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ADVERTISING
MANAGEMENT

By Dr. Saraju Prasad

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Content

Unit No. Title Page No.

Introduction Advertising 01

Integrated Marketing Communication 13

Classification of Advertising 22
Advertising Media 37
Media Planning 62
Media Research 72
Emerging Media Options 82
Economic and Social Aspects of Advertising 91
Regulation and Control on Advertising 105
Advertising Agency 113

Planning an Advertising Campaign 129

Advertising Budget 145
Creativity in Advertising - I 156
Creativity in Advertising - II 173
Advertising Research 181
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1
INTRODUCTION ADVERTISING

Unit Structure
1.0 Objectives
1.1 Introduction
1.2 Definitions of Advertising
1.3 Features of Advertising
1.4 Objectives of Advertising
1.5 Importance of Advertising
1.6 Active Participant in advertising
1.7 Role of advertising Marketing Mix
1.8 Role of advertising in Society
1.9 Summery
1.10 Questions

1.0 OBJECTIVES

After completion of this lesson the student will be able to

understand:
 Meaning, Nature and Features of Advertising
 Objectives of Advertising
 Importance of Advertising
 Active Participant in Advertising
 Role of Advertising in Marketing Mix
 Role of Advertising in Society
 Advertising and Brand building
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1.1 INTRODUCTION:

The word advertising comes from the latin word "advertere

meaning” to turn the minds of towards". Some of the definitions given
by various authors are:
According to William J. Stanton, "Advertising consists of all the
activities involved in presenting to an audience a non-personal,
sponsor-identified, paid-for message about a product or
organization."
According to American Marketing Association "advertising is any
paid form of non-personal presentation and promotion of ideas,
goods and services by an identified sponsor".
Advertising is used for communicating business information to
the present and prospective customers. It usually provides
information about the advertising firm, its product qualities, place of
availability of its products, etc. Advertisement is indispensable for
both the sellers and the buyers. However, it is more important for the
sellers. In the modern age of large scale production, producers
cannot think of pushing sale of their products without advertising
them. Advertisement supplements personal selling to a great extent.
Advertising has acquired great importance in the modern world where
tough competition in the market and fast changes in technology, we
find fashion and taste in the customers.

1.2 DEFINITIONS OF ADVERTISING

1. American Marketing Association has defined advertising as

“any paid form of non-personal presentation of ideas, goods and
services by an identified sponsor”.
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2. According to Webstar, “Advertising is to give public notice or to

announce publicity”.
3. According to Gardner, “Advertising is the means of mass
selling that has grown up parallel with and has been made necessary
to mass production”.

1.3 FEATURES OF ADVERTISING

1. Communication: Advertising is means of mass

communication reaching the masses. It is a non-personal
communication because it is addressed to masses.
2. Information: Advertising informs the buyers about the benefits
they would get when they purchase a particular product. However,
the information given should be complete and true.
3. Persuasion: The advertiser expects to create a favourable
attitude which will lead to favourable actions. Any advertising process
attempts at converting the prospects into customers. It is thus an
indirect salesmanship and essentially a persuasion technique.
4. Profit Maximization: True advertising does not attempt at
maximizing profits by increasing the cost but by promoting the sales.
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.
5. Non-Personal Presentation: Salesmanship is personal
selling whereas advertising is non-personal in character. Advertising
is not meant for anyone individual but for all. There is absence of
personal appeal in advertising.
6. Identified Sponsor: A sponsor may be an individual or a firm
who pays for the advertisement. The name of reputed company may
increase sale or products. The product gets good market because of
its identity with the reputed corporate body.
7. Consumer Choice: Advertising facilitates consumer choice. It
enables consumers to purchase goods as per their budget
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requirement and choice. Right choice makes consumer happy and

satisfied.
8. Art, Science and Profession: Advertising is an art because it
represents a field of creativity. Advertising is a science because it has
a body of organized knowledge. Advertising is profession is now
treated as a profession with its professional bodies and code of
conduct for members.
9. Element of Marking Mix: Advertising is an important element
of promotion mix. Advertising has proved to be of great utility to sell
goods and services. Large manufactures spend crores of rupees on
advertising.
10. Element of Creativity: A good advertising campaign involves
lot of creativity and imagination. When the message of the advertiser
matches the expectations of consumers, such creativity makes way
for successful campaign.

1.4 OBJECTIVES OF ADVERTISING

The fundamental purpose of advertising is to sell something - a

product, a service or an idea. In addition to this general objective,
advertising is also used by the modern business enterprises for
certain specific objectives which are listed below:
1. To introduce a new product by creating interest for it among the
prospective customers.
2. To support personal selling programme. Advertising maybe used
to open customers' doors for salesman.
3. To reach people inaccessible to salesman.
4. To enter a new market or attract a new group of customers.
5. To light competition in the market and to increase the sales as
seen in the fierce competition between Coke and Pepsi.
6. To enhance the goodwill of the enterprise by promising better
quality products and services.
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7. To improve dealer relations. Advertising supports the dealers in

selling the product. Dealers are attracted towards a product which
is advertised effectively.
8. To warn the public against imitation of an enterprise's products.

1.5 IMPORTANCE OF ADVERTISING

Advertising has become an essential marketing activity in the

modern era of large scale production and serve competition in the
market. It performs the following functions:
1. Promotion of Sales: It promotes the sale of goods and
services by informing and persuading the people to buy them. A good
advertising campaign helps in winning new customers both in the
national as wet as in the international markets.
2. Introduction of New Product: It helps the introduction of new
products in the market. A business enterprise can introduce itself and
its product to the public through advertising. A new enterprise can't
make an impact on the prospective customers without the help of
advertising. Advertising enables quick publicity in the market.
3. Creation of Good Public Image: It builds up the reputation of
the advertiser. Advertising enables a business firm to communicate
its achievements in an effort to satisfy the customers' needs. This
increases the goodwill and reputation of the firm which is necessary
to fight against competition in the market.
4. Mass Production: Advertising facilitates large-scale
production. Advertising encourages production of goods in large-
scale because the business firm knows that it will be able to sell on
large-scale with the help of advertising. Mass production reduces the
cost of production per unit by the economical use of various factors of
production.
5. Research: Advertising stimulates research and development
activities. Advertising has become a competitive marketing activity.
Every firm tries to differentiate its product from the substitutes
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available in the market through advertising. This compels every

business firm to do more and more research to find new products
and their new uses. If a firm does not engage in research and
development activities, it will be out of the market in the near future.
6. Education of People: Advertising educates the people about
new products and their uses. Advertising message about the utility of
a product enables the people to widen their knowledge. It is
advertising which has helped people in adopting new ways of life and
giving-up old habits. It has contributed a lot towards the betterment of
the standard of living of the society.
7. Support to Press: Advertising provides an important source
of revenue to the publishers and magazines. It enables to increase
the circulation of their publication by selling them at lower rates.
People are also benefited because they get publications at cheaper
rates. Advertising is also a source of revenue for TV network. For
instance, Doordarshan and ZeeTV insert ads before, in between and
after various programmes and earn millions of rupees through ads.
Such income could be used for increasing the quality of programmes
and extending coverage.

1.6 ACTIVE PARTICIPANT IN ADVERTISING

Following are the group of people who are actively involved in

advertising.
1. Advertiser: Seller who manufacture and market consumer
products are the prominent group of advertisers. Hindustan Unilever,
proctor and gamble, Seimen and Larson and Toubro are the
examples of advertisers. Also the retailers are the second prominent
segment among advertisers. They stock the products. and sell them
to the ultimate consumers. Government and social organization are
also the active participant in this category.
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2. Target audience: It refers to the recipient of the advertising

message. Every message is either directed to a mass audience and
class audience. Advertising desire to cover this target audience for
promoting sales. Advertising message intends to cover the potential
user and non-user who may purchase the product in future. The
messages are also directed to the user of the competitor's product
so that they switch over the advertiser's products.
3. Advertising Agencies : An advertiser has two options viz. (i)
to design, develop and produce and advertising message and get it
placed in 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, independent, advertising
agency. An advertising agency is composed of creative people, who
conceive design, develop and produce, advertising message with
creative ideas and place it in the desired advertising media, for and
on behalf of its client (the advertiser). The advertising agencies
usually charge a commission of 15% on the media bills from the
media owners. In addition, they charge out of pocket expenses to
their clients, i.e. the advertisers. They employ copywriters, artists,
photographers. Typographers, layout designers, editors and such
other creative people.
4. Advertising Production People (Artists): The production of
impressive and persuasive advertisements is possible only with the
active help and creative spirit of the artists like copywriters, artists,
photographers, typographers, layout designers, editors and such
other creative people. Such people are usually employed by the ad
agencies or, their services may be hired by the ad agencies on job
basis.
5. Target Audience (Readers, Listeners, Viewers and Present
and Future Buyers): Advertising messages are given about
products services and ideas to readers, listeners, viewers and actual
and potential buyers, who are known as the audience. The target
audience may be classified into the following three categories, viz.,
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(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 persuaded to buy the advertised brand, 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.
6. Mass Media : Advertising messages are communicated to the
target audience through different mass media, such as,
(i) Print Media: They consist of newspapers, magazines,
journals, handbills, etc.
(ii) Electronic Media: They consist of radio, television motion
pictures, video, multi-media and the internet.
(iii) Outdoor Media: They consist off posters, hoarding, hand bills,
stickers air balloons, neon sing bill boards, local cinema houses, and
transit media.
(iv) Direct Mail: It consists of brochures, leaflets, pamphlets,
letters and return cards addressed to consumers.
The advertising agencies guide their clients (advertisers) in
selection of the most appropriate advertising media, which is known
as “media planning”. Each medium has its own merits and demerits.
7. 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. Apart from this ASCI (Advertising standards council of
India) and ABC (Audit Bureau of circulation) are also some of
authorities regulating advertising.
8. Advertising Production Firms: Advertising production firms
are the support agencies which help in the production of
advertisement. This includes copywriter, artist, photographers,
typographers, producer, and editors. These are the people who
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transform ideas into a finished forms Thus the success and failure of
the advertisement depend on these people.
Check your progress
1. “Advertising has become an essential marketing activity in the
modern era of globalization”. Explain.
2. Explain how the following groups of people are involved in
advertising.
a) Mass Media
b) Target Audience
c) Advertising Agencies
d) Government Authorities
3. “To sell something is not the only objective of Advertisement”.
Discuss.

1.7 ROLE OF ADVERTISING IN MARKETING MIX

Marketing mix consist of four important variables of marketing,

i.e. 4Ps-Product, Price, Promotion and Place. Apart from the
traditional 4 Ps, there are also other variables, i.e. Packaging,
Position, and Pace.
Advertising is an element of promotion. However, it not only
assists in promoting the product, but also affects the other variables
of marketing mix. This can be explained as follows:
1. 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. Thus, advertising plays the role of information and
education.
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2. 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 such a case, price
would be definitely high. But buyers may not be willing to pay a high
price would be definitely high. Here comes advertising. 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 products the job of advertising needs to stress the
price advantage by using hard hitting copy. It is not just enough to
convince, but it is desirable to persuade the buyer. Thus advertising
plays the role of conviction and persuasion.
3. 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 of market, advertising is of great
significance. Thus advertising do help in effective distribution and
market expansion.
4. Advertising and Promotion: Promotion consists of
advertising, publicity, personal selling and sales promotion technique.
Businessmen 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.
5. 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. As
and when new brands are launched, advertising plays an important
role of informing, educating and persuading the customers to buy the
product.
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6. Advertising and Packaging: The main purpose of packaging

is protection of the product during transit, and preservation of quality
and quantity. Nowadays, marketers take lot of efforts to develop and
design attractive packages as they carry advertising value. A
creatively design package attract the attention of the customers. It
also carries an assurance of quality and creates confidence in the
minds of customers to buy the product.
7. 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.

1.8 ROLE OF ADVERTISING IN SOCIETY:

Advertising is the integral part of every day's life. It is a pervasive

method of marketing in society. Though the methods by which
marketers advertise have changed over the decades, the role and
purpose of advertising has changed over the period of time. Without
advertising modern society cannot survive
.Advertising is useful to society in following ways.
Encourage Purchasing
Encouraging people to purchase goods and services is the main
role of advertising. Some industries rely on advertising more than
others: A cereal company, for instance, must advertise more
aggressively, due to the wide arrange of competing products, than a
power company that faces little to no competition. Advertisers often
influence members of society to purchase products based on instilling
a feeling of scarcity or lack. .
Reflect cultural trends
Advertising bridges the gap among people by communicating
varied culture through advertising message. It bring variation in the
social life
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Promotes Economic growth

Advertising contributes to bring about all round development of
the economy by increasing demand and by encouraging economic
activities it fuels the desire to shop and, in turn, shopping stimulates
the economy.
Improves standard of living:
Advertising is an economic activity. It provides opportunities to
people to improve their income. It motivates people to consume more
material and thereby improves their standard of living.
Provides employment:
Effective advertising generates demand for goods and services. High
demand calls for more production which requires more of physical
and human resources thus creating employment opportunities.
Advertising and Brand building
Brands are the identification that differentiates one business from
another (through name, symbol etc.). However, today brands can
also be defined as the personality they reflect to people in relation to
status, emotional characteristics and subjective quality. They give the
consumers a perceived knowledge of the product, its quality and
uniqueness before they buy it.
Brands ensure delivery of service as promised by them. For
example, Pizza Company A claims to deliver pizza within a certain
time and Pizza company B claims to deliver most delicious Pizzas. It
makes easy for the consumers to identify what they want and which
brand to choose for it. It is important for a brand to accomplish the
claim advertised to retain Brand Image.
Advertising is one of the key elements in building a brand, which
is equally important to the marketer and consumers. Brand
personality acts as a potent brand differentiator and offers
sustainable competitive advantage.
Advertising by creating or reinforcing brand's personality
enhances brand value or equity which in turn can be leveraged
through brand extension. Brand personality also helps brands to gain
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market share, command price premium and insulates from

discounting Brands.
Building a strong brand name is key factor for business success.
In the competitive business environment of today, consumer
sophistication has altered business practices. Organizations are
forced to anticipate customers' needs and convey clear messages to
consumers by establishing strong brand names and focusing on
brand building.
A brand's practical attributes and symbolic values are inherent
elements that help the brand appeal on consumers' minds and
emotion. When consumers relate brands with symbols, it becomes
easier for an organization to raise consumer interest. For instance,
Lexus is known for luxury, or Apple is known for innovation.
Therefore, in consumers' minds, a brand is more than just a
recognizable name: it is a promise that needs to be met on a regular
basis.
Advertising is important for building brand awareness. By raising
consumer interest and making consumers awareness of their
products and services, firms not only expand their customer base, but
they also keep their loyal customers and increase their market share.
In other words, the more aware consumers are of a brand, the more
likely they are to buy from a particular business.
Approaches in Brand building:
To make brand distinctive: brand building can be done through
repetitive advertising. Also by highlighting unique selling proposition
one can distinguish brand from one another.
1. Constant innovation: Consumers need continuous innovation
and new products. It is not always a new product even an
improvement on the existing product is acceptable to the consumers.
Through intensive advertising such brands are build which is time
consuming.
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2. Domination of brand: brand building largely depends on the

domination is creates on the competitors. Domination can take place
either in national market or in niche market.
3. Prompt availability: Prompt delivery of the product is one of
the factors that ensure brand building. This is possible if there is
proper coordination between the finance, production, and marketing
department.
4. Integration of new and old media: Consumers have ever
changing demand. Due to availability of various media option the
seller can push the product in the market by blend multiple media
option .Thus advertising message are flashed to consumers through
media mix.

1.9 SUMMARY

Advertising consists of all the activities involved in presenting to

an audience a non-personal, sponsor-identified, paid-for message
about a product or organization.
Advertising has become essential to promote sales, to introduce
new product, to create good public, for large scale of production, for
educating people etc.
Advertising is the integral part of every day's life. Without
advertising modern society cannot survive .Advertising is useful to
society as it encouraging people to purchase goods and services, it
bridges the gap among people by communicating varied culture
through advertising message, it contributes to bring about all round
development of the economy by increasing demand, it provides
opportunities to people to improve their income.

1.10 QUESTIONS:
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1. Define Advertising and explain its nature and features.

2. Define Advertising and explain the main objectives of Advertising
3. What is advertising? Explain the importance of Advertising
4. Who are the Active Participants in Advertising?
5. What is the Role of Advertising in Marketing Mix?
6. Explain the Role of Advertising in the Society
7. What is the interface between Advertising and Brand building?
Explain the main approaches in Brand building.


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2
INTEGRATED MARKETING
COMMUNICATION

Unit Structure:

2.0 Objectives
2.1 Introduction
2.2 Meaning of IMC
2.3 Tools of IMC
2.4 Importance of IMC
2.5 Framing Integrated marketing
2.6 Summary
2.7 Questions

2.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to understand:

The concept of Integrated Marketing Communication
Tools of Integrated Marketing Communication
Importance of Integrated Marketing Communication
Steps involved in framing Integrated Marketing Communication

2.1 INTRODUCTION

Advertising is as old as civilization and has been used as the

means of communication to buy and sell the goods and services to
the society. Advertising is an important tool of promotion that can
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create wonders with beautiful words to sell product, service and also
ideas. Advertising has, acquired great importance in the modern India
characterized by tough competition in the market and fast changes in
technology, and fashion and taste of customers.
Today as per the changing marketing situation advertising is not
the only sufficient medium of communication. It has to be integrated
with other mediums so as to create the long lasting impact on the
consumers. Thus the concept of integrated marketing communication
is gaining considerable momentum due to challenges faced by the
advertisers in designing and implementing their advertising
communication messages.

2.2 MEANING OF IMC

Integrated Marketing Communications is a simple concept. It

ensures that all forms of communications and messages are carefully
linked together. Integrated marketing communications (IMC) is a
process of managing customer relationships that drive brand value
primarily through communication efforts. Such efforts often include
cross-functional processes that create and nourish profitable
relationships with customers and other stakeholders by strategically
controlling or influencing all messages sent to these groups and
encouraging data-driven, purposeful dialog with them. IMC includes
the coordination and integration of all marketing communication tools,
avenues, and sources within a company into a seamless program in
order to maximize the impact on end users at a minimal cost.

Ideally, IMC is implemented by developing comprehensive

databases on customers and prospects, segmenting these current
and potential customers into groups with certain common awareness
levels, predispositions, and behaviors, and developing messages and
media strategies that guide the communication tactics to meet
marketing objectives. In doing this, IMC builds and reinforces
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mutually profitable relationships with customers and other important

stakeholders and generates synergy by coordinating all elements in
the promotional mix into a program that possesses clarity,
consistency, and maximum impact.
Definition of IMC: According to American Association of
Advertising Agencies IMC is a “concept of marketing communication
planning that recognizes the added value of a comprehensive plan
that evaluates the strategic roles of a variety of communication
discipline”

2.3 TOOLS OF IMC

Advertising
Sponsor-
ship Publicity

Trade Fair
Public
&
Relation
Exhibition
IMC

Sales
Internet
Promotion

Personal
Packaging
Selling

Advertising:
Advertisement is a non-personal presentation of an idea or a
product (where as personal selling or salesmanship help in personal
promotional.) Advertisement supplements personal selling to a great
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extent. Advertising has, acquired great importance in the modern

India characterized by tough competition in the market and fast
changes in technology, and fashion and taste customers. It creates
an active role in integrated marketing communication mix as it
creates.
• Good image
• Top of the mind awareness
• Counterclaim the competitors
• Reinforce positive attitude

Publicity:
Publicity is the non-personal presentation. It originates from the
desk of the editor. It aims at only informing the public about the
events, person, firm etc. There is no control on the publicity by the
advertiser as it comes from the media owner. Publicity can be
favorable or unfavorable. Large firms have separate publicity or
public relation department for publicity and cordial public relation. The
secret of the publicity is to get placement in the desired media. Thus
the use of publicity provides various advantages to the seller they
are:
• It is available free of cost
• It provides more information than advertising as it comes from
the editors desk
• Consumer believe publicity more than advertising

Public relation:
A Public relations is defined as a management function which
identifies, establishes, and maintains mutually beneficial relationships
between an organization and the publics. Public relations consider
multiple audiences (consumers, employees, suppliers, vendors, etc.)
and uses two-way communication to monitor feedback and adjust
both its message and the organization's actions for maximum benefit.
It is used to generate goodwill for the organization. Public relation
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helps the company and its public by relating each other for mutual
benefits. The main objective of public relation is:
• To remove misunderstanding, doubts, confusion, and wrong
impression in the minds of different social groups
• To maintain good corporate image.
• To have the public support to the future of the company.
• To fulfill social responsibility.

Sales promotion:
Sales promotions are direct inducements that offer extra
incentives to enhance or accelerate the product's movement from
producer to consumer. Sales promotion constitutes devices like
contests, coupons, free samples, premium, and point of purchase
material. Sales promotion is action oriented. It motivates customers
to buy the goods under incentive plans. Sales promotion not only
covers consumers but also dealers and wholesalers. It acts as a
connecting link between advertising and salesmanship. Thus in a
competitive marketing sales promotion act as a effective tool to an
advertiser to solve several short term hurdles in marketing.

Personal Selling:
Personal selling includes all person-to-person contact with
customers with the purpose of introducing the product to the
customer, convincing him or her of the product's value, and closing
the sale. The role of personal selling varies from organization to
organization, depending on the nature and size of the company, the
industry, and the products or services it is marketing. Many marketing
executives realize that both sales and non-sales employees act as
salespeople for their organization in one way or another.
Personal selling is the most effective way to make a sale
because of the interpersonal communication between the
salesperson and the prospect. Messages can be tailored to particular
situations, immediate feedback can be processed, and message
strategies can be changed to accommodate the feedback.
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Packaging:
A properly designed package can induce the prospects to buy
the product. A well designed package can communicate the type and
quality of the product. Packaging plays an important role in
converting the minds of the consumers as it provides
• Providing information of the product.
• Protection of goods while transportation and handling
• Preservation of quality of the products.
• Promotion of the product.

Internet:
Just as direct marketing has become a prominent player in the
promotional mix, so too has the Internet. Virtually unheard of in the
1980s, the 1990s saw this new medium explode onto the scene,
being adopted by families, businesses and other organizations more
quickly than any other medium in history. Web sites provide a new
way of transmitting information, entertainment, and advertising, and
have generated a new dimension in marketing: electronic commerce.
E-commerce is the term used to describe the act of selling goods and
services over the Internet. In other words, the Internet has become
more that a communication channel; it is a marketing channel itself
with companies such as Amazon.com, CD Now, eBay, and others
selling goods via the Internet to individuals around the globe.
The interactivity of the Internet is perhaps its greatest asset. By
communicating with customers, prospects, and others one-on-one,
firms can build databases that help them meet specific needs of
individuals, thus building a loyal customer base.

Sponsorships:
Many advertisers heavily rely on sponsorship in order to create
positive feelings toward a company. Sponsorships increase
awareness of a company or product, build loyalty with a specific
target audience, help differentiate a product from its competitors,
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provide merchandising opportunities, demonstrate commitment to a

community or ethnic group, or impact the bottom line.
Like advertising, sponsorships are initiated to build long-term
associations. Organizations sometimes compare sponsorships with
advertising by using gross impressions or cost-per-thousand
measurements. However, the value of sponsorships can be very
difficult to measure. Companies considering sponsorships should
consider the short-term public relations value of sponsorships and the
long-term goals of the organization. Sports sponsorships make up
about two-thirds of all sponsorships.

Trade shows and Exhibition:

It is one of the oldest forms of promoting the sales of products.
Trade shows and exhibition provide opportunities for face-to-face
contact with prospects, enable new companies to create a viable
customer base in a short period of time, and allow small and midsize
companies that may not be visited on a regular basis by salespeople
to become familiar with suppliers and vendors. Because many trade
shows generate media attention, they have also become popular
venues for introducing new products and providing a stage for
executives to gain visibility. In India, India trade promotion
organization (ITPO) has been set up by the government to organized
trade fairs and exhibitions.
Check your progress:
1) Give the chare of tools of IMC.
2) Explain the following terms related to tools of IMC a) Publicity
b) Sales promotion
c) Personal selling
d) Sponsorship
e) Internet

2.4 IMPORTANCE OF IMC

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1) Awareness: IMC tools play an important role in creating

awareness of the products with respect to brand name and brand
availability. It brings to the notice of the potential customer the new
varieties of goods available in the market.
2) Information: Product information is needed when the product
is recently launched in the market. Potential customer must know
about the product, features. IMC provides this information through
various techniques so that the buyer can take correct decision while
buying the goods.
3) To increase sales. A proper communication mix tends to
increase the sales of the organization. This is possible as increased
sales bring economies of large scale production which enables the
seller to reduce cost and increase profit.
4) To inform the intermediaries. IMC act as a communication
channel between the sellers and the intermediaries like dealer and
agents. These intermediaries are regularly informed through sales
literature, pamphlets, brochures, price list etc.
5) Expansion of the market: IMC help the seller to expand the
business from local level to regional level and to national level. This
expansion provides his goodwill, recognition throughout the country.
6) More specialized media. It used to be said that mass media
was enough to cover any advertiser's needs. But with ever
increasing ad clutter, shorter attention spans and greater resistance
to advertising, customers now tend to be a lot more selective: they
shut out the stuff they feel they don't need, and go with the stuff that
they want. Therefore with IMC sellers can retain the attention of
customer by diverting their attention through various communication
mix.

2.5 STEPS INVOLVED IN FRAMING INTEGRATED

MARKETING COMMUNICATION:
 26

It is likely that integrated marketing communication will be

expected to make a number of contributions toward meeting the
marketing objectives. Thus the main steps in designing IMC are:
1) Identification of target audience: Defining the target
audience is one of the first steps in designing the IMC. While thinking
about the target audience one must look well beyond traditional
demographic considerations. It is also important to 'think ahead 'and
ask the following question.
• What are the relevant target buyer groups?
• What are the target group's demographic, lifestyle, and
psychographic profile?
• How is the trade involved?
2) Determining the communication objectives: The next step
is setting the communication objectives. There may be different
communication objectives like increase in sales, brand image and
good will, expansion of business. Thus the seller has to evaluate all
this objectives and select the one which he intends to achieve.
3) Determining the message: An effective message should get
attention, hold interest, arouse desire, & obtain action (AIDA model).
In practice, few messages take the consumer all the way from
awareness to purchase, but the AIDA framework suggests the
desirable qualities of a good message. In putting the message
together, the marketing communicator must decide what to say &
how to say it. , who should say it. Thus the communicator should
focus more on message content, message format and message
structure.
4) Selecting the communication channel: There are two broad
types of communication channels - Personal and Non personal.
a. Personal Communication Channels: In personal
Communication channels, two or more people communicate directly
with each other. They might communicate face-to-face, over the
telephone, through the mail or even through an internet chat.
 27

Personal Communication channels are effective because they are

allowed for personal addressing the feedback.
b. Non Personal Communication Channels: Non personal
communication channels include media at most yearend events.
Media consists of:
1. Print media -newspapers, magazines, direct mail etc.
2. Broadcast media-radio, television etc.
3. Electronic media-audiotapes, videotapes, CD-ROM, web page
etc.
4. Display media-billboards, signs, posters, banners, hoardings
etc.
Most of the non-personal messages come through paid media.
5) Determining the budget: This is one of the most important
decisions of IMC process. The effective IMC depends upon the
budget set for communication Mix. The marketer prepares the budget
taking into nature of the customers, objectives, nature of competitions
and also availability of funds.
6) Promotion Mix decision. After determining budget it is
essential to determine the promotional mix. Promotional mix is the
combination of various tools like advertising, public relation,
personnel selling and so on. Because of different marketing
environment you have to be variation in communication mix. One
medium which is effective in one market may not be equally effective
in another market.
7) Implementation of promotion mix: The marketer then makes
an arrangement to implement the communication mix. The seller has
to select the right media in order to put across the promotion
message.
8) Follow up. Here the advertiser has to review the performance
in terms of sales and purchase. If the performance is as per
communication objectives there is nothing to worry. On the other
hand if the performance falls below the communication objectives
then certain corrective step have to be taken.
 28

2.6 SUMMARY

Integrated marketing communications (IMC) is a process of

managing customer relationships that drive brand value primarily
through communication efforts.
Advertising, Publicity, Public Relation, Sales Promotion,
Personal Selling, Packaging, Internet, Trade fairs and Exhibition,
Sponsorship these are the main tools of IMS
IMC helps to create awareness of the products, provide the
information of the new products, act as a communication channel
between the seller and the intermediaries and expand the business.
Identification of target audience, Determining the communication
objectives, Determining the message , Selecting the communication
channel, Determining the budget, Promotion Mix decision,
Implementation of promotion mix and then Follow up these are the
main steps in designing IMC.

2.7 QUESTIONS

1. Define Integrated Marketing Communication (IMC)

2. What are the main tools of Integrated Marketing Communication
3. What is the importance of Integrated Marketing Communication
4. What are the steps involved in framing Integrated Marketing
Communication
5. Write short note on Advertising
6. What is the importance of Advertising? Explain the objectives of
Advertising.


 29

3
CLASSIFICATION OF ADVERTISING

Unit Structure:

3.0 Objectives of the lesson

3.1 Introduction
3.2 Classification of Advertising
3.3 Types of Advertising
3.4 Difference between National Advertising and Retail
Advertising
3.5 Summary
3.6 Questions

3.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand:
Broad classification of advertising
Various categories of advertising: Social Advertising, Political
Advertising, Advocacy Advertising, Retail Advertising
Financial Advertising, Essentials for the success of financial
advertising, Advantages of Financial advertising
Corporate Image Advertising, Public Relations Advertising,
Institutional Advertising
Internet Advertising, Types, Advantage and disadvantages of
Internet Advertising
Product Advertising, Service Advertising, National Advertising,
Retail Advertising
 30

3.1 INTRODUCTION

Different authors have classified advertising in different ways.

Philip Kotler has classified advertising on the following basis:

(a) Geographical Area: National, Regional or Local.

(b) Content: Product Advertising, Brand Advertising, Institutional
Advertising.
(c) Type of Appeal: Factual and Emotional.
(d) Audience: Consumer, Industrial, Trade.
(e) Sponsor: Manufacturer, Middlemen, Manufacturer -
middlemen, private.
(f) Intended Effort: Direct Action and Delayed Action.
(g) Level of Demand Influence: Primary Product Level,
Selective Brand Level.

3.2 CLASSIFICATION OF ADVERTISING

Management scientists have classified advertising on different

such criteria as follows:

Chart:
Classification of Advertising on the various basis

Area Audience Media Function Stage

Coverage
1) Local 1) Consumer 1) Print Media 1) Direct Action and 1) Pioneering
Indirect Action. stage
2) Regional 2) Industrial 2) Electronic 2) Primary & 2) Competitive
Selective Stage
3) National 3) Trade 3) Outdoor 3) Product &
Institutional
 31

4) 4) 4) Other
International Professional
Stages

Area Coverage Audience Media Functions Ad. Stages

- Local- Consumer- Press- Direct & Indirect - Pioneering
- Regional - Industrial - Broadcasting -Action- Competitive
- National - Trade - Outdoor -Primary & Selective
- Retentive
- International - Professional - Others - Product & PRA
I) Classification on The Basis of Area Coverage:
On this basis advertising may be classified into the following four
categories, viz., (1) local, (2) regional, (3) national, (4)
international advertising.
1. Local Advertising: It is also known as „retail advertising‟. It is
undertaken by local retail stores, departmental stores, co-operative
stores, selling cloth, saris and other consumer goods and consumer
durables. It is directed at local customers. Media, used for local
advertising, are shop decorations, local newspapers, magazines,
posters, pamphlets, hoarding, new signs, local cinema houses, etc.
2. Regional Advertising: It has wider coverage, as compared to
local 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
manufacture, or, regional distributor of a product. Media, used for
regional advertising, include regional newspapers, magazines, radio,
regional T.V., outdoor media, etc. It is considered to be an ideal form
of advertising for launching and marketing a new product in a specific
region.
3. National Advertising: It is generally undertaken by
manufactures of branded goods, for which, advertising messages is
communicated to consumers all over the country. Almost all possible
mass media, including national newspapers, radio and television
 32

network, are employed for national advertising. Product services, and

ideas, which have demand all over the country, are suitable for
national advertising. In India, Indian Airline Hindustan Lever Ltd.,
Vicco, Godrej, Bajaj and Kirloskar are a few leading advertisers at
national level. Likewise, detergents, soaps, toothpastes, cosmetics,
scooters, cars, and bicycles, are some of the products, which are
advertised all over the country.
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 allover
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.
II. Classification on The Basis of Audience
On this basis, advertising may be classified into the following four
categories, viz., (1) consumer advertising, (2) industrial advertising,
(3) trade advertising, and (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,
say, for example, toilet soap, toothpaste, toothbrush, tea, textiles,
etc., for themselves and for their families. All types of consumer
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, and are
directed at industrial users or customers. Such advertisements
 33

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 products(s).
4. Professional Advertising: It is directed at professional like
doctors, professors, engineers and others, who are expected to
recommend, prescribe, or, specify the advertised products to ultimate
consumers. This is done through professional journals and
representative of the advertisers.
III. Classification on The Basis of Media
On the basis, advertising may be-classified into the following four
categories viz., (1) Print media advertising; (2) electronic, or,
broadcast media advertising; (3) outdoor media advertising.
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; and revenue
derived by mass media from advertising has, therefore, 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, and (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 senses of
sight sound (eyes and ears). Different methods, such as, spot
announcements, sponsored programmes, etc., are used for
broadcasting advertising messages. However, broadcasting media
 34

are very expensive form of 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.
4) Other Media :
This includes direct mail, handbills, calendars, diaries, cinema
advertising, internet and so on. These miscellaneous media can play
an important supporting role to the major media such as television,
and newspapers.
IV. Classification on The Basis of Function:
1. Direct Action and Indirect Action Advertising: 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.
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 a
buying decision arises in future.
2. Primary and Selective Advertising: Primary Advertising is
undertaken by trade association or by cooperative groups. It is
undertaken to create generic den1 and for products and services. For
example, the Coffee Board may advertise to consume more coffee.
Selective Advertising is undertaken by marketers of branded
products. The advertiser intends to create selective demand for his
brand. Examples include Pepsi Cola, Coca Cola.
3. Product and Institutional Advertising: Product or Service
advertising is undertaken to promote the sale of products and
services-branded or unbranded. Institutional advertising is
undertaken to build name and goodwill of the organization. It is also
 35

known as corporate advertising or image advertising. It is mostly

undertaken by large firms.
V. Classification on The Basis of Advertising Stages
On this basis, advertising may be classified into the following
three different categories, viz., (1) advertising at pioneering stage, (2)
advertising at competitive stage, and (3) advertising at retentive
stage.
1. Advertising at Pioneering Stage: Advertising at „pioneering
stage‟ is undertaken to make the audience fully aware of the new
brand of product and to inform, influence, and persuade them to buy,
or, use it by highlighting its unique features.
2. Advertising at Competitive Stages: Once the brand survives
the introductory stage, it has, soon to face a stiff competition with
other well established brands in the market. At this stage, competitive
advertising is undertaken to promote sales effectively.
3. Advertising at Retentive Stage or Reminder Advertising:
When the product has captured a large share of the market,
„retentive advertising‟ is undertaken to maintain, or retain the stable
position in the market as long as possible. Moreover, if the same
product is passing through the declining stage in the market, this type
of advertising is used to remind the buyers about the product hence,
it is also known as “reminder advertising‟.
Check your progress:
1) Draw the chart showing classification of Advertisement.
2) Explain the following terms.
a) Local Advertising
b) Professional Advertising
c) Primary & Selective Advertising
d) Advertising at pioneering stage
e) Print Media Advertising
3) Show the classification of advertising as per Philip Kotler.
 36

3.3 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
noncommercial organisations such as Trust, Societies, and
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 are
intensively made during election times to gain favour of the voters.
Such advertising promote plans and policies of the concerned
party. It also try to expose weaknesses of the opposition with a
view to convince the voters to vote for their party candidates.
Some political advertisements are also made to assist the
Government to implement its schemes for rehabilitation and
national reconstruction. Mumbai Regional Congress Committee
children affected by communal riots in Mumbai under the scheme
of National Foundation for Communal Harmony. Advertisements
issued by a political party are essentially a political advertising.
3. Advocacy Advertising: We often come across advocacy
advertised relating to the use of family planning methods.
Conservation of scarce resources, maintaining green environment.
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 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
 37

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 advertisements.
Companies can place advocacy advertising 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.
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5. 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 identity 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.
6. 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.
 38

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 companies have succeeded in
floating of mega issue of shares arc in cores.
The financial advertising aims at establishing financial solvency
of the company in the minds of the prospective investors. It is
because of financial exports.

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.
 39

Advantages of Financial Advertising:

Following are main advantages of financial advertising:
(a) Financial advertising transmits to target consumers all the
material information about new investment opportunities for
investment of savings, or, surplus funds.
(b) It provides education and guidance to consumers in respect of
their investments in shares, debentures, and public funds, off
companies.
(c) It serves as a reminder to consumers to take suitable follow up
action on their part.
(d) It helps to tap yet untapped rich areas in mini-metros, small
towns, and even in villages for financial institutions.
(e) 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.
(f) Financial advertising serves as a: backbone to brokers as well
as underwriters, who as „intermediaries‟ between the advertiser and
the clients.
(g) Finally, financial advertising indirectly aids and supports the
economic an industrial growth of country by mobilizing public funds
for expansion and diversification of business.
7. Corporate Image Advertising: Corporate Image advertising
designed or aimed to create a proper attitude towards the seller 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
 40

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.
8. Public Relations Advertising: It is a part of institutional
advertising. The basic objective of public relations advertising is to
establish co-ordial 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
remove misconcepts about the company created by interested
groups.
During the periods of short supply of goods the public relations
advertising helps to hold the interest of the customers. The
companies assure 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.
(b) To secure and keep good suppliers.
(c) To build goodwill of the dealers.
(d) To arouse and serve customers in a better way.
(e) To arouse interest of the present and potential shareholders.
(f) To correct misconceptions about the firm during strikes.
(g) To win confidence of its employees.
(h) To render community service.
(i) To make people aware of social evils, health hazards, etc.
 41

(j) To obtain public support for certain cause.

