Professional Documents
Culture Documents
Communication
• Read
– Brand Equity, Campaign India & Campaign Asia, Exchange4Media,
Brand and advertising pages of Business Standard, HinduBusinessline,
Ad week
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Course Objectives
• The aim of the course is to equip you all with theoretical and
practical knowledge necessary for a successful and efficient
management of brands and its advertising.
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Learning Outcomes
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Instruction Methodology
– Lecture
– PPT presentation
– Audio-Visual Presentation
– Home assignment
– Debate related to topic
– Practical
– Live Industry briefs
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Units & Course Content Layout
Unit 1
Definition, Historical Development; Social and Economic
Benefits of Advertising
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Academic Integrity Policy
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Evaluation Scheme
S. No. Evaluation Component Weight (%) Date for Evaluation Learning Date of
Outcome Completion of
Evaluated Units Evaluation
Total 100
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Unit I
• But, advertising has its own advantages which is not found in personal
selling: advertising has comparatively speaking, all the time in the world.
• Unlike personal selling, the sales message and its presentation does not have
to be created on the spot with the customer watching.
• It can be created in as many ways as the writer can conceive, be rewritten,
tested, modified, injected with every trick and appeal known to affect
consumers.
• Advertising covers large groups of customer and to make it
effective proper research about customer is done to identify
potential customers, to find out what message element might
influence them, and figure out how best to get that message
to them.
Paid For
• Advertiser has to pay for the creation of ad and for placing it in the media.
• Cost of ad creation and cost of time/space in the media must be paid for.
• Cost of advertising depends on TRP of media, reach of media, and
frequency of ad to be displayed.
Persuasive
• "Persuasive" stands to reason as part of the definition of advertising.
• The basic purpose of advertising is to identify and differentiate one
product from another in order to persuade the consumer to buy that
product in preference to another.
Identified Sponsors
• Identified sponsors means whoever is putting out the ad tells the
audience who they are.
• There are two reasons for this: first, it's a legal requirement, and second,
it makes good sense.
• Legally, a sponsor must identify himself as the sponsor of ad.
• By doing so the sponsor not only fulfils the legal requirements, but it also
makes a good sense, if the sponsor doesn't do so, the audience may
believe that the ad is for any competitor's product, thus wasting all the
time and money in making and placing the ad.
• According to Webstar, “Advertising is to give public notice or
to announce publicity”.
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The History of Advertising
In 1704, the first newspaper ad
was published.
• It was an announcement about a
house for sale in the Boston
Newsletter.
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The History of Advertising
In 1729, our forefather Benjamin
Franklin began the advertising tradition
in America.
• His Philadelphia Gazette had a full page of
advertisements.
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The History of Advertising
Ben Franklin also started
magazine advertising in 1749
with his General Magazine.
• The first successful newspaper
(after our founding as a nation) was
in 1784, also in Pennsylvania. It was
even called the Advertiser!
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The History of Advertising
1833: New York Sun
• The first successful “penny newspaper”
founded by Benjamin Day.
• Revolutionized distribution by selling lots of
100 to boys to sell on the street.
• By 1837, circulation reached 30,000!
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The History of Advertising
The first Advertising Agency
opened in 1843.
• It was also in Philadelphia! A Your Ad
man named Volney Palmer was the first goes here
true ad agency man.
• He was in charge of brokering space
for advertising more than for the actual
creation of the ads.
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The History of Advertising
In 1873, there was a convention
of advertising agents in New York.
• A few years later, James Walter
Thompson created the position of
“account executive” for himself and
went into the business of general
magazine advertising.
• This was the beginning of creative
advertising in this country.
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The History of Advertising
1880 – First full-time retail
advertising copywriter
• In 1880, department store
founder John Wanamaker
became the first retailer to hire a
full-time advertising copywriter,
John E. Powers who is considered
the father of modern creative
advertising.
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The History of Advertising
In 1882, the first “big budget”
client spent $11,000 on
advertisements.
• This company’s main product was
soap!
• Selling soap was big business in
America!
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The History of Advertising
In 1893, a cola company got
the first registered
trademark.
• The company bookkeeper came
up with the original first mark for
the brand.
• His name was Frank Robinson.
• Can you guess which company
this was?
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The History of Advertising
In 1900, N.W. Ayer started a “Business
Getting” Department in their agency.
• This department was based on the marketing
DEPARTMENT
needs of their clients. Marketing in America now
had a name. “Business Getting” was what it was all
about.
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The History of Advertising
In 1906, the first million
dollar advertising client
was born.
