UNIT 1

Advertising and Strategic Advertising Decisions

Advertising – Origin and Development – Definition
and Classification – Planning Framework – Organizing
Framework – The Advertiser and Advertising Agency
Interface.
Setting Advertising Objectives – The Budget Decision
– Preparing the Product and Media brief.
MARKETING COMMUNICATION
 Marketing is the process of discovering and
translating consumer needs and wants into product
and service specifications, creating demand for these
products and services and then in turn expanding this
demand.
 Companies must also communicate with present
and potential stake holders, and the general public.
Thus, every company is inevitably cast into the role of
communicator and promoter.
 For most companies, the question is what to
communicate to whom, and how often, especially
with the consumer.
MARKETING MIX
MARKETING MIX

PRODUCT
Product Variety PLACE
Target
Quality Channels
Market
Design Coverage
Features Assortments
Brand Name Locations
Packaging Inventory
Sizes Transport
Services PRICE PROMOTION
Warranties List price Sales promotion
Returns Discounts Advertising
Allowances Personal Selling
Payment period Public relation/
Credit terms Publicity
Sales Promotion
Sales promotion is the dissemination or propagation
of information in a very broad sense through a wide
variety of activities, including free samples, gifts,
coupons, point-of-purchase sings and displays,
reduction sales, contests, shows and exhibitions,
demonstrations etc.
In other words, it includes those marketing activities
other than personal selling and advertising.
PERSONAL SELLING
Personal selling refers to the presentation of goods
and services before the customers and convincing or
persuading them to buy the products or services.
Personal selling is a promotional method in which one
party (e.g., salesperson) uses skills and techniques for
building personal relationships with another party
(e.g., those involved in a purchase decision) that
results in both parties obtaining value.
PUBLICITY
Publicity is the dissemination of information by
personal or non personal means and is not directly
paid by the organisation and for which the
organisation is not clearly identified as the source.
Publicity (a tool used in public relations) is non
personal communication, that is typically in the form
of a news story, that is transmitted through the mass
media. The purpose of publicity is to draw favorable
attention to a company and/or its products without
having to pay the media for it.
ADVERTISING
 American Marketing association has defined
advertising as “any paid form of non-personal
presentation and promotion of ideas, goods and
services by an identified sponsor”.
 According to the New Encyclopedia Britanica,
“advertising is a form of communication intended to
promote the sale of the product or service to
influence public opinion, to gain political support or to
advance a particular cause”.
ADVERTISING
 Advertising is a paid form of communication,
although some forms of adveritsing, such as public
service announcements (PSAs).
 Second, not only is the message paid for, but also
the sponsor is identified.
 Third, most advertising tries to persuade or
influence the consumer to do something. Although in
some cases the point of the message is simply to
make consumers aware of the product or company.
ADVERTISING
 Fourth and fifth, the message is conveyed through
many different kinds of mass media reaching a large
audience of potential consumers.
 Finally, because advertising is a form of mass
communication, it is also non-personal.
Salient Features / Phrases of Advertising

# Any form
# Paid form
# Non-Personal
# Goods, Services, Ideas
# Identified Sponsor
# Information
# Persuasion
# Target Audience
CHARACTERISTICS OF ADVERTISING
1. Advertising is one of the methods of promotion
mix.
2. It is a paid mass communication, not aiming at a
specific individual.
3. It is a form of publicity, i.e., dissemination of
information regarding a product, service or idea.
4. It is salesmanship in writing or printed
salesmanship.
5. It is a mass non-personal communication. That is,
communication is only through written, spoken or
visual means, and not through persons.
 Cont……
6. It is a sponsored publicity or communication i.e.,
the publicity has been deliberately sponsored,
initiated or undertaken by a sponsor. It is paid for
by the sponsor.
7. The sponsor of advertisement (i.e., one
responsible for it) is usually identified in the
advertisement itself.
8. It is undertaken to influence the buying behaviour
of the customers.