9. 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 advertisements do not bring benefits in the form of higher
sales immediately. But they create good footing for the company in
the long run. The competitive strength of the company goes up with
the enhancement of corporate image. It is much easier for a highly
reputed company to launch a new product in the market. Basically
the institutional advertising aims at getting public support for raising
the capital through public subscription.
The following points are normally referred in institutional ads:
(a) Research & Development of the firm.
(b) Number of factories or branches of the firm.
(c) The number of employees and facilities provided to them.
(d) Foreign collaborations, if any.
(e) Distribution network of the firm.
(f) Market position of the firm.
(g) Products or services offered by the firm.
(h) Social welfare programmes undertaken by the firm, etc.
10. Internet Advertising: The Internet facility has been around for
some 30 years. It actually began in the early 19608 in USA, where
the U. S. Department of Defense saw it as a means of
supercomputer communication for researchers and military facilities
across the country. Until its commercial explosion in 1990s, the
Internet remained a relatively obscure network of linked computers -
mostly by academics, military researchers, and scientists around the
 42

world to send and receive electronic mail, transfer files, and find or
retrieve information from databases –
At present, Internet the fastest growing medium in history, offers
incredible opportunities for a wide range of people in both business
and advertising. For advertisers, there is a whole new world of
potential customers.
11. Primary Demand Advertising: The main objective of Primary
demand advertising is to create demand for a new product or product
category. This is necessary in the case of newly developed products
or the products which are costly in nature. For example, cars,
refrigerators, washing machines, watch, etc. Such advertising is
directed towards a class of customers, it is also described as
selective demand advertising. It is heavily utilized during the
introduction stage of product life cycle.
Primary demand is when a potential buyer, or prospect, is
showing interest in a product or service for the first time. Often times
it is because the prospect was never exposed to the “concept” of the
product or service or never really understood it. But now due to new
circumstances she has an apparent need all of a sudden.
12. Selective Demand Advertising: Selective demand
advertising is done to meet the growing competition mainly in growth
stage of the life cycle of the product. Here, the goal of advertising is
to push the demand of specific product or service. Often, promotion
becomes less informative and more emotional during this phase.
Advertising may begin to stress subtle differences in brands with
emphasis on brand name recall. At this stage, pricing may also be
used as a weapon because products of all the competitors are almost
similar in quality.
Selective demand is when a prospect has a need, has identified
the need, and is ACTIVELY seeking out a solution. In these cases
the prospect will come to you if he feels comfortable in your
company's ability to solve his needs.
 43

When someone has selective demand they are more proactive in

their search for information. They usually give themselves enough
time to compare the quality, value, and offers of different companies.
So while they are calling you they are also likely calling others as
well.
13. Product Advertising: Product Advertising refers to the
advertising of tangible product. It is for the marketing of the product
advertising as a powerful instrument has emerged. A product may be
anything in which a trader deals or trade. A product may be tangible
of intangible. Products like radio, soap, pen cloth etc. are tangible
products and services of professional people like doctors, lawyers,
engineers etc. are intangible products.
The fundamental of any advertising campaign is to establish the
fact that among the substitutes the product advertised is the best.
Thus product is the heart of any advertising programme. Advertising
makes possible for the smooth entry of the new product in to the
market.
14. Service Advertising: Service advertising is designed to
operate in the public interest. It is undertaken to seek public welfare
and social development. It is in the nature of non-commercial
institutional advertising. In this type of advertising, the objective is to
put across a message intended to change attitudes or behaviour and,
as a result, benefit the public at large. It is generally used by
government and other organizations to promote public welfare.
We often come across advertisements focusing on the need of
small family norms, functional literacy and environmental sanitation
and so on. The Government of India and many industrial houses
have been sponsoring adverting campaigns pertaining to family
planning programmes, national integration, employment assistance
schemes, cleanliness campaigns, need for vaccinations, anti-dowry
cause, drug addiction, AIDS, wildlife preservation, road safety
measures, adult literacy programmes, etc. Today, most of the
manufactures and businessmen have also started issuing
 44

advertisements in the interest of the public. Advertisements released

by the Indian Railway appealing to the public to take care of public
properties and ads released by Cancer Society of India for free
Cancer check-up, are for socially relevant causes. Many companies
have also taken up public causes such as supporting a leprosy
eradication programme, avoiding pollution, safe driving, blood
donation drive etc., by resorting to public service advertising. To
create awareness of AIDS and its preventions Lintas has designed
TV/film/video campaign.
15. National Advertising: It is generally undertaken by
manufactures of branded goods, for which, advertising messages is
communicated to consumers all over the country. Almost all possible
mass media, including national newspapers, radio and television
network, are employed for national advertising. Product services, and
ideas, which have demand all over the country, are suitable for
national advertising. In India, Indian Airline Hindustan Lever Ltd.,
Vicco, Godrej, Bajaj and Kirloskar are a few leading advertisers at
national level. Likewise, detergents, soaps, toothpastes, cosmetics,
scooters, cars, and bicycles, are some of the products, which are
advertised all over the country.
16. 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 identity 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, and Asiatic
Departmental Stores are the examples of retail advertising.

3.4 DIFFERENCE BETWEEN NATIONAL

ADVERTISING AND RETAIL ADVERTISING
 45

National Advertising Retail Advertising

1. It is used in wider market, 1. It is used in wider market.

national advertising follows National advertising follows
uniform message for the entire uniform message for all the
consumer. consumers.

2. It is more interested in 2. It is more interested in

establishing long-range establishing long range
favourable attitudes. favourable attitudes.

3. It generally ignores price 3. It generally ignores price

factor. Moreover, prices may factor. Moreover, price may vary
vary from region to region. from region to region.

4. It mainly uses magazines 4. It mainly uses magazines

radio and T.V. radio and T.V.

5. It requires big budget. 5. It requires big budget.

6. It advertises less frequently 6. It advertises less frequently

exception cases of consumer except in cases of consumer
goods which are put to daily use goods which are put to daily use
like soap, tooth paste, etc. like soap, tooth paste, etc.

7. It is more spectacular and 7. It is more spectacular and

more attractive. more attractive.

8. It advertises with emphasis for 8. It advertises with emphasis for

every aspect of the product, every aspect of the product,
company and consumers. company and consumers.

9. It concentrates advertise 9. It concentrates on the entire

keeping in view business country.
objective.
 46

10. The prospective retail 10. There is no such expectation

customers seek advertisements on the part of consumers. As a
of their favourite store. policy of business,
manufacturers advertising
keeping in view business
objective.

3.5 SUMMARY

Different authors have classified advertising in different ways.

Generally the advertising is classified on the following basics 1. Area
Covered, 2. Audience, 3. Media, 4. Functions, 5. Advertising Stages
etc.

3.6 QUESTIONS

1. Give broad classification of advertising according to Area

Coverage, Audience, Media and Functions
2. How would you classify different categories of advertising.
3. Write a brief note on (a) Social Advertising (b) Political
Advertising (c) Advocacy Advertising (d) Retail Advertising
4. What is Financial Advertising? What are the essentials for the
success of Financial advertising? Explain the advantages of
Financial advertising,
5. Write short note on (a) Corporate Image Advertising (b) Public
Relations Advertising, (c) Institutional Advertising,
6. What is Internet Advertising? What are the types of Internet
Advertising?
7. What are the advantage and disadvantages of Internet
Advertising?
8. Write short note on (a) Product Advertising (b) Service
Advertising.
 47

9. What are National Advertising and Retail Advertising? How does

National Advertising differ from Retail Advertising?


 48

4
ADVERTISING MEDIA
Unit Structure:
4.0 Objectives of the lesson
4.1 Introduction
4.2 Determinants of Advertising Media
4.3 Radio Advertising
4.4 Internet Advertising
4.5 Television Advertising
4.6 Press Advertising
4.7 Film Advertising
4.8 Purchase Point Advertising
4.9 Specialty Advertising
4.10 Video Advertising
4.11 Outdoor or Mural Advertising
4.12 Emerging Media options
4.13 Display or Indoor Publicity
4.14 Summary
4.15 Questions

4.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand:
Determinants of Advertising Media,
Radio Advertising: Advantages and disadvantages, demerits or
limitations of Radio Advertising, FM Radio broadcasting

Internet Advertising: Types, advantages and disadvantages of

Internet Advertising
 49

Television Advertising: Merits and demerits of Television

Advertising

Press Advertising: Merits and demerits of Newspaper

Advertising

Magazine and Journal Advertising : Advantages

and disadvantages

Outdoor or Mural Advertising: Types of Outdoor advertising, merits

and demerits

4.1 INTRODUCTION

The most brilliant and original advertising ideas will be wasted if

they are not presented through the right media in the right place at
the right time to the right people. Hence the selection of right media is
an important for achieving the objectives of advertising. However,
before explaining the factors which should be kept in mind for
selecting the right advertising media, it is essential that we must know
the meaning of advertising media. An advertising media is a means
or vehicle of delivering a definite message. It is a means through
which an advertising message or information is passed on to the
prospective customers, readers, viewers, listeners or passers-by. For
instance, a producer seeks through advertisement media to keep in
touch with old customers as well as to attract new customers. Medias
are subject to intensive buying and selling activity. Examples of
media are newspapers, magazines, radio, television, direct mail,
posters, film, catalogues etc.

4.2 DETERMINANTS OF ADVERTISING MEDIA

Selection of a right type of advertising media is a difficult task.

Any media that is selected must be capable of accomplishing at least
the three main objectives:
 50

1. It must reach the largest number of people possible.

2. It must attract their attention.
3. It must be economical.
There is hardly any single media that satisfies the above three
objectives in practice. There are number of advertising media choices
available to the company in India. However, the real managerial task
is to identify from among them the one (s) which is relevant for the
company. For this purpose the management should consider the
following factors:
1. The Nature of the Product: The nature of the product
determines the choice of the advertising media. For instance,
cinema, television, colour periodicals would be the obvious choice for
products like fabrics and toilets requiring visual presentation. In this
connection, management should develop a product-media match.
2. Market Requirements: While selecting advertising media, the
company’s market requirements should be considered. When they
meet these requirements, they lend themselves to good use. For
example, specialized high fashion colour magazines would be the
proper media for consumers with high income groups and
sophisticated tastes. Similarly, outdoor media would be appropriate
when consumer action is to be induced at the point of purchase.
3. Advertising Objectives: The advertising objectives also
determine the type of media to be selected. For example, the press is
preferred to project corporate image while radio and television is
relevant for product advertising.
4. Distribution Strategy: The advertising media should be
compatible with the distribution strategy adopted by the company.
For example, if the company is selling through middlemen
wholesalers and retailers etc., then outdoor advertising media duly
supported by television, radio and cinema etc. may help to pull the
product out of channel.
 51

5. Nature of the Message and Appeals: The nature of

advertising message appeal also determines the advertising media
for a company. The media should be able to carry the message and
appeal to the right persons in the perspective. For example, if time is
the essence of communication, daily newspaper and radio may be
the best choice. Mass consumption items like soaps, toothpastes,
hair oil etc. may determine television, newspapers as the best
selection.
6. Budget: The budget available for advertising purpose will
decide the choice of media of advertising. For example, a
manufacturer having comparatively large funds for advertising may
choose television or radio or both as a media of advertising. On the
other hand a medium or small sized businessman may prefer
newspaper and magazine as an advertising media.
7. Competitors Choices: A company should also take into
account the wisdom of competitors’ media choices despite
differences in advertising objectives and appropriations. It is not
desirable to outright dismiss their choices. Generally, the advertising
media used by competitors are preferred so as to make an
impressive appeal for the product.
8. Media Circulation: The company should take into account the
circulation of the advertising media. Media circulation must match the
distribution pattern of the product. This applies to the press media.
Circulation should not be confused with readership. Circulation
means the number of copies sold after deduction of free copies,
returns and other differences between the total number of printed
copies and total number sold at full price. The advertising media
selected should have maximum circulation, such as Hindustan Times
etc.
9. Media Availability: The question of media availability is quite
relevant while considering advertising media alternatives because not
all media are available to a company at all times whenever required.
 52

For instance, in 1973, and 1974, owing to acute newsprint shortage,

space availability in national dailies was a real problem.
10. Penetration: How can we penetrate the market most
thoroughly or how can we reach the greatest number of potential
customers is also an important factor influencing the choice of a
particular advertising media. Shall we reach housewives at the
kitchen-sink by means of television or radio and which is likely to
have the greater impact? This fact should be considered.
11. Size and Nature of the Business Enterprise: The size and
nature of the business enterprise also play an important part in
making a choice for the advertising media. Different media will suit to
departmental stores, chain stores, small shops, manufacturers and
producers etc. A big business enterprise may make use of television,
radio and newspapers having national network, whereas a small unit
may prefer local newspapers and cinema-slides etc.
Thus the above factors are generally considered while selecting
the advertising media for selling the products.

4.3 RADIO ADVERTISING

Today, radio has emerged as one of our major advertising

media. It provides a very large coverage of audience in urban and
rural areas. Now almost every family has a radio set in our country.
Radio advertising in India was started in 1967 when a commercial
service on “Vividh Bharati” was started. Commercial broadcasting is
now undertaken by Delhi, Bombay, Madras, Calcutta, Poona, Nagpur
and Bangalore stations etc. of All-India Radio. Ceylon Radio
Commercial Broadcasting is quite popular throughout the country.
Commercial broadcasting is a major source of income. Today, radio
advertising is extremely popular with both trade and industry as the
demand exceeds the time. Radio advertising may be described as
„word of mouth advertising on a wide scale‟. The advertiser delivers
the message orally and not visually. It makes appeal to the ear and
 53

not to the eye with the effect that the message is conveyed to the
masses whether literate or illiterate.
4.3.1 Advantages or Merits of Radio Advertising
Radio advertising is quite popular in India on account of the
following advantages:
1. It has a wide coverage. Even illiterate people are covered under
this media. It can convey message even to small remote areas.
2. It is quite flexible as it can be used on a national or local level
according to the need.
3. It gives message of the advertiser at the door of the prospects
when they are in a respective mood.
4. It easily catches the attention of the people.
5. Today radio advertising is a major source of income.
6. It claims the advantage of memorizing value. In this connection,
psychologists say that anything learnt through the ears is not
easily forgotten.
7. Radio advertising affords variety of programmes including
entertainment on account of which the goodwill is developed.
People buy the product advertised by radio because they enjoy
the free show.
8. Radio advertising has human touch unequalled by any other
media.
4.3.2 Disadvantages, Demerits or Limitations of Radio
Advertising
Radio advertising has the following disadvantages, demerits or
limitations:
1. The message given by radio advertising is short-lived.
2. It is costly and is beyond the reach of small and medium sized
advertisers.
3. It only appeals to the sense of hearing and thus does not portray
visually a picture of the package of the product.
 54

4. It is not suitable for all kinds of products, such as industrial goods

which are not needed by the average radio listener. It is useful
only for the goods of common use.
5. Radio advertisements are very brief and thus details cannot be
elaborated.
6. Since there is a multiplicity of advertisements in a very short time,
it is most likely that the listener may forget the name of the
product.
7. There is no possibility of demonstration in case of radio
advertising.
8. It is a selective media of advertising.

FM broadcasting: FM broadcasting is a broadcast technology

pioneered by Edwin Howard Armstrong that uses frequency
modulation (FM) to provide high-fidelity sound over broadcast
radio.
The term "FM band" is effectively shorthand for "frequency band
in which FM is used for broadcasting". This term can upset purists
because it conflates a modulation scheme with a range of
frequencies.

Modulation characteristics: Frequency modulation (FM) is a

form of modulation which conveys information over a carrier wave
by varying its frequency (contrast this with amplitude modulation,
in which the amplitude of the carrier is varied while its frequency
remains constant). In analog applications, the instantaneous
frequency of the carrier is directly proportional to the
instantaneous value of the input signal. This form of modulation is
commonly used in the FM broadcast band.
Pre-emphasis and de-emphasis:
Random noise has a triangular spectral distribution in an FM
system, with the effect that noise occurs predominantly at the highest
frequencies within the baseband. This can be offset, to a limited
extent, by boosting the high frequencies before transmission and
 55

reducing them by a corresponding amount in the receiver. Reducing

the high frequencies in the receiver also reduces the high-frequency
noise. These processes of boosting and then reducing certain
frequencies are known as pre-emphasis and de-emphasis,
respectively.
The amount of pre-emphasis that can be applied is limited by the
fact that many forms of contemporary music contain more high
frequency energy than the musical styles which prevailed at the birth
of FM broadcasting. They cannot be pre-emphasized as much
because it would cause excessive deviation of the FM carrier.
Systems more modern than FM broadcasting tend to use either
programme-dependent variable pre-emphasis; e.g., dbx in the BTSC
TV sound system or none at all.

4.4 INTERNET ADVERTISING

The Internet facility has developed around for some 30 years. It

actually began in the early 1960 in USA, where the US Department of
Defense saw it as a means of supercomputer communication for
researchers and military facilities across the country. Until it
commercial exposed in 1990s, the Internet remained a relatively
obscure network of linked computers - mostly by academics, military
researchers, and scientists around the world to send and receive
electronic mail, transfer files, and find or retrieve information from
databases –
At present, Internet the fastest growing medium in history, offers
incredible opportunities for a wide range of people in both business
and advertising. For advertisers, there is a whole new world of
potential customers.
4.4.1 Type of Internet Advertising:
 56

Ads on the Internet can take a variety by forms. Most advertising

on Internet can be classified as websites, banners, buttons,
sponsorships, interstitials, Meta ads, classified ads, and email ads.

Websites: Some companies consider their whole website as an

ad. However, a website is more than an ad - it’s an alternative
location where customers, prospects, shareholders, investors,
and others can come to find out more about the company, its
products and services. Some companies use their website like an
extended brochure to promote their goods and services. Others
treat their website as an online catalog store, conducting business
right on the Net. Still other website act in information and
entertainment provides. Website typically consist of a home page
and an indefinite number of subsequent pages that users can visit
for further information. A web page refers to a single HTML
(hypertext markup language) file, which, when viewed with a
browser, may actually be several screens long. A large website
may have hundreds of these pages of information. This means
the site contains hundreds of different documents of various
lengths (from 1 to 10 or more screen), each probably covering a
different subject.

Banners: The ad banner is the basic form of web advertising. A

banner is a little billboard that spreads across the top or bottom of
the Web page. At present one comes across larger banner ads
that can dominate the screen or even provide television
commercials. When users click their mouse pointer on the banner,
it sends them to the advertiser’s site or a buffer page.

Buttons: These are similar to banners. They are small version of

the banner those often look like an icon usually provides a link to
an advertiser’s home page. Since they take less space than
banner, they are less expensive.
 57

Sponsorships: A form of advertising on the Internet that is getting

popular is the sponsorship of Web pages. Corporations sponsor
entire sections of a publisher’s Web page or sponsor single
events for a limited period of time, usually calculated in months. In
exchange for sponsorship support, companies are given
extensive recognition on the site. Sometimes an added value
package is created by integrating the sponsor’s brand with
the publisher’s content. For instance, a Web page on Olympics or
some other spots can be sponsored by a business firm.

Interstitials: This is a dynamic form of Net advertising. It is a catch

all term for a variety of animated ads that pop up on the screen
while the computer downloads a website that the user has clicked
on. There are now many types of interstitials including pop-up
windows, splash screens, superstitions, etc.

Meta Ads: Used in search engines (such as Yahoo, Google, etc.),

a met ad is an advertisement displayed on the results page of a
search, specific to the searched item. Meta ads are also referred
to as keyword advertising. This method enables an advertiser to
target a specific audience. Advertisers can pay search engines to
display their banners only when relevant keywords are searched
for by a user. For example, if a user searched for the term
“handicrafts and handlooms”, the Meta ads displayed might be for
handicrafts and handlooms items.

Classified Ads: Another growing area for Internet advertisers in

the classified ad websites. Some of these websites offer free
classified advertising opportunities because ad banners of other
advertisers support them. They are similar to newspaper
classified ads. You can search for homes, cars, jobs, toys, shoes
etc.

E-Mail Advertising: Advertisers can send e-mail advertising to

customers who have asked for it. It is similar to direct mail
advertising, and therefore, it is the most effective form of internet
 58

advertising. However, there is too much of span via the e-mail.

Span refers to unsolicited, mass e-mail advertising for product or
service that is sent by an unknown entity to e-mail addresses.
4.4.2 Advantage of Internet Advertising:
1. Interactive Medium: It allows consumers to directly interact
with an advertiser, thereby establishing future relationships.
2. Enormous Audience: With an audience of about 500 million
people worldwide (some estimates put the figure at 1 billion people),
the internet is the only true global medium, providing information and
commercial opportunities that are immediately accessible around the
world.
3. Immediate Response: Products and information are available
on demand made by the consumer, thereby, providing instant
feedback for the advertiser.
4. Selective Targeting: Advertisers can reach the right target
audience, especially through the Meta ads.
5. Proximity to Purchase: It may be the greatest advantage of
Internet advertising. Purchasers can be targeted right wither they are,
right at the moment when they are considering of making a purchase.
6. Affluent Market: Most of the Internet users belong to middle
upper class or upper class audience. Therefore, Internet medium
enables to reach the affluent market of the society.
7. Provides In-depth Information: Internet provides in-depth
information about a company and/or products. Commercial websites
provide detailed information about products or services to the Internet
users seeking information.
8. Reaches Business-to-Business Users: The Internet medium
can reach to B2B users when they are still at work, not only business
related information, but also consumer products advertising while
they are working.
4.4.3 Disadvantages of Internet Advertising:
 59

1. Lack Mass-Media Efficiency: Internet is not a mass medium

as the case of radio and television. Therefore, it may never offer
mass media efficiency. Most marketers in developing countries like
India, may find it as too complex, too cluttered or not worth the time
and efforts.
2. Slow Downloads: The downloading of websites is very slow
in many parts of the world, including India. The ads that pop up in
between only irritate the Internet users.
3. Problem of Span: There is too much of Spam via the e-mail.
Therefore, e-mail users do not consider going through even the
responsible ads.
4. Problem of Online Purchases: In India, most consumers
would like to physically inspect the goods before purchases.
Therefore, they may not place orders online. Again, most people do
not believe the internet as a safe place for financial transaction.
5. Untested Medium: There is hardly any research to test the
effectiveness of Internet advertising. Therefore, a good number of
markets in India do not give much importance to Internet advertising.

4.5 TELEVISION ADVERTISING

Television Advertising: It is said that to-day television advertising is

the bestselling media ever invented. It has a potential advertising
impact unmatched by any other media. It is a means of bringing
actual demonstration in the homes of the prospects and is therefore
more effective media when compared with radio. That is why the
position of radio advertising has now being gradually taken by
television advertising.
Commercial television advertising was introduced in India on
January 1, 1976 on the pattern of All India Radio. Thus, as an
advertising media, television is of recent origin in India. It is also
known by the name of ‘Doordarshan’ in India. Television makes full
use of sight, sound and motion and thereby maximizes impact on
 60

audience. On colour TVs, now colour may also be used to add to the
impact. The coverage of television is increasing at a rapid pace in
India. This media is particularly advantageous for those advertisers
whose products require demonstration. Sponsored programmes have
also been started on television in India.
4.5.1 Advantages or Merits of Television Advertising
Television advertising has the following advantages:
1. The main advantage of television advertising is that it combines
the advantages of both radio and cinema. Thus it is a most
powerful audio-visual media.
2. It makes the message more attractive and impressive.
3. It is most advantageous to those advertisers whose products and
service require demonstration.
4. It is a source of major income to Doordarshan.
5. It possesses geographical selectivity. An advertiser can place his
advertisements on selected few stations as per his requirements.
6. It has a wide coverage. At present television services are
available to more than 80% of India’s population.
4.5.2 Disadvantages or Demerits or Limitations of Television
Advertising
Television Advertising is subject to the following demerits or
limitations:
1. It is very expensive advertising media and would certainly exclude
the small advertisers.
2. Television message is short-lived.
3. The range within which the telecasting reaches the audience is
very limited.
4. In case of India, an average Indian cannot afford television as it is
quite costly.
5. Television advertisements are very brief due to high cost of
advertising on television.
 61

6. Television advertising is a very deliberate media, requiring long

term planning, the gaining of approval from the authority and also
lacking flexibility.
Check Your Progress
1. “The most brilliant and original advertising ideas will be wasted
if they are not presented through media.” Discuss.
2. Explain the following types
a. Website
b. Sponsorship
c. Banners
d. F.M. Broadcasting

4.6 PRESS ADVERTISING

4.6.1 Meaning of Press Advertising

Press advertising is the most popular and effective method of
publicity today. It has become the part of the culture and political life
of people today. Press, also referred to as print, is an advertising
media comprising all those vehicles owned by others and which can
carry the advertising message in print to be read by target customers.
In India, this media is very commonly used by companies and
account for nearly 70 per cent of their total expenditure on advertising
media.
4.6.2 Forms or Types: Press advertising takes the following two
major forms:
1. Newspapers: NP Newspapers are bought largely for their news
values. Newspapers may be national/local daily/weekly. These are a
good vehicle to pass on information about new products, current
products and price-off deals. They can be used for local, national and
regional market coverage. In India, there are a number of
newspapers both in English and also in regional languages. Many
newspapers in English and Hindi have nationwide coverage. So a
 62

message given in newspapers may have a better impression on the

minds of the people and it may be more specific, clear, complex and
lengthy. Currently, 1173 daily newspapers and 5280 weekly
newspapers are published in India, out of which the largest number is
accounted for by the Hindi language newspapers followed by Urdu,
Marathi and English newspapers in terms of number, and English,
Hindi, Malayalam, Marathi and Gujarati in terms of circulation. Among
the states, the largest numbers of newspapers are published in Uttar
Pradesh followed by Maharashtra and Karnataka. Among the
prominent national English language dailies are the Times of India,
Hindustan, Indian Express, Statesman and Economic Times etc.,
whereas among the national Hindi language dailies include
Hindustan Times, Navbharat Times, National Dunia and in Rajasthan
- Rajasthan Patrika. However, among the different language groups,
companies in India, both in the state and private sector, largely use
English dailies as their advertising media. Small enterprises prefer
local newspapers as their advertising media. The newspapers charge
on the basis of column centimetre space used by the advertiser.
They also charge premium for special positions and provide
concession for space booking on contract. However, these rates vary
from newspaper to newspaper as per their circular and coverage.

Advantages or Merits of Newspaper Advertising Media: The

advantages of merits of newspaper advertising media may be
summed up as under:
1. Their coverage is high as they reach every nook and corner in a
very short time.
2. They offer a lot of flexibility. According to the convenience and
necessity of the advertiser, the shape, size and appeal may be
frequently changed to suit the need of the advertiser.
3. High frequency enables speedy preparation and publication of
advertisement.
4. It is the cheapest media of advertising as far as its cost per
reader is concerned.
 63

5. The daily newspaper have strong repetitive value as it offers an

opportunity to the advertiser to repeat is message at a short
interval of only one day.
6. The public response towards newspaper advertising is very quick.
7. By inserting local advertisements (in local newspapers), the
effectiveness of advertising copy could be tested quite easily.
8. By inserting frequent advertisements in the newspapers, their
visual appeals may be created very easily.
9. The reputation of the newspapers is available to the advertisers
and their products also. Leading newspapers provide space to
reputed and reliable concerns only.
10. Newspaper advertising provides geographic selectivity.

Disadvantages or Demerits or Limitations of Newspaper

Advertising Media: The following are the disadvantages or
demerits or limitations of newspaper advertising media:
1. The life of a newspaper is very short, i.e., only for the day. It is
said, “Nothing is alive as today’s newspaper” and “Nothing is dead
as yesterday’s newspaper.”
2. There is waste of circulation. The advertisement is carried even to
those places where there is no market existing nor the possibility
of creating a new market in the near future.
3. If the customers are limited in numbers, advertising in
newspapers may be ineffective and costly too.
4. Visual effects may not be created in practice as the newspapers
are generally printed on cheap newsprint.
5. There is lack of uniformity in advertising requirements. Lack of
uniformity of publishers requirements with respect to rates, size,
type of copy and so on.
6. Newspaper advertising is less popular in undeveloped countries
where the masses are illiterate ignorant and poor.
2. Magazines and Journals: Another media under press advertising
media is magazines and journals. They offer selective circulation
throughout the country at a cost within reasonable budget limits.
 64

These are published periodically at regular intervals, i.e., weekly,

fortnightly, monthly, quarterly or annually. Magazines and Journals
are read at leisure and with care when the reader is mentally
prepared to receive the advertisements. It has a long effective life.
From the advertiser’s point of view, magazines may be classified
under five groups: (i) Special Interest Magazines; (ii) Trade
Magazines; (iii) Technical Magazines; (iv) Professional Magazines;
and (v) Regional Magazines.

Advantages or Merits of Magazines and Journals: The

following are the advantages of magazines and journals as an
advertising media:
1. The life of magazine is considerably longer than that of
newspapers. These are kept ready for weeks and months.
2. Better reproduction of advertisement than newspapers is
provided.
3. Magazines are highly selective in nature and waste of circulation
is avoided.
4. Magazine advertising create prestige, reputation and an image of
quality.
5. The number of readers per copy in case of magazine advertising
is quite high. There is multiplicity of readership.
6. Magazines are ideals for introduction new ideas.
7. Magazine readership is usually a leisurely home readership for
enjoyment relaxation, and “with guard’s down‟.
8. The printing, paper, colour combination is more attractive in case
of magazine advertising than newspaper advertising.
9. Magazines reach specialized groups conveniently and effectively.
10. The cost of utilizing magazines for advertising is quite low.

Disadvantages or Demerits or Limitations of Magazine and

Journal Advertising:
 65

As compared to newspaper advertising, the magazine and

journal advertising have the following disadvantages, demerits or
limitations:
1. The chief demerit of magazine advertising is its low flexibility.
2. Preparation costs for magazine copy are usually rather high and
sometimes exceed the cost of the space used in trade magazines.
3. The circulation is limited as compared to newspaper advertising.
4. It takes more time in printing etc. than newspaper advertising.
5. The size of magazines differs widely and hence the advertiser has
to prepare the copy of advertisement according to the size of the
magazine and journal.
6. Change in appeal cannot be effective quickly.

4.7 FILM ADVERTISING

4.7.1 Meaning:
Film is an audio-visual medium of communication and offers
wide opportunities to the advertiser to screen commercial films and
slides produced by them. Today cinema is an important and effective
media of advertising. Suitable short films may be prepared to create a
lasting impression upon the audience. These may be presented in
the form of a story or a cartoon. Through the merits of the product are
presented to the audience effectively. Such films may be shown
before the start of the feature film or during interval. At present there
are three kinds of films used as media of advertising:
4.7.2 Kinds of Films:
1. Straight Advertising Films: These are most common now-
days. These concentrate on advertising message relating to only one
product of a particular company, such as Hindustan Lever, Tata Oil
Mills (toilet preparations), D.C.M., Gwalior Rayon, Calico etc. These
are of short duration lasting from 3 to 5 minutes.
 66

2. Documentary Films: Documentary films are mainly used for

publicity aspect and in most cases are educative in character. They
are used to show various aspects of an industry as a whole.
3. Sponsored Advertising Films: It is a very good combination
of advertisement and entertainment. Cartoon films come under this
category.
In India, cinema has practically reached in all the parts of the
country. Bombay has become the hub of advertising films and slides
production. With all these, cinema as an advertising media holds
great opportunities particularly, for those companies which are poised
to penetrate the rural market of our country. It is particularly relevant
for advertising consumer-products and farm inputs.
4.7.3 Advantages or Merits:
1. It has a quite wide coverage.
2. It is able to explain and demonstrate the use of a product quite
conveniently.
3. Appeal is made to all sections of the society.
4. It is never wasted as no advertisement can escape the attention.
5. It is effective and may pay rich dividend to the advertiser.
4.7.4 Disadvantages, Demerits or Limitation:
1. The films are too short and need changes frequently.
2. Production cost of a film is quite high.
3. The audience may not like to waste time in seeing such films
repeatedly. They resent to it as they come for entertainment only.
4. Restrictions are imposed against screening of films, e.g., there is
censoring.
5. For screening films, the cooperation of theatres is a must which is
not easily available.

4.8 PURCHASE POINT ADVERTISING

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Purchase point advertising is that advertising which is

undertaken at the premises of the manufacturer or the dealer for
attracting the customers. This is a direct method because the
advertising process is either undertaken by the manufacturer directly
or through the dealer. Under this method, goods are displayed at the
counters, windows or in almirahs. It is observed that the point of
purchase is the exact point where the prospects are reminded finally
about a product. It is considered as a powerful media now a day.

4.9 SPECIALTY ADVERTISING

Under this media of advertising, manufacturers provide various

articles of low value free of cost to the existing and prospective
customers. The articles constitute calendars, ball-pens, diaries,
cigarette cases, bags and other executive gifts. Such articles bear the
name and address of the advertiser. It is felt that recipients will do
business with the firm in the near future even though articles are
given on no obligation basis. It is also called Novelty Advertising.
These articles are given to targeted customers.

4.10 VIDEO ADVERTISING

It is now considered as the latest media of advertising. Under this

method, video-cassettes ad-films are prepared. Nearly 22 million
people around the world watch Indian films on video. India alone has
video-audience of about 30 million which is increasing day by day.
There are more than 50,000 video-libraries and about 1 lakh video-
parlors/clubs in India. The video-cassettes released in India are also
being screened in thousands of luxury buses. Besides the feature film
they contain advertisements which are displayed at short intervals.
Check Your Progress
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1. “Press Advertising is the most popular and effective method of

publicity today.” Explain.
2. Explain the following terms.
a. Film Advertising
b. Documentary Films
c. Sponsored Advertising Films
d. Purchase Point Advertising
e. Video Advertising

4.11 OUTDOOR OR MURAL ADVERTISING

4.11.1 Meaning of Outdoor or Mural Advertising:

Outdoor or mural advertising is the oldest form of advertising and
remains the most common media even today. It is also called „wall
advertising‟. Outdoor advertising consists of a display of
advertisements out of door which may be in the form of posters,
painted signs, field signs, neon light signs, hoardings and posters
carried by sandwich men. This is also referred to as mural advertising
as posters consisting of a picture, are often placed on walls
particularly a large one, printed directly on a wall or large photograph
attached directly to a wall. Small play cards or posters placed outside
or inside carriages such as trams, delivery-vans, buses, railway
carriages etc. also come under this category. The new form of
advertising by using balloons kites and smoke-writing in the sky is
also a part of outdoor advertising. Outdoor advertising is not always
argumentative but suggestive. The effectiveness of such advertising
materially depends on its positions. Therefore, outdoor
advertisements must be placed in such a way as can be seen by a
large number of prospective customers with ample attention. The
articles suited for such advertising are those which the masses can
buy, such as food products, soaps, medicines, cigarettes, shoes,
clothes and other domestic requirements.
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4.11.2 Main Characteristics of Outdoor Advertising

1. It is a widespread popular advertising media which makes the
goods and services of interest to mass appeal.
2. It has a comparatively longer life.
3. It has a high coverage.
4. Most outdoor advertisements are big and dominant so it is a very
powerful eye-catching media.
5. It is a very flexible advertising media so that the advertiser can
retain sites where he needs them most.
6. It is the oldest advertising media.
7. It also consists of suitable and popular slogans which can be
easily remembered by the prospects.
4.11.3 Types, Forms or Kinds of Outdoor Advertising
Outdoor advertising may take any of the following forms:
1. Posters: This is the most common and popular form of
outdoor advertising. These are exhibited on a hoarding or on walls,
roofs, fences, chimneys etc. A really commanding effect can be
produced by posters which cost less than any other advertising
media. Design is the basis of all poster-advertising. These mostly
contain pictures. Advertising for a movie is done in this way. Even
where no pictures are used, the proper arrangement of lettering is
important. The posters should be simple, attractive and capable of
telling its story at a glance. Posters also give considerable scope for
the use of suitable and attractive colours. Humour can also be used
with advantage in poster-advertising.
2. Advertising Board: These are also posters which are kept at
certain fixed places especially at points where people frequently
assemble, such as bus stops, railways, crossings etc. Generally
these advertising boards are made of metallic sheet enclosed in a
wooden frame and fixed with a panel having specified height at main
junctions. These are fixed and well set with flood-lights.
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3. Vehicle Advertising: It refers to moving advertisement. It

consists of placing posters or playcards inside or outside vehicles
such as trams, buses, taxies, delivery-vans, railway carriages etc.
The main advantage of this system is the small space available for
such posters. These posters are fairly sighted by the eyes and can
be easily read. This method is a very common media and is
considered to be very effective.
4. Electric Displays and Signs: Signs illuminated by electricity
are today to be seen in large number in cities. This is the most
modern and the most attractive form of outdoor display. It may
consist of wooden letters studded with bulbs. Sometimes with a view
to attract the attention, coloured bulbs are used and the colours are
changed at short intervals. Another device used to attract attention is
to turn on the light on each letter at a time to give the impression of
the sign being written by an invisible hand.
5. Neon Signs: There are brilliantly coloured tubes available in
various shades. These can be of the still or the flashing type. These
signs are more attractive and interesting than the signs built up by a
number of electric bulbs.
6. Sky Advertising (Sky Writing): Sky advertising is another
modern form of outdoor advertising. In this form of advertising media
an aeroplane writes the name of the product or the producer in the
sky. It is also known as „smoke writing‟ because the message is
written in the sky by means of smoke. Large sized printed balloons
are also dropped from the aeroplane in the sky. Usually, near the
circus-tents, a large sized balloon is floated on which the name of the
circus is written.
7. Sandwitchmen: They are hired persons and properly dressed
who walk in the streets in a procession with boards, posters and
notices placed about them. The idea is to attract the attention of the
public. The cinema-theatres usually arrange this kind of advertising
media when a new picture is released.
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8. Stickers: It is also an important form of outdoor advertising. In

this case, the advertiser enters in a contract with the popular players
that whatever they will wear or use during the match will bear the
sticker of the advertiser.
9. Puppet Shows: This is purely an Indian outdoor advertising
media which provided entertainment while conveying a message.
Now-a-days it is used widely in the family planning campaign in India
mostly in villages. One such show tells how a rich man of the village
who has large family, rejects the family planning campaign. But his
wife has twins and there are complications. He calls in the midwife
who tells him that his wife will not survive more births. He accepts the
family planning advice and so becomes the innovator in his village.
The above are the most common forms of the outdoor
advertising. However, there may be other forms of this type of
advertising.
4.11.4 Advantages or Merits of Outdoor Advertising Media
1. It has a wide coverage.
2. It is capable of gaining more attention of the public.
3. Outdoor advertising is more useful for local dealers. Its results
can be more readily secured by using this form of advertising.
4. In big cities and high traffic areas, outdoor advertising is the most
effective form of advertising.
5. Outdoor advertising is more flexible.
6. It offers greater selectivity because it can be used locally,
regionally or even nationally.
7. It can be easily remembered.
8. It is quite economical.
9. It has comparatively long life.
10. It is a very good media to stress brand names and package
identity.
4.11.5 Disadvantages or Demerits or Limitations of Outdoor
Advertising Media
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The outdoor advertising media possess the following

disadvantages, demerits or limitations and thus are subject to
criticism:
1. It is subject to adverse reaction of the public on the ground that the
walls of the houses are used for writing outdoor advertisement
even without the permission of the owner of the house.
2. The message written under this type of advertising is too brief.
3. The exact effect created on prospects is difficult to measure.
4. The language used in writing on the wall advertising is usually
defective and sometimes immoral too. It has an adverse effect on
the public.

4.12 EMERGING MEDIA OPTIONS

4.12.1 Meaning
There are several Media Options which have emerged due to
increased popularity of advertising. Advertising through cell phones
and marketing through social sites are some of the Emerging Media
Options.
4.12.2 Alternative Media Options
We shall discuss the following Alternative Media Options

Car Cards: Car cards are small size thick papers or posters
placed inside the vehicles like the buses or railway trains. They
are also posted on the window screens or the side glasses of
motor cars. The main purpose is to remind the travelers about the
product. However, it is possible that many travelers may not look
at the cards while travelling.

Traveling Displays: These car cards are posted outside the

vehicles or local trains. Their purpose is to attract the attention
outside public or of those who are standing on railway platforms.

Sandwich Boards or Tall Man Advertising: Sandwich boards

advertisement is carried by a man with two posters hung on his
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two sides. The man is known as a sandwich man as he is

sandwich between two boards. He moves form one street to
another and attracts the attention of the passerby. To add the
unusual site, sometimes, a tall man carrying the boards walks with
the support of long sticks and with funny mask and clothes and
attracts the passerby.

