existing or current consumers, who are reminded and influenced to continue their patronage and to increase the volume of their buying, ▫ (ii) consumers, who buy and use, a competitor's brand; hence they are Q.3) Who are the ACTIVE PARTICIPANTS IN persuaded to buy the advertised brand, ADVERTISING? instead of the competitor's brand; and ▫ (iii) those consumers who do not use any such product; and even then, are persuaded to buy the advertised product. Following are the group of people who are actively involved in Advertising. 1. Advertiser: ▫ Seller who manufactures and market, consumer ▫ products are the prominent group of advertisers. Hindustan Unilever, Procter & Gamble, Siemens, Larson and Toubro are examples of advertisers. ▫ The retailers are the second most prominent 3. Advertising Agencies: segment among advertisers. ▫ They stock the products and sell them to the ▫ An advertiser has two options viz. ultimate consumers. (i) to design, develop and produce an ▫ Government and social organizations are advertising message and get it placed in also active participants in this category. desired media directly through his own sales or advertising department, or (ii) to entrust the entire job of advertising to a team of highly professionalized, specialized, 2. Target Audience (Readers, Listeners, Viewers independent, advertising agency. and Present and Future Buyers): ▫ Advertising messages are given about products, services and ideas to readers, ▫ An advertising agency is composed of listeners, viewers and actual and potential creative people, who design, develop and buyers, who are known as the audience. produce advertising message with creative ▫ The target audience may be classified into ideas and place it in the desired advertising the following three categories, viz., media, for and on behalf of its client (the advertiser).  ▫ The advertising agencies usually charge a ▫ target audience through different mass commission of 15% on the media bills from media, such as, the media owners. (i) Print Media: They consist of newspapers, ▫ In addition, they charge out-of pocket magazines, journals, handbills, etc. expenses to their clients, i.e. the advertisers. (ii) Electronic Media: They consist of radio, ▫ They employ copywriters, artists, television motion pictures, video, multi- photographers. Typographers, layout media and the internet. designers, editors and other creative people. (iii) Outdoor Media: They consist of posters, hoarding, handbills, stickers, air balloons, neon sing billboards, local cinema houses, and transit media. (iv) Direct Mail: It consists of brouchers, leaflets, pamphlets, letters and return cards 4. Advertising Production Firms: addressed to consumers. ▫ Advertising production firms are the support ▫ The advertising agencies guide their clients agencies which help in the production of (advertisers) in selection of the most advertisements. appropriate advertising media, which is ▫ This includes copywriter, artist, known as “Media planning‟. photographers, ▫ Each medium has its own merits and ▫ typographers, producer, editors. demerits. ▫ These are the people who transform ideas into a finished forms Thus the success and failure ▫ of the advertisement depend on these people. 5. Mass Media/ Advertising Media: ▫ Advertising messages are communicated to the 6. Government Authorities: ▫ The business of advertising is regulated by the government department. ▫ The government adopts law and regulation which have a direct or an indirect bearing on the advertising. ▫ ASCI (Advertising standards council of India) ▫ ABC (Audit Bureau of circulation) are also some of authorities regulating advertising Q.4) Narrate the BENEFITS OF ADVERTISING ▫ Effective ad develops brand image of TO BUSINESS FIRMS. product/service in the mind of the target customers. ▫ Eg. Head and Shoulder — Get rid of dandruff. ▫ So when we think about dandruff, image of A) Significance to Business Firm: Head and Shoulder comes to mind. ▫ This is possible due to their effective ad campaigns. 