Advertisment Defenition

Advertising is a means of

communication with the users of a

product or service. Advertisements
are messages paid for by those who
send them and are intended to
inform or influence people who
receive them..

Scope of Advertising
Increase in ad functions
Ad for attracting and supporting middlemen
Increase in commercial ads
Growth in media
Increase in industrialization
Increase in level of competition
Increase in readership and viewership

Objectives
1. Describe the nature and types of
2.
3.
4.
5.

advertising.
Explain the major steps in developing an
advertising campaign.
Identify who is responsible for developing
advertising campaigns.
Recognize the tools used in public relations.
Understand how public relations is used and
evaluated.

OBJECTIVESOFADVERTISING

InformativeadvertisingPromotionthatseekstodevelop

initialdemandforagood,service,organization,person,
place,idea,orcause.

PersuasiveadvertisingPromotionthatattemptstoincrease

demandforanexistinggood,service,organization,person,
place,idea,orcause.

ReminderadvertisingAdvertisingthatreinforcesprevious

promotionalactivitybykeepingthenameofagood,service,
organization,person,place,idea,orcausebeforethepublic.

Advertiserscoordinateadvertisingobjectiveswiththe

productsstageintheproductlifecycle.

Functions of advertising
Primary functions
Secondary functions
Social functions

Primary functions

Creates demand
Announces for new product or service
Promotes new uses of the product
Informs about changes in product, price placement
Helps in the usefulness of the product and method
of using it.
Announces special offers and schemes
Reminds users
Create brand preference
Helps to neutrilise competitors advertising

Secondary functions
Helps to boost the morale of salesmen and

employees
Supports salesmen
Reaches customers left by salesmen
Helps to procure better employees
Announces location of dealers and stockists
and supports them

Social functions

Helps to improve standard of living

Crete awareness among rural places
Creates awareness about dangerous diseases
Helps to circulate important government
notifications
Other social functions

PrinciplesofAdvertising
EstablishinganObjective
SelltotheObjective
DesigningtheAd
EvaluatetheAd

Establishing the
Objective
Main selling idea should be aimed at the

objective.
Support the main selling idea with all
elements of the ad
Headlines
Visuals
Copy

Sell to the Objective

Sell the merits of the Product or Service

Designing the Ad
DesignforEasyReading
Solveaproblem
Calltoaction
Donttrytocrameverythingin
Dontoverfancifyyourdesign
Avoid:

Darkbackgrounds
Smallheadlines
Difficulttoreadfonts
Unrelatedimages

Designing the Ad
Illustrate your product in use
Show what the product can do for the reader
Avoid static graphics showing whole lines of
products
Avoid Humor and Shock value
Youre probably not as funny as you think you
are
Humor or shock almost never works toward
your objective

Evaluate the Ad
Repeat a Successful Ad; Drop an Unsuccessful

One
Dont Blame Ad Placement for Poor

Performance

Social,Economic
andLegalImplicationsofadvertisements
Its about applying marketing and avertising

principles to promote health and social issues

and bringing about positive behaviour change
Its nonprofit for the organization
Ex

like the druge free partnership for

america and the center for disease control
have been engaging in for years

In recent times, the word 'Advertising' has

become a fiercely mooted topic. Advertising

has positive as well as negative, social and
economic impacts on our society. Considering
advertising as a public welfare is a positive
social impact whereas exposing women as a
sex tool comes at the negative side. As far as
economic factors are concerned, funding for
the media and stimulating an active and
competitive economy, are the major
examples.

Assorted techniques are enforced for

persuading consumers that they want the

product which is being advertised. These
techniques usually give attention to the
benefits that would be brought to the
consumers rather than focusing on the
actual products. For instance, an
automobile advertisement adverting the
mechanical attributes of a vehicle, most
likely concentrates the exhilaration,
reputation and social progression it may
bring to the buyer. This swarming
advancement is habitually sexual, or
involving the opposite gender to attract

There are various blames that advertising is

causing a negative social impact on the lives.