Sky Writing or Sky Balloons:

In this type, a painted balloon or a plastic sheet having
advertisement message may be attached to the tail of the flying
aeroplane. This being very unusual thing. People are attracted
towards it.
Advantages:
1. It acts as a supporting or supplementary to press media
effectively.
2. It is constantly reminding prospects of the products.
3. It is colourful and has a pleasing appearance. So, prospects
welcome this form of publicity.
4. It has a wide appeal. At attracts all human population of literates
and literates and illiterates.
5. This media is more permanent compared to newspapers, films,
magazines etc.
6. It provides scope for talents, skill and art.
Disadvantages:
1. It is difficult in measuring response as it appeals to the general
public and not in particular.
2. Selection of wrong sight, wrong materials, wrong methods etc.
wastages may arise. Also, due to damages to the posters,
hoarding etc. wastages are created.
3. This media can be used only as a supporting media to the others
like T.V. Radio etc.
4. It is alleged that the posters, hoardings, neon signs etc. spoil the
natural beauty of the places.
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4.13 DISPLAY OR INDOOR PUBLICITY

To display the goods means to show the goods to the people in

order to induce them to enter the shop to buy them. It is a device by
which customers and people are attracted to the shop.
4.13.1 Importance of Display:
1. It is only the part of publicity which allows the people to touch
the products, to handle them or to actually see them. It is more
realistic in salesmanship.
2. Another importance of display is that display is an important
dealer aid. The display technique helps the dealers to conduct an
effective publicity.
3. The third importance factor that has given importance to
display is that, it attracts the attention of the prospects and makes the
people walk into the shops.
4. Lastly Display is importance to its effects not only on prospects
but also on suspects. It makes the message directly to the prospects
through their eyes.
4.13.2 Different Forms of Displays:
(a) Window Display: If refers to showing of goods in the window
of the shop. Window of a shop means a part of the front portion of the
shop which can be seen from outside. Windows are meant for
outsiders to keep in. Window display technique is used by retailers or
small businessman because they can’t afford to spend on other
Medias. Window display is used for all types of consumer goods. It
makes people eager to know and see the products.
Following are the rules for the shopkeepers while displaying
the goods in windows:
1. Normally, the windows of rectangular shapes are selected and
not the vertical one’s because they provides for adequate space and
easy movement of vision.
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2. The items should be arranged horizontally and not vertically

because this allows easy gaze movement. The background of
window should be attractive and pleasant.
3. The windows should not be over-crowded with items because
it strains the eyes of the viewers.
4. The position of the items displayed should be changed from
time to time to create variety.
5. Proper lighting and illumination of the window should be done
so that they focus on the special features of the product.
6. The display technique should not violate the basic rules of
decent approach. There should not be overcrowding of expensive
good in too fashionable setting otherwise, the respects would be
frightened and the result would be negative.
(b) Interior Decoration: It refers to the various designs
and equipment used by a retailer inside his shop. Showcases,
counters, lighting arrangement, ventilation etc. It creates a pleasant
atmosphere for the prospects and increases their comforts. Effective
interior decoration does not require lot of space but it makes
appropriate use of the available space to provide for easy movement
and get up.
(c) Counter Display: It refers to arranging the products
located within the shop. Counter display helps the customer to know
about all the items which are available in the shop. Such a facility is
not available in window display because all the items cannot be
presented in the window.
A good salesman must see that he should not show any goods
which may go against the window display. Secondly, counter display
must bring out as many varieties as are related to the particular type
displayed at the window. Thirdly, the salesman must see that goods
are not placed one upon the other.
(d) Showcases: In this type, the items are presented in a
cupboard with glass front of cabinets with glass front. These are
similar to window display in the sense that, the showcases should be
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rectangular, items should be placed horizontally. In showcases, items

of similar nature and even size should be grouped together so that,
the customer knows the varieties of the same type available. The
showcases should contain all the items available in the shops.
(e) Showrooms: A showroom is used by many producers
or dealers not only to expose goods for sale but also demonstrate the
uses and the working of the articles. It is meant for presentation of
technical products, sophisticated goods etc. which require lot of
explanation before buying the products.
Showrooms have technically qualified persons to assist the
customers when they visit the showrooms and also advice and guide
them to understand the goods better.
(f) Exhibitions: The trade exhibitions are meant for introducing
new products or latest innovations in the fields of business. They are
organised by Trade Associations of Chamber of Commerce. The
main idea behind exhibitions is that various traders, manufacturers
etc. can be induced to visit and get information about the products
displayed.
In exhibition there is only presentation of the products and no
sale takes place. For this purpose, the stalls are decorated and the
items are presented in an attractive manner. Exhibitions have mass
approach because many people visit them.
(g) Trade Fairs: Trade fair is similar to exhibition except
that in the trade fair not only the items are exhibited but are also sold.
Besides, entertainment items are staged to attract hundreds of
people. Thus, there is business and fun in the trade fairs.

4.14 SUMMARY

Selection of right media is important for achieving the

objectives of advertising. Selection of right type of advertising media
depends on the factors like the nature of production, market
 77

requirement, advertising objectives, distribution strategy, budget,

competitors‟ choice, media availability etc.
There are a number of advertising media choices available in
India like Radio, FM Radio broadcasting, Internet, Television, Press,
Magazine and Journals, Mural advertising act. But not any single
media can satisfies all the objectives of the company.

4.15 QUESTIONS

1. What is Advertising Media? Explain the main factors to be kept in

mind while selecting advertising media.
2. What is Advertising Media? Explain the determinates of
advertising media.
3. What do you understand by Radio Advertising? Explain its merits
and demerits of Radio Advertising.
4. Radio Publicity has become a „must‟ of the Modern Business”.
Comment.
5. What is FM broadcasting? Explain modulation characteristics of
FM Radio broadcast
6. What is Internet Advertising? What are the types of Internet
Advertising?
7. What are the advantage and disadvantages of Internet
Advertising.
8. Television Publicity has become a must of the Modern
Advertising.” Comment.
9. What is Television Advertising? Give its Merits and Demerits.
10. What is Press Advertising? What are its Forms? Describe the
Advantages and Disadvantages of each.
11. What do you mean by Press Advertising Media? Discuss the
Various Forms of Press Advertising. Explain the Merits and
Demerits of each
12. Write notes on : (a) Film Advertising (b) Point of Purchase
Advertising (c) Specialty Advertising (d) Video Advertising
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13. What do you understand by Outdoor Advertising Media? What

are its Forms? Explain its Merits and Demerits
14. What do you mean by Mural Advertising? Discuss its Merits and
Demerits.
15. What is meant by Outdoor Advertising? What are its Main
Characteristics? Discuss its Advantages and Disadvantages.
16. What are different forms of Displays?


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5
MEDIA PLANNING

Unit Structure:

5.0 Objectives of the lesion

5.1 Introduction
5.2 Steps in Media Planning
5.3 Media Vehicle choice
5.4 Significance of Reach Frequency and Continuity in media
planning
5.5 Zipping and Zapping
5.6 Summary
5.7 Questions

5.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand:
Media Planning: Process involved in Media planning
Major Media types - Media-Vehicle, Media Vehicle Choices
Significance of (a) Reach (b) Frequency and (c) Continuity in
media planning
Objectives of Greater Frequency: Media Mix
Zipping and Zapping

5.1 INTRODUCTION
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Media planning is an exercise to find the best medium or

combination of media that will produce the best overall effect relative
to the needs of the advertised brand. Media planning in general
should involve optimum benefits in the long run. The media mix, in
terms of balance of usage for TV, radio and print media or other
types of media vehicles, should be such that the best utility of the
advertising budget is obtained, and duplication of audience is avoided
as far as possible.
There is no single best media strategy that is applicable in varied
situations or sometimes even in similar situations. Media strategies
also differ because of changing situations. For example, the state of
the economy changes just as consumers‟ tastes change.
Advertisements for luxurious cars would therefore not be effective
during times of economic depression. Similarly, advertisements about
blue jeans, when jeans are not in fashion, would not have much
impact.
To select the right media and to search the right target audience
for a desired response the advertiser or his advertising agency
should go for a systematic media planning.

5.2 STEPS IN MEDIA PLANNING

The following are the steps in media planning:

1. Decide Target Market: It is necessary to decide specific
market where planned efforts can be directed.
2. Media Objectives: Media objectives are often stated in term
of reach, frequency, gross rating points and continuity.
(a) Reach: It refers to the number of different persons or household
exposed to a particular media schedule at least once during a
specific time period.
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(b) Frequency: It refers to the number of times within the specified

time period that an average person or household is exposed to
message.
(c) Gross Ratings Points: It refers to the total weight of a media
effort in quantitative terms. GRP’s are equal to each multiplied by
average frequencies. E.g. 80% of the homes watch Chitrahar and
they are exposed on average 2.5 times within the 4 week period.
The total impact or GRP’s = 80 × 2.5=200.
(d) Continuity: It refers to the timing of the media insertions.
3. Selection of Media Types:
Every media plan requires that specific media types to be selected.
There are a number of advertising media available to the advertiser
for advertising the goods etc. These may be grouped under the
following heads:
1. Press Advertising Media - (a) Newspapers and (b) Magazines and
Journals.
2. Outdoor or Mural Advertising Media - (i) Posters, (ii) Advertising
Boards, (iii) Sandwich Boards, (iv) Electric Display, (v) Vehicular,
(vi) Sticker, and (vii) Sky Writing.
3. Direct Mail Advertising Media - (i) Circulars, (ii) Price-lists, (iii)
Booklets, (iv) Leaflets, and Folders, (v) Business Reply Envelops
and Cards, (vi) Gift Novelties, and (vii) Personal Letters.
4. Broadcast Advertising Media - (a) Radio, (b) Television
5. Promotional Advertising Media - (i) Window Display, (ii)
Showroom, (iii) Exhibitions and Fairs, (iv) Interior Display, (v)
Trade Shows, (vi) Samples, Coupons and Premiums etc.
6. Miscellaneous Advertising Media - (a) Cinema and Cinema Slides,
(b) Specialty Advertising, (c) Purchase Point Advertising, and (d)
Video Advertising etc.
4. Selecting Specific Media Vehicle: Once a decision is made on
media types, specific media vehicles within each medium must be
chosen.
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Media Mix: Once the media selection is decided upon, the next step
is to determine the mix of the media one must use. This will be
arrived at by considering the advertising company’s marketing
objectives, its target market, media characteristics, and its matching
with the target market. The overall advertising budget also influences
the nature of such mix, in addition to the available audience. For
example, to achieve certain advertising objectives, one may require
using a mix of 50% newspaper, 25% magazine and the rest 25%
television. However, more than one mix may fulfill the advertising
objectives, and yet be within the overall budget cost. But one should
aim at balanced mix.
Some advertisers prefer to concentrate on one media type mix
whereas others like to have a widely varied mix. While the former
offers the advertiser an opportunity to make a great impact on a
specific market segment, the latter, being an assortment of media,
can deliver different messages about the same product in different
market segments more effectively.
Media Buying: The specialist who is the counter part of the media
sales representative is the media buyer. Most of these specialists
work for advertising agencies, although some are retained by
advertisers and some work for firms of media specialists who offer
media buying services to both advertising agencies and advertisers.
Media buying service is likely to be more personal and direct.
The media buying specialist helps to decide what media should
be used for a product, purchases the media, and controls and
evaluates the performance of the media purchased.
There is growth of Media Buying Units (MBUs) throughout the
world. Advertising Agencies merge and form a group and then set up
an independent MBU to buy advertising space. The MBU benefits not
only the advertising agencies, and the advertisers because of cost-
effective rates, but also the media sellers. The media sellers can
negotiate for rates, with one media buying unit on behalf of a group of
ad agencies.
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5. Allocation of Funds: The planner should than decide on the

amount of funds that would be allocated to each media type and
vehicle.
6. Media Scheduling: Media scheduling could be used
depending upon the requirements of the advertisers.

5.3 MEDIA-VEHICLE CHOICE

After indemnifying the various advertising medias, as available

for a company, the subsequent managerial task is to evaluate each
media vehicle against certain criterion and then only to decide which
of the particular vehicles are suitable for him. For such a decision, he
has to evaluate the available media vehicles against certain criterion.
The major vehicle evaluation criterion are as follows:
1. Coverage: It is the most important and powerful criterion for
evaluating vehicle media. Coverage refers to the number and spread
message outlets provided by the media vehicle. When the media
vehicle provides large coverage, the changes of message exposure
to customers is also greater. Thus a media vehicle providing larger
coverage should be more acceptable. For example, in case of a
newspaper, the coverage refers to the circulation of that particular
newspaper. But this is not enough. We must also consider other
criteria which are as follows.
2. Consumer Confidence: It is also an important criterion for
evaluating the selection of a vehicle media. Consumer confidence
refers to the credibility of media in the mind of target customers. It is
a relevant criterion for evaluating a media vehicle since the credibility
of advertising message is positively related to the media vehicle’s
credibility. For example, a recent study in India revealed that
newspapers and magazines are considered to be the most credible
of all media, scoring high on usefulness and information.
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3. Reach: Reach as an evaluation criterion refers to the vehicle’s

access to different homes or individuals over a given period of time.
In case of press media, it is indicated by readership which is arrived
at by multiplying circulation of the paper with the average number of
readers per copy.
4. Cost: Cost is also an important criterion against which each
media vehicle choice should be evaluated. Cost refers to the money
spent on using a particular vehicle media. In order to make a
decision, it is suggested that the advertiser should make out an inter-
vehicle cost comparison.
5. Timing: The last but also equally important criterion for
evaluating vehicle media choice is the timing of advertisement. The
reasons for the importance of the decision may be two-fold - (i)
Seasonal ability of product sales, and (ii) staggered effects of
advertising. The advertiser should, after considering these two
elements, decide on the scheduling of advertisements to improve the
effectiveness.

5.4 SIGNIFICANCE OF REACH, FREQUENCY AND

CONTINUITY IN MEDIA PLANNING

Media planning means devising a programme in such a

manner as to optimally use the advertising space, the broadcast time,
or other advertising media, in exposing an advertiser’s message to
potential consumers. There are basically three concepts that are
generally incorporated in most planning processes:
(a) Reach: Advertisers are mainly interested in the percentage of the
total market that they can reach their messages through the media in
a given area of coverage. Reach refers to the total number of
households that will be exposed to a message through a particular
media vehicle over a set period of time. This period of time may vary
from advertiser to advertiser, but generally, four weeks is considered
 85

adequate for calculation purposes. Reach is usually expressed as a

percentage of the total number of households in a prescribed area
that have been exposed to the advertising message. For example, if
there are a total number of 1000 households and 200 of these have
been exposed to the message then the reach is calculated to be one-
fifth or 20 per cent.
Objectives of Greater Reach: The purpose of reach is optimal
exposure. The idea behind the strategy for greater reach is that the
advertisement be received by as many people as possible in the first
instance. A strategy for greater reach would be desirable under the
following circumstances:
1. When a new product is introduced the idea is to initially expose
the product to as wide an audience as possible, irrespective of
whether they immediately remember the product or not.
2. When introducing a new use for the product in order to expand
its share of the market. If a product is already known but a new
aspect of the product needs to be advertised, then greater reach is
desirable. For example, if a well-established brand of toothpaste
adds mouthwash ingredients to it, it would call for greater reach so as
to inform a wide audience about this additional feature.
3. When seeking to increase the recognition of the company
through a campaign or to promote the image of the company. For
example, the advertising campaigns for Godrej made the name of the
Godrej Company, a household name for quality and variety of
product.
4. When the creative message is so dramatic that most people
will react to it and retain the message after only the first exposure.
For example, when a famous film star is promoting a product or when
the message is unique, eye-catching, attention getter, then reach
becomes more important than the frequency.
(b) Frequency: Frequency is the average number of times in a given
period that each person has been exposed among the target
audience by the brand’s advertising. If the message reaches the
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audience by the brand’s advertising. If the message reaches the

audience just once, is it enough to influence their buying or should
they be exposed to the message more than once in order to reinforce
the message? If so, then how many times a household should be
exposed to the same message? Thus, frequency refers to the
number of exposures to the same message that each household
supposedly receives. Since the frequency may differ for different sets
of households, an average frequency is calculated by the following
formula:
Average frequency = Total exposures for all households
Reach
If the total number of exposures is 400 and the reach is 50 then
the average frequency is 8. This means that the average household is
exposed to the same message eight times.
Objectives of Greater Frequency: Frequency primarily means
repetition of the same message and the objective of greater
frequency is to promote interest and desire for the product on a
continuous basis instead of a simple awareness. Even though
frequency is achieved at the expense of reach, it is advisable to go
for frequency under the following situations:
1. When the competitor is using high frequency to reach the
same segment of the market. For example, in the case of soap and
detergent commercials, a competitor has a distinctive edge, if he
continuously reinforces the quality and utility of his product in the
customers minds by repeated advertisements. This offensive can
only be countered by frequency of advertising rather than reach.
2. When a reaction is desired within a limited time period. For
example, a sale on for just one week would necessitate advertising
the same message on the radio or TV repeatedly or in daily
newspapers everyday. Continuous repetition of a message that
includes the warning „sale ends on Friday‟, provides a sense of
urgency. Similarly, the message accompanied by „first come, first
served‟ would excite more immediate sales for a given product.
 87

3. When the message is not easy to remember, for example, if

the advertising message consists of prolonged explanation of the
product’s features, then the audience should be exposed to the
message a number of times so that people become aware of all
aspects of the product.

4. If the product or brand is not sufficiently differentiated from

products and brands of competitor. For example, a distinctive brand
of Maruti of Premier can does not necessarily require greater
frequency. But a specific brand of soap or toothpaste that does not
have any distinguishing characteristics does require greater
frequency.

(c) Continuity: The message should be relayed continuously to the

potential households. A long period of abstinence from advertising
(that is, lack of exposure) will jeopardize the advertisement
investment of the firm. It is necessary to have a continuous
programme of advertising. When customers continue to hear about
the product and the company at the time of need? Continuity has a
cumulative effect of advertising on the customer. Continuity refers the
length of time the advertisement runs, or whether it is periodic.
Check Your Progress
1. “Media planning is an exercise to find the best medium to
produce the overall effect related to the advertised brand.”
Discuss.
2. Explain the following vehicle evaluation criterion:
a. Coverage
b. Reach
c. Timing
3. Define the following terms:
a. Media Buying
b. Media mix
 88

c. Continuity
d. Reach
e. Frequency

5.5 ZIPPING AND ZAPPING

5.5.1 Meaning:
We can trace the concept of zipping and zapping to the era of
VCRs and remote controls, each of these devices brought a change
not only in the TV viewing habit but also led to a proliferation in the
number of TV channels. When VCRs launched they also introduced
time shifting viewing pattern and the remote control helped evolve TV
viewing beyond a family setting. By the 1960s TV sets were cheap
enough to afford more than one per household and with that it also
brought about the beginning of different channels that catered to
more varied taste. The remote control made it easier for the viewers
to zap through commercials i.e. viewers could now change channels
during the commercials thereby avoiding ads. Some experts argue,
ad avoidance was in existence even before the remote, people would
leave the room during the commercial break.
DVRs also cause similar concerns, how attentive are the viewers
to the ads, if at all? But time shifting helps find new audiences as
well, people who otherwise would have missed the show. VCRs gave
viewers more control, and so do DVRs that have helped viewers
watch more of programming they like, i.e. they are therefore more
likely to be engaged hence more willing to pay attention. However,
we are still not addressing the problem of ad avoidance behavior.
5.5.2 Could Game play Combat TV Ad Zapping and Zipping
Game play during commercials may be an effective way to get
more people to pay attention to sponsored ads on broadcast
television. Interestingly, it is very rare to see any type of contest or
game-like promotion to reward people for watching commercials,
 89

even though that behavior is highly desirable to broadcast

advertisers.
Can game play be used as incentives for attentive T.V.
commercial viewing? Could games help television advertisers
cultivate the interactive engagement and motivation that lead to direct
response after ads are viewed?
Are commercial games rare because games were not effective in
this role in the past? Or is it because so many marketers assume any
type of game has to involve an expensive prize or legal consultation
to make sure the promotion is on the right side of gambling and
lottery laws?
What types of games would be compelling during live broadcast
commercial breaks? What issues would need to be addressed to
prevent people who did not watch the commercial from simply
scraping the commercial contents from a web resource after the
actual broadcast?
5.5.3 Zapping and Zipping Commercials into Extinction:
Since the development of the home VCR, advertisers have been
concerned with zipping-fast forwarding through commercials during
recordings of sponsored television programs. Newer technologies
have only increased advertiser paranoia that television viewers are
prerecording shows and then skipping the commercial breaks. A
similar concern was raised with the advent of remote controls which
let users change the channel during commercial breaks with very little
physical effort (zapping).
When advertisers complained, the television networks produced
studies that showed viewers were already avoiding annoying or
boring commercials by leaving the room or otherwise diverting
attention during commercial breaks regardless of the remote control
or recording devices. The general result was that big brands had to
make more interesting commercials or utilize product placement and
other clever ways to integrate ad messaging into television programs.
More Watchable Commercials = More Expensive Commercials
 90

Commercial production values are often very good. Feature film

quality TV. commercials are not uncommon today and some
commercials are enjoyable enough that they can function as short
form programming (these top-shelf commercials tend to go viral
online too). Many commercials have been episodic or featured some
type of comedy skit to keep viewers from zapping or zipping away.

5.6 SUMMARY

There are a number of advertising media available to the

advertiser for advertising the products. But not a single media can
satisfies all the needs of various time periods.
Media planning means devising a programme in such a
manner to use the advertising space, the broadcast time, other
advertising media optimally in exposing an advertiser’s message to
potential consumers. Systematic media planning is the responsibility
of advertiser or the advertising agency. It is a proper process which
includes the steps like deciding target market and media objectives,
selecting specific media vehicle, allocating funds etc.

5.7 QUESTIONS

1. What is Media Planning? Explain the process involved in Media

planning
2. What are the steps in Media Planning
3. What are the Major Media Types? Explain in brief.
4. What can be the Possible Media of Business Advertisement?
Explain each in Brief.
5. While Making Media-Vehicle Choice (s) Coverage is but an
Inadequate Decision-Input. Do you agree? What other Decision
Inputs are required for Making Media Vehicle Choices?
 91

6. What is the significance of (a) Reach, (b) Frequency and (c)

Continuity in media planning?
7. What are the objectives of Greater Frequency
8. Write short note on : (a) Media Mix (b) Zipping and Zapping


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6
MEDIA RESEARCH
Unit Structure:
6.0 Objectives of the lesion
6.1 Introduction
6.2 Role of Media Research
6.3 Audit Bureau of Circulation (ABC)
6.4 Television Rating Points (TRPS)
6.5 National Readership Survey (NRS)
6.6 Media Survey
6.7 Summery
6.8 Questions

6.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand:
Media Research and its importance
Audit Bureau of Circulation (ABC)
Television Rating Points (TRPS)
National Readership Survey (NRS)
Media Survey
Syndicated Research Services

6.1 INTRODUCTION

‘Media Research’ involves the collection of data about the

various advertising media, surveying consumers on their media
preferences and habits, and carrying out primary and secondary
research on effectiveness of each medium for selling particular types
 93

of products. Few advertising agencies or advertising departments in

India have „media research departments‟; where these exist; it is the
department's responsibility to draw up media plans and strategies.
Most advertising agencies, however, have a „media department or
media division‟ which carries out the task of media planning. The
majority of agencies depend upon outside marketing agencies to
conduct readership or audience surveys for them.
Media research is concerned with advertising reach, frequency
and the effectiveness of different media and combination of media
(media-mix) in reaching target audience. Media research attempts to
finds out the most suitable media or media-mix that would suit the
needs of the advertiser.

6.2 ROLE OF MEDIA RESEARCH

The role of media research can be stated as follows:

1. Readers’ Profile: Media research helps to understand the
profile of the readers, listeners and viewers. Readers‟ profile relates
to the data on the age, income, occupation, buying pattern and other
demographic and socio economic details. Such profile helps to draft
effective ad messages to the target audience.
2. Selection of Media: Proper media research helps to select
the most suitable media mix that would be required by the advertiser
depending upon the type of product, prospects, ad budget etc. The
advertiser will select that media which has maximum readership or
viewership or listenership of the target audience.
3. Booking of Time and Space: Media planning department or
the media operations department can book time and space in the
media depending upon the programmes viewed or articles read by
the target audience.
4. Importance to Media Owners: The media research helps the
media owners to improve their programmes or editorial contents so
as to increase listenership, viewership and readership. It also helps
 94

the media owners to fix charges for their time and space that would
be used by the advertisers. For example, if the research indicates
that the programme has increased the viewership by 50% then the
advertisers will have to increase frequency of advertise.
5. Sponsorship of Programmes: It helps the advertiser to
select a particular programme for sponsorship. The advertiser may
elect the sponsorship of that programme which is mostly viewed or
listened by the target audience.
6. Benefit to Audience: Audience get better editorials and
programmes as the media owners make every effort to improve their
contents. The media owners try to improve their programmes or
editorials, so as to attract the attention of large number of readers,
listeners, or viewers. This would bring them more advertising
revenue.
7. Benefit to Media Planners: It helps the media planners to
understand the rating from the various programmes on TV channels
and on radio through Television Rating Points (TRP) reports. Again, it
helps them to understand the circulation trends of newspapers and
magazines through Audit Bureau of Circulation Reports.
8. Benefit to Research Organizations: Media research enables
the research Organisation such as Indian Marketing Research
Bureau (IMRB), the Operations Research Group (ORG) and others to
keep their activities moving in the right direction.

6.3 AUDIT BUREAU OF CIRCULATION (ABC)

Audit Bureau of Circulation is research agency operating in India

for more than 44 years, which for a fee does circulate assessment for
newspaper and magazines. Media Research agencies are
specialized agencies which collect information about various
advertising media (Operations, circulations, popularity, cost etc.) and
supply necessary information to their clients. ABC is one of such
agencies operating in India. Initiative for establishing ABC was taken
 95

by people from advertising profession. As a result of their efforts, the

ABC was established in 1948 as a voluntary, self-regulatory, co-
operative association of advertiser and publisher.
The ABC is incorporated in 1948 as a non-profit making
organization with liability limited by guarantee. The management of
ABC is by a council of management. Equal representation is given to
nominees of publishers on the one hand and to advertisers and
advertising agencies on the other hand. ABC is a co-operative
agency or an association of advertisers, advertising agencies and
publishers of periodicals and disseminates information about
newspapers and periodicals. For this, each publication supplies
periodical information to this Bureau.
All important publications are the member of this Bureau and
nearly every daily, newspaper circulation is audited by ABC. Only
those publishers where publications are paid by the readers can
become the member of ABC. These publications, which are
distributed on free basis, cannot become the members of this
Bureau. ABC charges a fee and every six months it provides its
members with Audited Circulation Certificate in respect of important
newspapers and periodicals published in the country.
6.3.1 Functions:
The ABC performs the following important functions:
1. The ABC has its own field force that collect circulation figures
of its member published by contacting newspaper and magazines
distributors.
2. It disseminates the information relating to the circulation
figures of various periodicals and publication member of advertisers
and agencies.
3. It conducts its own tests and readership surveys to assess the
reading habits of particular publication.
4. The ABC also assesses the impact of various available media
on different segment of the society. Thus, an advertiser can obtain
reliable comparative picture of effectiveness of different media.
 96

5. The certified figures published by ABC are taken as the true

Index of the circulation and popularity of the newspaper / magazine.
6. The ABC collects its data from the vendors of the periodicals
and publications by using standard techniques of mail interviews or
personal interviews.
The ABC plays an important role in providing reliable and
authentic data relating to the circulation of newspapers and
magazines. This information becomes the basis of buying space, in
different newspapers and magazines.
The membership of ABC is purely voluntary and any publisher
willing to follow the rules and procedures of ABC regarding his
circulation data can join its membership.

6.4. Television Rating Points (TRPS)

The TRP system was introduced in July 1986 to provide quick

feedback on the viewership of different television programmes.
TRP is conducted by Indian Market Research Bureau (IMRB). It
is conducted in 9 major cities of India - Mumbai, Kolkata, Delhi,
Chennai, Hyderabad, Bangalore, Kanpur, Ahmadabad and
Trivandrum. The TRP system involves collection of viewership data in
respect of TV programmes on a weekly basis from a panel of
sizeable number of respondents. The member of the panel record
their viewership of different TV programmes daily in a special diary
provided to them. The filled diaries are collected every week from the
panel members and the data is analyzed.
6.4.1 TRP panel members belong to either of the two groups:
1. Primary Audience : Adults from TV owning house-holds
(Irrespective of their TV viewing habits).

2. Secondary Audience: Adults from non-TV owning households

who view TV at least once a week. Programme rating is the
percentage of the panel members who viewed that programme.
 97

One TRP is equal to one per cent of TV audience. For example, if

60% of the audience viewed Crime Petrol, then Crime Petrol
gains 60 TRPs.
6.4.2 TRP report: TRPs report is as under:
(a) TRP Weekly Reports: The TRP Weekly Reports provide data
on weekly viewership of different programmes by cities. The
viewership details are provided separately for primary audience and
for the total audience (Total Audience = Primary Audience +
Secondary Audience). Weekly viewership data is given across sex,
age and income of the viewers.
(b) TRP Monthly Reports: The Monthly Reports present
additional analysis like frequency of viewing, duplication in viewership
between leading programmes, cumulative reach gained over several
episode of the same programme and the profits of readers.
(c) Special Reports: They provide rating for a specific event of
programme.
The TRPs are very useful in media planning.
(a) It assists in selecting the programme that is to be sponsored.
(b) It helps in placing the spot ads before a particular programme.

6.5 NATIONAL READERSHIP SURVEY (NRS)

The history of NRS in India dates back to 1970. Since then, four
NRSs have been conducted. The first was carried out by ORC in
1970. The second jointly by IMRB and ORG in 1978. The third was
conducted solely by IMRB in 1983-84, and the Fourth NRS jointly by
IMRB and MARG in 1990.
6.5.1 Objectives:
The objective of NRSs is to provide advertisers, ad agencies,
publishers and others with estimates readership of major publications
and to make broader comparisons exposures to press, cinema, radio
and television.
The objectives of NRS can be broadly divided into two :
 98

1. Primary Purpose: The primary purpose is to provide

information that can be used as the basis for buying and selling
advertising space in the press medium.
2. Secondary Purpose: The secondary purpose of the NRS is to
provide the media users with data on comparative exposure levels to
other major mass media namely, television, video, cinema and radio.
6.5.2 Information Areas Covered by NRS:
The NRS provided information on the following areas:
1. Readership estimates for various selected publications.
2. Listenership of radio.
3. Viewership of television, video and cinema.
4. Inter-media duplication (i.e. those persons who are exposed to
more than one media), and
5. Duplication between publication (duplication means those readers
who read more than one publication magazine or newspaper).
The survey is conducted only on urban readers across the
country. The country is primarily divided into four zones i.e. North,
South, East and West. For instance, the survey in West Zone
covered towns in Gujarat, Madhya Pradesh, Maharashtra and Goa.
The NRS-IV has covered Urban India excluding all off-shore
territories (such as Andaman & Nicobar Islands), Punjab, Jammu &
Kashmir, and Himachal Pradesh. Punjab and Jammu & Kashmir
were excluded because of the uncertain law and order situation.
Himachal Pradesh could not be included since the sample size after
the exclusion of Jammu & Kashmir was too small to provide
representative estimates of readership habits and media exposure.
The selection procedure of respondents for the survey was made
using a two-step procedure, which are:

(a) A sample of voters was first drawn from the electoral rolls in
group of a pre-determined size.
(b) The addresses where the selected voters were residing were
located. Within each such contacted household, adults‟ age 15+
 99

years constituted the frame for randomly selecting an individual for

the readership interview.
6.5.3 Publication:
A special Publications Committee, comprising of senior media
controllers and directors from advertising agencies, decides on the
Publications to be included in the NRS. The Committee identifies and
includes those publication covered by ABC depending on their
circulation figures. They use their collective judgment to include
publications not covered by the ABC. NRS III covered 322
publications, whereas NRS IV included 288 publications.
It is to be noted here that Operations Research Group (ORG) did
conduct a similar study in 1989-90 called ORG-NRS, which covered
604 publications and interviewed readers in both urban and rural
areas.
6.5.4 Social-Economic Classification: For the first time, NRS-IV
provides the distribution of households by social class, according to
the new Socio-Economic Classification (SEC) system that has been
developed by the Market Research Society of India (MIRSI). This
system, which is based on the occupation and education of the chief
wage earner of the household, has been created so as to provide an
alternative to household income which has so far been the basis of
classifying households.
The socio-economic classification as developed by MRSI
consists of eight socio-economic classes labeled as A1, B2, C, D, E1
and E2, A1 denotes the upper most socio-economic class, and E2
stands for the lowest socio-economic class.
Check your progress:
1. Give the full forms of:
a. NRS
b. ABC
c. TRPs
d. IMRB
e. ORG
 100

f. SEC
g. MIRSI
2. Fill in the blanks
a. The history of NRS in India dates back to ------------------.
b. The TRP system was introduced in -----------------------.
c. The ABC is incorporated in --------------.
d. Media research is concerned with advertising reach, --------
---- and ------------------ of different media and combination
of media.
e. The second NRS has been conducted jointly by -------- and
------------ in 1978.

6.6 MEDIA SURVEY

Media survey refers to the research survey conducted on

various facets of media such as press circulation and readership
exposure levels to television, video, cinema and radio. Media survey
provides useful information about readership for various publications,
viewership of television, video and cinema, listenership of radio etc.
There are several organisations which conduct media survey on
a regular basis for their clients. They conduct marketing research
according to the requirements of their clients on payment basis and
supply them useful data. Such services in marketing research are
known as syndicated research.
Syndicated research is conducted in the area of movement of
consumer and products through retail outlets, advertising audit by
measurements of newspaper readership, survey of TV viewing etc.,
periodic survey of consumers‟ attitude and behaviour research.
These studies choose a number of samples from the all India market
and obtain estimates of the consumer response (e.g., brands
consumed, newspapers/magazines read viewership of particular TV
programmes etc.) at different point of time on regular basis. Such
surveys are of great help in estimating the marketing potentials.
 101

6.6.1 Syndicated Research Services: The following agencies offer

syndicated research services:
1. National Readership Survey (NRS): Five NRS studies have so
far been conducted. The first one was conducted by ORG in
1970, second NRS was jointly done by ORG and Indian Market
Research Bureau (IMRB) the third and the fourth NRS was
conducted exclusively by IMRB. The third NRS was conducted in
1985. The following NRS conducted in 1990 whereas the fifth
NRS was completed in 1995.
2. Businessmen’s Readership Survey (BRS): IMRB has initiated a
syndicated research about the readership habit of professionals
engaged in various activities in India. It mainly highlights the
newspapers read, the place of reading and obtains some profile of
the readers from about 8,800 respondents located in twelve large
cities in India.
3. Television Rating Point (TRP): IMRB conducts a panel based
study of about 3000 households in 9 cities about their television
viewing patterns. It cross-classifies the viewership data on age,
six, income basis for each television programme watched.

6.7 SUMMARY

Media research is concerned with advertising reach, frequency

and the effectiveness of different media and combination of media
(media-mix) in reaching target audience
Media research is helpful to understand the profile of the readers,
listeners and viewers, to select the most suitable media mix, to book
time and space in the media, to improve media owners‟ programmes
or editorial contents, it helps the advertiser to select a particular
programme for sponsorship, it helps the media planners to
understand the rating from the various programmes on TV channels
and on radio through Television Rating Points (TRP) reports.
 102

ABC is a Media Research Agency. These are specialized

agencies which collect information about various advertising media
and supply necessary information to their clients.
The TRP is a system which provides quick feedback on the
viewership of different television programmes.
The objective of NRSs is to provide advertisers, ad agencies,
publishers and others with estimates readership of major publications
and to make broader comparisons exposures to press, cinema, radio
and television.
Media survey provides useful information about readership for
various publications, viewership of television, video and cinema,
listenership of radio etc.

6.8 QUESTIONS

1. What is Media Research? Explain its importance

2. Audit Bureau of Circulation (ABC)? Explain its functions
3. What are Television Rating Points (TRPS)? Explain in brief
4. Write short note on National Readership Survey (NRS)?
5. Explain the objectives of National Readership Survey. Also point
out Information Areas Covered by NRS.
6. What is Media Survey?
7. What is Syndicated Research Services?


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7
EMERGING MEDIA OPTIONS
Unit Structure:
7.0 Objectives of the lesson
7.1 Introduction
7.2 Media Options
7.3 Marketing through Social Sites
7.4 Marketing through Social Networking Sites
7.5 Advertising though Cell Phone
7.6 Summary
7.7 Questions

7.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand:
Media options available to Indian viewers
Satellite Television: Advantages and limitation
Cable Television: Limitations
Marketing through Social Sites: Objectives of marketing campaigns
on social networks Marketing Campaigns on Social Networks
Advertising through Cell Phone

7.1 INTRODUCTION

There are several media options available to viewers. The

viewers today have not only a greater choice but freedom to choose
as well. There has been an influx in the media market over 200
different TV channels both Indian and foreign are now beaming in. By
 104

one estimate, they deliver a total of 750 hours of TV footage every

day.

7.2 MEDIA OPTIONS

The various media options are as follows:

1. Transit Advertising
2. Satellite television. 3. Cable television
4. FM channel.
5. Video advertising.
7.2.1 Transit Advertising: Transit advertising also called vehicular
advertising. We fined advertising in the mainline trains, suburban
trains, buses, taxis, auto-rickshaws, etc.
Suburban railways in Mumbai has allowed outside compartments of
local trains for advertising purpose. BEST buses carry advertising
messages in the buses. They generate revenue to the advertiser.
Thus advertising in any form through transit media is called transit
advertising.
7.2.2 Satellite Television: With satellite TV, and plethora of new
channels, Indian viewership base is expanding. It is estimated that
the viewers would have more than 500 satellite channels by 2010
A.D.
Advantages:
The following are the main advantages of satellite
television.
1. Global Recognition: Satellite television has provided global
recognition to Indian business. It has facilitated global publicity of
domestic goods \\\\\\\\\\\\\\\\\\\\\\\\\\\Global Contacts: Satellite
television has brought Indian business community within the
functional life of the whole world.
 105

2. Open Door Policy: Satellite television accepts advertisement

of products which are banned on doordarshan such is cigarette and
liquor.
3. Mass Appeal: Satellite televisions have become very popular
among the masses because of contents and coverage.
4. Prime Time: It was generally believed that television has
prime time viewership, but the experience of satellite television has
shown that a television channel can broadcast all 24 hours.
5. Variety of Programmes: Satellite television provides a variety
of programmes. They include serials, shows, teleplay, children
programmes, talk shows, game shows, fashion shows, chat shows
etc.

Limitations: There are several problems associated with satellite

television.
1. The first one is the lack of talent. Since the TV explosion is so
recent, the competent people happen to be with the existing houses.
This has led to a lot of turnover involving huge spurts in manpower
costs.
2. The second difficulty is to assess what the consumers want. It
is difficult to get a clear picture of the target audience their attitude
and likings.
3. Another important problem of satellite television is the entry of
groups with virtually no synergy with media operations. For examples
from the diversified Chennai based NEPC group to the London based
Hinduja group all are new to the field.
7.2.3 Cable Television
Cable Television (CATV) stands for community antenna
television and is popularly referred to as cable television. It was
introduced to provide good video reception for people who could not
otherwise receive signals well.
The concept of cable television is also changing. Originally, it
paid a copy right charge, picked up network and independent
stations‟ broadcasts and delivered them to home that were wired for
 106

cable for a subscription fee. As cable systems grew in size and

sources they acquired the rights to movies, television reruns, and
sporting events which they transmitted to their subscribers. These
offerings usually took the form of pay television – subscribers paid a
special fee for programmes without commercials.
Advertising expenditure for cables is increasing day by day and
the cable TV has opened up various avenues for the advertisers to
promote their products. Most of the advertising currently on cable is
in the form of spots sold to national advertisers. Cable offers the local
advertises an opportunity to create innovative advertisements. In
future cable advertising will be extensively used by regional and
national advertisers for promoting their products.

Limitations: The following are the limitations of Cable television:

1. C-TV is at its infancy. It has not been developed as an organised
activity in India.
2. Each new entrant encounters a series of reach restricting filters.
3. The ability of the cable operators to receive beams from the
particular satellite.
4. The willingness of the operator to expand their capacity to actually
deliver the service.
5. The major problem remains with the TV set itself. More than half
of the TVs in metro centres can tune in to only 12 channels.
7.2.4 FM broadcasting:
FM broadcasting is a broadcast technology pioneered by
Edwin Howard Armstrong that uses frequency modulation (FM) to
provide high-fidelity sound over broadcast radio.
The term "FM band" is effectively shorthand for "frequency
band in which FM is used for broadcasting". This term can upset
purists because it conflates a modulation scheme with a range of
frequencies.
7.2.5. Video advertising
It is now considered as the latest media of advertising. Under
this method, video-cassettes ad-films are prepared. Nearly 22 million
 107

people around the world watch Indian films on video. India alone has
video-audience of about 30 million which is increasing day by day.
There are more than 50,000 video-libraries and about 1 lakh video-
parlours/clubs in India. The video-cassettes released in India are also
being screened in thousands of luxury buses. Besides the feature film
they contain advertisements which are displayed at short intervals.

7.3 MARKETING THROUGH SOCIAL SITES

Marketing on social networks require the use of Facebook,

Myspace or private label social networks.
Social Networks are attractive because consumers are
connecting with other consumers and the trust tends to be higher.
There is a tremendous amount of buzz from the media for this newest
form of marketing. There are lots of folks using social networks.
The main objectives of marketing campaigns on social networks
are as follows:
1. Meets a business objective: First and foremost, any
marketing campaign or activity should match with a business
objective, regardless of the tools being used.
2. Supports Community Goals: Every community is different,
and each has unique goals (from supporting products, to each other,
or to just be entertained) the campaign focus should therefore meet
the needs of the community, before the needs of the marketer.
Effective campaigns will first understand the core drivers, interests,
and rituals of the community and learn how to meet those desires.
3. Member Interaction: The most successful social networking
campaigns and efforts involve the audience.
4. Quickly scale: Social networks are designed for information to
quickly move from member to member, so campaigns that lean on
these capabilities perform the best. These attributes known as
Velocity, Viralness, and Spread are key.
 108

5. Utilize Media: In some campaigns, the best way to get

members to return is to offer them media. Depending on
demographics and community needs, this could be audio, videos, or
demos
6. Self-expression or communication: Members in social
networks like to communicate with each other, or self-express. As a
result, campaigns should satisfy these needs with the appropriate
tools
7. User satisfying: This encompasses the overall experience of
the campaign, the content and navigation items should be where
expected, the language familiar to the audience, and overall look and
feel of the site appeasing.
8. Provide longer term utility: Successful campaigns have a
longer term value, rather than a short term 'disposable campaign".
These campaigns add value by being a useful application to the
members, rather than just quick dose of entertainment.
9. Enhance Value as Community participants: As more people
contribute or interact with the campaign, the value is increased. This
can be in the form of content that is created by the community,
contests, voting, or games.
10. Integration with other marketing activities: Successful
marketing campaigns aren't single channel; in fact they utilize
multiple channels and mediums to enhance the overall activity. The
same thing applies to marketing campaigns on social networks; those
that are promoted from other locations such as (corporate websites,
email newsletter, blogs, and podcasts) outside for the social network
have a great chance for success.
11. Maintain agility during the campaign: Social networks are
living, breathing organisms made up of real people connecting with
each other. Marketing campaigns also should share these attributes
and show is flexible to change in-flight, yield to legitimate requests or
complaints of the community. Those campaigns that reflect the same
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dynamic behavior as human interaction have a higher chance to be

interacted -and accepted -by the community.
12. Company Participation: In some cases, companies that
participate in the discussions or conversations will yield to a more
successful marketing campaign. Activities can range from
recognition, company interaction, or attention to members perhaps
from a community manager.