1. Introduction of New Product: ▫ Through Ad, information about new products/services is given to the target audience. ▫ This generates demand for new 4. Builds Loyalty / Brand Loyalty: products/services. ▫ Brand loyalty refers to: ▫ Eg. Trivago, Urban Company etc. were ▫ Repeat purchase of product by existing introduced to target audience due to customers advertising campaign. ▫ Recommendation of product to others by existing customers. ▫ Advertising creates a brand image of a product in the mind of customers and 2. Modifies Attitude: customers buy the product again and again ▫ When a product is new, people may have a and recommend others to buy it. neutral attitude towards such new products. ▫ So effective ad campaign helps to develop They may be confused whether to buy such brand loyalty among the customers towards new product or not. the product/services. ▫ But effective ad campaign helps to convert this neutral attitude into positive one. ▫ Eg. New products / services such as Trivago, Urban Company are accepted by customers 5. Market Expansion: within short period of time due to their ▫ Effective ad campaign helps to increase effective ad campaigns. sales and profitability of company. ▫ Consumers may develop negative attitude ▫ It also attracts customers of different areas. towards a particular brand due to its negative ▫ So, the advertiser can expand their market publicity. from local level to regional level to national ▫ But through effective ad campaign the level to international level. advertiser may clear the doubts of the audience and their negative attitude can be converted into positive one. 6. Corporate Image: ▫ Effective ad campaign not only develops brand image in the mind of customers but 3. Builds Image / Brand Image: also builds image of the firm / company ▫ Brand image refers to creating image of the (corporate image) product/service in the mind of customers. ▫ in the mind of stakeholders (shareholders, customers, employees, intermediaries etc.). Corporate image can be built through institutional advertising wherein name of the firm/company is highlighted in the ad. ▫ Building corporate image is necessary to get support from stakeholders. ▫ Because when corporate image is built shareholders invest into company, customers buy the product; suppliers supply good quality material and give extended credit period; intermediaries are ready to stock products in their shop and company can attract competent manpower. ▫ E.g. Ad campaign of L&T, Godrej, HUL etc. emphasizes on developing corporate image of the firm. 7. Improvement in Quality: ▫ Effective ad campaign helps to increase sales of the company which leads to an increase in profitability of the firm. ▫ Some part of the profit is used for improvement in the quality of products like purchasing modern machinery, training employees, research and development activity etc. ▫ Due to which the firm/company can offer good quality products to the customers which results in customer satisfaction. 8. Facing Competition: ▫ Today, markets are flooded with products. There exists cut-throat competition in all product categories. ▫ Continuous ad is essential to retain the existing customers and attract new ones. ▫ So advertising is an effective tool to face the competition and survive in the market.  9. Increased sales: ▫ Ad plays an important role in influencing customers to buy the product. ▫ As a result, sales of the company increases. 10. Economies of Scale: ▫ Ad increases demand for the product. As a results production and distribution activities are undertaken on large scale. ▫ So the firm purchases raw material on large scale and they get discounts. ▫ They also save on transportation cost. ▫ So there is saving of cost due to large production and Transportation. Q.5) Narrate the BENEFITS OF ADVERTISING TO CUSTOMERS 1) Better Quality Products: ▫ Advertising intensifies competition. ▫ So to survive in cut-throat competition, 5) Information: producers make every possible effort to ▫ Advertising provides information to improve quality of consumers about ▫ products. ▫ price, availability, use, benefits and side ▫ This puts consumers in advantage of getting effects/limitations of product. good quality Products. ▫ There are websites where customers can compare the various products based on ▫ benefits, price, features etc. ▫ Accordingly customers can make their 2) Lowers Product Prices: informed purchase decision. ▫ The firm can get benefit of economies of scale wherein the firm is able to save its costs on production and transportation. ▫ The part of its saving can be passed on the 6) Education: consumers in the form of discounts and ▫ Advertising also educates to consumers reduction in price. about their rights, consumer courts, ▫ So, customers are not only getting better malpractices by marketers quality goods but also at lower price. (such as black marketing & adulteration) social issues, etc. ▫ This increases awareness of customersabout market practices and 3) Higher Standard of Living: protects them from exploitation. ▫ due to advertising the company can offer better quality goods at lower prices to its customers. ▫ Therefore, the customers enjoy a higher 7) Reminder: standard of living (because they are using ▫ The ads remind to consumers of their better quality goods). requirements, so they can plan their ▫ Because customers can buy quality goods purchases well in time. because it is available at a lower price. ▫ Eg. the arrival of a particular season such as Diwali is often shown in ads. ▫ This reminds the consumers to make purchase for the festival season. 