9. It guides the buyers towards a more satisfactory
expenditure of their hard earned money.
ORGIN AND GROWTH OF ADVERTISING
Advertising by ‘word’ of mouth is probably the
earliest form of advertising because, oral skills were
developed well before reading and writing did.
 The origin of advertising as a public
announcement is traceable to the town crier and the
village drummer. These used their lungs to shout out
their own or others’ messages.
 The messages could relate to government
announcement or even to sales of goods on ‘market
days’. Then there were signs on shops or drinking
houses to indicate the name of the shop owner or of
the shop
 Cont……
1. Ancient Times – up to 5th Century
2. 5th to 8th Centuries
3. 9th to 15th Centuries
4. 16th and 17th Centuries
5. 18th and 19th Centuries
6. The 20th Century
1. Ancient Times – up to 5th Century
 The artisans, bakers, shoe-makers, green-grocers
and other merchants were eager to exchange their
goods for money and advertising came to their timely
help.
 Selling goods in ancient times involved personal
selling abilities.
 Merchants needed to identify their places with a
symbol that told their trade, and so the shop signs
were born.
 Cont……
 The merchants impressed upon the minds of
consumers of the qualities of their wares which was
done by the ‘hired criers’ or the ‘barkers’.
 Other form of communication was the ‘wall signs’.
On the walls of the tall buildings near important
gathering places were letter sign advertisements,
entertainments, helped the location of taverns and
goods for sale.
2. 5th to 8 th Centuries
 The period from 475 AD to 800 AD is referred to as
‘Dark Age’.
 This is the period that starts with the downfall of
Roman Empire and ends with the coronation of
Charlemagne.
 It was furthered in the form of ‘Voice’. Public
barkers equipped with the horns and bells were
capable of attracting the attention of consumers.
 Advertising was done either by human voice and
or by hand executed signs and play cards.
3. 9th to 15 th Centuries
 The latter part of the Middle Age was a great and
bold leap forward in human civilization and culture.
 These men developed a new gimmick of free
samples.
 Printing originated in China and the oldest book
printed was dated 868 AD.
 To increase in education was essential to the
growth of advertising.
 New methods of advertising were now available
like printed posters, hand-bills, signs, pamphlets,
books and newspapers.
4. 16th and 17th Centuries
 During the 16th century, newspapers were largest
among the prints and these newspapers were in the
form of news-letters.
 The first news-letter was started in 1622 in
England. Latter half of the 16th century witnessed
newspapers in the form of news-books and were
common by the middle of 17th century.
 The outstanding features of 17th century were that
there were special advertising periodicals.
 By the end of 17th century, newspapers were well
established in England undertaking advertising on a
regular basis.
5. 18th and 19th Centuries
 The age old principle of ‘Caveat Emptor’ ruled the
transactions and hence the advertising that was
resorted to was untruthful.
 That is why, the people did not believe totally in
the advertisement message given.
 Buyers were to be cautious and diligent in buying
the goods so advertised.
 The 19th century was marked by a new trend of
brand advertising. Magazines both weeklies and
monthlies started catching the imagination of the
people by popularising the brands.
6. The 20th Century
 The current century is marked with the advent of
two fascinating media of communication namely,
radio and television.
 Americans have the credit of having these first.
Radio ruled the scene from 1922 to 1947 and 1948
onwards, television took over.
 Television could beat radio advertising with the
visual effects.
 The outdoor advertising has its own developments
such as travelling displays, sky-writing, painted
displays.