7.4 MARKETING THROUGH SOCIAL NETWORKING

SITES

There are a myriad of different social networking sites and

practically everyone and anyone are part of these networking sites.
Such sites are great online marketing tool, one that you can use to
improve your business or career.
What is social networking? Similar to the traditional form of
socializing, social networking is getting to know people; the only
difference is that it's online and not face to face. If you like someone
or share similar interests, these people become part of your network.
As your network grows and develops, it is advertising by word of
mouth. When a person in your network, start discussing or talking
about you then the marketing has begun?
The wonderful thing of online networking sites is that people are
not restricted by geographical location, time or any other thing for that
matter. You can interact with people whom you want to and when you
want to.
Interacting on these social networking sites is relatively easy, and
there are a number of ways to do so. Also a lot depends on your
main reason for being part of the network. Are you looking for
exposure for your business or your website? What are your business
goals? Are you looking for work? Or are you a potential employer
looking to hire professional employees?
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So basically your goals and objectives will dictate how you want
to present your profile, and more importantly whom you want as part
of your network. There are several different types of people you
should consider, who will help you out in different ways. Consumers
are people who will benefit from the service or products you have to
offer.
People from large organizations, along with media will help to
spread the news about your or your company. Then there are the
consultants whom you may consider hiring.
There are number of social networking websites that you can
become a part of such as LinkedIn, Myspace etc.

7.5 ADVERTISING THOUGH CELL PHONE

Mobile phone advertising is the promotion of ring tones, games

and other mobile phone services. Such services are usually
subscription-based and use the Short Message Service (SMS)
system. Another method is broadcasting messages to the mobile
phone is idle-screen, enabling the mobile operators or advertisers to
reach millions in real-time. The advertising and sale of ring tones in
particular has seen a massive growth in recent years, with some
commercial breaks, particularly on music television channels and in
motor racing being dominated by such adverts.
While advertising via a mobile phone is still relatively new,
inventors have developed ways to use a mobile phone to present
advertising to persons standing near a mobile phone user while the
user speaks in a non-hands free mode.
A new approach to mobile content advertising is the use of viral
marketing. Through specially designed programmes users can send
recommendations for mobile content they like to their contact lists.
Content advertising through mobile phone is a common event
and mostly all of the mobile phone users are greatly aware of it. This
feature is used to promote various products, ring tones, games,
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quizzes, mobile accessories and many more things, either directly

associated or indirectly associated with mobile phone features. In
general, these types of advertising are solely dependent on user-end
subscription. Primarily this is done through SMS messaging service;
sometimes it is done through broadcasting messages in the idle
screen of the mobile phone.
The most common and easily customizable form of content
advertising is through displaying the logo of the mobile network
operator. This comes either in text message or in small
monochromatic image, which can easily be replaced with customer's
own customized text or images.
On the other hand, handset manufacturers introduced a better
method for advertising their product by developing specialized ring
tones, which distinctively sets apart one brand to another. In their
websites, they also start advertising by supplying freely downloadable
ring tones of popular songs or melodies. They did it either with a very
low service charge or absolutely for no charge at all. This leads to an
increase in their rating and popularity among the mass.
Also mass media campaign contributed greatly in terms of
content advertising. This form of advertising drew attraction of the
mass just within a limited time phase.
The first known operator to execute brand advertising campaign
was none other than AIS in collaboration with Honda, the first
international advertiser using the mobile's idle screen to display
advertisement.
The current trend includes the ad-supported content advertising
to the phone service model. Almost all renowned network service
providers offer their users to experience subsidized service in
exchange of viewing a specific amount of advertisements in their
mobile phones.
The content advertising method is continuously evolving and it
incorporates different features including approaches like 'one person
per presentation' or 'persons standing near'. In both of the cases the
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objective is to provide the advertiser multiple views per presentation

within a specific demographic area, however, the processes are
somehow different.

7.6 SUMMARY

Now a day DD has not been remain the only option to the viewers.
The viewers have a greater choice and freedom to choose a proper
channel. Transit Advertising, Satellite television, Cable television,
FM channel, Video advertising are the main emerging options.
If you are using Face book or Myspace or private label social
networks for marketing it means you are marketing on social
networks.
Social networking means socializing or getting to know people
online and not face to face. If you like someone or share similar
interests, these people become part of your network. The wonderful
thing of online networking sites is that people are not restricted by
geographical location, time or any other thing for that matter.
In today's world, we can see that mobile phone has become a
potential diamond mine for advertisers though which the advertisers
are able to reach to the potential customer following the most
personal and intimate way.

7.7 QUESTIONS

1. What are the media options available to Indian viewers?

2. What are the advantages and limitation of satellite television?
3. What is Cable television? Explain its limitations?
4. Write short note on Marketing through Social Sites
5. What are the main objectives of marketing campaigns on social
networks?
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6. What makes a Successful Marketing Campaign on Social

Networks?
7. Write note on Marketing through Social Networking Sites
8. What are the advantages of advertising through Cell Phone

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8
ECONOMIC AND SOCIAL ASPECTS OF
ADVERTISING
Unit Structure:
8.0 Objectives of the lesson
8.1 Introduction
8.2 Effects of Advertising on Production Cost
8.3 Effects of Advertising on Distribution Costs
8.4 Effects of Advertising on Consumer Prices
8.5 Advertising and Monopoly
8.6 Wastes in Advertising
8.7 Social Aspects of Advertising
8.8 Ethics in Advertising
8.9 “Truth” in Advertising
8.10 Summary
8.11 Questions

8.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand:
Effects of Advertising on Production Cost
Effects of Advertising on Distribution Costs
Effects of Advertising on Consumer Prices
Advertising and Monopoly
Waste in Advertising
Advertising and Cultural Values
Advertising and Standard of Living
Ethics in Advertising
“Truth” in Advertising
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8.1 INTRODUCTION

A business has an optimum (or maximum) level of production

which it can manage, at any given time, at the lowest cost per unit,
depending on its present equipment and facilities. These factors are
the main determinants in deciding whether advertising raises, or
lowers down the cost of production.

8.2 EFFECTS OF ADVERTISING ON PRODUCTION

COST

Advertising is generally believed to lower down the production

cost. This opinion is based on the assumption that by stimulating
demand, it is quite possible for advertiser to reduce production cost. If
advertising leads to an increase in sales volume, the manufacturer
due to economies of large scale production permits the producers to
buy in large quantities and receive sufficient quantity discounts from
his suppliers. Economies of scale can also include savings in
transportation, in utilization of plant and personnel, and in overhead
expenditure. The general experience is that mass production
reduces the real cost of products. Advertising also lowers the
overhead costs of production by generating demand. Through
advertising, a manufacturer with a considerable seasonal demand
may be able to expand the demand over a broader time period. The
producer can have economies of reduced storage capacity, because
he needs lesser storage space for lesser period of time as the
products are being sold over a larger time period during the year. The
larger turnover would mean that during the season the storage space
would be used extensively. This in turn would mean that larger
number of units of production would be sharing the overhead costs
and this would help reduce that cost of production.
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Every manufacturing unit has an optimum production, which

determines whether the advertising increases or decreases the cost
of production. The cost of production involves: (a) Material cost (b)
Labour cost, and (c) Overhead cost.
Suppose a unit having one machine in a room which is operated
by the owner himself produces 2,000 units per month. The total
production cost, inclusive material cost, labour cost, overhead costs
amounting to Rs.2,000. To produce 2,000 units the owner spends Rs.
2,000. In this case the cost per unit is Re. 1/-. However, the same
unit can make an additional 2,000 units at a marginal cost of Rs. 800
being the cost of advertising and other inputs that would be required.
Thus, it can be concluded that advertising can bring down the cost of
production from Re. 1/- to Re. 0.80/- per unit as is evident from Table.
Table 1: Effect of Advertising on Production Cost
Particulars Before Advertising After Advertising
Units Produced 2,000 4,000
Advertising Expenses Nil 1,000
(a) Material Costs 1,200 500
(b) Labour Costs 500 700
(c) Overhead Costs 300 600
Total Cost of Production 2,000 2,800
Per Unit Cost Re. 1 = 00 Re. 0 = 80

Advertising increases sales which in turn demand large scale

production, thereby ensuring the benefits of economies of scale.
Further advertising expenditure do not constitute a part of production
cost, it will never increase the cost of production. However,
advertising can indirectly bring down the cost of production capacity,
provided advertising generates demand upto the level of optimum
production capacity.
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The volume-cost-price relationship is quite complex and there is

no proof of what advertising does to a manufacturer’s cost of
production. Advertising lowers total costs for some, increases total
costs for others. Advertising can help reduce per unit production
costs for certain manufacturers operating below plant capacity. Total
unit costs can be lower with heavy advertising than without it.

8.3 EFFECTS OF ADVERTISING ON DISTRIBUTION

COSTS

Advertising is generally believed to increase the overall

distribution costs. Distribution cost includes advertising and sales
promotion costs such as display, demonstration, dealers‟ commission
and incentives etc. Since advertising expense is a part of selling it will
naturally add to the total selling and distribution costs. Increase in
advertising costs may not result into proportionate increase in
distribution costs, Sometimes, advertising may reduce the distribution
costs for the manufacturer, because effective advertising cuts down
the expenditure on personal selling, thus making substantial savings
in selling costs. Suppose a business firm distributes 2000 units per
month. The total distribution cost inclusive salary to salesman and
other distribution expenses amounting to Rs. 1000. In this case the
distribution cost per unit is Rs.0.50 before advertising. However, to
distribute another 2000 units, an expenditure of Rs. 1600 is incurred
after the product is advertised. Here distribution cost per unit is
Rs.0.40. It can be concluded that the distribution cost per unit is
reduced from Rs.0.50 to Rs.0.40. This is illustrated is Table 2.
Table 2 : Effect of Advertising on Distribution Cost
Particulars Before Advertising After Advertising
Units Distributed 2000 4000
Advertising Expenses Nil 1000
Sales promotion cost 900 1400
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(Salary to Salesman) other 100 200

distribution exp
Total distribution cost 1000 1,600
Per unit cost 0.50 0.40

Advertising creates demand for the advertised product and

increase in demand reduces advertising cost.
Successful advertising helps to keep prices rigid (fixed).
Economists dislike price rigidity because of general, long-term
economic welfare; flexible price competition helps our economic
system.
The total cost includes costs of production and distribution.
Advertising costs are part of costs of distribution (or „selling cost‟ or
marketing cost‟). Advertising cost is one of the several costs the
other being finance, warehousing, transport, and distribution.
Costs of distribution show a yearly geometric increase, due to
sharp market competition. So, large sums are spent on advertising,
and other distribution aids, to „capture‟ the markets.
High advertising costs of a manufacturer may be beneficial to the
retailer. Manufacturer’s advertising efforts may reduce the distribution
costs of the retailer because the product may be presold due to
advertising done by the manufacturer.

8.4 EFFECTS OF ADVERTISING ON CONSUMER

PRICES

Consumer price consists of production costs, selling and

distribution costs and profit margin of the seller. An expenditure on
advertising will increase marketing costs.

Consumers and buyers of the advertised goods and services pay

for advertising. If the consumer feels that he is not getting desired
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utility from a brand, he switches to some other brand. But in the long
run, advertising may well work toward lowering down the prices.
Effective advertising increases sales volumes and lowers down the
prices. Many new products such as refrigerators, colour T.V.,
washing machines, computers, electronic typewriters have lowered
down the price due to mass production distribution and consumption.
This growth gives the seller a large volume over which to spread his
overhead. This is also evident from the analysis of data in Table 1
and 2 that advertising ensures economies of large scale production
and distribution. The effects of advertising on consumer price are
shown in Table 3.
Table 3: Effect of Advertising on Consumer Price
Particulars Before After Advertising Advertising
Per unit cost of production (Table 1)Rs. 1.00 Rs. 0.80
Per unit cost of distribution (Table 2)Rs. 0.50 Rs. 0.40 Profit
margin Per unit (Assumed) Rs. 1.00 Rs. 1.10
Consumer Price Rs. 2.50 Rs. 2.30
Advertising affects consumer prices because:
(a) Price is fixed by adding the desired profit on costs of production.
Advertising is one of the elements of cost. Price of a product or
service therefore includes advertising cost.
(b) Advertising is an element of distribution cost. An increase in
advertising cost increases, total cost which increases the price of
advertised goods or service.
(c) Advertising cost increases due to competition. So, prices rise.
However, under certain conditions, advertising checks prices.
Severe competition makes a producer struggle to increase his market
share by charging reasonable prices. So, even if a price-rise occurs,
his freedom to raise the price is controlled by competition.
Raising prices is also difficult because of government rules on
trade and business. This forces a producer to reduce costs and not to
raise prices.
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(d) Advertising acts negatively to keep prices down. It first creates

demand for a “brand” and, finally makes it popular. So, “brand
loyalty” emerges and the consumers want the specific brand only.
Therefore, since the producer enjoys the respect of consumers,
he cannot lose it by raising prices.
(e) Greater advertising may lead to greater demand and expansion of
markets. The producer then finds that greater demand permits
production only on a large scale, and with greater economies. If
he passes these economies to the consumers, prices fall. Here,
advertising is indirectly responsible for a fall in prices.
(f) Through good advertising, other selling costs may fall such as
cost of personal sales, point-of-sale displays. Therefore, prices
fall.
(g) Advertising does raise price, but consumers are willing to pay it
for the brand of their choice. The consumer must pay a higher
price if he wants a better product. His reason, not his emotions,
guides him to choose a better product. So, advertising can
succeed by appealing to reason.
Competition comes from other advertised brands, unadvertised
brands, and private brands or from substitute and alternative types of
product. Competition is a powerful influence on a seller’s prices.
Incidentally, unless there were advertised brands, the prices of
unadvertised brands would most probably be higher. The key issue is
not whether advertising adds to the consumer price of a product. The
key issue is whether advertising makes the consumer pay more for
the same amount of satisfaction.

8.5 ADVERTISING AND MONOPOLY

When a single firm is the only supplier of some goods or services

for which no close substitute is generally available and when the firm
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is free from the treat of competition, it is called monopoly; the

monopolist can set his own prices and levels of output.
Whether advertising leads to monopoly or not can be understood
from two different viewpoints:
1. Advertising acts to control consumers in such a way that the
advertiser has command over the consumer’s mind and buying
actions. In this line of reasoning, any monopoly that results would
stem from a control of demand rather than of supply.
2. A more strongly supported position which related advertising to
monopoly examines the ways in which advertising may act to limit the
number of firms competing in a specific industry. The large
companies can spend heavily on advertising to make their products
appear different for all other products. This win helps them to take
over sizable part of the market. In this way, advertising creates a
barrier to new firms and a high level of concentration result. High
monopolistic prices result in high monopoly profits.
Advertising is said to breed monopoly by restricting open
competition. Advertising aim at enjoying monopoly powers to
introducing a separate trade mark for their products. The reputation
attached to a, trade mark does not increasingly involve advertising
although advertising can play an important role. If people desire to
have a rational trade mark, they must invariably buy from the marker.
A manufacturer with brand of product differentiated form all other
brands in the same business enjoys monopoly of that brand. He fully
controls the supply and sells it at a profit. He tries to build large and
stable following for his brand.
A manufacturer who has been able to build a substantial market
may tend to hold his prices somewhat rigid. To the extent that he can,
he will compete on the basis other than price but he cannot avoid
price competition altogether. No manufacturer with or without
advertising has been able to obtain monopoly position for himself.
Because of this fact, no manufacturer can successfully manipulate
supply price at will.
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Product differentiation, a phenomenon of imperfect competition,

would continue to exist even if there were no advertising. In the
absence of advertising, consumers might still be induced to pay more
because of product differentiation. However, advertising occupies its
important status in bringing product differentiation to the attention of
consumers. There should be no objection about this if the advertising
is truthful and informative. If there were monopoly in advertising i.e., if
advertising were available to only one manufacture, it would be
different matter.

8.6 WASTES IN ADVERTISING

8.6.1 Meaning:
Waste in advertising refers to the failure of the advertisement or
campaign to achieve its desired objectives. The main objective of
every ad is to attract the attention of the audience and then to induce
them to act upon the advertiser’s message. If the ad fails to attract
the attention and induce the audience, then one can say that there is
waste in advertising. Some people talk of waste in advertising when
they feel that more money is spent on advertising than what is
actually needed.
8.6.2 Factors responsible for the Waste in Advertising:
A number of factors are responsible for the waste in
advertising. Some of which are explained below:
1. Introduction of Wrong Product or Service in the Market:
Waste advertising takes place, when huge amounts are spent on an
advertising campaign for a wrong product, or service introduced
without adequate research and testing as regards its quality. If the
quality of the product, or, service is such that it does not satisfy the
needs. Requirements and tastes of consumers, no amount of
advertising can boost its scale, and there will be a waste in
advertising.
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2. Making Tall Claims in an Ad: Sometimes, tall claims are

made in advertising, that raises the expectations of consumers: far
beyond the performance of the advertised product. Disappointed and
disillusioned consumers never go far second purchase of the
product.
3. Target Market: Wrong Selection of Target Market
(Consumers) and wrong positioning of to be Product. Manufacturers,
sometimes, make a wrong selection of target market (consumers) for
the advertised product / service and its wrong positioning that cause
a waste in advertising.
4. Wrong Direction of Advertising: Wrong direction is allied to
wrong selection of target market. The target market (consumers) may
not be rightly selected; however, advertising efforts may not be made
in the right direction. If a fertilizer firm, for example, places posters all
over the city of Mumbai, to sell its fertilizers to farmers, it is a case of
wrong direction.
5. Wrong Timing of Launching: If an advertising campaign is
launched at a wrong time on television or on radio, it causes waste in
advertising. If an ad campaign for umbrellas, for example is launched
in the month of January or October, it will be a complete waste.
6. Wrong Selection of Advertising Media: Wrong selection of
advertising media, causes a waste in advertising. If industrial
products, for example, are advertised in sports magazine, or, on
television, it is a case‟ of wrong selection of advertising media, as the
advertising message will not reach to the target consumers.
7. Wrong Placing of Ads: If an ad on the posters or display
boards is wrongly placed, which can hardly be seen by the passerby,
or, if an ad in the newspaper is placed on a page, which is hardly
read, it causes a waste in advertising?
8. Wrong Selection of an Ad Agency: If an advertiser makes a
wrong selection of an ad agency. It causes waste in advertising.
The ad agency must be competent and experienced in the field.
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9. Poor Planning of Advertising Campaign: The advertiser will

not receive the expected responses from the target audience
(consumers) if the advertising campaign is poorly planned. Poor
planning refers to (a) the lack of the required frequency of ads. (b)
lack of the required funds, to be allotted to a particular media and (c)
more advertising in one place to the total neglect of the other market
areas, where advertising is essential, such conditions and bound to
cause waste in advertising.
10. Poor Drafting of Ads : If an ad is poorly designed, drafted
and illustrated, due to lack of creativity and knowledge with an
inappropriate appeal, and / or, in an unsuitable language, on the part
of participants in the ad, like copy writers, artists, layout designers,
etc. it can cause waste in advertising.
11. Poor Sponsored Programme in Quality: If the programme,
sponsored on T.V. or Radio by an advertiser, is poor in quality So
that there is hardly any audience to view it, it is bound to cause waste
in advertising, as the message will not reach the target audience.
12. Excessive Advertising: Some advertisers to excessive
advertising, i.e. much more than what is actually required. If the
markets for the advertised product are small, excessive advertising
cannot cause an increase in demand beyond a particular point.
There is bounded to be waste in advertising.
13. Lack of Follow-up Actions: A good advertising campaign can
go waste, if it is not fully supported by follow-up actions by other
departments of the firm, as for example, non-availability of the
advertised product in the market due to some distribution problem.
The result is inadequate response from consumers and waste in
advertising.
14. Unfavorable Marketing Environment: Finally, if the overall
marketing environment is not favourable for getting favourable
response to an advertising campaign, it is bound to cause waste in
advertising. In such a situation, advertisers are bound to lose a good
amount of money on ads.
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Check your progress:

1) “Advertising is generally believed to lower down the production
cost.” Explain.
2) Explain the effects of advertising on the following items. Through
table.
a) On production cost
b) On distribution cost
c) On Consumer price
3) Explain the following terms. a) Waste in advertising.

8.7 SOCIAL ASPECTS OF ADVERTISING

Culture is total of tangible and intangible concepts that define a

way of life culture includes art literature, music (tangible) and
knowledge, morals, customs, laws etc. (intangible). It covers the
attitude and values of the whole society which are passed from one
generation to another.
Habits, customs, attitude, beliefs and values are thus, a part of
culture. Advertising is a product of culture. Advertising is an art of
persuasion, but still people buy only those goods and services which
they needs. What they purchase is the outcome of the cultural
values. The consumer’s behaviour is influenced by his family status,
family life cycle, social relations, opinion leaders, reference groups
etc. The value system is ever changing with the passage of time.
With these changes on value system, the role of advertising keeps
pace with the changing times. Once a particular set of values have
been accepted by a society, the advertising as a social and business
process tries to bring all those goods and services which are made to
respect the value system.
Critics of advertising points out that mass media supported by
advertising have encouraged what is popular rather than what is
good and in doing so have encouraged materialistic values rather
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than cultural ones. They cite the examples of films, serials that are
shown on TV and on the big screen, which depicts scenes of rape,
murders, and other acts of violence and crime.
However, there are various social, religious and educational
institutions to guide the people of a particular society in their
behaviour.
On the other hand, supporters claim that advertising do upgrade
the cultural values for the betterment of the society. They cite the
instances of advertising campaigns on family planning, drug abuse,
noise pollution and other such public awareness advertising.
Thus it can be concluded that advertising upholds and upgrades
the cultural values in several respect but in some cases advertising
may be directly or indirectly responsible to the evil craze of
materialism.

8.8 ETHICS IN ADVERTISING

Ethics is a set of moral principles, norms or values. It is a branch

of social science. It deals with good and bad with reference to a
particular culture. It refers to the moral duty and obligation and
advertiser has towards the society. Moral principles are the rules or
standards of what is ‘right’ or ‘wrong’.
Every advertising tries to persuade the people. In the modern
competitive market each advertiser wants to win over his rivals by
effective advertising. In this process, there are chances of hiding truth
and facts in order to succeed in increased sales and profit. But the
advertiser has social and moral duty or obligation towards
consumers. An advertiser should maintain a high degree of ethical
stands i.e. he must inform the facts or truth to consumers. An
advertisement with false claims may succeed in short run but it will
definitely give a bad name to the product in long run. Because one
can fool some people all the time, and all the people for sometime,
but one cannot fool all the people all the time.
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If unethical practices are continued they will destroy the image of

the business as a whole and advertising itself will become less
effective. Some of the moral codes developed in advertising are:
1. It should avoid attacking competitors unfairly.
2. It shall be free from offensive to public decency.
3. It shall make clearest claims regarding price reduction
guarantees etc.
Ethics, as a tool of communication, plays a significant role both in
business as well as in the profession of advertising, norms or ideals,
that are accepted and upheld by the society as essential to good life
should be followed while advertising any products or service, or, idea.
1. Ethics in advertising means that the advertisers should do only
good advertising, meaning thereby honest advertising. It means that
only true facts, no exaggeration and no lies, about the product,
service, idea or institution should be stated, in clear Tenos, in
the ad.
2. Ethics in advertising also means that only good products,
services and ideas should be advertised and that too to the right
consumers. Advertising for products like cigarettes, beer, whisky,
rum, gin, tobacco, pan parag and other harmful products should be
avoided.
3. Ads showing testimonials should be restricted to competent
persons, who must express honest views and choices.
4. Ads in poor taste and offensive to public decency with double
meaning tone must be avoided.
5. Ads should avoid attacking unfairly competitors. In sum,
advertising should be honest, objective, informative and persuasive
in contents.

8.9 “TRUTH” IN ADVERTISING

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Truth refers to facts which can be observed and verifiable. In law,

truth means a swear taken by each person entering a witness box.
This truth is the whole truth and nothing but the truth.
Advertising is said to render greatest service by presenting the
commercial knowledge. It has to be good and true because it cannot
afford to be bad or untrue. Advertisements carrying correct and true
information will be build confidence in the minds of consumers and
build goodwill of the product. Awrong or untrue information presented
by advertising damage the image of the company. They are different
ways of presenting untruth in advertising.
1. Misrepresentation: This is a deliberate attempt to tell untruth.
It takes place by attributing to good qualities which the products may
not possess quoting names of users not in existence, giving statistics
of assumptions not justified by the facts. In misrepresentation, there
may not be international twisting of the facts but still
misrepresentation in advertising undesirable.
2. Make-Believe Statistics: The idea in these is to give such
statistics as to make the readers believe that the figures are concise
and precise while actually they may not be so. Such statistics
mislead the consumers.
3. Total Lies: Advertisements of products which claim mirage
e.g., reduction of 10kg. Weight in 8 days or white hairs will become
black within one month.
4. Misuse of Testimonials: Advertisements in which
testimonials of firm stars and sportsmen are used simply for sales
promotion.
5. Alcohol and Tobacco Advertising: Advertising which induce
people to use tobacco and alcohol is harmful to human life e.g., pan
masala and gutkha.
6. Vulgar Taste: Advertisements in which undue importance is
given to women or sex objects are unethical.
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7. Awards / Prizes: Advertisements wherein consumers are

asked to send entries against which awards / prizes and free gifts are
offered are unethical.
8. Undue Emphasis: In this, information is carried beyond truth.
Emphasis is laid on certain factors which may not be in reality
existing or pertaining to the company concerned.
9. Misleading Names and Brands: Name of persons, areas or
countries well-known for certain things are associated with the names
of goods in order to create favourable impressions about the
attributes of such goods.
10. Fantastic Claims: By fantastic claims, minor virtues are
magnified. Small things are exaggerated beyond limits.

8.10 SUMMARY

Due to advertising total cost of the production increase but it

reduces the production cost, distribution cost, per unit. Finally the
consumers can get the product comparatively at low price due to
advertising.
Waste in advertising refers to the failure of the advertisement or
campaign to achieve its desired objectives. A number of factors are
responsible for the waste in advertising like Introduction of Wrong
Product or Service in the Market, Making Tall Claims in an Ad, Wrong
Selection of Target Market, Wrong Timing of Launching, Wrong
Selection of Advertising Media, Poor Planning of Advertising
Campaign and Poor Drafting of Ads etc.
Truth refers to facts which can be observed and verifiable.
Advertisements carrying correct and true information will be build
confidence in the minds of consumers and build goodwill of the
product. But through Misrepresentation, Make-Believe Statistics,
Misuse of Testimonials, Vulgar Taste, Undue Emphasis, Misleading
Names and Brands untruth has been presented in advertising.
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8.11 QUESTIONS

1. Explain the effects of advertising of (a) Production cost, (b)

Distribution cost and, (c) Customer price.
2. Write short notes on the following :
(a) Effects of Advertising on Production Cost
(b) Effects of Advertising on Distribution Costs
(c) Effects of Advertising on Consumer Prices
3. Does Advertising Create Monopoly?
4. What is waste in Advertising? Explain the factors responsible for
the Waste in Advertising
5. How does Advertising affect Cultural Values?
6. Explain the effects of Advertising on Standard of Living.
7. What are ethics in Advertising?
8. What is “Truth” in Advertising?
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9
REGULATION AND CONTROL ON
ADVERTISING
Unit Structure:
9.0 Objectives of the lesson
9.1 Introduction
9.2 Advertising Standards Council of India (ASCI)
9.3 Doordarshan code
9.4 Ministry of Information and Broadcasting
9.5 Summery
9.6 Questions

9.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand:
Advertising Standards Council of India (ASCI)
Codes of ASCI
Doordarshan Code
Organisation of Ministry of Information and Broadcasting
Criticism and Controversies about ministry of I &B

9.1 INTRODUCTION

There are Regulation and Control over Advertising business. The

Government of India has setup separate ministry to promote, regulate
and control over advertising. We shall discuss each of regulatory and
controlling agencies of advertising separately as follows:
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9.2 ADVERTISING STANDARDS COUNCIL OF INDIA

(ASCI)

There are certain laws, standards and codes which provide

guidelines for ethical and professional management of business.
These laws are called self-regulation laws.
These self-regulation laws provide guidelines for the advertisers,
publications and advertising agencies. These laws mainly prohibit
those aspects of advertising which art either untruth or harmful to the
society.
There are more chances of being wrong or untruth
advertisements in the market, which mislead the consumers.
Unethical advertisements not only harm the consumers but it also
produces losses to the society. In long run such advertisements do
not succeed.
9.2.1 Codes of ASCI:
The main objective of the code is to control the content of every
advertisement. This is helpful to manufactures also as it regulates
their ads. Because of these codes the consumers are mostly
benefited as they are not supplied wrong information and they are not
misled.
9.2.2 Objectives:
The codes of ASCI have following objectives:
1. It ensures the truthfulness in the advertisements and checks that
no misleading information is presented.
2. It puts control on offensive ads of public decency.
3. It ensures true and fair competition and avoids artificial
competition.
4. It restricts ads of hazardous products from the society.
9.2.3 Characteristics:
The codes laid-down by ASCI have following characteristics:
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1. Extent of Application: The codes apply to all the

advertisements that appear by any media. For example it may be on
television, over radio, in cinema or posters.
2. Code and Consumers: The code does not permit any ad
misleading the consumers. The untruthful advertisements with false
information are not allowed. If any such ad is presented, the
consumers can bring it to the notice of ASCI.
3. Aim of Code: The code is laid down with the aim to ensure
the public protection and guard them against false and untruthful
advertisements.
4. Responsibility of Media Owner: Any media owner must view
each advertisement offered for publication to them from the point of
view of the code. If the feels that any particular ad is against the
code, he can approach to ASCI and inform accordingly. If ASCI finds
the violation of code, the media owner must not publish the
advertisement.
5. Ads for Children: The ASCI code also keeps control on ads
meant for children. Such ads should not contain any information or
idea either in illustration or words, which might cause moral, physical
or mental harm to children.
6. Code and Foreign Ads: The ASCI code is limited to
advertisements Published in India only. It does not apply to
advertisements on foreign medias.
7. Identical Ads: The code also requires that an ad should not
be just a copy of other advertisements. It should not be identical in
respect of general layout, copy clogs, visual, presentation, music, etc.
This restriction is put in order to avoid confusion and misleading of
consumers.

9.3 DOORDARSHAN CODE

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Advertising should be designed as to conform to the laws of the

country and should not offend against morality, decency and religious
susceptibilities of the people.
1. No advertisement should be permitted:
(i) To derides any race, caste, colour, creed, nationality except
wherein such usage would be for the specific purpose of effective
dramatization, such as combating prejudice;
(ii) Which is against any of the objective principles, or provision of the
constitution of India;
(iii) Which will tend to incite people to crime or to promote disorder,
violence, or breach of law or glorifies violence or obscurity in any
way;
(iv) Which presents criminality as desirable;
(v) Which would be adversely affect friendly relations with foreign
States;
(vi) Which exploits the national emblem, or any part of constitution, of
the person or personality of a national leader of State Dignitary;
(vii) No advertisement shall be permitted the objects whereof are
‘holy’ or mainly of a religious or political nature. Advertisements
must not be directed towards any religious or political end or have
any relations to any industrial dispute;
(viii) Advertisement for services concerned with the following are
not acceptable : (a) Money lenders; (b) Chit Funds and Savings
Schemes other than those conducted by nationalized banks; (c)
Matrimonial agencies; (d) Unlicensed employment services; (e)
Fortune-tellers or sooth-Sayers, etc., and those with the claim of
hypnotism would be excluded from advertising on TV;
(ix) Betting, tips and guide books, etc., relating to horse-racing or
other games of chance shall not be accepted;
(x) No advertisement shall contain reference which are likely to lead
the public to infer that the product advertised or any of its
ingredients has some special property or quality which is
incapable of being established, e.g., cure for baldness;
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(xi) Scientific or statistical accepts from technical literature, etc., must

be used only with a proper sense of responsibility to the ordinary
viewer. Irrelevant data and scientific jargon must not be used to
make claims appear to have a scientific basis they do not
possess. Statistics of limited validity should not be presented in
such a way to make it appear that they are universally true;
(xii) Advertisers of their agents must be prepared to produce evidence
to substantiate any claims or illustrations.
2. No advertisement message shall in any way be presented as
News.
3. The items advertised shall not suffer from any defect or
efficiency as mentioned in Consumer Protection Act, 1986.
4. No advertisement shall contain the words “Guarantee” or
„Guaranteed‟, etc., unless the full terms of the guarantee are
available for inspection by the Director General Doordarshan, and
are clearly set out in the advertisement and are made available to the
purchaser in writing at the point of sale or with the goods.
5. In its depiction of women no ad shall violate the constitutional
guarantees to all citizens such as equality of status and opportunity
and dignity of the individual. In particular, no advertisement shall be
permitted which projects a derogatory image of women. Women must
not be portrayed in a manner that emphasizes passive, submissive
qualities and encourages them to pay a subordinate, secondary role
in the family and society. The portrayal of men and women should
not encourage mutual disrespect. Advertiser shall ensure that the
portrayal of the female form is tasteful and aesthetic, and is within the
well-established norms of good taste and decency.
6. No advertisement for a product or service shall be accepted if
it suggests in any way that unless the children themselves buy or
encourage other people to buy the products or services, they will be
failing in their duty or lacking in loyalty to any person.
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7. No advertisement of any kind of jewellery or precious stones

shall be accepted. Also no ad should be permitted on cigarettes,
alcohol, tobacco products and other intoxicants.
8. Information to consumer in matters of weight, quality or prices
of products where given shall be accurate.
9. Any such effects which might startle the viewing public must
be incorporated in advertisements. For example the use of the
following sound effects will not be permitted:
(i) Rapid gunfire or rifle shorts (ii) Sirens
(iii) Bombardments (iv) Screams
(v) Raucusus laughter and like

9.4 MINISTRY OF INFORMATION AND

BROADCASTING

The Ministry of Information and Broadcasting, a branch of the

Government of India is the apex body for formulation and
administration of the rules and regulations and laws relating to
information, broadcasting, the press and films in India.
The Ministry is responsible for the administration of Prasar
Bharati-the broadcasting arm of the Indian Government. The Censor
Board of India is the other important body under this ministry being
responsible for the regulation of motion pictures shown in India.
Organisation
Broadcasting
FM Radio Phase(FM Radio Broadcasting Services Through
Private Agencies)
Conditional Access System (CAS)
Community Radio Stations
Prasar Bharati
Doordarshan
Akashvani (All India Radio)
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Broadcast Engineering Consultants India Limited

Uplinking/Downlinking of TV Channels
Content Regulation on Private TV Channels
DIRECT TO HOME (DTH)
Internet Protocol Television (IPTV)
Headend-in-the-Sky (HITS)
Digital television transition
Radio and Television License around the World
Broadcasting Authority of India
Information
Directorate of Advertising and Visual Publicity (DAVP)
Directorate of Field Publicity
Photo Division
Publications Division
Research Reference & Training Division
Song & Drama Division
Office of the Registrar of Newspapers for India (RNI)
Press Council of India
Press Information Bureau (PIB)
Indian Institute of Mass Communication (IIMC)
Films
Directorate of Film Festivals (DFAI)
Films Division (FD)
Central Board of Film Certification
Children's Film Society, India
Film and Television Institute of India (FTII)
Film Certification Appellate Tribunal
National Film Archive of India (NFAI)
Satyajit Ray Film and Television Institute
National Film Development Corporation
Mandate
The mandate of the Ministry of Information & Broadcasting are:
News Services through All India Radio (AIR) and
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Doordarshan(DD) for the people Development of broadcasting

and television.
Import and export of films.
Development and promotion of film industry.
Organisation of film festivals and cultural exchanges for the
purpose.
Directorate of Advertising and visual publicity DAVP
Handling of press relations to present the policies of Government
of India and to get feed-back on the Government policies.
Administration of the Press and Registration of Books Act, 1867
in respect of newspapers.
Dissemination of information about India within and outside the
country through publications on matters of national importance.
Research, Reference and Training to assist the media units of
the Ministry to meet their responsibilities.
Use of interpersonal communication and traditional folk art forms
for information/ publicity campaigns on public interest issues.
International co-operation in the field of information & mass
media.
Criticism and Controversies: The Ministry has often been criticized
for the actions of the various bodies under it:
Doordarshan: This is the Indian Public Television Broadcaster. It
has posted losses for several years despite being granted exclusive
access to several events including cricket matches and having the
largest terrestrial network in the country.
The decision of the Censor Board of India to censor some films
due to political reasons like foreign ones while allowing several others
which may often contain several suggestive and deeply disturbing
scenes has been questionable.
Arbitrary actions taken in the past to ban television channels
which ostensibly showed explicit scenes, as well as actions taken to
ban general use websites like Yahoo Groups, have been widely
criticized in most quarters of the country.
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All India Radio is the only radio broadcaster allowed to broadcast

news within India, though this is likely to change with the
recommendations of the TRAI.

9.5 SUMMARY

There are more chances of being wrong or untruth

advertisements in the market, which mislead the consumers. The
self-regulation laws mainly prohibit those aspects of advertising which
are either untruth or harmful to the society.

9.6 QUESTIONS

1. What is Advertising Standards Council of India (ASCI)

2. Explain the codes of ASCI
3. What is Doordarshan Code?
4. Explain the Organisation and functions of Ministry of Information
and Broadcasting
5. What are the Criticism and Controversies against Ministry of
Information and Broadcasting?


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10
ADVERTISING AGENCY
Unit Structure:
10.0 Objectives of the lesson
10.1 Introduction
10.2 Meaning and Definition
10.3 Service Rendered by an Ad Agency
10.4 Agency Selection Criterion
10.5 Agency Accreditation
10.6 Agency Client Relationship
10.7 Organization Structure of an Advertising Agency
10.9 Changing of Advertising Agency
10.10 Career Options in Advertising
10.11 Summary
10.12 Questions

10.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand:
Advertising Agency and its functions
Criteria for Selection of an Advertising Agency
Structure of an Advertising Agency
Services rendered by an Advertising Agency
Advantages of the Advertising Agency to the Firm
Methods of remunerating Advertising Agencies
Agency Accreditation
Agency-Client Relationship
Client Turnover
Career Options
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10.1 INTRODUCTION

An Advertising Agency is selected by a manufacture or trader to

present the advertisement on his behalf. The advertiser who does not
have the capacity of carrying out advertising activities take the help
on services of advertising agencies who are specialized in those
fields.