4) Consumer Satisfaction: ▫ Likewise, ad of Boro plus is shown in ▫ Due to advertising, consumers get better winter season, which reminds customers to quality products at lower prices. buy Boro plus lotion to moisturize their skin ▫ This increases their satisfaction level and they are happy. ▫ Due to advertising, these days Customers are well informed about quality 8) Saves time in shopping: and price, so they expect only better-quality ▫ Advertising informs the place / store where goods and within their budget. the goods/services are available. ▫ Their customers need not to waste his time in searching for the store.  ▫ Eg. Ad of Movies in newspaper or questions to attract attention, often featuring Bookmyshow.com site provides information striking images to create curiosity. about names and location of theatres where ▪ For this, advertisers will use various devices movie is currently screened. like the use of attractive color, headlines ▫ Accordingly, customers can travel to that display and overall layout. theatre and watch 2. Interest: ▪ An advertisement is designed to create interest for the goods or services of the advertiser. ▪ Interest is closely related to attention. ▪ An advertiser must take note of these two aspects while developing an advertisement. ▪ A good advertisement starts with a point of interest to the reader and proceeds to a point of interest to the advertiser. ▪ Advertising aims at stimulating primary demands for a new product. ▪ It is used for existing products to bring a greater bit of the marketing share. Q.7) Write a note on AIDA ▪ It is also used to remind the consumers about their needs. ▪ A good advertisement should arouse interest AIDA is a functional formula devised by E.K. of the prospects in the advertised product. Strong. It is the acronym for Attention (A), Interest (I) Desire (D), and Action (A). Strong postulated that before becoming a user of a product, there must be an increased 3. Desire: interest in it Form this stage he develops a A good advertisement should be able to Desire for the product and this then results in. create desire in the minds of the readers about the product. ▪ It is not enough for a good advertisement to attract attention create interest but also 1. Attention: arouse desire in the heart of the prospect to ▪ The main function of an advertisement is to have the product. attract attention of the consumers. ▪ The advertiser should make use of proper ▪ If it fails to do so, it may be completely appeals and selling points while creating overlooked. desire for the product. ▪ Advertisers use techniques like bold colors, ▪ Making use of proper appeal will depend on unique designs, humor, and provocative the seasonal consumption of the product.  ▪ For example, the sale of rain-coats in monsoon will emphasize self-protection against rains. On this basis advertising may be classified into the ▪ It is through the sales appeal that the following four categories, viz., advertiser creates a desire for the product. (1) local, (2) regional, (3) national, 4. Action: (4) international advertising. This is an important stage where the advertiser can study the impact of his advertisement. ▪ If the advertisement has attracted attention, 1. Local Advertising: aroused interest, created desire, ▪ Then the advertisement should appeal the ▪ It is also known as “retail advertising‟. prospect to act i.e., to come forward for ▪ It is undertaken by local retail stores, making purchases. departmental stores, co-operative stores, ▪ The advertiser should tell the prospect about selling cloth, saris and other consumer the product, its main features, how they can goods and consumer durables. be consumed and where they are available. ▪ It is directed at local customers. ▪ For example, the prospect who wants to book ▪ Media, used for local advertising, are: new scooter should get such information in ▪ shop decorations, local newspapers, the advertisement as: place of display, place magazines, posters, pamphlets, hoarding, and date of booking. new signs, local cinema houses, etc. ▪ Every advertisement normally carries such basic information to guide the prospective buyers. 