Advertising management

MM-301
 PREVIEW
 Meaning of advertising
 Definition of advertising
 Features of advertising
 Functions of advertising
 Types of advertising
 What Makes an Ad Effective?
 Importance of advertising
 Benefits of Advertisement
 Harms done by Advertisement
 Role of Advertisement in Marketing Mix
 Aspects of Advertisement
 Economic Aspects
 Social Aspects
 Legal Aspects
 Ethical Aspects
 CONCEPT OF ADVERTISING

MEANING & DEFENITION

FEATURES

FUNCTIONS
 MEANING
 The term advertising is derived from a Latin word’ Advertere’ which
means to turn attention towards a specific thing.
 Dictionary meaning of advertising is to announce publicly. Thus
advertising is a paid form of non personal communication with target
audience through mass media such as T.V., newspapers, magazines ,
telephone , internet etc.

Definition
According to A.M.A:-
 Advertising is any paid form of non personal presentation & promotion of
goods, services or ideas by an identified sponsor.

According To Philip Kotler:

 Advertising is non personal from of communication conducted through
paid media under clear sponsorship.
 Features of Advertising
Paid form
Non personal
Identified sponsor
Any form
Goods , services or ideas
Can be used by any organization
Speedy communication
 mass communication
It is an art
Controlled
Important element of promotion-mix
 Functions of Advertising
Primary function
1.Creates demand
2.Announces for new product
or service
3. Promotes new uses of
the product
4. Informs about changes
5. Helps in understanding uses
6. Reminds users
7. Creates brand preference
8. Helps to neutralize
competition
Secondary function Social function
1. Boost the morale of
Employees 1.Improves standard of living
2. Supports salesmen 2.creates awareness
3. Reaches customers 3.creates employment
left by s.m 4.Educates consumers
4. Helps procure better 5.solves social problems
employees 6.Circulates govt notification
5. Announces location of 7.Other social functions
dealers & stockist
T yp
es
of
Ad
ver
tise
me
nt
Advertising is a form of communication
that typically attempt to persuade,
potential to purchase or to consume more
of a particular brand of product or service.
 Types of advertising
Advertising on basis of geographical area
1. Local/regional
2. National
3. Global/international

Advertising on basis of target-audience

1. Consumer ads
2. Industrial ads
3. Professional ads
4. Trader ads

Advertising on basis of demand influence level

1. Primary demand creation ads
2. Selective demand stimulation ads

Advertising to promote brand image

1. Corporate ads
2. Product ads
Local Advertisement.
National Advertising
International Marketing
Advertising directed toward professionals
such as doctors, dentists, and pharmacists,
etc., who are in a position to promote
products to their patients or customers.
Consumer advertisement.
 advertising directed at commercial business
customers. The advertised products are raw
materials, components, or equipment needed in
the production or distribution of other goods
and services.
Advertising on basis of diff. stages of PLC
1. Informative ads
2. Persuasive ads
3. Reminder

Advertising on basis of timing of response

1. Direct action ads
2. Indirect action ads

Advertising on basis of nature of appeal

1. Emotional ads
2. Rational ads

Advertising on basis of media used

1. Print ads
2. Audio-video ads
3. Audio ads

Other ads
1. Classified ads
2. Social ads
 Out-Door Advertisement
Bill-board and message painted on the
side of buildings are common forms of
out-door advertising, which is often
used when quick, simple, ideas are
being promoted.
 Brand Advertising
It is advertising with a strong emphasis
on the company brand (logo and/or
company name) also known as
integrated marketing communications
(IMC).
Business advertisement.
Direct advertisements
Emotional Advertisement.
Social advertisement.
 Broadcast advertising
• Broadcast advertising is a very popular advertising
medium that constitutes of several branches like
television, radio or the Internet. Television
advertisements have been very popular ever since
they have been introduced. The cost of television
advertising often depends on the duration of the
advertisement, the time of broadcast (prime
time/peak time), and of course the popularity of the
television channel on which the advertisement is
going to be broadcasted.
 Online advertising
Online advertising is the newest and fastest
growing way to advertise. The Internet now
provides everything from links on sites, to
banner ads on sites, to small ads on sites, to
pay per click advertising.
 Radio Advertisement
It is a small business advertising.
Radio advertising can be a very effective means to
attract customer to some business.

New Sathi lather House, Bhiya Pizza,

Fhakar rent a car
Institutional advertisement
Reminders
 Importance of Advertising

To manufacturers To consumers To distributors To society

•Increased sales
•Creating primary And •Easy selling
selective demand •Convenience •Less burden •Increases Standard
•Mass Communication •Ads to knowledge •Increase in sales •Increases Employment
•Lowers prod. Cost •Benefits of Direct •And profits •Source of Income to
•Helps face mkting •Regular sales •Media
Competition •Products at low Price •Increases morale •Increase Exports
•Builds goodwill •Act as reminder •Less bargaining •Increase NY
•Higher profits •Better quality products •Selling new products •Encourage R&D
•Direct mkting
•Permanent demand
 IMPORTANC
E

• Creating awareness

• Increase sales

• Brand identity & Brand image

• Communicate a change

• Increase the buzz value

 What Makes an Ad
Effective?