10.2 MEANING AND DEFINITION

The advertising agency carry out the activity on behalf of their

client against remuneration called fees. They conduct market
research, consumer research, product research etc. They advise the
manufacturer on product design or package design, pricing of product
channels of distribution. Besides, they advise on the market condition
from time to time.
Advertising agency conduct the production activities of
visualization, layout, illustration, headlines, copy etc. They also help
in the selection of proper media and the frequency at which the
advertisement should be presented.
Thus, the advertising agency relieves the burden of the trader or
manufacturer of the responsibility of advertising, production and
distribution.
Definition:
The American Association of Advertising Agencies (AAAA)
defines an advertising agency as: “An independent business
organization, composed of creative and business people, who
develop, repair and place advertisements in advertising media for
sellers seeking to find customers for their goods and services”.
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10.3 SERVICE RENDERED BY AN AD AGENCY

The main function of advertising agency is to see that its client’s

advertising leads to greater profits in the long run. The agency thus
plans, prepares and places with advertising with the objective. The
main functions of a full-service advertising agency are as follows:
1. Selection of Clients : The first and the foremost function of an
advertising agency is to contact and select clients who are desirous
of advertising their products, services or anything which they want to
sell. The preference in contacting and choosing the clients is given to
those firms which have sound values, able management, efficient
operative products and services. The financial position, size and
nature of business, efficient management and operative products etc.
must be given due weight.
2. Media Selection: Media selection is another major function of
the advertising agency. In making a media selection several factors
such as cost, circulation, population which it serves, audiences,
nature of the product, types of customers and above all needs of the
clients should be kept in mind.
3. Advertising Planning: The third as well as the major function
of advertising agency is the advertising planning for its clients. For
this purpose, the advertising agency requires a detailed knowledge of
the firm’s products, its advertising history, market conditions, channel
of distribution, knowledge of competitors‟ products and their
advertising techniques, field to be covered, nature and type of
consumers etc.
Next planning job is to decide about the advertising medium in
which the advertisement is to appear. The advertising message must
be adapted to the medium in which it is to appear.

4. Creative Function: The creative function starts when the

planning function ends. It includes the preparation of an advertising
copy, layout, illustration, photographs, advertising messages, theme
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of advertisement etc. These functions are performed by a varied

group of creative people including writers, designers, artists,
producers, photographers and graphic art specialists employed by
the advertising agency.
5. Research Function: It is the fifth major function of an
advertising agency. It supports the decisions taken in the media and
creative areas. In this connection the advertising agencies gathers
and analyze actual information about the product, extent of market,
competitors’ strategies and buyers‟ habits etc. that may help the
creative personnel to make the advertising copy more attractive and
effective.
6. Approval of the Client: As soon as the advertising copy etc.
is prepared, the next function of the advertising agency is to show the
copy to his client and obtain his approval. In case if any changes are
suggested by the client, the same may be incorporated and thus the
final approval should be taken from the client.
7. Marketing Function: The advertising agency also performs
marketing functions such as selecting target consumers, designing
products and packages, developing channels of distribution strategy,
determining prices and rate of discount etc. It gives useful advice to
its clients with regard to the nature and trend of the market
conditions. Accordingly, the client produces goods keeping in his
mind the prevailing conditions in the market.
8. Evaluation Function: Simply drafting advertising copy and
handing over the same to the media is not enough. The next major
function of the advertising agency is to have an exhaustive evaluation
of the advertising effects for the benefit of his client. In case of any
deficiency, necessary suggestions should be given and the same be
made effective after approval of the client.

9. Coordination Function: The last but not the least important

function of the advertising agency is to establish effective
coordination with client’s sales force and distribution network to
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ensure the long running success of the advertising campaign. Each

time the advertising agency contacts the client regarding advertising
media to be used and the number of times the advertisement is to be
repeated after giving effect to changes, if any, as suggested by the
advertiser.

10.4 AGENCY SELECTION CRITERION

Following are some points to be taken in account while selecting the

advertising agency:
1. Suitability: The advertising agency which suits the
requirement of manufacturer or trader is selected depending upon
the type of advertisement, location of agency, credit policies, etc.
Normally, an agency which is located near the advertisers place
is selected. This helps in approaching the agency. Secondly, the size
of agency in terms of personnel, projects, and services provided is
considered. Thirdly, the connections and relations with the various
media. Fourthly, the policies like conservative policy, outgoing
policies etc. are taken into account. Finally, the advertising also
considers whether the agency has competitors account or not.
2. Facilities and Services Provided: Some agencies have
modern facilities of photography, typesetting, printing, filming etc. The
agencies which provide maximum services with minimum costing
preferred.
3. Imagination: Imaginations and creative skills of the personnel
of agency are duly considered. Creativity in photography, layout,
copy writing, media etc. creates an identity and unique for the
products and services of the advertiser.
4. Past Record: Past records of the agency in terms of number
of clients, effectiveness, credit reputation etc. helps in selecting the
agency. The advertiser enquires about the agency’s time liners,
punctuality, past record helps to show whether the agency is reliable
or not.
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5. Reputation: The reputation of the advertising agency helps in

selection. The popularity of the agency depends upon time liners,
successful presentation, good relations, prompt services etc.
6. Management: Proper selection of advertising agency depends
on the ownership and management and their policies. Their policies
may be either conservative or dynamic which influence the selection.
7. Rates Charged: The advertiser considers the rates charged
by the agency. Normally, the rates depend on reputation, facilities
provided techniques adopted etc. Therefore, an advertiser will select
such agency which will provide facility according to his requirement
and which suits its budget.
8. Size of the Agency: The size of the advertising agency must
be considered. The larger the size, the more it is preferred, however,
at times, small is beautiful because a small agency may give more
attention to its client’s work.

10.5 AGENCY ACCREDITATION

The principle of accreditation by the Indian Newspaper Society,

Doordarshan and All India Radio, ensures professional status to ad.
Agencies. Accredited agencies enjoy credit from the media owners.
They pass this benefit to their clients who also enjoy credit facilities.
Moreover such agencies have to follow the code of ethics laid down
by the media owners. This ensures that the client gets a minimum
standard of the Ad Campaign.
The granting of accreditation to an agency means that the
agency has fulfilled the following criteria:
(a) The agency has fulfilled the minimum business limits
with Doordarshan / AIR and the Indian Newspapers Society.

(b) The agency has proved its creditworthiness during the

period of its provisional accreditation status.
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(c) The agency has adhered to the rules of accreditation as

specified by the media.

10.6 AGENCY CLIENT RELATIONSHIP

Agency client relationship must be that of mutual trust and

confidence. The perfect relationship results in optimum advertising
effectiveness at a reasonable cost and reasonable compensation for
the agency. It is characterized by continuous and complete two way
communication between individuals in the two organizations in an
atmosphere of mutual trust. Interdependency of the advertiser and
the agency helps in creating effective advertising as part of the
company’s marketing effort.
What the clients have to do? :
1. Treat the agency with courtesy at all times.
2. Provide all possible information about the product that is to be
advertised and about the organization. This facilitates the agency
to do their job much better.
3. Not unnecessarily bargain for the fees charged by the agency.
4. Motivate the agency to do a good work. Agency charges such as
media bills, fees and other costs must be paid well in time. In no
way the client should wait for the agency to remind of payment.
5. Not change the agency for the sake of change.
6. Approve the proposals submitted by the agency. The client should
not argue for the sake of arguing.
7. Give sufficient time to the agency to develop a good advertising
campaign. The client should not put the agency unnecessarily in
deadline crisis.
8. Reduce disputes to a minimum.
9. Finalize well in advance the charges for a particular plan or
campaign.
10. Up-date the agency with any information from his side that would
help the agency to serve the client better.
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Yet, whenever something goes wrong, the brunt of criticism

comes on the agency and many times the relationship terminates.
Many a times, there is a change just for the sake of change.
Advertisers prefer an agency that is currently popular in the market,
such as the Lintas and the Everest in India. Sometimes the agency
itself voluntarily resigns from an account on some ground or the
other. There may be different puritans, opinions, thoughts, etc., or the
agency may want to accept another competitive account. Usually an
agency keeps on abandoning consistently losing accounts, i.e. those
advertisers who make losses over the years. It may also resign when
a client becomes over-bearing. May be creative people in the field of
advertising do not like to be simply dictated by clients about their own
professional work? If things go too far, such clients may be
abandoned. However, client turnover is not a healthy practice as it
puts both the parties to a loss. But under the unavoidable
circumstances, there may be no other alternative but the client
turnover.

10.7 ORGANISATION STRUCTURE OF AN

ADVERTISING AGENCY

10.7.1 Meaning:
The organization structure differs from agency to agency
depending upon functions performed and size of the business.
Because of the highly personalized nature of the advertising
agency business, it is difficult to say which type of organizational
structure would be suitable for it. Many agencies are organized
according to the personal preferences of the management. Most
large and medium sized agencies followed one of the two systems,
the group system and the departmental system and some combine
them.
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1. Group System: Under this system the writers, artist, media

planners, buyers and other specialists are assigned to a group of
accounts. All are under the general direction of an account executive
or group head.
2. Departmental System: Under the departmental system, same
types of specialists are grouped in the same department. For
instance, all writers in the copy department, all artists in the art
department and so on.
10.7.2 Organization and Working of an Advertising Agency:
Since advertising agency is an independent business
organisation, it may be in the form of a sole proprietorship,
partnership or Joint Stock Company form of organisation. However,
an advertising agency of reasonable size may naturally adopt the
Joint Stock Company form of organisation. In such a case, it may
have a Board of Directors under the Managing Director. Under the
Board of Directors we may have General Manager and the General
Manager may have a number of Departmental Managers under his
control. The number of Departmental Managers will vary from one
advertising agency to another advertising agency as per the nature
and size of business. The organisational structure of a large sized or
reasonably sized advertising agency is as follows:
Advertising Agency Limited
Board of Directors
General Manager
Contact Media Copy Radio & TV Merchandising
Production
Department Department Department Department Department

Art Mechanical Research Finance Public

Relations
Department Department Department Department Department

10.7.3 Departments of an Advertising Agency

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The organisation of an advertising agency may be divided in

various departments entrusted with a specialised function to be
performed under each departmental manager who is specialised in
the task allotted to him. The main departments of a large sized or
reasonably sized advertising agency are as follows:
1. Contact Department: Contact department works under a
senior executive officer known as the departmental manager. The
main function of this department is to contact the new clients on the
one hand and maintain the existing clients on the other hand. A
number of contact men works under him. They function as the liaison
people between the agency and the client. The contact men
represent the agency when in the advertiser’s office, they study the
advertiser’s need and inform the various departments what is
required by the respective clients.
2. Art Department: This department is headed by the art
manager who is assisted by artists, layout men and visualizers. A
visualizer is a person who prepares the rough layout of the
advertisement which is later developed into a comprehensive layout.
The art department is responsible for the physical appearance of the
advertisement for preparing layouts, illustrations, photos and for
specifying the types to be used.
3. Media Department: This is a very important department which
works under the supervision and control of a media manager. This
department is entrusted with the work of selection of media for the
advertiser according to the needs, directions and budget of the client.
He remains in constant touch with different medias.
4. Mechanical Production Department: It is also a very
important department which works under the control of a technical
manager. The main function of this department is to look after block-
making, printing, proof-reading and such other technical jobs.

5. Copy Department: This department is headed by a copy

manager and is duly assisted by a number of copy-writers. This
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department is concerned with the preparation of a copy for all

advertisements. Copy-writing requires flair and fluency of language,
imagination and a method of representation. The department works
closely with the art, research and accounts departments. It is also an
important department.
6. Research Department: In case of large sized advertising
agencies a separate research department is established under the
supervision and control of a research manager. The research
manager is assisted by a number of analysts, investigators,
marketing assistants, statistical clerks and librarians etc. The main
function of this department is to study markets, medias and other
subjects of interest to the advertising agency. It helps better
advertising for clients.
7. Radio and T.V. Production Department: In case the
advertising agency provides advertisements on the radio and
television, it would have a separate department for this purpose. This
department works under the supervision and control of a manager
who is duly assisted by a number of assistants, musical consultants,
script-writers etc.
8. Finance Department: The main function of finance
department is to arrange and control finance. Thus this department is
responsible for maintaining proper accounts, billing and collection of
dues from the clients, verifying whether the advertisement in the
different media actually appeared on the days it was scheduled, if so
whether correctly, and whether the text was properly printed and also
looking after all the routine matters relating to accounting, recording
etc.
9. Merchandising Department: In case of large sized
advertising agency, a separate merchandising department is
established under the supervision and control of a merchandising
manager which is specialist in displays, exhibits and preparation of
various advertising aids.
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10. Public Relation Department: In case of a large sized

advertising agency, a separate public relation department is
established under the supervision and control of a public relation
officer - manager. The main function of this department is to establish
and maintain contact and mutual understanding between the
organization and the public. It performs a liaison work between the
clients and the various sections of the public - customers, employees
and shareholders etc.

10.8 METHODS OF REMUNERATING AN

ADVERTISING AGENCY

The method of remunerating the advertising agency has been a

subject of much discussion now-a-days at almost all the meetings of
advertising agency associations and advertisement clubs. There are
basically the following three methods of remunerating an advertising-
agency in practice in our country:
1. Commission Method: This is the oldest and most common
method of remunerating an advertising agency. Under this method
the advertising agency has a fixed commission by the media owners
on the advertising bill for the advertising space bought by the
respective advertising agency. The fixed rate of commission is 15%
in India as well as in U.S.A. Though the rate of commission varies
from media to media and from country to country but the rate of 15%
is almost universal. For example, an advertising agency places a full
page advertisement in a magazine at an agreed charge of Rs.
50,000. The magazine will bill the agency for Rs. 50,000 less 15%
i.e., Rs. 42,500 net. The advertising agency will bill the advertiser for
Rs. 50,000 (cost of advertisement charged by the media). Thus the
difference of Rs. 7,500 will be treated as the remuneration of the
advertising agency. Generally, a cash discount @ Rs. 2% is also
offered by the media for prompt payment within a stated period. This
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cash discount is usually passed on to the advertiser on similar terms

by the advertising agency. The general criticism of this method is that
the advertising agency is always tempted to recommend expensive
media in order to draw a higher remuneration.
2. Fee System: The fee system came into effect following a
controversy between the advertiser and the advertising agency. The
former argued that 15% commission was too high a rate, whereas
the agency took the stand that it was unremunerated in view of many
services rendered to the client by the advertising agency. Under fee
system, the agency payment consists only the service charges which
are to be computed on the basis of cost plus system. Under the
system a certain fixed percentage (flat rate) on cost may be charged
from the client as fee to be paid to the agency along with the bill. This
system enables the advertising agency to make fair profits on
services rendered by it and, in turn, the advertiser pays for what he
gets - nothing more and nothing less. The fee system is generally
used in radio and television advertising.
3. Service Charges: Under this method, service charges are
added to the cost of materials and services bought by the advertising
agency for the client in art work, photography, typography, plates etc.
Normally, it is cost plus 15%.
In actual practice one of the above methods of compensation or
a combination of the fee-and-media-commission plan or a method by
which commission granted by the media are credited against
profession fee, is used. When new product advertising is involved,
the advertising agencies are remunerated on a special fee basis.
Check your progress:
1) Give the chart of organisation structure of an Advertising Agency.
2) Explain the following terms. a) Advertising agency
b) Agency Accreditation
c) Client Turnover
d) Copy Department
e) Art Department
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f) Commission Method
2) “Advertising Agencies relieves the burden of the Manufacturer or
Trader”. Explain.

10.9 CHANGING ADVERTISING AGENCY OR CLIENT

TURNOVER

10.9.1 Meaning:
When an advertiser leaves one advertising agency, and shifts to
another, this practice is termed as client turnover. Highly frequent
rate of client turnover results in great loss to advertisers. When an
agency is changed the advertiser suffers on two counts, on having to
do away with the old agency and another with the new one. It is very
much like an employer suffering financial and other kinds of losses on
account of high „rate of labor turnover in his enterprise. Productivity is
the main factor of loss of the employer as well advertiser. Just as the
old employee’s experience with organization is an important factor in
policy decisions and implementation. Similarly the old agency’s
experience in advertising the company’s product lines is a total loss
in case of turnover to another agency. The old agency must have
already collected considerable data about the company’s product, the
market, the nature and the extent of competition the consumers and
host of other subjects. Such a mass of information and data cannot
be easily transferred to the new agency. Researchers have identified
as many as forty factors that influence the sale of a product,
advertising being one of them.
When an advertiser leaves one advertising agency and switches
over to another, it is known as „changing of advertising agency‟ or
„client turnover‟. The tendency to change advertising agencies now
and then is most common amongst many advertisers. This may result
in a reduction of the effectiveness of their advertising campaign.
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10.9.2 The main reason for changing the advertising agencies

may be summarized as under:
1. Dissatisfaction to the advertiser from the services of the
advertising agency.
2. The advertiser is interested in new criteria with which the present
agency is not familiar.
3. The client and agency perceive the advertisement strategy in a
drastically different manner.
4. Change for the sake of change.
5. Lack of coordination between the top executives of the client and
the agency.
6. Loss of confidence.
7. Staff changes also lead to change of advertising agency.
8. Perceived unreasonableness of the other party.
9. Politics and nepotism also result in change of advertising agency.
Changing of advertising agency is not always fruitful. The loss
might be more as compared to gain on account of the change. In the
first year the new agency has to digest the problems of the
advertiser, the nature of the products and the competitive situation
that exists. The first year of change may be referred to as the study
year. Thus change of agency amounts to leaving one which is quite
familiar with the advertiser’s problems and going to a stranger at least
as far as the advertiser is concerned. In case of any dissatisfaction
with the existing agency, it is better to find out and discuss it with the
top management team of the agency so that the misunderstanding, if
any, may be removed and also to give a chance to the agency for
improving its services. The selection of an advertising agency should
be made carefully so as to avoid a subsequent change. It should be
kept in mind that the agency advertiser relationship is like the
physician-patient or the lawyer client relationship. The patient pays
fee to the physician whether he gets relief or not. The lawyer too
takes fee, irrespective of the judgement in the case. However, in both
the cases they perform their duties faithfully and therefore why make
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a change? This fact should be given due weight while taking any
decision to change the advertising agency.

10.10 CAREER OPTIONS IN ADVERTISING

Advertising is an important profession and advertising industry

provides enormous opportunities for career development. The
advertising industry consists of the advertising agencies, the
advertisers, the media and the ancillary services. Each of these
active participants in advertising provides challenging career options
to the students to build up career in this fast developing industry.
1) Advertising Agencies: An advertising agency is a team of
professional advertisers appointed by client to plan, produce, and
place advertising campaign on the behalf of client.
The total number of advertising agencies in India is believed to
be around-4,000, including studios and non-accredited set-ups. The
accredited agencies or those with partial accreditation account for
550. The number of new advertising agencies especially one-man or
owner-manager type ad agencies are increasing at a faster rate. This
is because advertising business provides ample scope for growth and
development. Advertising is most suited profession for strongly
motivated individuals, who have high degree of conviction and belief
to make their endeavor a success whatever may be the odds.
Advertising agency has grown by leap and bound and now they
account for billing over Rs. 2000 crores per annum. They are
constantly in need of talented and creative staff in their following
functional departments:
2) Account Executive: The word ‘Account’ in advertising
terminology means ‘Client’ and an Account Executive is the man on
the agency staff responsible for handling a particular client. He
approaches different potential clients for seeking new business for
the ad agency which he represents. He is the main link between the
agency and the client.
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Account executive is an important career option in ad agency. He

explores the possibilities to book new business by approaching new
clients. Successful account executives are promoted upto the
positions of Account Director.
3) Copywriter: Copywriting is an art and the persons with good
communication skills stand a fair chance to be copywriters. They
contribute to the theme of an advertisement. In most ad agencies,
there are creative teams headed by either a copywriter or a
visualizer.
A good copy can be destroyed if the words are badly set.
Equally, unwise choice of typefaces, sizes and weights can destroy
the layout. Creation of an effective copy for the client establishes
them as copywriter.
It is the job of the copywriter to conceive advertising themes of
copy flat forms, and to write the wording, including heading headlines
and slogans.
4) Visualizers: Visualizers are those artists who translate the
imaginations of the copywriter on the paper. Visualizers help shaping
an effective ad. The visualizers usually have professional degree in
fine art or commercial art. It is not essential for a good visualizer to
have professional degree or diploma. Visualizing and layout is an
important career option.
5) Creative Department: Creative department is the key
department in an ad agency. It is in this department that the idea or
theme behind the advertising campaign is born and the complete
advertising plan is executed. Creative Director is the head of creative
department. The department comprises of visualisers, creative artists
and copywriters and their duty is to create advertisements. The
creative director coordinates the copy-writing and designing.

6) Production Department: Production department also

provides good opportunities for career building. The production
department can be divided into two sections: one section is
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responsible for the mechanical preparation of the advertisement or

the printed material, and the other for the administration of the detail
work. The mechanical production section has many people to deal
even technically with block-makers, printers, photographers, DTP
operators in designing print outs. Many production departments also
handle the job in different languages and need people to assist the
advertising job.
7) Art Department: The approved layout pass into the hands of
artists to prepare finished drawings for reproduction. Art department
is in the charge of an Art Director and it is his duty to co-ordinate the
work to select the correct type of treatment so as to prepare the
visuals and then the final art-work.
8) Free Lancers: These are professionals who work in
dependently and have a successful track record. They are
copywriter, jingle singers, radio announcers, artists, visualizers,
technical writers, etc.
Thus, advertising can be an exciting and rewarding career,
provided those in this profession understand the full social implication
of advertising and their responsibilities to the profession.

10.11 SUMMARY

The Ad Agencies conduct market research, consumer research,

product research etc. for the manufacturer or trader.
A full-service advertising agency provides various services like,
Media Selection, Advertising Planning, Preparation of an advertising
copy, layout, illustration, photographs, advertising messages, theme
of advertisement etc., showing the copy to his client and obtain his
approval, Selecting target consumers, designing products and
packages, developing channels of distribution strategy, determining
prices and rate of discount, exhaustive evaluation of the advertising
effects etc.
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While selecting the advertising agency some points are to be

observed such as Location, Facilities and Services Provided
Imaginations and creative skills of the personnel of agency, past
records of the agency, the reputation of the advertising agency,
Rates Charged, the size of the advertising agency etc.
Since advertising agency is an independent business organisation, it
may be in the form of a sole proprietorship, partnership or Joint Stock
Company form of organisation.
Some of the departments of advertising agency are Contact
Department, Art Department, Media Department, Mechanical
Production Department, Copy Department, Research Department,
Radio and T.V. Production Department, Finance Department,
Merchandising Department, Public Relation Department etc.
Advertising is an important profession and advertising industry
provides enormous opportunities for career development. The
advertising industry consists of the advertising agencies, the
advertisers, the media and the ancillary services.

10.12 QUESTIONS

1. What is an Advertising Agency? State and explain the functions

of an Advertising Agency.
2. What is meant by an Advertising Agency? What are its main
functions?
3. What factors are considered for selection of advertising agency?
4. Outline the Organisation of an Advertising Agency.
5. State and explain the functional organisation of Advertising
Agency.
6. What are the services rendered by an advertising agency?
7. Explain the Organisation and Working of an Advertising Agency.
8. What Factors would you keep in mind while selecting an
Advertising Agency?
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9. What should be the Criteria for Selection of an Advertising

Agency?
10. Discuss the Advantages of the Advertising Agency to the Firm
11. State and explain the Methods in which Advertising Agencies are
Compensated for the Services Rendered by them
12. Write short notes on the following :
a) Agency-Client Relationship
b) Client Turnover
c) Agency Accreditation


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11
PLANNING AN ADVERTISING CAMPAIGN
Unit Structure:

11.0 Objectives of the lesson

11.1 Introduction
11.2 Process of Planning the Advertising Campaign
11.3 Market Segmentation
11.4 DAGMAR Model
11.5 AIDA
11.6 Unique Selling Proposition (USP)
11.7 Advertising Appeal
11.8 Summary
11.9 Questions

11.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand:
Importance of planning the Advertising Campaign
Process of Planning the Advertising Campaign
Factors influencing the Planning of an Advertising Campaign
Bases of Market Segmentation
Importance of Market Segmentation
DAGMAR Model, AIDA, Unique Selling Proposition (USP)
Appeals used in Advertising

11.1 INTRODUCTION
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Advertising campaign can be defined as a series of

advertisements with an identical or similar message, place in one or
more of the advertising media over a particular period of time.
An advertising campaign must be co-ordinate with other
marketing efforts and activities. This means the campaign must be
correlated with the personal selling activities of the sales force, those
of the distributors of the product and with the various other
promotional efforts, which may be a part of marketing mix.

11.2 PROCESS OF PLANNING THE ADVERTISING

CAMPAIGN

11.2.1 Meaning:
The campaign planning is the joint effort of both the advertiser
and his ad Agency. The advertiser supplies much information about
the product, the channel of distribution, competition the product, and
the firm. The agency may collect other information from the market, in
respect of target audience etc.
Advertising campaign planning concerns many people in the
advertising agency, but mainly concerns the advertising manager (for
the client), account executive, marketing manager, creative director,
media planner, and PR manager. They design and plan advertising
campaign for the client.
11.2.2 Steps in Advertising Campaign Planning: The main steps
in advertising campaign planning are as follows:
1. Prototype Stage: Let us assume that a manufacturer has the
prototype of a new product. The basic product has been thoroughly
tested, but the packaging has not been determined, it has no name,
no price, and perhaps no defined market. In some respects this
seems to contradict modern marketing principles. This situation is not
uncommon. The company now wishes to advertise its new product
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and appoints an advertising agency and calls it to explore the

possibilities to promote the sales.
2. Initial Briefing by Client: The most likely procedure is for the
managing director to ask his advertising manager to fix up a meeting
with the account executive of the advertising agency. This first
meeting may be held at the factory, at the company’s head office, or
at the advertising agency. Probably the best venue will be where the
account executive can see the product and meet the people who
have been involved in its development. The factory might be the best
place, but much depends on how the company is organized.
For this initial discussion, the right choice of venue can be
important to the account executive’s clear understanding of the
proposition. It can be dangerous for the advertising agency to start off
on the wrong foot because of inadequate or faulty interpretation of
policy and problems. The need then is for best possible
understanding at the beginning. This is the joint responsibility of the
advertising manager and the account executive.
3. Contact Report : Whenever a meeting has been held with a
client a contact report should be written at once and circulated to all
those present at the meeting, with additional copies for others not in
attendance who should be informed, both inside the company and
inside the agency.
The importance of a contact report lies in its confirmation of
agreed action, so that nothing depends on people’s memories, and if
it is submitted directly after the event it serves to remind of necessary
action that must be taken by people present at the meeting. Agreed
contact reports, when placed in a file or binder as instructions to
proceed, may be referred to as the facts book. Should a dispute
occur, reference can be made to the respective contact report: at the
end of the year these reports from the basis of a report to the client
on the year’s work.
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4. Account executive’s Report to Agency Management: The

account executive will also give his superiors - the account director
and perhaps the agency managing director - a verbal report. If new
business is coming into the agency it may be necessary to make
changes in the deployment of staff, engage extra staff, and consider
the use or expansion of equipment and premises.
5. Account executive’s Briefing to Agency Department
Heads: The account executive now writes up a detailed, factual but
as far as possible unbiased report on the assignment, setting out his
understanding of the product and the client’s requirements. In this
report he should try to avoid expressing any personal observations
because the object is to inform others whose ideas and opinions are
being sought. Each department head is asked to study the report and
to attend a plans board meeting.
6. Proposition: At this stage, the account executive invites the
managing director of the client company to attend a meeting at which
the scheme is presented in report form with a presentation of ideas in
rough visual form. At this meeting the client party may consist of the
managing director, marketing manager, sales manager and
advertising manager and the members of the agency party may
include the account director, account executive and the marketing
director. Once the scheme is approved and adopted in principle the
agency will be instructed to prepare a full visual presentation at the
client’s expense.
Now, the agency will engage in actual copywriting, photography
and drawing. Detailed media scheduling will now be done by the
media buyer.
7. Presentation to Client: At this stage the complete campaign
is demonstrated to the client. The campaign is presented visually.
Advertising campaign planning must be flexible. Moreover, at such a
meeting with the client there will be a number of company directors
and executives present who disagree with one another as well as
with the agency over what makes an advertising campaign. Everyone
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likes to argue about advertising! The account executive, supported by

the advertising manager in deal circumstances, must sell his
campaign on the basis of sales and readership figures of
publications, show the results of copy testing, and offer alternative
media plans with evidence of the reasoning behind them. Much of the
comment and criticism from the client side will often represent
arguments which were considered and rejected in the agency much
earlier. This has to be expected, accepted courteously and gently
dismissed by means by persuasive reasoning and statistics which
reveal that the agency has really taken pains to produce not just a
clever scheme but one based on businesslike thinking.
Once the scheme has been approved, the account executive and
his companions will return to the agency, ready to execute the
campaign. At this stage when the media start buyers, creative staff,
print buying production and traffic takeover, working under the
direction of the account executive.
11.2.3 Factors Influencing the Planning of an Advertising
Campaign:
1. The Organisation its reputation, position in the market.
2. The product e.g. Consumer (Perishable, durable or specialty)
goods, or industrial goods etc.
3. The market the nature of customers, their income, their buying
behavior, and their location.
4. The competition.
5. The absolute price of the product, Competitor’s price etc.
6. The channels of distribution.
7. The budget, the advertising theme, etc.
8. The media, the advertising schedule etc.
9. The Govt. regulations and controls, restriction on certain products,
restriction on certain media to carry out certain ads. Etc.

11.3 Market Segmentation

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11.3.1 Meaning:

Market Segmentation is a technique of dividing the market of a

product into several homogenous groups. Under this technique,
customers of a product are divided according to such common
characteristics as age, sex, income level rural urban composition.
The concept of market segmentation is based on the assumption that
markets of all commodities are heterogeneous. For every product,
there is a group of customers having different nature, buying habits,
and attitudes. Two customers are not alike. They differ each other.
On the basis of their characteristics, customers may be divided into
several groups. These groups are formed on the basis of some
similar qualities and such division is called Market Segmentation.
11.3.2 Definition of Marketing Segmentation: The term „Market
Segmentation‟ has been defined by several authors as follows:
Philip Kotler, „Market Segmentation is the sub-dividing of a
market into homogeneous subsets customers, where any subsets
may conceivably be selected on a market target to be reached with a
distinct marketing mix.‟
William J. Stanton, „Market Segmentation consists of taking the
total heterogeneous market for a product and dividing it into several
sub-markets or segments, each of which, tends to be homogeneous
in all significant aspects.‟
Market segmentation are grouping of consumers according to
such characteristic as income, age, sex, urban rural, etc. This helps
forming the market into a meaningful buyer group.
11.3.3 Bases of Market Segmentation:
Market segmentation divides the whole market of a product into
several different groups. Segmentation is the process of partitioning a
large heterogeneous market into smaller groups of people or
businesses which show similar needs and/or characteristics thus
resulting into similar purchase behaviour.
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Techniques of Market Segmentation: Markets can be segmented

on the basis of the total demand for the product, the desire and the
interests of a group of buyers which exhibits certain characteristics.
They can be based on geographical, demographic, psychographic,
status, volume entities. The entire market of a country is subdivided
into marketing zones. The most commonly used bases for
segmenting consumer goods markets are as follows
1. Geographic Segmentation: Many organisation segment their
market into different geographic units such as nation, states, districts,
regions, cities and taluka places. Geographic segmentation is based
on the assumption that consumer needs and responses vary
geographically. National newspapers, for example, are published
from different cities and also in different languages to meet the
readers spread all over the country. Different market locations have
different costs, demand and other features which are considered
while formulating an appropriate marketing strategy. In geographic
base, regional differences in terms of geography, climate, population
and its density are used as base for market segmentation. Most of
the national manufacturers split up their sales areas into sales
territories either state wise or district wise.

2. Demographic Segmentation: Demography is the study of

dynamics of population change. The markets are segmented
according to demographic characteristics such as age, sex, income,
occupation, education, language, religion, race, nationality and rural
urban base. Demographic variables are used commonly and
extensively by large number of producers for market segmentation.
Demographic segmentation is comparatively easy as required data
are available in census and other published reports. Demographic
data on population distribution by sex help segmenting market for
male and female population. Titan have segmented their market on
the basis of sex and are manufacturing wrist watches for male and
female buyers separately. Watches of different price in both the
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categories are brought in the market. Producers of confectioneries

segment their markets on the basis of age. The same is the case with
toys. In the case of certain products like bicycles, women demand
special styles and manufactures adjust their production to suit male
as well as female. This gives more turnover and satisfaction to
buyers. Demographic segmentation is important as the nature of
demand is closely related to the size and composition of population
by age, sex, rural and urban base.
3. Socio-Economic Segmentation: The segmentation, here is
done on the basis of income group, consumption levels, and other
cultural aspects. The population is differentiated for marketing efforts
on these considerations. In a country like India, such type of
segmentation is necessary as the society is divided into different
groups on socio-economic cultural factors. In India, people follow
different cultural background. Naturally, suitable segmentation for the
purpose of marketing is useful. Socio-economic segmentation is used
extensively as information in this regard is more easily available. The
lower class, middle class, working class is one example of economic
classification. Since market potential is intimately connected with the
ability to buy, this segmentation is meaningful in deciding buying
patterns of a particular class.
4. Psychographic Segmentation: Psychographics attempts to
segment according to psychographic profiles of people in terms of
their life style and attributes. Psychographics attempt to segment
according to psychological profiles of people in terms of their life style
and attitudes. In this type of segmentation, certain psychological
variables such as social class, life-styles or personality characteristics
are used for segmentation. Manufacturers of cars, textiles and home
furnishings divide buyers on the basis of social class and life styles.
Such segmentation is also possible on the basis of reading habits
and leisure activities. Marketing efforts are adjusted according to
such variables. It may be pointed out that in the case of geographic,
demographic and socio-economic bases, the required data for
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segmentation are either readily available in census and other reports

or can be collected through survey. However, in the case of
psychological variables, relevant information is not readily available
and has to be collected through behavioural research. Moreover,
market segmentation on psychological variables is complicated as it
is always difficult to expose individuals to a battery of psychological
test and to find out their specific personality traits. Moreover,
consumers behave or react differently from what they say, if new
benefits or bundles of benefits are offered to them. Psychographic
segmentation can be made on the basis of (a) Social class (Upper
class, upper middle, lower middle class, etc.) (b) Personality (Self-
confidence, ambitious, aggressive, sociable, etc.) and (c) Life-style
(Liberal, conservative, religious, health and fitness oriented, etc.)
5. Behavioral Segmentation: Here, the buyers are grouped or
separated on the basis of their knowledge, attitudes, views, or
response to the product. This is useful in order to find out what role
price or package or colour or service can play in influencing buying
decisions. This segmentation is also called product related
segmentation as the response of consumers dividing into different
convenient groups for the purpose of marketing. In India, the supply
of consumer items, electronic goods, two-wheelers, cosmetics etc. is
fast increasing. The supply is more as compared to demand. The
incomes of people of all categories are also increasing. People are
also willing to spend more. They get information about new products
from different media. This creates proper background for behavioral
segmentation is similar to but slightly different from psychographic
segmentation.
6. Product Segmentation: When the segmentation of markets is
done on the basis of product characteristics that are capable of
satisfying certain special needs of customers, such a method is
known as product segmentation. The products, on this basis, are
classified into (1) Prestige products, (Automobiles and jewellery (2)
Maturity products. (Cigarettes and Blades), (3) Status products, (Most
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Luxuries), (4) Anxiety products, (Medicines, Soaps and Perfumes)

and (5) Functional products, (Fruits and Vegetables). This type of
product segmentation is directed towards differences among the
products which comprise markets.
7. Benefit Segmentation: Under this method the potential
buyers form the basis of segmentation. They are interviewed to learn
the importance of different benefits they may be expecting from a
product. These benefits or utilities may be classified into primary
utilities and secondary or evolved utilities. Toothpaste has primary
utility of cleaning and secondary utility of good tasted breath
freshening and rightness. Likewise, Shampoo has primary utility of
cleaning and secondary utility of shiny hair and thickening hair.
8. Volume Segmentation: Markets can be segmented into bulk
users, medium users and unit users. This method is based on the
volume of purchases. The heavy users may constitute a small
percentage of the numerical size of the market but forms a major
percentage of the unit volume consumed. This analyse is also
capable of showing the buying behaviour of different groups.
9. Status Segmentation: Markets can be differentiated into non
ex-users, users, potential users, first-time users and regular users of
a product. High market share companies like the DCM generally look
for potential users, whereas small competitive companies are
contended to concentrate on regular users who always patronize
their products and tend to remain to their brands.
11.3.4 Importance of Market Segmentation:
Market segmentation is a technique of dividing the market of a
product into several homogeneous groups on the basis of their
common characteristics. The concept of market segmentation is
based on the fact that markets of all the commodities are
heterogeneous. On the basis of their characteristics, customers may
be divided into several groups. These groups are formed on the basis
of some similar qualities and such division is called market
segmentation.
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Following points explains the importance of Market

Segmentation:
1) Market segmentation are grouping of consumers according to
such characteristics as income, age, sex, urban, rural, etc. This helps
forming the market into a meaningful buyer group.
2) Market segmentation ensures certain advantages. Infact
market segmentation is the most important factor in media planning
because the decision of the media selection would depend mostly
upon the people who comprise the market. However, it is not a very
difficult task to provide precisely the necessary facts.
Where the market is restricted and clearly demarcated, as a
particular section of the community such as doctors, architects,
engineers, hoteliers or even telephone or car owners, the media
strategy can be simple and straight forward, making use of the
selective media like direct mail, etc., depending of course, on the
budget available.
It is only when a wider mass market is to be reached that the
problem of selection of media becomes complex. Here the problem
arises because a mass market does not permit its definition as
precisely as is required to make corresponding media selection
predictable.
3) Markets for a new product or the existing products may be
divided into segments on the basis of geographic, demographic and
psychographic variables. Good segmentation involves the division of
a market by a succession of variables. The market manager must
always be open to the possibility of finding new segmentation
variables and combinations that will reveal fresh marketing
potentialities.
4) The market may also be divided into different locations such
as nations, states, districts, talukas, etc. It could be recognized that
market potentialities and cost vary with market location. Thus, it
determines the geographical markets which could serve best.
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5) Marketing manager may also segment a market on such

criterion as the age, sex and marital status of the population. A
product for use of infants will have high sales potentiality in suburbs
or extended suburbs where the level of fertility is expected to be high
as compared to the city. Likewise toothpaste will have better market
in urban rather than rural areas. As such market will be segmented
on the basis of urbanization.
11.3.5 Markets are segmented due to following reasons:
1. It would be in a better position to spot and compare marketing
opportunities. It can examine the needs of each and every
segment against the current competitive offerings and determine
the extent of current satisfaction. The segment with lower levels
of satisfaction from current offerings represents good
opportunities.
2. It can make finer adjustments of its product and marketing
appeals. The seller can evolve a separate marketing programme
to meet the needs of different buyers.
3. Marketing programmes and budgets could be chalked out on the
basis of response characteristics of specific market segments.
Funds may be allocated efficiently to bring out the desired effects
in different parts of the market.
4. Market segmentation is undertaken with the purpose of locating
the tastes, temperaments and buying habits of different groups or
segments. The behavioural scientists feel that all buyers are
different. They are keenly interested in segmenting the market
as the significant differences in market behaviour between the
various segments of society rarely exists. In this background, the
formulation of marketing policies or programmes or tactics for all
segments becomes urgent.
5. Market segmentation is done with the purpose of locating new
markets. The group wise or segment wise study of buyer’s
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tastes, temperaments, living habits and so on help a marketer,

while searching for new market.

11.4 DAGMAR MODEL

DAGMAR model for arousing consumer interests was developed

by Russen Colley in his study entitled “Defining Advertising Goals for
Measured Advertising Results.” The name DAGMAR model is
derived from the study title. The study begins from a point where the
prospect is not aware about the existence of the product. From this
point of non-awareness the prospect advances ahead towards
awareness. He will have to go through the following steps:
1. Awareness: When the prospect is asked to mention the name
of a brand of product, perhaps he is in a position to recollect the
name of a specific brand only.
2. Comprehension: The prospect is conscious about the main
sales theme of a brand of product. When asked upon, he is able to
associate a brand with the sales theme, which is already known to
him.
3. Conviction: At the stage of conviction, the prospect is able to
foresee how the benefits of the brand of goods will serve his need.
He is convinced that if he purchases this brand of goods it would be a
right decision.
4. Motivation: Having been convinced, the prospect is motivated
to buy a specific brand of goods.
DAGMAR model suggests that all consumers will not be at the
same stage but they would be at different stages. The advertising
efforts required to move on person from non-awareness to
awareness could be very taxing as compared to the efforts involved
in moving persons from conviction to motivation. DAGMAR model
also illustrates the success of means of communication. After
advertisements have been carried out, how people associate
themselves with a specific brand of product.
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Check your progress:

1) Explain the following terms,

a) DAGMAR
b) Market Segmentation
c) Benefit Segmentation
d) Behavioral Segmentation
e) Psychographic Segmentation
f) Advertising Campaign
g) Advertising campaign Planning

2) “The advertising Campaign Planning is the process of collective

efforts made by the advertiser and the Advertising agency.”
Explain.