2. Regional Advertising: ▪ It is this stage which plays a decisive role in generating the sale of the advertiser's ▪ It has wider coverage, as compared to local product. advertising. ▪ It covers a particular region, which may be one state, or, more than one state, ▪ the people of which may be having a common tongue or using one common product. ▪ It is undertaken by the manufacturer, or regional distributor of a product. ▪ Media used for regional advertising include: ▪ regional newspapers, magazines, radio, regional T.V., outdoor media, etc. ▪ It is an ideal form of advertising for launching and marketing a new product in a specific region. Q.8) Classify advertising on the basis of area.  4. International Advertising: ▪ This type of advertising is undertaken by those companies, which operate in more than one country, known as “multi-national‟ companies. ▪ Exporters generally advertise their products and services in foreign countries, where ready markets are available. ▪ Air India and other airlines, and multinational companies advertise their products and services all over the world. ▪ Coca-Cola and Pepsi are advertised globally, as the sales are almost all over the world. ▪ International advertising is extremely expensive, involving the services of professional advertising agencies in different countries. 3. National Advertising: ▪ It is generally undertaken by manufactures of branded goods, for which advertising messages are communicated to consumers all over the country. ▪ Almost all possible mass media, including Q.9) Classify advertising on the basis of national newspapers, radio and television audience. networks, are employed for national advertising. ▪ Product services, and ideas, which are in demand all over the country, are suitable for On this basis, advertising may be classified into the national advertising. following four categories, viz., ▪ In India, Indian Airline, Hindustan UniLever Ltd., Vicco, Godrej, Bajaj and Kirloskar are a (1) consumer advertising, few leading advertisers at national level. (2) industrial advertising, ▪ Likewise, detergents, soaps, toothpastes, cosmetics, scooters, cars, and bicycles, are (3) trade advertising, some of the products, which are advertised all over the country. (4) professional advertising.  1. Consumer Advertising: ▪ This type of advertising is directed to the ultimate consumers of the consumer products, ▪ i.e., the individuals, who buy, or use the consumer products, or services, for example, toilet soap, toothpaste, toothbrush, tea, textiles, etc., for themselves and for their families. ▪ All types of consumers products need continuous and extensive advertising on T.V., radio, and press. 2. Industrial Advertising: ▪ This type of advertising is used by manufacturers and distributors of industrial goods. ▪ Such as, machinery, plants, equipment, spare parts and components, are directed at industrial users/ customers. ▪ Such advertisements usually appear in trade journals, trade dictionaries, business magazines and so on. ▪ The appeal made is tactual and rational. 3. Trade Advertising: ▪ This kind of advertising is employed by manufactures and/or distributors ▪ to influence and persuade wholesalers and dealers (retailers) ▪ to stock and sell the goods of the advertiser by offering incentive schemes to them, ▪ or, by inviting dealership for their particular product(s). 4. Professional Advertising: ▪ It is directed at professionals like doctors, professors, engineers and others,  ▪ who are expected to recommend, prescribe, (2) Electronic/ broadcast media advertising; or specify the advertised products to ultimate consumers. (3) Outdoor media advertising. ▪ This is done through professional journals (4) Other media and representatives of the advertisers. 1. Print Media Advertising: ▪ The print media consists of: newspapers, magazines, journals, handbills, etc. ▪ No newspaper or journal, today, can survive without advertising revenue. ▪ Print media advertising, even today, is the most popular form; ▪ Revenue derived by mass media from advertising has been progressively increasing year after year. ▪ Print media appeals only to the sense of sight, i.e. eyes. 2. Electronic or Broadcast Media Advertising: Electronic, or, broadcast media consists of (i) radio, (ii) television, (iii) motion pictures, (iv) video (v) the internet. ▪ The radio is audio in nature, appealing only to the sense of sound (ears). ▪ Radio advertising is more effective in rural areas, as compared to urban regions. ▪ Television, as an advertising medium, is more attractive and effective because it is an audio-visual medium appealing to both the Q.10) Classify advertising on the basis of senses of sight sound (eyes and ears). media. ▪ Different methods, such as, spot announcements, sponsored programmes, etc., are used for broadcasting advertising On the basis, advertising may be-classified into the messages. following four categories viz., ▪ However, broadcasting media are very expensive forms of advertising. (1) Print Media advertising; ▪ Advertising is also undertaken through movies, video, and the internet. 