The chief unfavorable judgment for
advertising is that it hales the public to buy
things that they are not their real want. It is
arrogated that advertising plays with
emotions and encourages people to think that
buying and depleting are the activities of life.

According to advertisers, they state that

people are capable enough to set their

mind and no one can force them to buy
anything which they dislike or which they
think is not a necessity. Advertisers also
think that there are positive impacts of
advertising on our society and culture. For
example, it can be used to generate
awareness among the public that which
product is OK or to which they should say
NO. In other words, advertising also acts as
an educator in the sense that it educates
people what is good and what is bad for
them and puts a ceiling on the harmful
products like smoking and drinking etc.

There are not only social benefits of

advertising, but it also has some economic

advantages. Without advertising, the media,
including newspapers, television and radio
would never be much strong. Advertising
provides revenue for commercial media which
would otherwise need to be funded by the
actual consumer of these mediums. So, we
can see a major economic infrastructure
based around advertising, in which the big
companies fund and subsidize the commercial
media by the way of advertisements.

The major economic negative aspect of

advertising is that it boosts the price of

goods and services. The source of this
contention is that, when organizations
subsidize the mass media with advertising,
we, the purchaser, subsidize advertising by
compensating a grossly increased price for
heavily advertised goods and services. An
easy example of this is that a bottle of
Pepsi or Coca -cola generally costs two to
three rupees for production while the
market price of the product would be ten
rupees. The fact behind this is that the
remaining proportion goes in heavy
advertising in television and print media.

So, the impact of advertising on our society is

in a jumble form, depending on the functions

and implementations of numerous campaigns.
Our society and the marketing of products
depend very badly upon advertising. The
companies have become much dependent of
advertising that even its negative impacts can
never outweigh the many positive social and
economic effects

Social implication
Targeting children in advertising
Since children are innocent and easy to

influence
Advertisment take advantage of this fact to
influence their thinking towards specific
products
Promotion of materialism through
advertisment

The Economic Impact of Advertising

Advertising accounts for 2% of the USs GDP
The level of advertising investment in a country
is directly proportional to its standard of living.*
Advertising sets up a chain

reaction of economic events

The effect is like a break

shot in billiards: hard to

predict, affecting many.

2-24

Economic implications
Use the celebrities in advertisement
Increase price of the product

The Effect on the Value of Products

Advertising gives brands added value
Advertising creates associations that

help consumers satisfy needs & wants

FTC/Supreme Court: Advertising
increases competition & helps
lower prices
Advertising can stimulate demand
Advertising doesnt restrict competition
2-26

The Effect on Prices

Important points on advertising costs & pricing
Advertising is a small part of a products cost.
Advertising enables mass-production, which lowers
the cost per unit of products.
Regulated industries see no price increase
associated with advertising. When deregulated,
advertising often causes lower prices.
In retail, advertising contributes to both higher &
lower prices.
2-27

The Effect on
Consumers & Businesses
Primary Demand

for a product category

Secondary Demand
for a specific brand

2-28

Legal implication
Use of comparative advertisment

U.S. Regulatory Advertising Issues

Freedom of Commercial Speech
Commercial speech is protected.
The Tobacco Industry
Advertising to Children
Advertising should not intentionally deceive
children.
Consumer Privacy
Increased interactive advertising has made this a
growing consumer concern.
2-30

SettingObjectivesofadvertising

AdvertisementAgenciesand
Selection&Remunerations

structure & organization

what agencies do.
and how theyre organized
to do it.

primary services:
complete a marketing analysis
develop an advertising plan
prepare a creative strategy
develop and implement a media plan
handle billing and payments
integrate other marketing
communications

4 functions of full-service agencies

account management
creative
media planning and placement
research

account management
Connenct the agency and client
responsible for understanding...
the clients business
the clients marketing needs
strategy development

representing client point of view

within the agency

creative
department

responsibility

the
the creative
creative department
department is
is responsible
responsible
for
for creating
creating and
and producing
producing the
the print
print and
and
broadcast
broadcast advertising
advertising

strategy is key

good
good creative
creative work
work is
is always
always guided
guided by
by aa
creative
creative strategy
strategy that
that sets
sets forth
forth goals
goals to
to
be
be accomplished
accomplished and
and key
key message
message
points
points to
to be
be relayed
relayed

creative department
executive & group creative

Strategy
Review
Board
Executive
Creative
Director(ECD)
Creative
Director(CD)
Associate
Creative
Director(ACD)
Creative
Group:
CopySpvr.&
Copywriters