11.4 AIDA

AIDA is a functional formula devised by E.K. 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 to an
Interest in it. Form this stage he develops a Desire for the product
and this then result in.
1. Attention: The main function of an advertisement is to attract
attention of the consumers. It is because of this fact that the
advertiser will use various devices like the use of attractive colour,
headlines display and overall layout.
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 has to take note of these two aspects while
developing an advertisement. A good advertisement starts with a
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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 product to bring a greater bit of the
marketing share. It is also used to remind the consumers about their
needs. A good advertisement should arouse interest of the prospects
in the advertised product.
3. Desire: A good advertisement should be able to 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
arouse desire in the heart of the prospect to have the product. The
advertiser should make use of proper appeals and selling points
while creating desire for the product. Making use of proper appeal will
depend on the seasonal consumption of the product. For example,
the sale of rain-coats in monsoon will emphasize self-protection
against rains. It is through the sales appeal that the advertiser
creates a desire for the product.
4. Action: This is an important stage where the advertiser can
study the impact of his advertisement. If the advertisement has
attracted attention, aroused interest, created desire, then the
advertisement should appeal the prospect to act i.e., to come forward
for making purchases.
The advertiser should tell the prospect about the product, their
main features, how they can be consumed and where they are
available. For example, the prospect who wants to book new scooter
should get such information in the advertisement as: place of display,
place and date of booking. Every advertisement normally carries
such basic information to guide the prospective buyers. It is this stage
which plays a decisive role in generating the sale of the advertiser’s
product.

11.6 UNIQUE SELLING PROPOSITION (USP)

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Unique Selling Proposition (USP) is an offer an advertiser makes

to his target customers which is unique in relation to competing offers
and promises to deliver a certain distinctive benefit or satisfaction.
Unique selling proposition is a creative approach and style which was
originated at the Ted Bates Advertising Agency in the early 1940s. Its
originator, author and copy-writer was Rosser Reeves. He developed
this central idea of Unique Selling Proposition (USP). This concept
has been adopted by many agencies all over the world. It is the
combination of three words - (i) Unique, (ii) Selling, and (iii)
Proposition. In order to make the concept clear, the meaning of these
three words is given below
(i) Unique: The word unique describes an attribute or feature
which the product or brand only possesses or no claim of the
attribute or feature is currently being made by any other competing
brand.
(ii) Selling: Selling refers to sales value. The claim whatever it is -
must be strong enough, important enough and believable enough to
convince consumers that it is absolutely in their interest to purchase
the product or brand in question.
(iii) Proposition: Proposition is a promise made by the advertiser
that the product, if purchased, will satisfy the needs of the
consumers. The proposition should be strong enough to move the
mass millions, i.e., pull in new and old customers to your product or
brand.

11.7 ADVERTISING APPEAL

11.7.1 Meaning:
An advertising appeal is a statement designed to motivate a
person to act. The appeals which the advertiser makes usually focus
the buying motives of the consumers. Pleasing total quality of a radio
becomes basis to motivate the music and the vitamin contents of a
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drug form an appeal to motivate public and listen to people to

preserve their health. However, numerous appeals may be made for
any product.
11.7.2 Essentials of a Good Advertising Appeal: The following are
the essentials of a good advertising appeal:
1. It must be Communicative: An advertising appeal must
successfully tell what it wishes to convey. As far as possible, the
message must be communicated in a simple language.
2. It must have a Good Theme: A good theme means there
must be something which has to be told to the prospects. Only
meaningful words become effective in conveying the story.
3. It must be Distinctive: An advertising appeal must be
distinctive. It should present a product in a distinctive way. If it is a
new product, then „new‟ alone makes it distinctive.
4. It must be Interesting: A good advertising appeal must be
interesting. An advertisement must provide interest to the readers or
the listeners or viewers and this can be done by telling the story of an
advertisement in an interesting manner.
5. It must be Believable: The theme of an effective advertising
appeal must be believable. The message which is doubted can never
be effective. Only facts are presented in an interesting manner.
6. It must be Complete: An advertising appeal should be
complete and must not be superfluous. Such information which is
likely to confuse the prospects in making buying decision should be
avoided.
11.7.3 Types of Appeals Used in Advertising: The following are
the appeals widely used in advertising:
1. Emotional Appeals: Emotional appeals are used in
advertising the consumer product. They are used for inducing initial
interests and arousing interest in the advertised product. Goods like
toys for children and baby food are sold on emotional appeals.
2. Intellectual Appeals: These appeals are free from emotional
touch and are based on intelligence. Intellectual appeals are used for
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selling high priced industrial goods. They are based on rational

thinking. Emotional appeals work fast to create interest and desire
but it is intellectual appeal of the Bombay Dyeing advertisement
where a young and beautiful girl is shown wearing eye-catching
prints. The picture of the girl and prints provide emotional appeal but
the headline „icy summer prints‟ provide and atmosphere of coolness
and appeals to the intellect.
3. Human Instincts Appeal: Human beings are guided by such
instincts as: self-preservation, parental care, food, clothing, curiosity
and so on. When a copy makes proper appeal to the appropriate
instinct, it will create a desire in the minds of the reader to buy the
article. For an appeal to the self-preservation instinct health, food,
woolen clothes and physical fitness courses are appropriate articles.
Baby food can be sold more easily by making an appeal to the
parental instinct and the natural affection of the parents for their
children.
4. Physical Sense Appeal: Appeals to physical senses evolve
greater response. For example, food and beverage products are sold
by inciting taste appeal. During summer, cold drinks can be
effectively advertised with pictures of cool, refreshing summer drinks
but during winter this advertisement would be a misfit if appeal is
made to the sense of taste alone, a more viable approach would be
to appeal to the instinct of self-preservation.
5. Positive Appeal: Appeals that follow positive approach are
called positive appeal. They create situations under which prospects
are likely to attain happiness and peace of mind with the possession
of advertised goods.
With a view to arouse product interest, the following positive
emotional appeals are used e.g., appeals to comfort, healthy, living,
family affection, pleasure, personal appearance, sympathy, love,
pride etc. These appeals are positive because they create awareness
under which prospects are likely to attain happiness and the mental
satisfaction of possession of materials.
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6. Negative Appeal: Negative appeals are those which follow

negative approach. They normally include feelings like jealousy,
anger, pain and fear. These are the unpleasant feelings and no
prospect would desire to associate himself with frustration
It would be unwise to assume that negative appeals are
ineffective. Sometimes they work very fast. We shall present a few
negative appeals from illustrative advertisements. For example,
Motwane Manufacturing Co., in its advertisement for Motwane Digital
Millimeters used the negative appeal which gave striking impact.

11.8 SUMMARY

Advertising campaign planning concerns many people in the

advertising agency, but mainly concerns the advertising manager,
account executive, marketing manager, creative director, media
planner, and PR manager. They design and plan advertising
campaign for the client. Planning is a process it includes various
steps like, Prototype Stage, Initial Briefing by Client, Contact Report,
Account executive’s Report to Agency Management, Account
executive’s Briefing to Agency Department Heads, Proposition,
Presentation to Client etc.
The reputation of Organization, product, nature of customers,
competition, price of the product, Competitors’ price, channels of
distribution, budget, Govt. regulations and controls etc. are the
various factors which affects on the Planning of an Advertising
Campaign.
Market Segmentation is a technique of dividing the market of a
product into several homogenous groups. Under this technique,
customers of a product are divided according to such common
characteristics as age, sex, income level rural urban composition.
The concept of market segmentation is based on the assumption that
markets of all commodities are heterogeneous. For every product,
there is a group of customers having different nature, buying habits,
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and attitudes. Two customers are not alike. They differ each other.
On the basis of their characteristics, customers may be divided into
several groups. These groups are formed on the basis of some
similar qualities and such division is called Market Segmentation.
Segmentation is the process of partitioning a large
heterogeneous market into smaller groups of people or businesses
which show similar needs and/or characteristics. Markets can be
segmented on the basis of different geographic units, demographic
characteristics, Socio-Economic aspects, psychographic profiles of
people, behaviour, product characteristics, different benefits that the
consumers are expecting from a product, volume of purchases etc.

11.9 QUESTIONS:

1. What is Advertising Campaign? Explain the importance of

planning of an Advertising Campaign.
2. Explain the Process of Planning the Advertising Campaign
3. What are the steps in Advertising Campaign Planning?
4. What are factors influencing the Planning of an Advertising
Campaign?
5. What are the bases of Market Segmentation?
6. Explain the importance of Market Segmentation.
7. Write short note on the following : a) DAGMAR Model b) AIDA c)
Unique Selling Proposition (USP)
8. What are the essentials of a good advertising appeal? Explain the
different types of appeals used in advertising.

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12
ADVERTISING BUDGET
Unit Structure:
12.0 Objectives of the lesson
12.1 Introduction
12.2 Meaning of Advertising Budget
12.3 Process of Advertising Budget
12.4 Methods of Framing the Advertising Budget
12.5 Approaches to Advertising Budget
12.6 Summary
12.7 Questions

12.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand:
Advertising Budget
Steps involved in preparing an Advertising Budget
Methods of Framing the Advertising Budget
Approaches to Advertising Budget

12.1 INTRODUCTION

Some people think that money spent on advertising is

expenditure. Some consider it a waste of money. Some are of the
opinion that we spend money on advertising because our competitors
spend a lot of money on it. They consider advertising as an evil. Here
we do not intend to discuss the benefits of advertising and its
necessity for business growth and survival. Nowadays, money spent
on advertising is treated as a long term investment in the image of a
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brand. Planned advertising expenditure is required to build a

consumer franchise for the advertised brand, apart from its being of
direct return. That is why every business enterprise spends a lot of
money on advertising campaign every year out of its budget
provisions.

12.2 MEANING OF ADVERTISING BUDGET

Advertising budget is an estimation of total expenses that are to

be incurred on advertising during a given period of time. The
advertising budget includes items of expenditure relating to
advertising programmes, cost of space, advertising material
(including advertising copy) production expenses, media expenses,
agency commission and advertising research etc. In the most
elementary form, it states the proposed advertising expenditure and
informs and suggests the company management of the anticipated
cost of executing the advertising plan. It is the translation of
advertising plan into money. The advertising budget must be realistic,
flexible and adequate for the advertising programmes. The
advertising budget must consider the advertising goals and the size
must relate to advertising needs. It should be tailored to suit the
needs of the business enterprises. An advertising budget will show
also how much, where and for what purposes the amount provided in
the budget is to be spent. The amount provided in the advertising
budget is not fixed arbitrarily but is determined on scientific lines
keeping in view the nature of the product, size of the market to be
covered by the enterprise, types of consumers and the strategy of the
competitors etc. it is a plan for the company’s future advertising
programme. It provides a programme of the best assortment of types
of advertising to be undertaken along with its time table and
frequency. In addition to planning function, the advertising budget
also serves as a control of advertising expenditure.
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12.3 PROCESS OF ADVERTISING BUDGET

Advertising budget is prepared by the advertising manager of the

company. The advertising budget process includes the following
major steps:
1. Collection of Data and Preparation of Advertising Budget:
The starting point of any advertising budget process is the
determination of the size of advertising appropriation. The requisite
information keeping in view with the products, packaging, target
markets, advertising copy, new product introductions, types of
consumers, extent of competition along with the competitors‟
strategy, media selection etc. is gathered. Having decided upon the
above variables, the advertising manager takes a decision on the
very important issue „how much to spend‟ for advertising. Once the
total expenditure is arrived at, the next step is the apportionment of
this fund among various advertising units over a period. By
advertising unit, we mean a specific advertisement delivered through
various media vehicles. The fund allocation has to take into account
the market potential within various segments, the time period and the
geographical areas over which advertising will be spread in
accordance with the overall advertising strategy.
2. Presentation and Approval of the Budget: After the
preparation of advertising budget, the next step in a budget making
process is to present the same before the top management through
the chief of the marketing division for necessary approval. In some
organizations, there is a separate budget committee, comprising of
the representatives of the financial and other functional areas. The
budget committee or the top management, as the case may be, will
evaluate such proposed expenditure to achieve the targeted sales in
a given budgeted period. Since advertising budget is employed to
increase sales, the advertising budget must be compatible with the
sales goals of the company. Besides increasing sales, it should be
adequate enough for the new product to make a successful entry in
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the chosen segment of the market. After considering all these factors
if satisfied, the budget committee or the top management, as the
case may be, will finally accord his approval over the budget
proposals and thus will return the same to the advertising manager
for execution.
3. Budget Execution: After the approval, the next step in budget
making process is the execution of the budget. During the execution
of the budget, the advertising manager has to exercise monitoring
control so that the funds that have been allocated are spent in
accordance to the approval plan and in economical manner.
Whenever there are critical changes in the marketing situation,
necessitating an adjustment in the advertising support, the necessary
modifications should be effected in the advertising budget. That is
why, advertising budgets should be flexible and provision is made for
the contingency account to face the critical changes in the marketing
environment. The advertising manager should be duly authorized by
the budget committee or the top management for making the
required modifications etc. as and when required.
4. Control of Budget: The fourth and the last step in the budget
making process are to have a control over the budget. It is the prime
duty of the advertising manager to see whether the actual
expenditure coincide with the budgeted expenditure or not. The
advertising manager should also see that the amount appropriated
for advertising is being used only on the item and activity as
expressed in the budget.
Determining Advertising Appropriation
Advertising appropriation is that part of company’s budget which
is to be spent or, say, invested on media, men and other advertising
material so as to impersonally communicate with the target-
prospective customers. Determining the appropriation advertising
outlay is essential for the development of creative media strategies
because in a large measure the tempo and tenor of the advertising
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campaigns depend on how much is available for spending. However,

from the managerial point of view, it is the most difficult work.
Cost factor is one of the deciding factors in determining the
advertising appropriation. A cost analysis study of different media of
advertisement and their effectiveness should be considered while
determining the advertising appropriation.

12.4 METHODS OF FRAMING THE ADVERTISING

BUDGET

Actually there are no scientific methods available which can be

employed in determining the amount of the advertising fund to be
spent during a given period. However, there are several approaches
which may serve as guidelines to advertising appropriation decisions.
These approaches are called methods. These should not be
employed blindly because there is no single method which is
applicable to all the situations and may provide correct results. The
popular methods which are commonly used in determining
advertising appropriation or for framing the advertising budget are as
follows:
1. Affordable Method: In this method one has to find out what
the company can afford in a given business situation. Particularly,
those companies which have limited resources use this method.
When funds availability is a constraint, a limited fund is allocated after
other unavoidable expenses have been duly met. Under this method
it is usually assumed that advertisers do not spend too heavily. Under
this method, advertising activity is blocked-up at last.
Merits and Demerits (Weaknesses): Since the company does not
spend more than it can afford and, therefore, there is an element of
financial discipline in this method. Nevertheless, this method suffers
from the following weaknesses:
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(i) The budget decisions are left to the whim of the management
and thus are not based on rational business needs. Whims are most
irrelevant and subjective rather than based on an objective approach.
(ii) It overlooks the contributory rule of advertising in the
achievement of marketing objectives.
(iii) It also ignores the need, importance, nature of
advertisement and other factors like long-range planning of
advertising investment.
On the whole, affordable method is not a scientific one and
hence is used by small companies only.
2. Percentage of Sales Method: Under this method, the amount
to be appropriated to advertising is arrived at by multiplying the value
of past year’s sales or the projected sales for the budget period with
a pre-determined percentage. It may be explained as under :
Advertising
__________
Appropriation
= Past year's sales or anticipated sales or both X Pre - determined percentage

The sales on which advertising appropriation is based may be

historical – immediate past year’s or an average of past years or
anticipated or both. Percentage figures, on the other hand, may be
arrived at on the basis of management’s historical experience,
judgement or industry practice.

Merits: This method is most popular with managements on

account of the following reasons:
(i) It is a very simple, workable and relatively safe method.
(ii) Since it directly relates advertising expenditure to sales, it seems
to be very satisfactory for many advertisers.
(iii) It encourages management to think in terms of the relationship
between advertising expenses, prices and profits.
(iv) By relating appropriation to sales, this method ensures that the
advertiser will spend only what he can afford. Advertising will earn
its share out of sales.
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(v) It helps the industry in preventing advertising wars because

advertising expenses are proportional to market share/sales.

Demerits or Weaknesses: In spite of being the most popular

method of framing advertising budget, this method is subject to
criticism on account of the following weaknesses:
(i) It considers advertising as the result of sales whereas the fact is
that it is the cause of sales.
(ii) It discourages experimentation with counter-cyclical advertising
and aggressive selling.
(iii) It does not provide a logical basis for the choice of a multiplier,
i.e., percentage.
(iv) It militates against the planning of long range advertising
programmes.
(v) It represents a static approach to advertising and does not allow it
to respond to market needs and advertising opportunities. For
example, when sales decline for some reasons a better course of
action might be to maintain the level of promotional activity until
the sales decline can be corrected.
(vi) It is not a scientific method.
In spite of the above weaknesses and criticism, percentage of
sales method is very popular and is widely used in Indian industries
also.
3. Competitive Parity Method: This method envisages
determination of advertising appropriation in such a way that a
company maintains parity with its competitors‟ advertising outlays.
This method is based on the principle that you are at par with
competitors. Spend as much as the competitors do. Here, advertising
is taken as a defensive device and not an offensive tool to achieve
marketing objectives. Advertisers want to spend as much as their
competitors are spending so that they are not placed at any
disadvantage. For this purpose, company has to collect relevant data
about competitors‟ advertising appropriation, for example, previous
year’s absolute figures, advertising/sales ratios etc.
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Merits:
(i) This method is most appropriate where competition is rigorous as
the management is supposed to keep itself in line with its
competitors. Under this method, the management always keeps
him alert.
(ii) It reduces considerably the possibilities of advertising wars
amongst competitors.
(iii) It enables the management to maintain or increase its share of
the market in accordance with the objectives of the company.
(iv) It enables the management to monitor the marketing programmes
of its competitors. Thereby the marketing strategy may be
changed accordingly.

Demerits or Weaknesses:
(i) It is not a rational method because the need, size, problem,
opportunities and resources of every company vary considerably
from each other. These are hardly similar to each other.
(ii) There is no empirical or other evidence to suggest that
competitive parity in advertising appropriations has prevented
advertising wars.
(iii) The use of competition as a yardstick for appropriation makes it
easy for a company to ignore the needs of analyzing the realities
of its own competitive situation and to visualize the possibility of
other and better available strategies.
4. Objective and Task Method: Objective and Task Method for
framing the advertising budget is considered to be the most desirable
and realistic method. It is also known as “research objective method”.
It envisages appropriation of advertising funds on the basis of
objectives to be achieved and the task involved therein. It means
advertising objectives are set for the coming budget period and the
cost of achieving these objectives are calculated in details in terms of
task to be performed, the total of which indicates the appropriation
level. In short, this method includes:
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(i) Defining advertising objectives as far as possible in quantitative

terms.
(ii) Outlining and listing tasks to be performed in achieving these
objectives.
(iii) Estimating the cost of performing these tasks. This method takes
into consideration the fact that advertising is an investment and
an effective vehicle of achieving company’s objectives.

Merits:
(i) This method is more realistic, imaginative, objective, and
replaces the rule of thumb and customary thinking.
(ii) It forces the management to think in terms of advertising
objectives and awakens it to the need for their achievement.
(iii) It is flexible and may be adapted to changing company needs.
(iv) This method has a special merit in the introduction of a new
product.
(v) It does not operate on the inaccuracies of the percentage of
sales basis.

Demerits or Weaknesses:
(i) This method is difficult to use, for it calls for adequate research
data and past experience.
(ii) This method is objective-oriented. However, its objectives are ill
defined; the whole expenditure and the efforts will then go to
waste.
(iii) It is difficult to translate objectives into task that will lead to
objective achievement.
On the whole, this Objective and Task Method is more rational,
realistic, pragmatic and need based as compared to other methods.

5. Return on Investment Method: In this method money spent

on advertisement is considered as an investment and not
expenditure. It is an investment in the sense that a certain return in
terms of profit is expected under this method. The advertising budget
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is prepared; under this method by taking into account the increased

profits generated by an increase in sales and goodwill on account of
advertising. If sales and profits are higher, the excess may be
assumed to the result of advertising.
The major problem in this method, however, is that the return is
very often spread over a period of time; hence it may be difficult to
arrive at an appropriate budget appropriation on the basis of this
method. In spite of this problem, the return on investment method is
no doubt a realistic way of approaching the problem because it
correlates the sales and profits generated by advertising.
6. Judgement Method: Judgement method of framing an
advertising budget is based upon the judgement of experienced
managers of the company. This method is also referred as the
„arbitrary method‟ because it is based on the arbitrary thinking of
some experienced managers only, this not based on any scientific
lines. This method involves no clerical or statistical or field work. It is
solely based upon the experience and judgement of some old and
experienced managers. They frame the advertising budget
considering all situations, i.e., objectives, anticipated behaviour of the
customers and the competitors, market to be covered, types and cost
of media etc.
Although this method is very cheap and simple but is not reliable
as it is based on the subjective approach of its experienced
managers and is subject to bias and error.
7. Fixed Sum per Unit Method: This method is similar to the
percentage of sales method except that a specific amount per unit is
appropriated rather than a percentage of the value of sales. The
advertising appropriation may be based on units of a product sold in
the previous period or on a forecast of unit sales in future period. This
method is most suitable in advertising appropriations for industrial
and durable consumer products. The most important advantage of
this method is that despite price changes advertising appropriation
may be kept unaltered.
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From the above study, it is evident that no single method is

perfect and free from defects. Hence a mix of the above methods
may be used in accordance to the requirements and need of the
company for framing the budget keeping in view the marketing
objectives of the company.
Check Your Progress:
1) Explain the following terms.
a) Advertising Budget
b) Affordable Method
c) Percentage of Sales Method
d) Competitive Parity Method
e) Research Objective Method
f) Judgement Method

12.5 APPROACHES TO ADVERTISING BUDGET

Nothing except the mint can make money without advertising.

Mass production and mass distribution totally depend on advertising.
That is why the advertiser spends lakhs of rupees every year on
advertising campaign just to influence consumers and prospective
customers to purchase the company’s products. Now the question
arises whether the money spent on advertising should be treated as
an expenditure or investment. Opinions differ on this subject. These
may be classified under the following two heads:
1. Traditional Approach - Money Spent on Advertising is
Expenditure: The traditional approach is that money spent on
advertising should be treated as expenditure and hence should be
debited to Profit and Loss Account of the business enterprise at the
end of each year. Advertisers treat the cost of advertising like other
costs appearing on the debit side of the Trading and Profit and Loss
Account in order to earn more profits during a given period. That is
why most accountants list the advertising expenditure as a business
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expense and the revenues authorities do accept this view for income
purposes also. They further argue that press, radio and television
advertisements have short life span and thus why the money spent
on advertisement should not be debited to Profit and Loss Account in
the same accounting year. The fruits of the advertisement have
already been derived in the form of increase in sales during the
concerning accounting year. In their opinion there is no rational
reasoning in carrying forward the advertising expenditure onwards for
a number of years.
3. Modern Approach - Money Spent on Advertising is an
Investment: The modern and the correct approach about the money
spent on advertising is that it is an investment because (i) advertising
contributes not only the current sales but the future sales also; (ii)
Creates image of the product or brand and of the advertiser; (iii)
builds goodwill and confirms acceptance for future products also; and
(iv) consequently serves as an investment towards future profits also.
Joel Dean, a leading business economist, considered advertising as
a capital investment rather than a current expenditure. Like other
capital assets, the advertising provides larger returns in future also.
From the above discussions, we conclude that money spent
on advertising should be treated as an investment and not
expenditure. It is a capital investment like investment in other capital
assets.

12.6 SUMMARY

Mass production and mass distribution are the main

characteristics of today’s business world. That is why the advertiser
spends lakhs of rupees every year on advertising campaign just to
influence consumers and prospective customers to purchase the
company’s products.
Advertising budget is prepared by the advertising manager of the
company. The advertising budget process goes through the steps
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such as Collection of Data and Preparation of Advertising Budget,

Presentation and Approval of the Budget, Execution of the budget,
Control over the budget etc.
Actually there are no scientific methods available which
determines the accurate amount of the advertising fund to be spent
during a given period. However, there are several approaches which
may serve as guidelines to advertising appropriation decisions. No
single method which is applicable to all the situations and may
provide correct results. Some important methods are:
1.Affordable Method, 2. Percentage of Sales Method, 3.Competitive
Parity Method, 4. Objective and Task Method, 5. Return on
Investment Method, 6. Judgment Method, 7. Fixed Sum Per Unit
Method.

12.7 QUESTIONS

1. What are the approaches to Advertising Budget?

2. What is meant by determining advertising appropriation? Describe
the methods of determining advertising appropriation.
3. What are the methods of framing the Advertising Budget? Explain.
4. What are the Common Practices in use for determining the size of
an Advertising Budget?
5. “Money spent on Advertising is an Investment and not
Expenditure.” Comment on this statement.
6. Do you think that money spent on advertising is an investment?
Discuss.


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13
CREATIVITY IN ADVERTISING - I
Unit Structure:
13.0 Objectives of the lesson
13.1 Introduction
13.2 Consumer Psychology
13.3 Buying Motives
13.4 Selling Points
13.5 Visualization
13.6 Copy
13.7 Headline
13.8 Slogan
13.9 Logo
13.10 Summary
13.11 Questions

13.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand
 Buying Motives and Selling Points
 Factor Influencing Consumer Psychology
 Process of Visualization
 Techniques of Visualization
 Essentials and Types of Copy
 Elements of Copy
 Functions and Forms
 Characteristics of a good Slogan
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13.1 INTRODUCTION

Creativity in advertising is an art. It is concerned with the

perception, attitude, values, personality, and motivation including
buying motives. It also include visualization techniques, types of
advertising copy and its elements such as headline, slogan etc. All
these elements must be creative in attracting the attention of
consumers.

13.2 CONSUMER PSYCHOLOGY

13.2.1 Meaning:
Consumer psychology deals with consumer behaviour.
Consumer psychology is the process whereby individuals decide
whether, what, when, where, how and from whom to purchase goods
and services. In consumer behaviour we consider not only ‘why’,
‘how’, and ‘what’ people buy but other factors also, such as ‘where’,
‘how’ and ‘under what circumstances the purchases are mad’.
The decisions taken by consumers in relation to the purchases
are influenced by various factors. They are aimed at solving
consumer’s problems.
13.2.2 Factors Influencing Consumer Psychology
According to Philip Kotler, the major factors which influence
consumer psychology or behaviour are as follows:
1. Culture: The most important determinant of consumer
behaviour is the culture. In case of animals, their behaviour is
generally triggered by instinct, whereas in case of human beings,
behaviour is normally learned. When the child grows up, he is largely
influenced by all those things which he sees around him. It includes
his family and the society as a whole in which he lives. His
preferences and behaviour patterns etc. are all influenced and result
in his behaving in a particular way. Marketers try to spot cultural shifts
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so that they can aim their marketing activities accordingly. For

example, Indian culture emphasizes the purchasing and wearing of
new dresses on festivals like Deepawali. Naturally, there will be good
demand of new dresses on the eve of Deepawali. These are
variables within the cultural aspect of consumer behaviour.
2. Subculture: Within a culture group, there is a smaller group,
which has been termed as subculture by Philip Kotler. He gives as
illustrations, groups such as, Catholics and Jews; racial groups such
as blacks and whites having their different culture styles and
attitudes. Similar subculture segmentation can also be applied in
India where we have several types of linguistic, religious and
communal groups (Hindu, Muslim, Sikh, Christian etc.) as well as
behaviour patterns which vary from north to south and east to west.
3. Social Class: It refers to several homogeneous groups that
exist in the society. For instance, take the case of caste system in
India. Different castes constitute different social groups. People
within such a social class tend to behave on similar lines as per the
caste pattern. They can be motivated by similar marketing appeals.
4. Personal Factors: According to Philip Kotler, personal factors
also influence buying decisions of the consumers. Personal outward
characteristics, such as age, income, occupation, life style and
personality also count. Tastes in clothes, furniture, food, recreation
etc. vary according to age and income of the individual.
As modern marketing is customer-oriented, the study of
consumer’s behaviour is vital in framing production policies, price
policies, decisions regarding channels of distribution and above all
decisions regarding sales promotion.
Consumer psychology aims at understanding the consumers‟
behaviour, the factors responsible for such behaviour and the factors
that can influence decision of the advertisers. Each individual
customer has a different psychology. His character, nature, status,
taste, aptitude and inner forces are different. Consumer behaviour
analysis is useful in estimating the potential size of a market for a
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product in the market segmentation, in locating preferred trends in

product development, in finding out suitable communication methods
with consumers and finally in designing the most favourable media
mix to achieve the advertising objectives. A clear understanding of
consumer behaviour is essential in advertising planning.

13.3 BUYING MOTIVES

13.3.1 Meaning:
Buying motives are the urges which compete consumers to buy.
People buy the product because they need them. Thus need
motivates people to demand product. Hunger is a need which
motivates man to demand food and therefore, he purchases food
items.
Buying motive is a combination of two words buying + motive.
Buying means the urge for the satisfaction of which a consumer
makes such purchase. Motive is the force which inspires the
consumer to make a purchase and which directs his behaviour. Thus,
a buying motive is the force for the satisfaction of which a customer
purchases some goods and services.
13.3.2 Classification of Buying Motives: Buying motives are
generally classified as follows:
(a) Primary Motives: They are the basic needs of men. An
individual has to satisfy such motives to some extent or the other.
They exhort the strongest influence. They are according to
psychologists „biogenic needs.‟ Examples of such motives are food,
drink, security etc.
(b) Secondary Motives: When a person overcomes the basic
needs than secondary motives come into existence. They are
developed or learned. Since they are developed or learned, they vary
with the conditions of learning. They may be less dependable
motives. Although for some products they may influence as strongly
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as primary motives. The most commonly known secondary buying

motives are as follows:
1. Fear: This is a very powerful motive. It forces a person to do
many things which otherwise he would have not done. Fears may be
of several types. Thus there are fears of meeting with an accident,
fears of financial loss, fears of loss of wealth, fears of uncertainly of
human life etc.
2. Profit: This motive springs from a person’s desire to have
more money. A person requires money to satisfy many wants. This
motive may take two forms: (a) to make money; and (b) to save
money.
The first form is positive whereas the second one is negative.
The persons of the first form will spend money in order to accumulate
it further but those of the first form will spend money in order to
accumulate it further but those of the second form may prove misers
as they want to save only.
3. Vanity: This is also an important motive. It also influences
Purchase of many articles. Normally women suffer from vanity which
requires being flattered. The sale price of sarees, perfumes, beauty
aids, etc. depend upon the principle of vanity.
4. Habit: It is said “habit once formed becomes second nature.”
They are powerful forces to initiate purchases. Therefore this motive
is equally important. A person may chew paan or supari, smoke
cigarettes inhale snuff out of habits.
5. Curiosity: Man does many things out of curiosity. Man landed
on the moon out of sheer curiosity to find out whether life existed on it
or not. A person may put efforts to acquire knowledge out of curiosity.
Curiosity of children cannot be disputed.
6. Sex: The most powerful motive is sex. It is powerful because it
has greater impact on human nature. All the changing fashions in
dresses owe their origin to this motive. Thus boys and girls dress will
to win over each other. The sale of fashionable articles is due to sex.
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7. Love: A man purchases household goods, toys, tonic,

children’s food etc., out of love and affection towards his children.
When we analyze love as a motive, it may be parent’s love for
children and their close kith and kin.
8. Comfort: It is said “man does not live by bread alone.” He
wants additional things over and above food, clothing and shelter.
Modern age has provided great comforts to man. Good furniture, air-
conditioners etc., are purchased by man in order to lead a
comfortable life.
9. Patronage Motive: In addition to the motives described
above, another set of motive spring up which are known as
patronage motives. Patronage motives exist out of buyers‟ desire to
purchase or patronize a particular seller rather than other sellers. A
person may patronize a particular store because of (i) Location of the
store, (ii) Services rendered by the store, (iii) Reputation of the store
in the locality, (iv) Attitude of the salesman, and (v) Goods available.

13.4 SELLING POINTS

13.4.1 Meaning:
Selling points refer to important features of a product that influence
the decision of people to buy it. They indicate the advantages
accruing to those who decide to buy the product. The unique
methods of production, and design, varied colours, suitable, sizes,
special merits, attractive packing, liberal discounts, competitive prices
and so on constitute the selling points of an article.
Selling points differed from product to product. Necessity goods
are sold on points of utility, durability and price, specialty goods are
sold on the basis of unique utility, economy, convenience, and
comfort. Likewise, luxury goods are saleable on the score of the
points which underline fashion, prestige, variety and so on. If these
selling points are revealed to the prospects, they will motivate them to
own the product.
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13.4.2 Essentials of Selling Points: The essentials of selling points

are as follows:
1. It must be Truthful: A copywriter should try to create repeat
business for his firm through his copy. In order to achieve to achieve
the same, he has to include true facts in his copy. False claims and
misleading statements will destroy repeat business.
2. It should be Specific: It means, a claim made by a copywriter
should be supported by facts or explanations. Therefore expressions
such as “most delightful”, “most dependable”, “most economical” etc.
will be meaningless if they are not properly amplified and supported
by explanations.
3. It must be Believable: The facts and figures finished should
be such as can be easily believed by readers. Sometimes readers fail
to accept facts and figures though it is correct. Therefore the
copywriter should cautiously proceed with while giving details of the
product.
4. It must be understood by the Reader: The copywriter should
have before him the prospects while writing the copy. Therefore the
ideas should be easily communicated, since a reader will not waste
much of his time in reading it. In short, the language used in the copy
should depend upon the type of readers.
Buying motives are concerned with the urges which compel the
prospect to buy. Selling points are the talking points for the salesmen.

13.5 VISUALISATION

Visualization is a mental process. Visualization means „seeing in

the mind’s eye the form of the idea as it would appear in the
advertisement‟. It is communicated to the prospects by way of an
advertisement. Fundamentally, visualization is the process of playing
with different ideas. A visualizer must possess fertile mind so as to
develop worthwhile ideas. Later, these ideas are transformed into
effective advertising message.
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Advertisement comprises of several component parts like

headline, sub-headline, slogan, body-text, illustration etc.
Visualization is the skill to determine which elements an
advertisement should contain and also how they should be featured.
Through a gradual process, a visualizer imagines how his
advertisement will appear when it takes the final form. Visualization
is generally undertaken by copywriters and art directors.
13.5.1 Meaning:
Visualization is the process of seeing through one’s mind eye
about the construction of it. It is forming initially a mental picture of
the idea that would appear in the Advertisement. Visualization is a
process of creating ideas about overall construction and contents of
the advertisement i.e. the layout, the contents, the size of headlines,
the colours etc. Visualization takes place before the copy is thought
of and before preparing illustrations. Visualization helps in converting
abstract ideas into concrete forms or shape of layout of an
advertisement.
Visualization thus, deals with language - language of vision
which is also a very powerful means of communication of one’s
thoughts, emotions, feelings, ideas etc.
However, it differs from layout because it is an abstract form
whereas layout is a concrete physical arrangement of things in the
advertisement. Visualization precedes layout and layout is the result
of visualization.
13.5.2 Process of Visualization:
The process of visualization is a team work of copy writers,
artists, producers etc. who work together to develop ad copies not
only for press media but even for Radio, TV. and other media.
Because of the importance of visualization in introducing creativity in
ad copies, the process of visualization has become a specialized
profession of some people who offer expertise services in
visualization.
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The visualizer may follow the following steps to conceptualize an

idea for advertisement:
1. Study the product / service to be advertised i.e. its features,
merits, uses, etc.
2. Study advertising objectives - the objective may be to
influence the consumer or it may be to influence the dealers to stock
the product or the objective may be to counter competitive
advertising.
3. Collect relevant information - about the product, competitors’
products, prospects and other relevant information.
4. Conceptualize ideas by adopting various techniques such as
brain storming, juxtaposition and association, divergent thinking, etc.,
taking into account the relevant information.
5. Analyze the ideas from various angles-as to how the prospect
would view it and interpret it, how far it will be effective, what impact it
will make and so on.
6. Select two or three version or ideas which require further
probing. The visualiser than passes on the ideas to the copywriter
and the artist.
13.5.3 Techniques of Visualisation
The well-known techniques of visualisation are as follows:
1. Identifying or Pinning down the Problem: The matter to be
advertised must be in co-relation with the problem. Thus, the problem
must be first clearly laid down so that the advertising copy can be
accordingly prepared.
2. Forming Pool of Observations Facts Collected and
Information Gathered: Before preparing an advertising copy and its
construction, the several types of information has to be collected.
This collection should be properly arranged in sequence, so that the
entire amount of information can be used when needed.
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3. Generating Brain Waves: This involves thinking on the part of

the copy-writer. In this process, the information collected is thought
over and a tank of storage collection is formed in the mind.
4. Brain Storming: It means group thinking and generating
crosscurrents of ideas, thoughts and imagination. Group discussions
are arranged in which exchange of thoughts takes place and ideas of
each other are known.
5. Mediation: Then follows the analysis and synthesis of the
ideas. In this stage, the search for tranquility and calmness of mind
takes place, where a quiet churning of ideas after waves and storms
would lead to the obtaining of vision.
6. Rough Layout: A sketch of a rough work out is prepared of
final vision which is the preliminary stage of visualization.
7. Giving Final Shape: Copy, art work, layout design and
illustrations are the products of final touches given to the vision that is
the idea is given the final form. All these techniques of visualization
are time-tested.