• Can you guess which company
broke the million dollar barrier
to promote its cereal products?
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The History of Advertising
In 1916, outdoor billboard
ads were mostly under the
control of a group of
representatives from many
different agencies that
formed a new entity.
• The National Outdoor Advertising
Bureau controlled about 75% of all
outdoor ads during this time.
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The History of Advertising
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The History of Advertising
1929: Stock Market Crashes
• Advertising revenue plummeted from
a high of $3.5 billion.
• Stock Market revenue only reached
$1.5 billion by 1933.
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The History of Advertising
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The History of Advertising
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The History of Advertising
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The History of Advertising
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The History of Advertising
In 1967, Mary Wells became
the first woman to head a
major advertising agency.
• In the heat of the Women’s
Movement, we saw the impact of
women having a great deal of
influence on the direction
advertising was taking in America.
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The History of Advertising
In 1971, Congress banned
cigarette advertising via
broadcast media.
• Cigarette companies felt the bruises
from the advertising restraint and re-
channeled all of their ads into
magazines and billboards.
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The History of Advertising
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The History of Advertising
1993 brings the Internet to over 5
million people worldwide and
changes the way ads are delivered
yet again.
• Ads pop up, pop under, and become a
general nuisance to most computer
users.
• Special software programs are written
to help eliminate unwanted ads from
the computer screen.
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The History of Advertising
1999: Regulating Internet
Advertising
• This occurred as billings for
internet advertising neared the $3
Billion mark.
• Do you know which company
moved to standardize all Internet
advertising?
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The History of Advertising
With the new millennium,
advertising product placement has
become quite common.
• Next time you buy a movie ticket or
tune in to a commercial television
program, watch your favorite stars and
see what they are they wearing,
drinking, eating and driving. It’s all
advertising.
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The History of Advertising
Other new topics
• Virtual placement – most commonly used at
sporting events and on electronic billboards
• Crowdsourcing
• Niche marketing
– Usage tracking
– Customer profiles
– Social networking sites
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The History of Advertising
Where did all of this start?
• Most modern advertising can essentially
trace its roots to the invention of the
Gutenberg printing press with moveable type
back in 1441. The rest of it is almost a natural
evolutionary process. With new inventions
come new ways to advertise. So the next
time you sit down with that paper, realize
that it was print advertising that
revolutionized the way things are done.
1940’s
• 2nd World War
• Famine
• Fight for Independence
• In 1941, Leela Chitnis became the first Indian film actress to
endorse Lux soap
1950’s
1 st stage (1900-1947)
Movie 3
Movie 4
Social & Economic Benefits of
Advertising
Introduction
• Advertising is praised but also criticized by critics in their own
ways.
• Advertising has many positive impacts along with its negative
pictures.
• As the President of American Association of Advertising
Agencies, John O’ Toole has described advertise is something
else.
– It is not related to studies, but it educates.
– It is not a journalist but gives all information. And it is not an
entertaining device but entertains everyone.
Economic Benefits of Advertising
• Value of Products:
The advertised products are not always the best products in the market. There are
some unadvertised products also present which are good enough. But advertising
helps increase value for the products by showing the positive image of the product
which in turn helps convincing customers to buy it. Advertising educates
consumers about the uses of the products hence increasing its value in minds of
the consumers. For e.g. mobile phones were first considered as necessity but
nowadays the cell phones come with number of features which makes them mode
of convenience for consumers.
• Effect on Prices:
Some advertised products do cost more than unadvertised products but the vice
versa is also true. But if there is more competition in the market for those
products, the prices have to come down, for e.g., canned juices from various
brands. Thus some professional like chartered accountants and doctors are not
allowed to advertise.
But some products do not advertise much, and they don’t need much of it and
even their prices are high but they are still the leaders in market as they have their
brand name. e.g., Porsche cars
Economic Benefits of Advertising
• Effect on consumer demand and choices:
Even if the product is heavily advertised, it does not mean that the demand or say
consumption rates will also increase. The product has to be different with better
quality, and more variety than others. For E.g., Kellogg’s cornflakes have variety of
flavors with different ranges to offer for different age groups and now also for
people who want to loose weight thus giving consumers different choices to select
from.
Encourages consumption,
fosters economic growth
Economic Impact of Advertising
Effects on Competition
• Barriers to entry
• Economies of scale
Communication Role
• Advertising is a form of mass
communication.
Economic Role
• Improves standard of living and the
economy by generating material
consumption.