ArtSupervisor
&ArtDirectors

Broadcast
Production
Traffic

Print
Production

directors
creative director
associate creative director
copywriters
art directors
broadcast producers
print production managers
traffic coordinators

media department
The media department has two main

functions - planning and buying.

The planning group handles more

strategic marketing and media issues.
The buying group handles media
negotiations and implementation.

media department
Media
Director
Associate
Media
Director
Media
Supervisor
Media
Planner

Media
Buyer

Analysts

media director
associate media directors
media supervisors
media planners
media buyers
media analysts

Media
Plan

research department
Explain market environment
gather and analyze research data.
primary and secondary techniques

determine consumer needs/perceptions

understand problems

advise how ads can meet

goals
help find solutions

strategic

Research
Report

research department
Research
Director
Project
Managers

research director
research project managers
research assistants
outside research
specialists

Research
Assistants
Outside
Research
Suppliers

Research
Report

agency functions
strategy/creative review board
office management
human resources
legal services
accounting
recruitment

3 ways agencies make money

commissions
usually 15% of gross costs
fees
usually based on negotiated hourly rate
incentives
still relatively new and problematic
usually based on performance goals

agency commissions
media commission system
15% media commission
adjustable commission rates
negotiate to match client budget
sliding scale
markups-production & service
add a percentage markup to costs
17.65% of net = 15% of gross

4 types of fee systems

fixed fee

(retainer)
cost-plus fee
performance fee
hybrid fee &
commission

Advertising Campaign

Definition
An advertising campaign is a series of

advertisement
messages that share a single idea and
theme which make up an
integrated marketing communication
(IMC).
Advertising campaigns appear in different
media across a specific time frame.
An Advertising Campaign is a series of

advertisements [consumer
communications] and the activities that
help produce them, which are designed to

Campaigns are governed by the

following parameters
Identifying the problem
The budget
Pretesting
Target audience
Media selection
The language
The visual and the copy
Timing and duration
Effect on sales

Three phases of campaign

creation
1.Strategy development phase
decide the objectives and contents of
communication.
analyzing the research data and positioning
the brand
right strategy and creative campaign is a
winning combination.
if you want to catch fish, you have to
think like fish. If you want to catch a
consumer, you have to think like a
consumer.

2.Advertising brief to
the creative
Client has to brief the agency about how to

create the advertisement.

Success or failure of the advertisement is
largely dictated by the brief.

3.The creative phase

The strategist has to leap from a single uni-

directional idea into an advertising idea that

will add value to the product/brand.

ZooZoos were conceptualized by the Ad agency O&M for the latest

Vodafone Ad campaigns. ZooZoo characters though they look like
animated characters are actually played by real people. The real
people are dressed in white outfits. The sets have been constructed
by shadows created by spray painting.

TOP 10 ADVERTISING
CAMPAIGNS
1. Volkswagen, "Think Small", Doyle Dane Bernbach, 1959
2. Coca-Cola, "The pause that refreshes", D'Arcy Co., 1929
3. Marlboro, The Marlboro Man, Leo Burnett Co., 1955
4. Nike, "Just do it", Wieden & Kennedy, 1988
5. McDonald's, "You deserve a break today", Needham,
Harper & Steers, 1971
6. DeBeers, "A diamond is forever", N.W. Ayer & Son, 1948
7. Absolut Vodka, The Absolut Bottle, TBWA, 1981
8. Miller Lite beer, "Tastes great, less filling", McCannErickson Worldwide, 1974
9. Clairol, Does she...or doesn't she?", Foote, Cone &
Belding, 1957
10. Avis, "We try harder", Doyle Dane Bernbach, 1963