3) Outdoor Media: ▪ This includes posters, neon signs, transit, point of purchase (POP), etc. ▪ Outdoor advertising can be a good supporting media to other forms of advertising. ▪ It is a good form of reminder advertising, especially, the POP advertising. Q.11) Classify advertising on the basis of 4) Other Media: functions ▪ This includes direct mail, handbills, calendars, diaries, cinema advertising, internet and so on. ▪ These miscellaneous media can play an 1. Direct Action & Indirect Action important supporting role to the major media Advertising: such as ▪ television, and newspapers. (A)Direct action advertising is undertaken to obtain immediate response or action on the part of target audience. Examples include discount sales advertising, sale along with free gift offers, and mail-order coupon sales, etc. The media used is mostly newspapers, and television. (B)Indirect action advertising is undertaken to influence the audience in respect of advertiser‟s brand. The advertiser expects the target audience to prefer his brand as compared to competitors whenever buying decision arises in future. 2. Primary and Selective Advertising: (A) Primary Advertising It is undertaken by trade associations or by cooperative groups. It is undertaken to create generic awareness for products and services. 3. Product and Institutional Advertising : For example, the Coffee Board may advertise to Product or Service advertising is undertaken to consume more coffee. promote the sale of products and services (branded or unbranded). Institutional advertising is undertaken to build the (B) Selective Advertising name and goodwill of the organization. It is undertaken by marketers of branded products. It is also, know as corporate advertising or image The advertiser intends to create selective demand advertising. for his brand. It is mostly undertaken by large firms. Examples include Pepsi Cola, Coca Cola. Q.6) Discuss the RECENT TRENDS in advertising. As advertising adapts to newer technology, there are several trends that need to be observed in the industry:Convergence, Interactivity, Creativity, Engagement, Commoditization and Optimizers. 1. Convergence of Media: ▫ The advertising industry is experiencing convergence, particularly in digital media. ▫ This means using technology to deliver information across different platforms, allowing one media outlet to utilize features from others. ▫ For example, television and the internet are merging, enabling viewers to watch TV programs online as well as on TV. ▫ This convergence creates new marketing opportunities that traditional TV advertising cannot offer, ▫ such as showing different ads to households watching the same program online and on TV. ▫ Additionally, print news articles are now available online, giving audiences more options for how they receive news and entertainment  2. Interactivity: ▫ Media planners are asked to explore new media options for better consumer exposure. ▫ Interactivity allows audiences to ▫ Media expertise is increasingly vital for communicate with the media, marking a developing and assessing entertainment and significant shift from traditional one-way experience marketing opportunities. advertising. ▫ Previously, audiences could only view or listen, but now they can respond, ask questions, or place orders. 4. Trends towards Non-traditional Media: ▫ For instance, someone can reply to a digital ad by calling a toll-free number, ▫ Nowadays, firms are making use of non- enabling further communication with traditional media to support the traditional advertisers. media campaign for a brand. ▫ This direct interaction lets consumers ▫ In 2003 an interesting use of a new medium connect with marketers for purchases, employed by Reebok tailoring products to individual needs, Reebok hired 500 college students to ▫ This extends beyond the internet to wear temporary tattoos of the Reebok include phone calls, texts, and video logo and the slogan 'The pain train is games coming' on their foreheads. These students were strategically placed around the 26.2-mile course of the 3. Permission Marketing and Advertising: Boston marathon to take away attention from the official sponsor of the event – ▫ There is a growing trend towards Adidas ““Permission Marketing””. ▫ Marketers need to create innovative ads to support permission marketing. ▫ In permission marketing, the need for attention-grabbing ads is reduced. ▫ When consumers with predetermined product demand actively seek out 5. Audience Tracking: advertisers, the relationship changes from traditional mass advertising. ▫ Technology now enables audience tracking. ▫ Under