Let us discuss some important types of advertising based on the functional aspect of advertising.
• Informative advertising: This type of advertising informs the customers about the products,
services, or ideas of the firm or organization.
• Reminder advertising: This genre of advertising reminds the existing customers to become
medium or heavy users of the products or services of the firm that have been purchased by
them at least once. This type of advertising exercise helps in keeping the brand name and
uses of the products in the minds of the existing customers.
Classification on the basis of region
• Global advertising: It is executed by a firm in its global market niches. Reputed global magazines like
Time, Far Eastern Economic Review, Span, Fortune, Futurist, Popular Science. Cable TV channels are
also used to advertise the products through out world. Supermodels and cinema stars are used to
promote high-end products Examples: Sony, Philips, Pepsi, Coca Cola, etc.
• National advertising: It is executed by a firm at the national level. It is done to increase the demand of
its products and services throughout the country. Examples: BPL (Believe in the best). Whirlpool
Refrigerator (Fast Forward Ice Simple) etc.
• Regional advertising: If the manufacturer confines his advertising to a single region of the country, its
promotional exercise is called Regional Advertising. This can be done by the manufacturer, wholesaler,
or retailer of the firm. Examples: Advertisements of regional newspapers covering those states or
districts where these newspapers are circulated. Eg. The Assam Tribune (only for the NE region) etc.
• Local advertising: When advertising is done only for one area or city, it is called Local Advertising.
Some professionals also call it Retail Advertising. It is sometime done by the retailer to persuade the
customer to come to his store regularly and not for any particular brand. Examples: Advertisements of
Ooo la la, Gupshup (Local FM channels) etc.
Classification on the basis of target market
• Depending upon the types of people who would receive the messages of
advertisements, we can classify advertising into four subcategories:
• Indirect action advertising: This type of advertising exercise is carried out to make
a positive effect on the mind of the reader or viewer. After getting the
advertisement he does not rush to buy the product but he develops a favourable
image of the brand in his mind.
• Audio advertising: It is done through radio, P A systems, auto-rickshaw promotions, and four-
wheeler promotions etc.
• Visual advertising: It is done through PoP displays, without text catalogues, leaflets, cloth
banners, brochures, electronic hoardings, simple hoardings, running hoardings etc.
• Audio-visual: It is done through cinema slides, movies, video clips, TV advertisements, cable TV
advertisements etc.
• Written advertising: It is done through letters, fax messages, leaflets with text, brochures,
articles and documents, space marketing features in newspapers etc.
• Internet advertising: The world wide web is used extensively to promote products and services
of all genres. For example Bharat Matrimony, www.teleshop.com, www.asianskyshop.com etc.
• Verbal advertising: Verbal tools are used to advertise thoughts, products, and services during
conferences, seminars, and group discussion sessions. Kinesics also plays an important role in
this context.
Provide Reminders
and
Reinforcement
Advertising
Performs 3 Basic Provide Incentives
Functions To Take Action
Provide Product &
Brand Information
Functions of Advertising
Classifications of Advertising
By Target By Geographic By By
Audience Area Medium Purpose
• Direct-Mail
Consumer Power, Relationship Marketing
and Customization
Niche Marketing
Globalization
Integrated Marketing Communication
Interactive Advertising
Current Advertising Issues
Theories, Models and frameworks
of Advertising
AIDA MODEL FRAMEWORK
L : Loyalty/Satisfaction - AIDAS
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AIDA MODEL FRAMEWORK
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AIDA MODEL FRAMEWORK
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Hierarchy-of-Effects Model
Awareness: The communicator’s task is to build awareness,
perhaps just name recognition, with simple messages. Consumers
must become aware of the brand. This isn’t as straightforward as
it seems. The brand name needs to be made focal to get
consumers to become aware
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Hierarchy-of-Effects Model
Liking: If target members know the product, how do they feel
about it? If consumer somewhat unhappy and dissatisfied - it is
necessary to first find a solution and then can communicate its
renewed quality.
Preference: The target audience might like the product but not
prefer it to others. In this case, the communicator must try to
build consumer preference by promoting quality, value,
performance and other features. The communicator needs to
measure audience preference before and after the campaign.
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Hierarchy-of-Effects Model
Conviction: A target audience might prefer a particular product
but not develop a conviction about buying it. The communicator
has to make efforts to build conviction among the target audience.
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Hierarchy-of-Effects Model: Example
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HIERARCHY OF EFFECTS MODEL: SEQUENCE
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Links to key documents
Document 1
Document 2
Document 3
Document 4
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