1. If it creates an impression for a product or brand

2. If it influences people to respond

3. If it separates the product or brand from the competition

 Economic Benefits of Advertising
Advertising can play an important role in the
process by which an economic system guided by
moral norms contributes to human development.
It is a necessary part of the functioning of modern
market economies.
Advertising can be a useful tool for sustaining
honest and ethically responsible competition that
contributes to economic growth in the service of
authentic human development.
Advertising informs people about the availability of
rationally desirable new products and services and
improvements in existing ones, helping them to make
informed, contributing to efficiency and the lowering
of prices, and stimulating economic progress through
the expansion of business and trade.

All of this can contribute to the creation of new jobs,

higher incomes and a more decent and humane way
of life for all.
 Benefits of Political Advertising
Political advertising can make its contribution by
informing people about the ideas and policy proposals
of parties and candidates, including new candidates
not previously known to the public.

Political advertising can make a contribution to

democracy analogous to its contribution to economic
well being in a market system guided by moral norms.
 Cultural Benefits of Advertising
Advertising can itself contribute to the betterment of
society by uplifting and inspiring people and
motivating them to act in ways that benefit themselves
and others.

Advertising can brighten lives simply by being witty,

tasteful and entertaining.
 Moral and Religious Benefits of
Advertising
In many cases, too, social institutions, including those
of a religious nature, use advertising to communicate
their messages.

Messages of faith, of patriotism, of tolerance,

messages concerning health and education,
constructive and helpful messages that educate and
motivate people in a variety of beneficial ways.
THE HARM DONE BY
ADVERTISING
 a) Economic Harms of Advertising

The practice of "brand"-related advertising can raise

serious problems. Often there are only negligible
differences among similar products of different brands,
and advertising may attempt to move people to act on the
basis of irrational motives ("brand loyalty," status, fashion,
"sex appeal," etc.) instead of presenting differences in
product quality and price as bases for rational choice.
It makes consumers forget about there needs n only think
about their wants, which makes them spend more
 b) Harms of Political Advertising

for example, the costs of advertising limit political

competition to wealthy candidates or groups, or require
that office-seekers compromise their integrity and
independence by over-dependence on special interests for
funds.
instead of being a vehicle for honest expositions of
candidates' views and records,political advertising seeks to
distort the views and records of opponents and unjustly
attacks their reputations.
 c) Cultural Harms of Advertising

In the competition to attract ever larger audiences and

deliver them to advertisers, communicators can find
themselves tempted — in fact pressured, subtly or not so
subtly — to set aside high artistic and moral standards and
lapse into superficiality, tawdriness and moral squalor
Communicators also can find themselves tempted to
ignore the educational and social needs of certain
segments of the audience — the very young, the very old,
the poor — who do not match the demographic patterns
(age, education, income, habits of buying and consuming,
etc.) of the kinds of audiences advertisers want to reach
Exploitation of women by advertisements:-
objects whose purpose is to satisfy others' appetite
for pleasure or for power
the role of woman as wife and mother undervalued
or even ridiculed
the role of women in business or professional life
depicted as a masculine caricature
 d) Moral and Religious Harms of Advertising

it deliberately appeals to such motives such as envy, status

seeking and lust.
some advertisers consciously seek to shock and titillate by
exploiting content of a morbid, perverse, pornographic
nature.
the communications media have made pornography and
violence accessible to a vastly expanded audience,
including young people and even children, and a problem
which at one time was confined mainly to wealthy
countries has now begun, via the communications media,
to corrupt moral values in developing nations.
 Role of advertising in marketing mix
 Advertising is an important tool of marketing mix. Success of whole
marketing programme depends on how promotional tools are coordinated
with diff. components of marketing mix. Advertising is communication link
b/w buyer and seller.
Advertising is used as a tool of marketing
communication. It is main form of mass comm. Marketing refers to
achieving organizational goals after determining needs and wants of target
customers and enhancing the level of customer satisfaction along with
selling the product.
An effective marketing programme blends all
the components of marketing mix in a coordinated manner so as to achieve
marketing objectives.
The inter-relationship of advertising and
marketing is studied as under:
 Marketing mix

Product Price Promotion Place

Personal Advertising sales Direct Publicity

selling promotion marketing
interactive
marketing
1. ADVERTISING AND PRODUCT
 Advertising and type of product
 Advertising and stage of product life cycle
 Advertising and product quality
 Advertising and branding
 Advertising and packaging
 Advertising and product positioning