13.6 COPY

13.6.1 Meaning:
A “Copy” means a written matter in any advertisement. It consists
only one word or many words. A copy consists of headlines,
subheads, captions etc. The copy supports the illustration and
contains description of the products merits, demerits, uses, services
etc.
A copy is the heart of an advertisement. It shoulders the
responsibility for influencing the buyers.
13.6.2 Characteristics of Copy:
(a) Brevity: A copy should be brief because readers have no time
to go through the lengthy text and they must be able to, read within a
short time. So a copy should use simple language and small and
easy words. The message should be concise and precise.
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(b) Clarity: A copy should be self-explanatory. The message to be

delivered must be clear at first reading.
(c) Aptness: The message should be pointed towards the
prospects. It must have a tone agreeable to the respects. The
viewers’ attention should be led to the product and the message
should be coached in such a way that it would create interest in the
readers to read the message.
(d) Interesting: A copy should be interesting-provoking. It must
stimulate the readers’ curiosity to read the message. The reader
should himself decide to read the message in detail.
(e) Sincerity: Sincerity can be achieved by using acts and quoting
figures. Vague generalizations or stray opinions must be avoided.
Sincerity can be achieved if the copy contains one or two illustrations
so that the message will have an instantaneous appeal.
(f) Personal: The message should be directly addressed to the
readers so that every reader forms the opinion that it is directed to
him only. This kind of direct personal attitude catches and retains the
reader’s or listener’s attention.
(g) Convincing: A copy provides information with a view to create
in the mind of a reader first a desire and then a conviction to possess
the product. This means that the copy should be persuasive enough
to lead the readers towards buying the product.
13.6.3 Types of Copy:
1. Scientific Copy: A Scientific copy is prepared for technical
products describing about the features, advantages, uses, contents
and all the technical details about it. It is prepared for machineries,
computers etc. Scientific copy is directed, towards well versed
customers who know about the product. For instance, a medicine
may be advertised to appeal to doctors. Thus, it explains the ordinary
people in general and professional men in particular about the
technicalities of the product.
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2. Descriptive Copy: It is a non-technical copy presented in

such a manner that any layman can easily understand. It does not
require a professional expert to and the copy. It is just an ordinary,
announcement of new items.
3. Narrative Copy: It is in the form of a fictitious story which
narrates the uses advantages, after effect etc., of the product. The
story narrated is humorous to make it interesting.
4. Topical Copy : This copy establish a connection between the
product and a particular happening e.g., A watch company may
advertise that those who were successful in climbing Mount Everest
had with them the watches of the company thus proving their
excellent quality.
5. Personality Copy: This copy takes advantages of the opinion
of an important personality. The statements are made by leading
personalities like sportsman, film actors, politicians etc. Their
statements act as certificates about the superior quality to increase
the sales.
6. Colloquial Copy: In this type, informal language may be used
to convey the message. The terms which are used in daily
conversation are in the copy.
7. Reasoning Copy: It is one which reasons to the customer as
to why he should buy a product. This copy explains to the customer
in detail all the particular product must be purchased.
8. Questioning Copy: In this type, the text asks one or more
questions to readers not for any answer but only for the sake of
response to it. For e.g. Do you want quiet holiday in Summer? (Then
stay at Hotel ABC at the XYZ hill station).
9. Prestige Copy: In this type, the position and prestige of the
customer is emphasized. It creates a favourable atmosphere by
changing the position of the customer for the sale of product.
Normally luxury items are advertised by such copies.
13.6.4 Elements of Copy: A copy normally includes the following
elements or parts:
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1. Main Headline: Headlines is the starting or the top line of an

advertisement, usually printed in bold and of larger type size. The
prime function of the headline is to gain immediate attention.
2. Sub-Headlines: At times, some ads have more than one
headline. Of these, one is usually the main headline, and the others
are sub-headlines. There may be over lines - that precede the main
headline and there can underlines - that follow the main headline.
The subhead lines are used to support or to complete the meaning of
the main headline.
3. Body Copy: It refers to the text of the advertising message.
Favorable information about the product and its features is provided
in the copy text. It is through effective copy writing the audience can
be converted into prospects and the prospects into customers.
4. Captions: Captions do form part of copy text. Captions are
small sentences that seem to come out the mouth of the people
shown in the ads. Comic strip type of copy makes use of captions.
For example, you must have come across such captions in the print
ads of Tortoise Mosquito Coil.
5. Slogans: Most ads do make use of slogan. It is a small catchy
phrase used to sum up the advertising message. Ideally the slogan
should be short, preferably 3 to 6 words. Many a times the slogan
says it all. For instance, “The best tobacco money can buy”
Rothmans.
6. Logo: Logos or signature cuts are special designs of the
advertiser or its products which are used to facilitate identification.
There is no rule as to where a logo should be placed. However, in
most of the cases, the logo is placed at bottom right.
Check Your Progress:
1) “Each Individual customer has a different Psychology”.
Explain.
2) Explain the following Buying Motives -
a) Fear
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b) Vanity
c) Curiosity
d) Comfort
3) Explain the following terms.
a) Selling point
b) Visualization
c) Narrative Copy
d) Colloquial Copy

13.7 HEADLINE

13.7.1 Meaning:
A headline is a word or phrase printed in large letters above
the advertising message. Headline gives in brief a fair, idea of the
contents of the copy.
A good headline attracts attention and arouses interest so that
the reader would be induced to read the advertisement.
Normally, the headline finds 100% of the entire copy. Some
advertising men believe that 50% to 75% of the performance of an
advertisement must be credited to the headline.
As people go through a newspaper or a magazine the headline is
the only thing that attracts its attention. Thus the headline carriages
the heaviest burden of attracting readers to the advertisement.
13.7.2 Role of Headline:
A headline plays a significant role in advertise by performing the
following important functions:
a. to attract attention of readers to the ad;
b. to attract attention of the target consumers easily and quickly and
to persuade them to read the whole of the ad;
c. to create curiosity and interest in the ad;
d. to make the illustration and the copy more meaningful;
e. to introduce a unique selling proposition;
f. to sort out useful ads from useless ads;
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g. to serve as the essence of the whole ad copy. In the words of

David Ogilvy, the advertising guru, “The headline is the most
important element in most advertising. It is the telegram, which
decides for the reader whether to read the copy”.
13.7.3 Essentials of a Good Headline:
1. Original: A good headline should be unique and should not be
an imitation of any other headline. Originality of headline creates a
separate interest in the minds of readers.
2. Concise: A good headline must be brief i.e. it should not have
more than 8 to 10 words and should form a maximum of two lines.
3. Specific: The headline should be relevant and appropriate to
the copy and illustration. It should convey the advertising message
specifically and not vaguely.
4. Provocative: A good headline should be forceful enough to
induce the readers to go through the copy and the entire
advertisement.
13.7.4 Classification of Headlines
1. Benefits Headline: Such headlines indicate the benefits of the
product or the service advertised.
2. News Style Headline: It emphasizes on the quality,
performances, services, advantages of the product list these types,
words like ‘Now’. ‘At least’ etc. are added to the headline.
3. Advice Headline: It advices the customers to purchase a
product or avail of a service which will be beneficial to them. e.g.
“How to bake better cakes”?
4. Challenging Type of Headline: This type of headline
challenges the customer about the quality service, price,
performance etc. Such headlines emphasis on the superiority of the
advertiser’s product.
5. Selective Headline: A selective headline is directly appealed
to a selected group of customers. It may be specially directed
towards children, students, housewives to be used by those selected
customers.
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6. Situation Headline: It puts the customer in a situation and

enquires whether he/she prefers to be in such a situation. Such
headlines support the illustration.
7. Label Headline: A label headline announces not only about
the label of the product but also the selling points. Such headlines
are ‘introducing type’ or ‘warning type’.

13.8 SLOGAN

13.8.1 Meaning:
A slogan is phrase or sentence used repeatedly by a company or
an organization or an advertiser to aid in the formulation of his
message. A slogan is repeatedly used to create certain kind of effect
on the minds of people. Slogan is an important part of advertising
copy. Like headlines and illustrations, slogans are communication
devices which are used to present an idea rapidly and concisely. It
may be used throughout an advertising campaign or over a period of
many years. Some advertisers develop and use new slogans for
each new advertising campaign. A slogan suggests the thing and he
advertises. It suggests the use of product again and again or several
times so that readers know it by heart. Generally, slogans are used
for headlines in advertisements. They are similar in structure to the
summarizing headlines and try to summarize some advertising idea
just as a headline does. Slogans are mainly used in outdoor
advertising. In such outdoor advertising, a slogan becomes headline
and the sales message. Slogans are generally developed from
incidents in the life of a product; such incident that optimize the use
or value of a product when the incident is happily expressed in a
pleasing phrase and is used in advertising. The right frame having
appeal becomes a good slogan.
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A slogan used repeatedly by a company of any organisation to

create an impression in the minds of the customers.
A slogan should suggest the thing it advertises. Slogans are
used for headlines in advertisements because of the limitation on the
length of a copy in this medium. The slogan then becomes headline
and sales message all in one.
Good slogans are not invented monthly by the advertiser. But
they develop from incidents in the life of a product of clause of a
product etc. Then an incident is happily expressed in a pleasing
phrase and used in advertising, it becomes a good slogan e.g.
1. “Any surface that needs painting needs Asian Paints”.
2. “A filter so true that the taste comes through”. (Bristol
Cigarette).
13.8.2 Characteristics of a Good Slogan: A good slogan should:
1. Contain a definite sales idea :
2. Be compact in their construction :
3. Be hardly more than 7 words long :
An ideal slogan is short, simple, easily remembered and filled
with pleasing suggestion of the product. The simplest slogans are the
hardest to create. To create a good slogan is to define what you want
to say in as many words as necessary.

13.9 LOGO

13.9.1 Meaning:
The word “logo” comes from the Greek word “logos” meaning
“simply the world”. The noun “logos” also appears in the Bible
signifying “the word of God”. Today the world logo is used in
marketing and in advertising parlance. From the coveted double “R”
of Rolis Royce to the immediately recon usable script that CocaCola
uses, logos are quickly identified by everyone. Apart from large
corporations in every country even the small businessman and one-
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man enterprises have adopted the corporate logo as a means for

creating brand recognition and corporate image.
13.9.2 Need for Logo: The need for a logo arises from the need to
be different, followed closely by the need to be recognized.
Your own given name could be a good example of a logo. In your
childhood days, the name is a device to attract your attention and to
differentiate you from others. Over time as one grow up, the name
takes on newer meanings to yourself and finally becomes a matter of
great pride when you dash off a signature on a letter, cheques or
some other document. It is your expression (difference, distinction
and recognition) saying “this is me”.
The company’s logo is the corporate signature. It reposes in itself
the collective pride of the company and is designed with great care to
represent the personality of the company and product. Diversified
Corporation uses a variety of symbols as part of their logos. ITC uses
the upwards steeply, which also conveys the sense of growth as well
as excellence.
Welcome group uses unique folded hands symbols to denote
hospitality in the inimitable Indian style. Others too use Indian
leitmotifs like LIC which uses two supped hands to denote security is
care. Logos today go beyond just being mere symbols. They
represent the spirit, the belief, the raison “d” ere of companies and
brands. Logos the world over have their own logic which is
distinguishable, easily recognized and identifiable.

13.10 SUMMARY

Consumer psychology is the process whereby individuals decide

whether, what, when, where, how and from whom to purchase goods
and services. In consumer behavior we consider not only ‘why’, ‘how’,
and ‘what’ people buy but other factors also, such as ‘where’, ‘how’
and ‘under what circumstances the purchases are made’.
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The decisions taken by consumers in relation to the purchases

are influenced by various factors such as culture, subculture, Social
Class, Personal Factors such as age, income, occupation, life style
and personality etc.
Buying motives are the urges which competes consumers to buy.
Buying motives are generally classified as (a) Primary Motives (b)
Secondary Motives: The most commonly known secondary buying
motives are fear, profit, vanity, habit, curiosity, sex, love, comfort,
patronage motive etc.
Selling points refer to important features of a product that
influence the decision of people to buy.
Visualization is the process of seeing through one’s mind’s eye
about the construction of it. It is forming initially a mental picture of
the idea that would appear in the Advertisement.
Copy means a written matter in any advertisement. It may
consist only one word or many words. A copy consists of headlines,
subheads, captions etc.
Headline is a word or phrase printed in large letters above the
advertising message. Headline gives in brief a fair, idea of the
contents of the copy. As people go through a newspaper or a
magazine the headline is the only thing that attracts its attention.
Slogan is a sentence used repeatedly by a company of any
organization to create an impression in the minds of the customers.
The word “logo” comes from the Greek word „logos‟ meaning
„simply the world‟. The noun „logos‟ also appears in the Bible
signifying „the word of God‟. Apart from large corporations in every
country even the small businessman and one-man enterprises have
adopted the corporate logo as a means for creating brand recognition
and corporate image.

13.11 QUESTIONS
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1. What is Consumer Psychology? Explain the main factors

Influencing Consumer Psychology.
2. What are Buying Motives and Selling Points?
3. What is Visualization? Explain the process of Visualization.
4. What are the techniques of Visualization? Explain them in brief.
5. What is Copy? What are the essentials of a good copy?
6. What are the different types of Copy?
7. What are the main elements of Copy?
8. What is the Headline? Explain its functions.
9. What are the essential of a good copy?
10. Explain the different forms of Headlines
11. What is Slogan? What are the characteristic of a good slogan?

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14
CREATIVITY IN ADVERTISING - II
Unit Structure:
14.0 Objectives of the lesson
14.1 Introduction
14.2 Illustration
14.3 Layout
14.4 Summary
14.5 Questions

14.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand:
Essentials of a good illustration
Functions and Types of Illustration
Features of a Good Layout
Types of Layout Process of Layout

14.1 INTRODUCTION

Illustration is world of pictures. People have become visual

minded. People like to see more than to read or may even to hear.
Therefore, there is a good need for illustrations or pictures in the
advertisements.

14.2 ILLUSTRATION
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14.2.1 Meaning:
An illustration is a picture; photograph or drawing that is used in
the advertisement to convey visually the idea or message of the
advertisement. An illustration, therefore, means a picture used in an
advertisement to tell the prospects the message of an advertisement.
The presence or absence of a picture in an advertisement can cause
marked difference in its effectiveness. With the help of illustration
over-emphasis in the subject matter can be avoided and display
appeal can be made clear and direct. The inadequacy of language is
compensated for the use of an illustration.
14.2.2 Essentials of a good illustration:
(a) It must support and compliment the copy theme and not detract
from it.
(b) It must be “faithful reproduction” of the advertised product, if the
illustration is that of the product.
(c) The use of colour combination in an illustration must be in
harmony with fundamental human nature, as it influences the
emotional behaviour of individuals.
(d) It must be simple enough to convey the ad message clearly,
easily and quickly.
(e) It must be suggestive in design and construction. Though simple,
it must be attractive, appealing and beautiful to look at.
(f) It must create a lasting impression on the mind of the reader.
(g) It must match with the lifestyle of the target consumer.
(h) It must occupy the proper place in the total layout of an ad.
(i) It must be capable of reproduction in the various advertising
media.
(j) It must match with the headline of an ad and convey the same
message to the reader.
(k) It must be original, unusual, and unique in design and
presentation in an ad.
(l) Multiple illustrations must be used with a purpose in an orderly
manner.
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(m)Finally, illustrations must occupy and enjoy a dominant place in

outdoor ads like posters, or, billboards.
14.2.3 Functions of Illustration:
1. Quick Attention: Without illustration an advertisement may
look dull and unattractive. Illustration helps consumers to quickly
understand the message and motivates them to buy the product.
Therefore, illustration must capture the attention of the readers.
2. Demonstrate the Product: Illustration shows the product and
its features at a glance. Illustration indicates use of the product and
how it works. Demonstration is usually visual and it passes on the
message immediately.
3. Creates Right Atmosphere: Illustration creates the right
atmosphere by using rainfall, river and forest with the picture of the
product. Such illustration has soothing effect on the consumers.
4. Communicate Message: Illustration can carry the advertising
message quickly e.g., a bottle of perfume conveys quickly the idea
that the perfume is being advertised.
5. Support to Copy: Illustration is an important part of copy.
Pictures carry message instantly and support the message given in
the copy.
6. Symbolize the Quality: The visuals used in the advertisement
indicate power, speed, value, strength, etc. e.g. MRF Tyres -
“Myscled Man”, symbolizes strength and quickly of tyres.
7. Dramatize the Advertisement: Illustration dramatizes - story
of the product. Illustration supports the headline of the advertisement
by pointing out the details of the product.
8. Provides Technical Details: Many consumers buying
consumer durable products are interested to know the technical
details of the product. Advertisements of computers, washing
machines, refrigerators and cell phones gives many technical details
of the product through picture of the product.
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9. Lasting Impact: Illustration can make lasting impact on the

mind of the consumers. Seeing is more convincing than being told.
Pictures represent reality.
10. Fights Illiteracy: In a country like our where a large number of
people are illiterate, picture of soap immediately communicates to all
what the advertisement is about.
14.2.4 Types of Illustrations
There are various methods by which an illustration can be
prepared. They are:
1. Product Alone: In this type, major portion of illustration is
covered by the product for e.g. advertisement that shows Colgate
tooth paste. The purpose is to give more importance to the product
and to create image in the minds of prospects.
2. Product in a Setting: In this type, the product is presented
along with a background which is favourable to it i.e. it is presented in
an atmosphere wherein it is used.
3. Product in Use or Action: In this type, model may not be
shown using the product or the product may be shown in movement
for e.g. A Cigarette company does not show merely a cigarette or
packet but it shows a person smoking a cigarette of a particular
brand.
4. Result of a Products Use: In this type, the after effect of the
product may be shown. The attention is to emphasis advantages or
benefits more dearly. For e.g. an advertisement of a cupboard of a
cupboard will show the space available, various as shelves etc.
5. Dramatization of a Headline: In this type, the illustration
supports the head line i.e. whatever is given in the headlines is
shown in action in the illustrations are combined, the effect is that the
interest and attention of the reader is attracted.
6. Dramatization of a Situation: In this type, the illustration
presents a situation in which a customer will be if he uses the product
or if he does not use a product.
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7. Comparison: In this type, the illustration compares two

superior products of the same or different type. The basic idea is to
relate the product to a concept which is established and familiar to
consumer.
8. Contrast: While shows the similarity between two ideas,
contrast emphasis the difference between two products of the same
type e.g. a modem appliance may be contrasted with an old
fashioned model.
9. Magnifying Details: In this type, the important features or
minute features are explained in details. It is used to embassies
specific advantages.
10. Symbolic Illustrations: This illustration shows a reorganized
symbol along with an idea, and the advertiser using a symbol may
hope to identify this product with what the symbol stands for in the
mind of the reader.
Check Your Progress:
1) “Illustration is the world of pictures”. Explain. 2) Explain
the following terms. a) Illustration
b) Product alone
c) Product in use or action
d) Contrast

14.3 LAYOUT

14.3.1 Meaning:
A layout is a sketched plan of a proposed advertisement. It
includes the headline, rough illustration and copy which serve as plan
for the advertisement. Layout is a working sketched plan showing the
size, positions and colour weight values of the different elements that
make up the complete advertisement. Layout thus refers to the total
exposure of an advertisement.
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Layout is important in an advertising plan. It enables the

advertiser to visualize how the complete advertisement will look when
published. It also gives the printer the location of each unit in the
advertisement. Layout is usually prepared to seek approval of the
client and to see approval of the client and to see the overall impact.
14.3.2 Features of a Good Layout:
Following are the main features of good layout:
1. Balance: Balance in layout means achieving a proper
distribution of weight through the arrangement of the elements.
Balance should be maintained in size, colour shape and density of
elements. There are two kinds of balance; formal and informal.
Formal balancing means placing of identical or similar items on
both the sides of optical centre. Informal balancing means spreading
of elements at different places in the advertisement or is a large
illustration which covers a major portion from the optical centre.
2. Movement: There should be mobility in the advertisement. It
provides a visual type of flow and sequence. It is more used in case
of items which are mobile in nature e.g. An advertisement of an
automobile should have illustration which shows mobility in it.
Movement guides the render’s eye from one element to another and
makes sure that he does not miss anything. Movement should start
from the left hand top corner of the advertisement to the right hand
bottom corner.
3. Gaze Motion: It is the direction of movements of the reader’s
eye. The element of advertisement should be placed in such a
manner that there is an easy flow in the movement of eyes of the
reader. An illustration showing a person walking in a particular
direction on will cause the render to look in that direction.
4. Structural Motion: A good layout should. Utilize lines, arrows,
signs which will indicate or point out to the important elements of the
advertisement.
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5. Proportion: It involves appropriate division of the space

between the various elements like the headline, illustration,
subheads, copy etc. In a headline oriented advertisement, headline
should be given major space and in an illustration oriented
advertisement, illustration will dominate the space.
6. White Space: White space is the area not occupied by copy.
Effective use of white space helps to establish a sense of proportion.
White space helps in reducing a crowd appearance and brings
prestige and luxury in an advertisement.
7. Unity: There should be unity between the elements i.e. there
should be proper correlation between the headline and copy or
illustration and copy. Unity is also achieved when the elements
appears as component part or a single unit.
8. Clarity: It implies that the various elements should be
arranged in such a manner that the message is understood clearly.
The layout should not be too complicated and tricky but must be easy
to read and understand. The type, size, design should be selected for
easy reading.
9. Simplicity: It implies that too many elements in an
advertisement should be avoided. Those elements. Which can be
dropped without destroying the message should be dropped. The
simpler the Layout, the clearer the message.
10. Emphasis: It implies that the important elements should be
given much emphasis. Emphasis must be brought about by placing
the most important feature at or near the optical centre. There should
be emphasis on the various selling points and the purpose of
advertising depending upon the requirements. Layout should
emphasis on education, information and persuasion.
14.3.3 Types of Layout:
1. Standard Layout: It consists of a dominant illustration,
headline, body copy and signature, generally in that order. It is highly
popular in the field of advertising.
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2. Editorial Layout: The advertisement resembles editorial

matter or press reports in a publication. Main emphasis is on body
copy. Words dominate the advertisement and illustration may be
missing or given less importance.
3. Poster Layout: Total stress is on the visual. Copy is very
short and illustration provides details e.g., advertisements of soft
drinks and chocolates.
4. Cartoon Layout: Cartoon type illustrations and matching copy
is used to attract attention e.g., advertisement of Amul butter and
Tortoise coil.
5. Comic-Strip Layout: The layout follows the pattern of the
comic strip by telling a story with the use of sequence of drawings.
6. Picture Caption Layout: Pictures and captions are used to
explain different aspects of the product or services e.g.,
advertisement of automobile or mixer grander. It is suitable to
advertise costly consumer durable products.
7. Picture-Cluster Layout: The layout performs the same
function as in the case of picture-caption layout. Captions are not
used. Cluster of several vertical and horizontal rectangles are used.
14.3.4 Process of Layout: The final layout is the outcome of several
stages. The various stages are as follows:
1. Thought Sketch or Thumbnail Sketch: The first stage is the
thought sketch or thumbnail sketch. Many-a-times, artist begins with
small, rough sketches of possible layouts. These sketches provide a
quick and convenient way to get different design ideas. At first the
headline and illustration are roughly prepared. The location of logo
and body copy is indicated. The artist may prepare several thumbnail
sketches before arriving at one that holds promise for further
development.
2. Roughs Layout: The second stage is the rough layout, which
is a refinement of the thought sketch. Some artists prefer the start
with a rough layout, bypassing the thumbnail sketch stage. One or
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more rough layouts may be prepared. In this case headlines, slogan

and illustrations are roughly drawn.
3. Finished Layout: When a final rough layout is selected, then
it is transformed into a finished layout. This layout is much more
detailed and carefully drawn than the rough layout. The illustration is
more or less finalized. Headlines are carefully executed, and body
copy is neatly ruled in the lines and blocks of copy of varying lengths
to indicate intention and paragraphs. This layout is normally shown to
the client for approval.
4. Comprehensive Layout: Sometimes, the artist may prepare a
comprehensive layout. It is more complete in respect of art work,
headline and slogan. Sometimes such layout looks more beautiful
than the final ad. If it is photograph, the artist will paste the
photograph on the layout. Comprehensive layouts may be prepared
to give the client a clear idea about the final ad.
5. Working or Mechanical Layout: Really speaking these are
not actually layouts. These are blueprints for production. The working
layouts indicate the exact placement of all the elements in the ad
specifies typeface and size and includes relevant instruction for the
typographer and engraver. The final ad is prepared from the working
layout.

14.4 SUMMARY

An illustration is a picture; photograph or drawing that is used in

the advertisement to convey visually the idea or message of the
advertisement. A good illustration must support and compliment the
copy theme having harmony colour combination, simple to convey
the ad message, suggestive in design and construction, creating a
lasting impression, matching with the lifestyle of the target consumer,
matching with the headline.
A layout is a sketched plan of a proposed advertisement. It
includes the headline, rough illustration and copy which serve as plan
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for the advertisement. The main features of good layout are:

Balance, Movement, Gaze motion, Structural motion, Proportion,
Whide space, Unity, Clarity, Simplicity, Emphasis etc.

14.5 QUESTIONS

1. Define illustration and explain the essentials of a good illustration

2. What is illustration? Explain the functions of Illustration.
3. What are the types of Illustrations explain them in brief.
4. What is Layout? What are features of a Good Layout?
5. What are the types of Layout?
6. What are the steps involved in process of Layout?

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15
ADVERTISING RESEARCH
Unit Structure:
15.0 Objectives of the lesson
15.1 Introduction
15.2 Advertising Research
15.3 Testing of an Advertisement
15.4 Pre-Testing Methods
15.5 Post-Testing Methods
15.6 Summary
15.7 Questions

15.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand:
Advertising research
Need and importance of Advertising Research
Types of Advertising Research
Testing of an Advertisement
Evaluating Advertising Effectiveness
Pre-testing and Post-testing methods

15.1 INTRODUCTION

Advertising research is the systematic, scientific and continuous

process of studying consumers within the context of market
situations, product attributes and competitors' strategies. A well-
conducted research programme provides inputs that are the
foundation of an advertising campaign.
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15.2 ADVERTISING RESEARCH

15.2.1 Definition
Advertising research is defined as the systematic gathering
recording and analyzing of data relating to the effectiveness of
advertising.
15.2.2 Need for Advertising Research:
1. Target Audience: It can be identified through ad research and
accordingly the message can be directed to the right audience.
2. Media Mix: It enables to determine the proper media mix that
can be employed to run the ad campaign. Proper media is selected
to reach more effectively to particular groups of potential customers.
3. Unique Selling Proposition (USP): Advertising research
helps to discover USP that can be effectively presented in the ad.
4. Costly Errors can be minimized: Advertising research can
prevent the advertiser from making costly mistakes. It can be over
budgeting, selecting wrong media, directing the ad message to wrong
audience etc.
5. Budget Amount: Advertising research also enables to
determine the proper amount that can be effectively spent on
advertising. Proper budget amount can be allocated and utilized
using the ad at the right time and at the right frequency.
6. Layout, Copy and Illustration: It can help to develop
effective layout, copy and illustrations that would be most effective in
gaining consumer attention and in inducing effective readership of
ad.
7. Appeals in Advertising: Through proper conduct of
consumer research, one can understand their likes and dislikes,
tastes and preferences. The study can be made of their buying
motives. Accordingly appropriate appeals can be developed to
stimulate demand among the various groups of prospects.
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8. Competitive Advertising: Proper advertising research can

help to develop not only creative ads but also competitive ads. To
face the challenges posed by competitors claimed in their
advertisement and other marketing efforts.
15.2.3 Importance of Research in Advertising:
Following points justify the need and importance of advertising
research:
1. Target Audience: Target market/audience can be identified
through ad research and accordingly the message can be directed to
the right target audience.
2. Media-Mix: It enables to determine the proper media/media-
mix that can be employed to run the ad campaign. Proper media is
selected to reach more effectively to particular groups of potential
customers.
3. Unique-Selling Proportion (USP): Research may reveal a
unique buyer benefit that no one had thought of before. Advertising
research helps to discover USP that can be effectively presented in
the ad.
4. Costly Errors Can be Minimized: Advertising research can
prevent the advertiser from making cost mistakes. Mistakes can often
be committed in over budgeting, selecting wrong media. Directing the
ad message to wrong audience etc.
5. Budget Amount: Advertising research also enables to
determine the proper amount that can be effectively spent on
advertising. Proper budget amount can be allocated and utilized by
using the ads at the right time and at the right frequency.
6. Layout, Copy and Illustrations: It can help to develop
effective layout, copy illustration that would be most effective in
gaining consumer attention and in inducing effective readership /
viewer ship of the ads.
7. Appeals in Advertising: Through proper conduct of
consumer research, one can understand their likes, dislikes, tastes
and preferences. A study can be made of their buying motives.
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Accordingly appropriate appeals can be developed to stimulate

demand among the various groups of prospects. And as such the
most effective ad campaign theme can be devised and used to bring
about desired response from the consumers.
8. Competitive Advertising: Proper advertising research can
help to develop not only creative ads but also competitive ads to face
the challenges posed by competitors’ claims in their advertisement
and other marketing efforts.
15.2.4 Types of advertising research: Advertising research can be
sub-divided into the three major areas:
1. Budget Research: It is covered with the amount of money
allocated to advertising.
2. Media Research: It concerned with advertising research,
frequency, efficiency and the effectiveness of different media and
combinations of media in reaching target customers.
3. Copy Research: It deals with what is said and how it is said in
the employed media. All these areas are interred related and
interdependent. For example, the use of inappropriate media would
affect even the most effective advertising message. Media
effectiveness may also be influenced by the available budget.

15.3 TESTING OF AN ADVERTISEMENT

Ad testing deals with the measurement advertisement

effectiveness. What constitutes effectiveness? Which variables (s)
should be tested, or, measured to know the degree of advertising
effectiveness?
15.3.1 Meaning:
In practice, the following four categories of variables are,
generally, tested viz. (1) message variables, (2) media variables, (3)
scheduling variables and (4) budgeting variables.
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1. Message Variables: In the case of an advertising message in an

advertising message in a typical print advertisement the variable
to be tested would be the headline, the illustration, the body test,
the layout, and the typography, individually as well as severally.
In the case of television commercials, the variables to be tested
would be appeals, themes, propositions, rhetorical style, audio-
visual devices, format illustration technique, staging casting
music, sound effects, etc.
2. Media Variables : The media testing opportunities are considered
at the following four levels, viz.,
(i) The advertiser must decide the type of media, such as,
newspapers, magazines, television, radio or direct-mail, etc., he
intends to use.
(ii) The advertiser then, must decide the sub-class of media, he is to
use. For example, what king of newspapers: Daily Sunday,
Evening or Morning Newspapers. Likewise, what kind of television
and / or radio: sport, Network, or, Regional channels, in the same
way, what kind of magazines: General, Women, Healthcare,
Sports, etc.
(iii) The advertiser, then must selected specific media vehicles, what
newspapers in Mumbai, which television channels in Delhi, and
what media mix is to be used?
(iv) Finally, he must determine space units i.e. full page, or, half
pages, or, quarter pages broadcast time units, such as 60
seconds, 20 seconds, and the position of the ad in print media as
well as in television.
3. Scheduling Variables: Consumer behavior is generally
influenced by the time factor, such as season of the year,
occasions like Diwali, Christmas, Id day of month or week, etc.
timing of television commercials frequency continuity are also
important factors.
4. Budgeting Variables: Budget affects, and is affected by all other
advertising variable. How much money should be spent on
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advertising? How should be the total amount of money be

allocated to markets, to media to sales territories and to specific
items in the product line? The advertiser must measure the
relationship between budgeting variables and profit yields.
15.3.2 Need of Evaluating Advertising Effectiveness:
1. Achieve Awareness: Testing of advertisement will show
whether there is an increased influence of the advertising message,
product or service advertised. Testing enables the advertiser to be
aware of all the reasons why an advertisement has been effective or
otherwise.
2. Affects Attitudes: Testing enables the advertiser to know
whether the attitude of the prospects towards the advertised product
or service has been changed or not, it also enables him to
understand whether any message of the advertisement is recollected
by the customer.
3. Actuate Action: Advertisement testing enables the advertiser
to analyze the response by the prospects to advertisements. It gives
him an idea of when, how, why a customer’s accepts a particular
products or rejects it. This will help him to present the product in such
manner that he (prospects) takes a favorable or positive action.
4. Judge Overall Effectiveness: Testing of advertisement-helps
the advertiser in judging the total effectiveness of a particular
advertisement in respect of their headlines, layout, copy, illustrations,
layout or any other quality that is important within the advertisement.
Thus, advertising evaluation can be done before the campaign is
over. The main object of evaluating the campaign is “to get all the
bugs out” before sending precious money. When advertisements are
tested after the campaign it is called “postmortem” of advertisement
effectiveness.
The advertising can be evaluate or tested before or after its
application. Both have got various advantages.

15.3.3 Pre-Testing Methods:

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An advertisement can be tested at two stages namely: (a) prior to

the commencement, and (b) after the commencement of the
advertising campaign. The former stage is called „pre-testing‟ and the
latter „post-testing‟.
The following are the pre-testing methods:
1. Proposition Tests: Tests of creative strategies are called
proposition tests. Strategy refers to the alternative course which can
be tried to know most suitable course of action. For example, the
advertising campaign of a watch manufacturing company might
follow such strategies as: (i) It is stylish watch for fashion conscious
man. (ii) It is a dependable watch. (iii) It is an inexpensive watch and
looks like a watch that costs twice the price.
Each proposition reflects a different advertising strategy for
watches. In order to choose among Fashionable appearance,
expensive appearance and reliable which is the best representative
sample of prospective watch buyers would be shown all three on
individual cards as if they were different watches. The sample
respondents would then be asked to choose between the watches,
and to give their choices. The most widely acceptable proposition
would be established as an advertising strategy.
2. Concept Testing: Under this method, testing is carried out in
the same way as Proposition Testing, except that roughly drawn
advertisement concepts are used instead of placing alternative
strategies on the cards. As the public is not used to look at rough
advertisement concept, the respondents must be explained in
advance that what they are about to be shown are rough layout of the
artist. Headlines should be shown clearly and such irrelevant details
must be excluded as: Cufflinks on a shirt because this may give a
chance to worry the respondents about why they are there, whether
they are fashionable and so on. Concept tests are used to measure
the interest and credibility of different advertising approaches.
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3. Sales Area Testing: The most reliable method of testing the

effectiveness of any advertising is initially to run it in one or two
selected areas. This testing is used to facilitate launching advertising
campaign on a large scale, because effectiveness is first tested in a
smaller area.
4. Folio Tests: Folio tests are used for press advertisements that
are finished or near finished form. Test advertisement along with a
couple of advertisements is placed into a folder. The „Folio‟
composed in this way is then placed before the selected few
consumers who are expected to give their reactions. The rest
advertisement is singled out later in the interview and the consumer
is asked to discuss its appeal and motivational power in creating
interest, arousing desire and attracting attention. This method of pre-
testing spots out the most responsive advertisement.
5. Project Tests: Television commercials are sometimes tested
in consumers‟ home by means of portable movie projectors. Often
the commercial is inserted in a short sequence from an entertainment
film. After showing the film to the consumers, the interviewer asks
their opinion about the commercial.
6. Trailer Tests: In trailer testing, a trailer or van is parked in a
parking zone of a shopping centre and people are invited to come in
for interviews. Everyone who enters the trailer is shown a television
commercial on a rear screen projector and questioned about it. This
method is very economical for it costs less to bring people into, the
trailer for interview.
7. Consumer Jury Tests: Consumer jury tests are based on the
rating given on advertisement by a typical group of consumers.
Rating implies comparison of one advertisement with several others.
A consumer jury test is made in a variety of ways. The usual
procedure is to ask a relatively small group of consumers, who
represent potential buyers of the product to rate alternative pieces of
copy. Different data collection methods may be used in implementing
a consumer jury test. For example, personal interviews may be used
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or a group may be assembled and the members may be asked to

rate on the alternative copy.
8. Rating Scales: This method of copy testing requires the
establishment of standards for effective copy and numerical weights
for each standard. The weights or values indicate the relative worth
of a standard in the overall success of copy. Advertisements are then
rated according to scale value and a numerical score is obtained.
9. Portfolio Tests: These tests are named after the manner in
which advertisements to be tested are packaged. A group of
advertisements usually a mixture of advertisements to be tested is
placed in portfolio. Sometimes, advertisements are actually placed in
dummy copies of newspapers and magazines. Respondents are
given the folio and asked to go through it, reading whatever interests
them and taking as much time as they want. After completing this
task, the respondents are asked to recall the advertisements what
they can remember.
10. Simulated Tests: Simulated tests are tests in which
consumers are exposed to alternative pieces of copies through point
of purchase displays of direct mail. These tests are simple and less
expensive to implement than actual sales tests. However, they are
artificial.
Benefits of Pre-Testing:
(i) To check clerical, grammatical, printing or technical errors.
(ii) To make communication more effective from readers points
of view.
(iii) Minimize waste in advertising.
(iv) To make it more meaningful and effective.
(v) It is simple, less time consuming, and less costly.
15.3.4 Methods of Post-testing:
Tests that are applied after the commencement of the advertising
campaign are called post-tests. Post-testing enables to study the
impact of advertising on the effective sales promotion. The following
are the methods of Post-testing:
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1. Recognition Tests: Under this method the respondents are

asked to point out the contents of those advertisements which they
might have seen. The objective of this test is to know the degree of
effective impact of advertisement.
2. Recall Tests: Under recall tests the entire advertising
campaign is considered as against recognition tests. Where only
specific advertisements are considered Recall tests are applied to
measure the attention, interest and memory value of advertisements
after they have been launched.
3. Inquiry and Coupon Response: Under inquiry testing, the
advertiser sends a free sample to the reader, on request. The reader
is expected to mail the coupon to take advantage of the offer. It is
quite likely that such advertisements are given simultaneously in
different publications of the newspaper or magazine. The
advertisements are keyed in order to know which of the several
advertisements resulted into more response. It is assumed that the
advertisement which brings largest number of inquiries is superior to
others.
4. Split-Run Test: It is a modification of inquiry test. An
advertiser takes two advertisements in magazine offering split-run
facilities. The two advertisements differ in one respect only e.g., one
advertisement presents the cold drink in a transparent bottle and the
other advertisement presents the cold drink in a nontransparent
bottle. The advertisement is keyed. Now, in two different markets i.e.,
cold drink marketed in transparent bottle is more, it is taken for
granted that this advertisement has been more successful compared
to the second one.
5. Psychological Tests: A variety of psychological tests are
used which include storytelling, word association, sentence
completion, depth interviewing etc. This test attempts to find out what
the respondent has been in different advertisements and what they
mean to him. These tests can be conducted only by trained
interviewers.
 233

6. Focus Interviews: In this method some selected consumers

are called and are asked to deliberate discussion on the
advertisements presented to them. The attention of the members of
the panel is focused on certain aspect of the advertisement. The
opinion expressed by the participants becomes the basis to study the
effectiveness of advertising.
7. Readership Test: This method attempts to study the impact of
advertising in increasing the product awareness by the consumers.
Readership test facilitates the relative importance and effectiveness
of advertisement published in national press. The readers are asked
to tell where they have read the advertisement and how it has
increased their awareness about the product.
The various methods used to study the effectiveness of an
advertisement provide information about the impact of an
advertisement on the product awareness and bringing about a
change in the attitude of the consumers.
Benefits of Post-Testing:
(i) To find out the extent to which the ad has been noticed, seen
or read.
(ii) To find the extent to which the message is understood by the
readers.
(iii) To measure the memory value of advertising.
(iv) To find the impact of advertising on consumer buying
behaviour.
(v) To see whether ad is accomplishing its objectives.
(vi) To evaluate the comparative effectiveness of different ads in
terms of appeals, layout illustration etc.
(vii) To improve future advertising efforts.
Check Your Progress:
1) “Well conducted research programme provides inputs for an
advertising campaign”. Discuss.
2) Explain the following terms. a) Budget Research
 234

b) Copy Research
c) Concept Testing
d) Folio Test
e) Consumer Jury Test

15.4 PRE-TESTING METHODS

Before the advertising campaign is undertaken, the advertiser

checks or test advertisement in respect to its effectiveness. The main
object of evaluating the advertisement before the campaign is “to get
all the bugs out” from it.
The pre-testing methods of checking advertising effectiveness
are as follows:
1. Check List Method :
It is simplest method of testing. In this method a questionnaire is
prepared by the researcher containing items that are commonly
found in all types of ads. Then he has to put a tick mark against the
item appearing in the ad.
This method can be used to find out attention value, interest
value, under-standing and education value etc. It is easy to conduct,
less time and money is consumed. But it is difficult to judge consumer
reactions by a mere check list.
The jury members of consumers are asked certain question like:
(i) Which of these ads would you notice first?
(ii) Which of these ads would you like most?
(iii) Which of these ads would make you to buy the brand?
(iv) Which of these ads can be easily read and understood?
(v) Which of these ads are more believable?
2. Consumer Jury Method :
A consumer jury is a small group of people who may be
considered typical buyers of the product or service advertised. The
advertiser enquires with them and their opinions on an advertisement
 235

are sought. On the basis of their opinions, he may accept or reject

the advertisement campaign.
(a) Order of Merit Rating: In this case various ads are shown to
the jury of consumers at a time and asked to place them in rank
order. Each rank can be assigned certain points, then chart will be
prepared and maximum points to be assigned by all members will be
selected.
(b) Paired Comparison: In this type, a member of jury is shown
two ads at a time and is asked to select the better one. This
procedure will continue until each ad from the lot is paired with every
other ad. The final conclusion may be drawn.
Merits of Consumer Jury Test:
(i) It can be conducted within a short period of time.
(ii) Less costly.
(iii) It does not require actual running of ads.
(iv) Size of jury members need not be large i.e. 10 to 50
members.
(v) Members can be motivated to give unbiased replies.
Demerits of Consumer Jury Test:
(i) It is unrealistic as the ads are not seen in real life condition.
(ii) There may be biased opinion.
(iii) Selection of jury members is a real problem.
(iv) Test based on opinion rather than study.
(v) There may be inconsistency in ranking by different members.
3. Sales Area Test :
In this method a campaign, is run with different appeals in
separate comparable markets (usually cities) for a particular period of
time, the effectiveness of the ad campaign is evaluated by comparing
actual sales made to consumers in different markets. That sales are
which is giving highest sales is considered as more effective and
accordingly ad copy is selected.
4. Procedure :
 236

The procedure is to select two groups of cities (market area), one

group is called (Control group of cities) and other is called (The test
group of cities) each group contains three cities. The existing ad
campaign is continued in control group and new ad campaign is run
in test group.
The testing period is divided into three stages, ranging between 3
to 6 months.
First stage is called as Pre-test. During this period sales are
checked in several groups to determine the trends in sales in normal
conditions.
Second stage is called as “actual test period”, in which test
campaign is seen in the test group of cities.
The third stage is called as “Post-test period”, in which sales are
checked to find out effect of advertising campaign.
Now sales results of the control groups are compared with the
results of the test groups. If the sales show a better performance, the
new campaign is treated as effective and later on is run over the
entire market area.
Evaluation:
Ad. campaign is run on a small scale to find out - its
effectiveness before running the ad over entire market of this test is
conducted properly, it provides authentic results. However, (i) It is
time consuming, (ii) It is expensive, (iii) It poses a problem in respect
of selection of cities maintaining comparable situations.
4. Inquiry Coupon Response:
Under this, the advertiser sends an inquiry coupon through
newspapers or magazines which will have to be sent back to the
advertiser duly filled in by the respondent. The number of inquiries or
coupons sent back will ascertain the effectiveness of the
advertisement.
The enquiry test can also be conducted by direct mail. One of the
types of this test is called as split run test. In this case two Ads are
selected for the test. First ad is published in first half of the number of
 237

copies and second Ad is given remaining half of the number of

copies. The ad showing maximum response is selected.
Merits:
1. It can be used to check the relative effectiveness of several
ads by remaining them on a limited basis.
2. It is easily implemented and comparable.
Demerits
1. It is time consuming. 2. It is expensive.
Other Methods:
There are several other pre-testing methods:
(a) Projective Technique: The purpose of this test is to avoid the
drawback of direct questioning and allow the respondent to reveal his
feelings about an advertising situation various types of projective
techniques are:
(i) Depth Interview: The respondent is given the advertising
material and is asked to express his opinion freely. The interviewer
studies the respondent about his feelings and motivation.
(ii) Word Association: The researcher presents a word and the
respondent is asked to reply with first word or thought that comes to
his mind. For example? What is the first things you think I say
toothpaste? Or automobile?
(iii) Sentence Completion: The researcher shows an incomplete
picture or puts an incomplete sentence and the respondent is asked
to complete the picture or sentence.