permission marketing, marketers ask ▫ Downloading entertainment from the permission before proceeding in the sales internet, like games and videos, can include process. hidden spyware. ▫ For instance, they may ask to send email ▫ Spyware runs in the background and collects newsletters to potential customers. information about users, such as the ▫ This approach is mainly used by online websites they visit. marketers, especially email and search ▫ This data helps companies understand user marketers, as well as some direct marketers interests and deliver targeted ads. who respond to requests with catalogs. ▫ For example, if someone searches for airline ▫ Clients expect more creativity from media tickets or hotel bookings, spyware records planners. this information.  ▫ As a result, the user may see ads for airlines, ▫ Media planners must consider more than hotels, and memberships related to their just costs when creating their plans. previous searches in the following days. ▫ When working with specialized media like the internet, mobile, and gaming, planners need to consider how effectively they can deliver messages and the prestige of the 6. Engagement: medium, even if it has a lower audience reach. ▫ Advertisers and media planners are focusing ▫ more on engagement due to the impact of new media on television audiences. 8. Unbundling of Media Services: ▫ Engagement measures how effectively an advertising medium attracts its audience. ▫ The separation of creative and media ▫ For example, agencies is called "unbundling." Nestle's 2009 'Me aur meri Maggi' ▫ Over the last 20 years, media functions have campaign allowed consumers to share increasingly become independent their stories, with selected ones featured businesses. on Maggi packs, creating emotional ▫ Until the late 1990s, ad agencies typically connections. managed media buying through their media Similarly, HUL's “Khushiyon Ki Doli” departments. campaign reached 25 million villagers in ▫ In 1999, WPP Group created MindShare from 70,000 villages through local meetings its media departments and consolidated and TV ads, promoting hygiene benefits operations into Group M by 2003, making it a and enhancing daily life. leading media investment company. They also organized quizzes and offered Currently, major players like Omnicom's incentives to encourage product trials, OMD and Publicis's Vivaki are also improving availability at local retail unbundling media services. points. ▫ This trend allows independent media agencies to attract clients beyond their networks, often succeeding through positive word-of-mouth in the industry. 7. New Media Options: ▫ Today, there are many more media options for advertisers to use alongside their primary vehicles. ▫ New media like the internet, video catalogs, mobile, and interactive television have significantly changed the roles of advertising and media professionals. ▫ Media planners have developed new methods for viewing media functions and 9. Trends towards Global Joint Ventures: buying media.  ▫ In India, there is a growing trend of Indian ad agencies partnering with global agencies due to the globalization of business. ▫ Many top Indian agencies now have foreign partners, providing direct access to global markets. ▫ Since the liberalization of the Indian 11. Trends in Below the Line (BTL) Promotions: economy in 1991, numerous multinational ▫ BTL (Below-the-Line) promotions include companies like Coca-Cola and IBM have events, exhibitions, sponsorships, public entered India, relations, and sales promotions. ▫ prompting international ad agencies to ▫ Point of Purchase (POP) displays are a key establish a presence, either through part of sales promotions. subsidiaries or partnerships with local firms. Current trends in BTL promotions include For example, R K Swamy merged with creating 'experience zones' in India BBDO to become RK Swamy BBDO, and Dentsu acquired a majority stake in Product Sampling at specific to enhance Taproot India in 2012. customer engagement. ▫ Since most buying decisions occur within the last three feet of a store, there is an increasing focus on creatively designing POP displays to stand out among competing brands. 10. Trends in Internet Advertising: ▫ There is a growing trend toward internet advertising, which includes banner ads and online classifieds. ▫ Social networking sites like Facebook and Twitter are becoming increasingly important for advertising in India. ▫ More businesses are using this medium to promote their products effectively. ▫ Internet advertising is expected to grow at over 30% annually for the next 3-4 years, with its share of overall advertising also increasing. ---------------------------------------------