1. ADVERTISING AND PRICE

 If price is high then high-status appeal
 If price is low then economy-appeal

1. ADVERTISING AND PLACE (DISTRIBUTION)

4. ADVERTISING AND OTHER PROMOTIONAL TOOLS
Sales promotion
Personal selling
Publicity
Direct marketing

5. ADVERTISING AND COMPETITION

6. ADVERTISING AND MARKET SEGMENTATION

 Concentrated marketing
 Differentiated marketing
 Undifferentiated marketing
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•Making Consumers Aware of
Products and Services

• Providing Consumers With

Information to Use to Make Purchase
Decisions

• Encouraging Consumption and

Fostering Economic Growth
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 (i) Effect on production cost and prices
 Advertising as an expense that increases the cost of products
 Increased differentiation
 (ii) Effect on distribution cost
 (iv) Effect on demand
 (v) Effect on competition
 Barriers to entry
 Economies of scale
 (vi) Effect on consumer’s choice
 Differentiation
 Brand Loyalty
 (vii) Effect on business cycles
 (viii) Effect on national income
 (ix) Effect on employment
 (x) Effect on standard of living
 Economic objections

(i) No increase in real demand

(ii) Reduces consumer’s choice
(iii)Wastage of natural resources
(iv)Creates monopoly
(v) Increase in cost and price

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Advertising as a part of firm’s marketing
effort operates in the society. It has to
therefore follow the social norms.

Key areas of debate regarding society

and advertising are:

 Deception
 Manipulation
 Taste
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 Deception: it refers not only to the
information content in advertising but may
also arise from misplace emphasis in
presentations.

According to federal trade commission

of the USA-

“Advertising as a whole must not create a

misleading impression although every
statement, separately considered, may be
literally truthful”
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 Manipulation :- The freedom of choice
of consumers is restricted by the power
of advertising since it can manipulate
buyers into making a decision against
their will or interest.
Manipulation is done through
emotional appeals. These companies
can utilize advanced and very scientific
advertising techniques and thus make
an impression on consumers.

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 Taste:- Sometimes ads are
offensive, tasteless, irritating,
boring and so on.

a) Sources of distaste
b) Sexual Appeals
c) Shock advertising

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 Untruthful or deceptive advertising
 General mistrust of ads
 Deliberately untruthful or misleading vs. puffery
 Problems often more at local level rather than national
 Effect on culture
 Effect on media
 Materialism
 Effect on children
 Stereotyping in advertising
 Portrayal of women
 Gender stereotyping
 Portrayal of women as sex objects
 Role portrayal of women to reflect changing role in society
 Blacks and Hispanics
 Gays
 Elderly
 Social objections
(i) Control of advertisers over media
(ii) Wrong appeals
(iii) Create artificial product differentiation
(iv) Moral degradation
(v) Other objections

Some examples of the Advertisements with social

aspects:-
 Grow-more-trees advertisements
 Drink milk
 Eat healthy food, eat eggs
 Mother’s milk is best for the baby
 Say no to drugs every time
 Get your child vaccinations in times
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 (III) Legal aspects of advertising

The government in each country has to

make sure that advertisements appearing
do not flaunt of their rules & regulations.
It should not:-
show anti-national feelings
contain misleading information about
the product
Violate government rules
Some examples of the
Advertisements with legal aspects:-

Get your car checked for pollution

Drinks & driving do not mix
Weight, price, manufacturing
date, date of expiry should be
mentioned on the packing case

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 Ethics Defined
•System of moral principles
• Good or bad
• Right or wrong

•Fundamentally rooted in what people

•believe to be right or wrong.

•Beliefs stem from the “systematising, defending

and recommending concept of... Behaviour”
 Ethics are the moral standards against
which behavior is judged

Key areas of debate regarding ethics and

advertising are:
Truth in advertising
Advertising to children
Advertising controversial products

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 Ethics in Strategy Formulation

•Advertisement persuade the people to

buy their products.

• It sometime entertain or educate the

people.

•Some advertisers use slippery tactics.

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Advertising to Children—Issues
Advertising promotes superficiality and
materialism in children.
Children are inexperienced and easy
prey.
Persuasion to children creates child-
parent conflicts.
What does the literature say about kid’s
abilities to process persuasive
information?
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 Advertising Controversial Products

Critics question the “targeting” of minorities.

Tobacco, alcohol, gambling and lotteries
are product categories of greatest concern.
How does the concept of “primary demand”
provide insights here?
What does the literature say about
advertising’s impact on these product
categories?

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What do you think…?

Advertising = Market Power

Advertising = Market Information
Or both?
Advertising affects Advertising informs
consumer preferences consumers about
and tastes, changes product attributes but
product attributes, and does not change the
differentiates the way they value those
product from attributes.
competitive offerings.

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 Big Questions
 What do you think is the biggest benefit of
advertising?
 What do you think is the biggest problem
with advertising?
 What do you think is the best example of
bad advertising?
 What do you think is the best example of
good advertising?