15.5 POST-TESTING METHODS:

Advertising evaluation can be done even after the advertising

campaign is over when advertisements are tested after the campaign
is over; it is known as “postmortem” of the advertisement
effectiveness.
 238

The post-testing methods of advertising effectiveness are as

follows:
1. Recall Tests :
This test is made to measure the memory value of the reader
(respondent). The procedure is to select a group of respondents and
it is confirmed that they have read the particular issue of the
magazine. The respondents are given cards on which the names of
all products advertised in the issue are shown. The respondents are
asked to list each ad they think have seen and tell what it looks like.
Question can be asked on the message, colour, headline, etc.
to find out the impact value.
The merit of the test is to measure the depth of impression which
an ad leaves on the respondents mind. This test can also be
conducted with some aid and are called as “aided recall test”.
2. Readership Test :
This test finds out what the readers read and how well they
remember it. The advertisement to be tested is to be published in a
newspaper or a magazine. An interviewer carrying a copy of that
medium asks the persons to be interviewed and asks them which
newspapers or magazines, they read, what advertisements have
been seen and remembered and their effectiveness. The advantage
of this method is that, a comparative evaluation is possible and it
focuses on the ways of getting attention.
However, the drawback of this method is that it assumes that
readership means sales. It is not always that whatever
advertisements we read we do buy.
Attitude and Opinion Test:
These tests are conducted to measure the attitudes and opinions
of the customers towards a firm’s advertising, its products and
policies. For such tests measuring scales have been developed to
study the consumer attitudes and opinion.
Keying on an Advertisement
 239

After preparation of an advertisement is over, it is to be inserted

in newspaper and/or magazines. Thereafter, the advertiser has to
check the effectiveness of the advertisement. For this purpose, he
has to adopt certain methods to ascertain what enquiry is received
from which advertisement. This process of identifying the enquiries
pertaining to a specific advertisement is known as keying an
advertisement. Advertisement can be keyed by inserting coupons in
the advertisement is known as keying an advertisement.
Advertisement can be keyed by inserting coupons in the
advertisement itself. This coupon is given a key number or some
identification mark which helps their sorting. The readers are
requested to fill in their names and addresses in the coupons and
mail them to the advertiser for getting a catalogue of further
information. The number of coupons received back gives an idea
about the effectiveness of the advertisement.

15.6 SUMMARY

Advertising research is the systematic, scientific and continuous

process of studying consumers within the context of market
situations, product attributes and competitors' strategies.
Advertising Research is essential as it identifies target
Audience, enables to determine the proper media mix, helps to
discover USP, prevents the advertiser from making costly mistakes,
enables to determine the proper amount that can be effectively spent
on advertising, develops effective layout, copy and illustrations, and
develops not only creative ads but also competitive ads.
Advertisement testing deals with the measurement of
advertisement effectiveness. An advertisement can be tested at two
stages namely: (a) prior to the commencement, and (b) after the
commencement of the advertising campaign. The former stage is
called „pre-testing‟ and the latter „post-testing‟.
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15.7 QUESTIONS

1. Define Advertising research.

2. What is the need and importance of Advertising Research?
3. What is testing of an Advertisement
4. Explain the need of Evaluating Advertising Effectiveness.
5. What is meant by Pre-testing? What are its methods?
6. What do you mean by post-testing? Explain its methods.
7. Write short note on the following :
a) Pre-Testing Methods
b) Consumer Jury Method


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16
SALES PROMOTION
Unit Structure:
16.0 Objectives of the lesson
16.1 Introduction
16.2 Sales Promotion
16.3 Testing of an Advertisement
16.4 Pre-Testing Methods
16.5 Post-Testing Methods
16.6 Summary
16.7 Questions

16.0 OBJECTIVES OF THE LESSON

After completion of this lesson the student will be able to

understand:
 Concepts of Sales Promotion
 Consumer Sales Promotion
 Trade Promotion

15.1 INTRODUCTION
SALES PROMOTION
Sales promotion is one of the most loosely used terms in the
marketing vocabulary. We define sales promotion as demand.
Stimulating devices designed to supplement advertising and
facilitate personal selling. In other words, sales promotion signifies
all those activities that supplement, co-ordinate and make the efforts
of personal selling and advertising more effective. It is non recurrent
in nature which means it can’t be used continuously.
Sales promotion efforts are directed at final consumers and
designed to motivate, persuade and remind them of the goods and
receives that are offered. Sales persons adopt several techniques
for sales promotion. Creative sales promotion can be very effective.
It is the marketing manager’s responsibility to specify promotion
objectives and policies. Definitions of Sales Promotion According to
American Marketing Association “Those marketing activities other
than personal selling advertising and publicity that stimulate
consumer purchasing and dealer effectiveness such as display
shows and exhibitions, demonstrations and various non-recurrent
selling efforts not in the ordinary routine.” W.J. Stanton defines sales
promotion as all those activities other than advertising, personal
selling, public relations and publicity that are intended to stimulate
customer demand and improve the marketing performance of
sellers.
Concept of Sales Promotion
Sales promotion consists of diverse collection of incentive tools,
mostly short-term designed to stimulate quicker and / or greater
purchase of a particular product by consumers or the trade.
Whereas advertising offers a reason to buy, sales promotion offers
an incentive to buy.
Sales promotion includes tools are used for
• Consumer promotion (for example samples, coupons, prizes,
cash refund, warranties, demonstrations, contest);
• Trade promotion (for example buying allowances, free goods,
merchandise allowances, co-operative advertising, advertising
and display allowances, dealer sales contests);
• Sales-force promotion (for example bonuses, contests, sales
rallies).
PURPOSE OF SALES PROMOTION
Sales promotion tools vary in their specific objectives. A free sample
stimulates consumer trial, while a free management advisory service
cements a long-term relationship with a retailer.
From the marketer’s perspective, sales promotion serves three
essential roles it informs, persuades and reminds prospective and
current customers and other selected audiences about a company
and its products. The relative importance of those roles varies
according to the circumstances faced by a firm.
Inform:
The most useful product or brand will be a failure if no one knows it
is available! Because distribution channels are often long, a product
may pass through many lands between a producer and consumers.
Therefore, a producer must inform middlemen as well as the
ultimate consumers or business users about the product.
Wholesalers, in turn must inform retailers and retailers must inform
consumers. As the number of potential customers grows and the
geographic dimensions of a market expand, the problems and costs
of informing the market increase.
Persuasion:
The intense competition among different industries puts tremendous
pressure on the promotional programmes of sellers. In India, even a
product designed to satisfy a basic physiological need requires
strong persuasive promotion, because consumers have many
alternatives to choose from. In the case of luxury product, for which
sales depend on the ability to convince consumers that the products
benefits exceed those of other luxuries, persuasion is even more
important.
Reminding:
Consumers also must be reminded about a product’s availability
and its potential to satisfy. Sellers bombard the market place units
hundreds of messages every day in the hope of attracting new
consumers and establishing markets for new products. Given the
intense competition for consumers‟ attention, even an established
firm must constantly remind people about its brand to retain a place
in their minds. Much of a firm’s sales promotion may be intended
simply to offset competitors marketing activity by keeping its brand
in front of the market.
OBJECTIVES OF SALES PROMOTION
i) To introduce new products to induce buyers to purchase a
new product, free samples may be distributed or money and
merchandise allowance may be offered to business to stock and sell
the product.
ii) To attract new customers: New customers may be
attracted through issue of free samples, premiums, contests and
similar devices.
iii) To induce present customers to buy more: Present
customers may be induced to buy more by knowing more about a
product, its ingredients and uses.
iv) To help firm remain competitive: Sales promotions may be
undertaken to meet competition from a firm.
v) To increase sales in off season: Buyers may be
encouraged to use the product in off seasons by showing them the
variety of uses of the product.
vi) To increase the inventories of business buyers: Retailers
may be induced to keep in stock more units of a product so that
more sales can be affected.
RATIONALE OF SALES PROMOTION
Rationale of sales promotion may be analyzed under the following
points.
 1. Short-term results: Sales promotion such as coupons and
trade allowances produce quicker, more measurable sales
results. However critics of this strategy argue that these
immediate benefits come at the expense of building brand
equity. They believe that an over emphasize on sales

promotion may undermine a brand’s future.

2. Competitive Pressure: If competitors offer buyers price
reductions, contest or other incentives, a firm may feel forced
to retaliate with its own sales promotions.
3. Buyers’ expectations: Once they are offered purchase
incentives, consumers and channel members get used to
them and soon begin expecting them.
4. Low quality of retail selling: Many retailers use inadequately
trained sales clerks or have switched to self-service. For
these outlets, sales promotion devices such as product
displays and samples often are the only effective promotional
tools available at the point of purchase.
TYPES OF SALES PROMOTION
• Types of sales promotion directed at consumers.
• Types of sales promotion directed at dealers and distributors.
CONSUMER PROMOTION TOOLS
The main consumer promotion tools include samples, coupons,
cash refund offers, price packs, premiums, prizes, patronage
rewards, free trials, product warranties, tie in promotions, and point
of purchase displays and demonstrations.
1. Samples: Samples are offers of a free amount or trial of a
product to consumers. The sample might be delivered door to
door sent in the mail, picked up in a store, found attached to
another product or featured in an advertising offer. Sampling is
the most effective and most expensive way to introduce a new
product.
2. Coupons: Coupons are certificates entitling the bearer to a
stated saving on the purchase of a specific product. Coupons
 can be mailed, enclosed in or on other products or inserted in
magazine and newspaper advertisements. Coupons can be
effective in stimulating sales of a mature brand and inducing
early trial of a new brand.
3. Cash Refund Offers or Rebates: These are like coupons
except that the price reduction occurs after the purchase rather
than at the retail shop. The consumer sends a specified ‘proof of
purchase’ to the manufacturer, who in turn ‘refunds’ part of the
purchase price by mail. Cash refunds have been used for major
products such as automobiles as well as for packaged goods.
4. Price Packs These are offers to consumers of savings off the
regular price of a product, flagged on the label or package. They
may take the form or a reduced-price pack which is single
packages sold at a reduced price (such as two for the price of
one) or a banded pack, which is two related products banded
together (such as a tooth brush and tooth paste). Price packs are
very effective in stimulating short term sales, even more than
coupons.
5. Premiums or Gifts: These are merchandise offered at a
relatively low cost or free as an incentive to purchase a particular
product. Sometimes the package itself is a reusable container
may serve as a premium. A self-liquidating premium is an item
sold below its normal retail price to consumers who request it.
6. Prizes: These are offers of the chance to win cash, trips or
merchandise as a result of purchasing something. Pepsi-cola
offered the chance to win cash by matching numbers under the
bottle cap with numbers announced on television. Sometimes
the prize is a person, offering the winner either cash or dinner
with actor Shaharukh Khan.
7. Patronage Awards: These are values in cash or in other forms
that are proportional to one’s patronage of a certain vendor or
group of vendors. Most airlines offer ‘frequent flyer plans’
providing points for miles traveled that can be turned in for free
airline trips. Cooperatives pay their members dividends
 according to their annual patronage. Le Meridian adopted an
‘honored guest’ plan that awards points for users of their hotels.
8. Free Trials: Free trails consist of inviting prospective purchasers
to try the product without cost in the hope that they will buy the
product. Thus, often we see, auto dealers encourage free test
drives to stimulate purchase interest.
9. Product Warranties: These are an important tool, especially as
consumers become more quality sensitive. When My TVS
offered a two year car warranty, substantially longer than other
competitors‟ customers took notice. They inferred that My TVS
quality must be good or else the company would be in deep
trouble. Companies must carefully estimate the sales-generating
value against the potential costs of any proposed warranty
programme.
10. Tie-in Promotions: These are becoming increasingly popular.
In a tie in promotion two or more brands or companies team up
on coupons, refunds and contests to increase their pulling power.
Companies pool funds with the hope of broader exposure, while
several sales forces push these promotions to retailers, giving
them a better shot at extra display and ad space.
11. Point-of-Purchase: Displays these take place at the point of
purchase or sale.
Display of visible mark or product at the entrance of the store is
an example. Unfortunately many retailers do not like to handle
the hundreds of displays, signs and posters they receive from
manufacturers. Hindustan Lever often use this tool to promote its
products in the retail market.
12.Product Demonstrations : Products are being shown in action.
Consumers can visit the store and see the usage of product in
live action so that doubts of the consumers can be clarified in the
store itself. When a new product is introduced in the market, the
sales promotional tool is often used.
TRADE PROMOTIONAL TOOLS:
Tools More sales promotion rupees are directed to the trade than to
consumers. Manufacturers seek the following objectives in awarding
money to the trade: i. Trade promotion can persuade the retailer or
wholesaler to carry the brand. ii. Trade promotion can persuade the
retailer or wholesaler to carry more than it normally carries. iii. Trade
promotion can induce the retailers to promote the brand through
featuring, display, and price reduction. iv. Trade promotion can
stimulate retailers and their sales clerks to push the product.
Manufacturers use several promotion tools. Some of which are
mentioned below:
1. Price – Off: Manufacturers may offer a price – off, which is
straight discount off the list price on each case purchased during
a stated period of time. The offer encourages dealers to buy a
quantity or carry a new item that they might not ordinarily buy.
The dealers can use the buying allowance for immediate profit or
price reductions.
2. Allowance: Manufacturers may offer an allowance in return for

the retailer’s agreeing to feature the manufacturer’s products in

some way. An advertising allowance compensates retailers for

advertising the manufacturer’s product. A display allowance

compensates them for carrying a special display of the product.
3. Free Goods: Manufacturers may offer free goods, which are
extra cases of merchandise to middlemen who buy a certain
quantity of items.
4. Push Money: Manufacturers may offer push money which is
cash or gifts to dealers or their sales force to push the

manufacturer’s goods.
5. Specialty Advertising: Items Manufacturers may offer free
specialty advertising items to the retailers that carry the

company’s name such as pens, pencil, calendars, paper

weights, and memo pads. As the number of competitive sales
promotions have increased, friction has been created between
 the company’s sales force and its brand managers. The sales
force says that the retailers will not keep products on the shelf
unless they receive more trade promotion money, while the
brand managers want to spend their funds on consumer
promotion and advertising.
SALES PROMOTION STRATEGIES AND PRACTICES
The sales promotion strategy is an important element in overall
marketing strategy. Sales promotion strategy involves identification
of objectives, effective communication for attracting attention,
allocation of budget, determining the correct promotional mix,
introduction of strategic approach and finally evaluation. We shall
study about each one of them briefly here.
1. Objectives: The marketer should determine his sales
promotion objectives. He should determine what is to be
accomplished and what kind of buyer responses are desired. Sales
promotion tasks should be objective oriented. These tasks are
informing, persuading and reminding the customers about the
products. The sales manager should inform consumers about his
product and should highlight its special features. He has not only to
inform the customers but persuade them to buy it.
2. Communication: Sales promotion should attract the
attention of the target audience. If the prices, discounts, off season
facilities etc, are not adequately and effectively communicated, the
effort of sales promotion would be wasted. A point to be noted here
is that the audience evaluates not only the message but also the
source of the message in terms of its credibility. The purpose of
communication is to persuade potential customers to purchase the
product. The sales manager determines the message to be aimed
at the target market to gain product acceptance. The overall
marketing objectives define the role of communication in sales
promotion. Identifying the target audience is the main task of a sales
promotion communication. The audiences response to the message
source helps determine the effectiveness of the message.
3. Medium of Reach: Sales promotion may adopt different
methods for approaching people. Strategic variables are taken into
account while deciding a particular method of sales promotion.
Consumer promotion has been considered a very effective mode of
sales promotion; potential consumers are offered samples,
coupons, etc; to promote sales. The point of purchase display is a
silent strategy to trigger off buying decisions. Retailers rely on in-
store displays to familiarize customers with their product. A
showroom display makes it easy for prospective buyers to
familiarize themselves with the different features of the product.
4. Trade promotion: through buying allowance, free goods,
merchandise allowances, push money etc.; help to enhance sales
by retailers and traders. Packaging is another important form of
promotion, particularly for consumer goods. It may carry selling
messages and information about the product. A good package
design attracts the shopper’s attention away from other products. It
is a proper of blend of colour, design and shape.
Budget
One of the most difficult marketing decisions facing by companies is
how much to spend on promotion. It is not surprising that industries
and companies vary considerably in how much they spend on
promotion. It is important to determine sales promotion budgets
before resorting to sales promotion activities. The resources and
sales potentials are estimated before the formulation of budgets.
Sales promotion budgets should be adequate so that they achieve
the promotion objective.
Affordable method: Many companies set the promotion budget at
what they think the company afford. This method of setting budgets
completely ignores the role of promotion as an investment and the
immediate impact of promotion on sales volume. It leads to an
uncertain annual promotion budget, which makes long range market
planning difficult.
Percentage of sales method: Many companies set their promotion
expenditures at a specified percentage of sales or of the sales price.
Automobile companies typically budget a fixed percentage for
promotion based on the planned can price. A number of advantages
are claimed for this method.
• the percentage-of-sales method means that promotion
expenditures are likely to vary with what the company can
afford – which satisfies the financial managers, who feel that
expenses should bear a close relation to the movement of
corporate sales over the business cycle.
• this method encourages management to think in terms of the
relationship between promotion cost, selling price and profit
per unit.
The major drawback of this method is that it does not provide a
logical basis for choosing the specific percentage except what has
been done in the past or what competitors are doing. It also does
not encourage building up the promotion budget by determining
what each product and territory deserves.
Competitive – Parity Method: Some companies set their promotion
budget to achieve share-of-wise parity with their competitors. Two
arguments are advanced for this method. One is that the

competitors‟ expenditures represent the collective wisdom of the

industry. The other is that maintaining a competitive parity helps
prevent promotion wars. There are no grounds for believing that the
competition knows better than the company itself what it should be
spending on promotion. Company reputations, resources,
opportunities, and objectives differ so much that their promotion
budgets are hardly a guide. Furthermore, there is no evidence that
budgets based on competitive parity discourage promotional wars
from breaking out.
Objective-and-Task-Method: The objective-and-task method calls
upon marketers to develop their promotion budgets by defining their
specific objectives, determining the tasks that must be performed to
achieve these objectives and estimating the costs of performing
these tasks. This method has the advantage of requiring
management to spell out its assumptions about the relationship
between rupees spent, exposure levels, trial rates and regular
usage.
Promotional Mix: Companies face the task of distributing the total
promotion budget over the four promotion tools of advertising, sales
promotion, publicity and sales force. Within the same industry,
companies can differ considerably in how they allocate their
promotional budget. Companies are always searching for ways to
gain efficiency by substituting one promotional tool for another as its
economics become more favourable. Many companies have
replaced some field sales activity with ads, direct mail and
telemarketing. Other companies have increased their sales
promotion expenditures in relation to advertising, to gain quicker
sales. The trial and error method, past performance and corporate
policies may influence the appropriate promotional mix. Many firms
have increased their sales with the application of appropriate
combinations of the promotion media; sales promotion and personal
selling are supported with publicity. The promotion mix is a variable
in the marketing strategy. It should be clearly decided how fare a
particular element should be used in combination with other
promotional methods.
Strategic Approach: The kind of promotional mix employed
determines the promotional strategy. Generally speaking a particular
combination, type or amount of sales promotion, personal selling,
publicity and advertising are brought into the promotional mix, which
becomes the promotional strategy in the course of implementation.
The marketing strategy as much guides the determination of the
promotional strategy, which may be divided into sale promotion
strategy, personal selling strategy, publicity strategy and advertising
strategy.
Push and Pull Strategies: The push and pull promotional
strategies may be used to enhance sales. The push strategy
concentrates on middlemen or retailers who push the sale of the
product to the final consumers. This strategy covers cooperative
advertising, attractive terms of sale, coupons and discount facilities.
i. The pull strategy is directed toward the final buyers. It
persuades the buyers to go to the sellers to buy. Sales
promotion, particularly customer promotion, is an important
form of the pull strategy. Customer promotion, may call for the
offer of samples, money-refund offers, prices-off, premiums
and so on.
ii. The push strategy asks the sellers or retailers to attract the
layers. Trade promotion is thus the main form of the push
strategy. Trade promotions refer to buying allowances, free
goods, co-operative advertising, push money, sales contests
and so on. The marketing manager has to adopt both these
strategies to promote sales.
EVALUATION OF SALES PROMOTIONAL STRATEGY
Sales promotional strategies should be evaluated twice. First at the
stages of implementation and secondly after the final performance
because implementation control will suggest improvements during
the application of the promotional strategy, while ‘performance
control’ will be a guide for the future. Implementation control covers
initial planning, objectives, promotional packages, and printing of
special premiums and packaging materials, distribution to retailers,
etc. Even though it has proved successful whenever tried, very few
firms adopt this strategy. Many manufacturers believe only in
performance control. Performance is evaluated in the light of
planned objectives. Consumer surveys and consumer experiments
are used to evaluation techniques show how far the sales promotion
techniques have been effective in increasing sales through
motivating consumers and sellers, and point the way to
improvement in sales promotion.
SALES PROMOTION AND PRODUCT LIFE CYCLE
• The promotional tools vary in their cost effectiveness at
different stages of the product life cycle.
 • In the introduction stage, advertising and publicity have
high cost effeteness, followed by sales promotional to induce
trial and personal selling to gain distribution coverage.
• In the growth stage, all the tools can be toned down
because demand has its own momentum through word-of-
mouth.
• In the maternity stage, sales promotion, advertising and
personal selling all become more important in that order.
• In the decline stage, sales promotion continues strong,
advertising and publicity are reduced and sales people give
the product only minimal attention.
CROSS PROMOTION
Under this sales promotion strategy, the manufacturer may use all
the potential tools such as advertisement, personal selling and sales
promotion to hit the market simultaneously so that the buyer will be
induced to buy a product. For example when Deccan Chronicle, a
daily newspaper, was introduced in Chennai, the management had
used all promotional activities, such as display, holding, price off and
media to influence the reader to buy the paper. This promotional
strategy is called cross promotion.
SURROGATE SELLING
Under this strategy, when the manufacturer is unable to sell his
product in the market he may handover the product to a well-known
organization to sell on behalf of the manufacturer. This strategy is
called surrogate selling. For example, shampoo products are
manufactured at Puducherry by a number of small and medium
manufactures. But they find it difficult in selling the product in the
market. What they have done was, handing over the finished
product to Hindustan Lever, Proctor and Gample who have sufficient
logistics in selling the product, there by relieving the burden of
converting the product into cash. They have in fact act as a
surrogate in selling their merchandise in the market.
Bait and Switch advertising Bait means something that is meant to
tempt someone. Under this strategy, the marketing manager use
AIDAS formula to tempt someone to look the advertisement and
influence him to buy a product. For example, Bharat Sanchar Nigam
Limited has used 10 paise prominently in its advertisement to bring
the attention of its users in mind which will influence them to go for
using the BSNL service. This way of tempting the viewer to opt for
BSNL is called Bait advertising.
Switch means a device that is pressed or turned to stop or start
something working especially by electricity. Switch advertising
means when an advertisement is released, it should ignite the minds
of the buyer to notice the advertisement and take a decision to buy
the product. For example during festival times manufacturer may
offer some discount on cash price to the buyer on some selected
products. So he has put this in the local newspaper-which would
have ignited the minds of the buyers. Buyers will certainly be
influenced to buy the product. This strategy is called switch
advertising strategy.
CONSUMERISM
The term "consumerism” refers to the resistance of consumers
created in marketplace to misleading advertising, sales techniques
and products.
Growth of Consumerism
The development of consumer power took place in the USA
between 1889 and 1925 when consumers developed their strength
and realized the need for resisting misleading and unrealistic
advertising. Women's organizations developed to resist ‘black’
sales. In India, consumer power developed during the Swadeshi
Andolan in 1922, which continued till 1950. The second period of
growth of consumerism was between l926 and 1959 in the USA.
Many books, articles and seminars were held on consumerism.
Consumers' Union, Drug Control, etc., came into being during this
period. In India, the growth of consumerism took place between
1951 and 1985. The third period, i.e. the surge of modern
consumerism, started in India in 1986 when various organizations
developed to protect the interests of the consumer. The consumers'
Safety Act was enacted in 1989. In America, consumers insisted on
the right to safety, the right to be informed, the right to choose and
the right to be heard. Many books on consumerism were written,
which brought pressure to bear on manufacturers and traders so
that there might be the right type of packaging, true labeling, truth in
credit and substantiation of claims of deceptive products.
Consumerism in India
In India, many voluntary organizations were formed to protect the
interests of consumers. The misleading activities of advertisers were
brought to the notice of the public. The government was apprised of
the widespread practice of adulteration. Consumerism in India
developed rapidly. Women's organizations have become very active
in India to educate people about misleading advertising and
products. There has been a great pressure on the government to
enact suitable legislation to protect the interests of consumers.
Advertising is criticized vehemently.
Legal aspects of consumerism
The present laws in India may not be very useful unless consumers
are educated and motivated to protect their interests. Consumerism
in India has to be developed rapidly. The present state of
consumerism in India is worse than it is in the USA. In America a tax
was levied on advertising, to restrict the putting up of billboards
along highways and to create a sense of purpose among
consumers. The reasons for the growth of consumerism are
technological development, water and air pollution, soaring prices,
heavy taxes and other economic factors. Education and social
consciousness have motivated people to safeguard their interests.
In the Indian context, consumer protests have to be developed on a
large scale. Consumerism has a direct as well as indirect impact on
advertising. If advertisers get the feedback that their presentation
and announcements have been resisted by people, they would
avoid misleading advertising. If they do not, their image would be
tarnished. Advertisers have to evaluate the end results of their
advertisements. Pre-assessment and evaluation will avoid
unnecessary expenses on advertising. Therefore, advertisers should
not feel that consumers are adversaries. They are, in fact, true
guides for the success of advertising. Consumerism gives a boost to
government control. The advertising research will not be required if
consumer organizations provided adequate information and
feedback on advertising. There-fore, consumers now receive the
cooperation and assistance of many sound advertising agencies.
Advertisers look upon their reactions as clues to the need for further
development.
UNFAIR TRADE PRACTICE
An unfair trade practice means a trade practice, which, for the
purpose of promoting any sale, use or supply of any goods or
services, adopts unfair method, or unfair or deceptive practice.
Definition of Unfair Trade Practice
UTPs encompass a broad array of torts, all of which involve
economic injury brought on by deceptive or wrongful conduct. The
legal theories that can be asserted include claims such as trade
secret misappropriation, unfair competition, false advertising,
palming-off, dilution and disparagement. UTPs can arise in any line
of business and frequently appear in connection with the more
traditional intellectual property claims of patent, trademark and
copyright infringement. Specific types of UTPs prohibited in
domestic law depend on the law of a particular country. The World
Bank (WB) and the Organization for Economic Cooperation and
Development (OECD) Model Law, for example, lists the following
trade practices to be unfair:
# distribution of false or misleading information that is capable of
harming the business interests of another firm;
# distribution of false or misleading information to consumers,
including the distribution of information lacking a reasonable basis,
related to the price, character, method or place of production,
properties, and suitability for use, or quality of goods; false or
misleading comparison of goods in the process of
advertising;
# fraudulent use of another’s trade mark, firm name, or product
labelling or packaging;
# unauthorized receipt, use or dissemination of confidential
scientific, technical, production, and business or trade information.
The dictionary meaning of ‘unfair trade practice’ is: a trade practice
which, for the purpose of promoting the sale, use or supply of any
goods or for the provision of any service, adopts any unfair method
or unfair or deceptive.
Unfair practices may be categorized as under:
1. False Representation
The practice of making any oral or written statement or
representation which:
a) Falsely suggests that the goods are of a particular standard
quality, quantity, grade, composition, style or model;
b) Falsely suggests that the services are of a particular
standard, quantity or grade;
c) Falsely suggests any re-built, second-hand renovated,
reconditioned or old goods as new goods;
d) Represents that the goods or services have sponsorship,
approval, performance, characteristics, accessories, uses or
benefits which they do not have;
e) Represents that the seller or the supplier has a sponsorship
or approval or affiliation which he does not have;
f) Makes a false or misleading representation concerning the
need for, or the usefulness of, any goods or services;
 g) Gives any warranty or guarantee of the performance,
efficacy or length of life of the goods, that is not based on an
adequate or proper test;
h) Makes to the public a representation in the form that
purports to be-
i. a warranty or guarantee of the goods or services,
ii. promise to replace, maintain or repair the goods until it
has achieved a specified result,
iii. if such representation is materially misleading or there
is no reasonable prospect that such warranty, guarantee
or promise will be fulfilled
i) Materially misleads about the prices at which such goods
or services are available in the market; or
j) Gives false or misleading facts disparaging the goods,
services or trade of another person.
2. False Offer of Bargain Price-
Where an advertisement is published in a newspaper or otherwise,
whereby goods or services are offered at a bargain price when in
fact there is no intention that the same may be offered at that price,
for a reasonable period or reasonable quantity, it shall amount to an
unfair trade practice.
The ‘bargain price’, for this purpose means-
a. the price stated in the advertisement in such manner as
suggests that it is lesser than the ordinary price, or
b. the price which any person coming across the advertisement
would believe to be better than the price at which such goods
are ordinarily sold.
3. Free Gifts Offer and Prize Schemes
The unfair trade practices under this category are:
• Offering any gifts, prizes or other items along with the goods
when the real intention is different, or
 • Creating impression that something is being offered free
along with the goods, when in fact the price is wholly or partly
covered by the price of the article sold, or
• Offering some prizes to the buyers by the conduct of any
contest, lottery or game of chance or skill, with real intention
to promote sales or business.
4. Non-Compliance of Prescribed Standards
Any sale or supply of goods, for use by consumers, knowing or
having reason to believe that the goods do not comply with the
standards prescribed by some competent authority, in relation to
their performance, composition, contents, design, construction,
finishing or packing, as are necessary to prevent or reduce the risk
of injury to the person using such goods, shall amount to an unfair
trade practice.
5. Hoarding, Destruction, etc:
Any practice that permits the hoarding or destruction of goods, or
refusal to sell the goods or provide any services, with an intention to
raise the cost of those or other similar goods or services, shall be an
unfair trade practice.
CONSUMER PROTECTION ACT
Consumer Protection Act, 1986 also defines the term ‘unfair trade
practice’. It reads: “unfair trade practice" means a trade practice
which, for the purpose of promoting the sale, use or supply of any
goods or for the provision of any service, adopts any unfair method
or unfair or deceptive practice including any of the following
practices, namely;—
(1) the practice of making any statement, whether orally or in
writing or by visible representation which,—
(i) falsely represents that the goods are of a particular
standard, quality, quantity, grade, composition, style or
model;
(ii) falsely represents that the services are of a particular
standard, quality or grade;
(iii) falsely represents any re-built, second-hand, renovated,
reconditioned or old goods as new goods;
(iv) represents that the goods or services have sponsorship,
approval, performance, characteristics, accessories, uses
or benefits which such goods or services do not have;
(v) represents that the seller or the supplier has a
sponsorship or approval or affiliation which such seller or
supplier does not have;
(vi) makes a false or misleading representation concerning
the need for, or the usefulness of, any goods or services;
(vii) gives to the public any warranty or guarantee of the
performance, efficacy or length of life of a product or of
any goods that is not based on an adequate or proper test
thereof; provided that where a defence is raised to the
effect that such warranty or guarantee is based on
adequate or proper test, the burden of proof of such
defence shall lie on the person raising such defence;
(viii) makes to the public a representation in a form that
purports to be— (i) a warranty or guarantee of a product
or of any goods or services; or (ii) a promise to replace,
maintain or repair an article or any part thereof or to
repeat or continue a service until it has achieved a
specified result, if such purported warranty or guarantee
or promise is materially misleading or if there is no
reasonable prospect that such warranty, guarantee or
promise will be carried out;
(ix) materially misleads the public concerning the price at
which a product or like products or goods or services,
have been or are, ordinarily sold or provided, and, for this
purpose, a representation as to price shall be deemed to
refer to the price at which the product or goods or services
has or have been sold by sellers or provided by suppliers
generally in the relevant market unless it is clearly
specified to be the price at which the product has been
 sold or services have been provided by the person by
whom or on whose behalf the representation is made;
(x) gives false or misleading facts disparaging the goods,
services or trade of another person.
Explanation. - For the purposes of clause (1), a statement
that is— (a) expressed on an article offered or displayed
for sale, or on its wrapper or container; or
(b) expressed on anything attached to, inserted in, or
accompanying, an article offered or displayed for sale, or
on anything on which the article is mounted for display or
sale; or
(c) contained in or on anything that is sold, sent,
delivered, transmitted or in any other manner whatsoever
made available to a member of the public, shall be
deemed to be a statement made to the public by, and only
by, the person who had caused the statement to be so
expressed, made or contained;
(2) permits the publication of any advertisement whether in any
newspaper or otherwise, for the sale or supply at a bargain price, of
goods or services that are not intended to be offered for sale or
supply at the bargain price, or for a period that is, and in quantities
that are, reasonable, having regard to the nature of the market in
which the business is carried on, the nature and size of business,
and the nature of the advertisement.
Explanation.—For the purpose of clause (2), "bargaining price"
means— (a) a price that is stated in any advertisement to be a
bargain price, by reference to an ordinary price or otherwise, or
(b) a price that a person who reads, hears or sees the
advertisement, would reasonably understand to be a bargain price
having regard to the prices at which the product advertised or like
products are ordinarily sold;
(3) Permits—
(a) the offering of gifts, prizes or other items with the intention of not
providing them as offered or creating impression that something is
being given or offered free of charge when it is fully or partly
covered by the amount charged in the transaction as a whole;
b) the conduct of any contest, lottery, game of chance or skill, for the
purpose of promoting, directly or indirectly, the sale, use or supply of
any product or any business interest;
(3A) withholding from the participants of any scheme offering gifts,
prizes or other items free of charge, on its closure the information
about final results of the scheme. Explanation — For the purposes
of this sub-clause, the participants of a scheme shall be deemed to
have been informed of the final results of the scheme where such
results are within a reasonable time, published, prominently in the
same newspapers in which the scheme was originally advertised;
(4) permits the sale or supply of goods intended to be used, or
are of a kind likely to be used, by consumers, knowing or having
reason to believe that the goods do not comply with the standards
prescribed by competent authority relating to performance,
composition, contents, design, constructions, finishing or packaging
as are necessary to prevent or reduce the risk of injury to the person
using the goods;
(5) permits the hoarding or destruction of goods, or refuses to
sell the goods or to make them available for sale or to provide any
service, if such hoarding or destruction or refusal raises or tends to
raise or is intended to raise, the cost of those or other similar goods
or services.
(6) manufacture of spurious goods or offering such goods for
sale or adopts deceptive practices in the provision of services.(2)
Any reference in this Act to any other Act or provision thereof which
is not in force in any area to which this Act applies shall be
construed to have a reference to the corresponding Act or provision
thereof in force in such area..
CONSUMER RIGHTS IN INDIA
History of protection of Consumer’s rights by law has long been
recognized dating back to 1824. Every year the 15th of March is
observed as the World Consumer Rights Day. On that day in 1962
President John F. Kennedy of U.S. called upon the U.S. Congress
to accord its approval to the Consumer Bill of Rights. They are:
 Right to choice
 Right to information
 Right to safety and
 Right to be heard.
President Gerald R. Ford added one more right i.e. right to
consumer education. Further other rights such as right to healthy
environment and right to basic needs (Food, Clothing and Shelter)
were added. In India we have recently started celebrating 24th
December every year as the National Consumer Rights Day. In the
history of the development of consumer policy, April 9, 1985 is a
very significant date for it was on that day that the General
Assembly of the United Nations adopted a set of general guidelines
for consumer protection and the Secretary General of the United
Nations was authorized to persuade member countries to adopt
these guidelines through policy changes or law. These guidelines
constitute a comprehensive policy framework outlining what
governments need to do to promote consumer protection in
following seven areas:
• Physical safety;
• Protection and Promotion of the consumer economic
interest;
• Standards for the safety and quality of consumer goods and
services;
• Distribution facilities for consumer goods and services;
• Measures enabling consumers to obtain redress;
• Measures relating to specific areas (food, water and
pharmaceuticals) and Consumer education and
information programme.
The definition of Consumer right is 'the right to have information
about the quality, potency, quantity, purity, price and standard
of goods or services’, as it may be the case, but the consumer is
to be protected against any unfair practices of trade. It is very
essential for the consumers to know these rights.
However there are strong and clear laws in India to defend
consumer rights, the actual plight of consumers of India can be
declared as completely dismal. Out of the various laws that have
been enforced to protect the consumer rights in India, the most
important is the Consumer Protection Act, 1986. According to this
law, everybody, including individuals, a firm, a Hindu undivided
family and a company, have the right to exercise their consumer
rights for the purchase of goods and services made by them. It is
significant that, as consumer, one knows the basic rights as well as
about the courts and procedures that follow with the infringement of
one’s rights.
In general, the consumer rights in India are listed below:
 The right to be protected from all kind of hazardous goods
and services
 The right to be fully informed about the performance and
quality of all goods and services
 The right to free choice of goods and services
 The right to be heard in all decision-making processes related
to consumer interests
 The right to seek redressal, whenever consumer rights have
been infringed
 The right to complete consumer education
Legal aspects of Consumer Protection Act,
Act is formulated to make sure that there is fair competition in the
market and free flow of correct information from goods and services
providers to the ones who consume them. In fact, the degree of
consumer protection in any country is regarded as the right indicator
of the progress of the country. There is high level of sophistication
gained by the goods and services providers in their marketing and
selling practices and different types of promotional tasks viz.
advertising resulted in an increasing requirement for more consumer
awareness and protection. The government of India has realized the
condition of Indian consumers therefore the Ministry of Consumer
Affairs, Food and Public Distribution has incorporated the
Department of Consumer Affairs as the nodal organization to protect
the consumer rights, redress the consumer grievances and promote
the standards governing goods and services provided in India.
• If there is infringement of rights of consumer then a complaint
can be made under the following circumstances and reported to
the close by designated consumer court:
• The goods or services purchased by a person or agreed to be
purchased by a person has one or more defects or deficiencies
in any respect
• A trader or a service provider resort to unfair or restrictive
practices of trade
• A trader or a service provider if charges a price more than the
price displayed on the goods or the price that was agreed upon
between the parties or the price that was stipulated under any
law that exist
• Goods or services that bring a hazard to the safety or life of a
person offered for sale, unknowingly or knowingly, that cause
injury to health, safety or life.
QUESTION BANK PART- A
1. Define Sales promotion. State is concepts.
2. Explain the importance of sales promotion to advertising
3. What are the objectives of sales promotion?
4. Classify the different types of promotional tools
5. What is meant by cross promotion
6. What is meant by surrogate selling?
7. Explain the term ‘consumerism’. State its importance.
8. What are the legal aspects of consumerism?
9. Write short notes on unfair trade practices.
10. What is meant by “consumer protection act ‘.
PART- B
1. Write detailed notes on the types of consumer promotional
tools.
2. Explain in detail on the sales promotional tools.
3. Explain the application of promotion tools in a product life
cycle. State with Example.
4. Throw light on the sales promotional strategies and practices
adopted by marketers.
5. Sales promotion is powerful tools of promotion. Explain.
6. Write detailed notes on consumerism.
7. Explain in detail about consumerism in India.
8. Explain about the ‘unfair trade practices ‘practiced by
marketers.
9. Elucidate in detail about ‘consumer protection act’.
10. Discuss on ‘consumer protection act in India.

CONTENTS

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