CLASSIFICATION AND TYPES OF
ADVERTISING
1. Product – Related Advertising
A. Pioneering Advertising
B. Competitive Advertising
C. Retentive Advertising
2. Public Service Advertising
3. Functional Classification
A. Advertising Based on Demand Influence
Level.
i. Primary Demand (Stimulation)
ii. Selective Demand (Stimulation)
B. Institutional Advertising
C. Product Advertising
 i. Informative Product Advertising
ii. Persuasive Product Advertising
iii. Reminder-Oriented Product Advertising
4. Advertising based on Product Life Cycle
A. Consumer Advertising
B. Industrial Advertising
5. Trade Advertising
A. Retail Advertising
B. Wholesale Advertising
6. Advertising Based on Area of operation
A. National advertising
B. Local advertising
C. Regional advertising
7. Advertising According to Medium Utilized
i. Pioneering Advertising
This type of advertising is used in the introductory
stages in the life cycle of a product. It is concerned
with developing a “primary” demand. It conveys
information about, and selling a product category
rather than a specific brand.
ii. Competitive Advertising:
It is useful when the product has reached the market-
growth and especially the market-maturity stage. It
stimulates “selective” demand. It seeks to sell a
specific brand rather than a general product category.
iii. Retentive Advertising:
This may be useful when the product has achieved a
favourable status in the market – that is, maturity or
declining stage. Generally in such times, the
advertiser wants to keep his product’s name before
the public. A much softer selling approach is used, or
only the name may be mentioned in “reminder” type
advertising.
2. Public Service Advertising
This is directed at the social welfare of a community
or a nation. The effectiveness of product service
advertisements may be measured in terms of the
goodwill they generate in favour of the sponsoring
organization. Advertisements on not mixing drinking
and driving are a good example of public service
advertising.
In this type of advertising, the objective is to put
across a message intended to change attitudes or
behaviour and benefit the public at large.
3. Functional Classification
Advertising may be classified according to the
functions which it is intended to fulfill.
(i) Advertising may be used to stimulate either the
primary demand or the selective demand.
(ii) It may promote either the brand or the firm selling
that brand.
(iii) It may try to cause indirect action or direct action.
i. Primary Demand Stimulation
Primary demand is demand for the product or service
rather than for a particular brand. It is intended to
affect the demand for a type of product, and not the
brand of that product. Some advertise to stimulate
primary demand.
When a product is new, primary demand stimulation
is appropriate. At this time, the marketer must inform
consumers of the existence of the new item and
convince them of the benefits flowing from its use.
ii. Selective Demand Stimulation
This demand is for a particular brand such as
Charminar cigarettes, Surf detergent powder, or Vimal
fabrics. To establish a differential advantage and to
acquire an acceptable sort of market, selective
demand advertising is attempted. It is not to
stimulate the demand for the product or service.
The advertiser attempts to differentiate his brand and
to increase the total amount of consumption of that
product. Competitive advertising stimulates selective
demand.
B. Institutional Advertising
Institutional Advertising may be formative, Persuasive or
reminder oriented in character. Institutional advertising is
used extensively during periods of product shortages in
order to keep the name of the company before the
public. It aims at building for a firm a Positive public
image in the eyes of shareholders, employees, suppliers,
legislators, or the general public. This sells only the name
and prestige of the company. This type of advertising is
used frequently by large companies whose products are
well known. HMT or DCM, for example, does considerable
institutional advertising of its name, emphasizing the
quality and research behind its products.
C. Product Advertising
Most advertising is product advertising, designed to
promote the sale or reputation of a particular product
or service that the organization sells. The marketer
may use such promotion to generate exposure
attention, comprehension, attitude change or action
for an offering. It deals with the non-personal selling
of a particular good or service. It is of three types as
follows:-
A. Informative Product Advertising
B. Persuasive Product Advertising
C. Reminder-Oriented Product Advertising
A. Consumer Advertising
Most of the consumer goods producers engage in
consumer product advertising. Marketers of
pharmaceuticals, cosmetics, scooters, detergents and
soaps, cigarettes and alcoholic beverages are
examples.
Baring a few, all these products are all package goods
that the consumer will often buy during the year.
There is a heavy competition among the advertisers
to establish an advantage for their particular brand.
B. Industrial Advertising
Industrial executives have little confidence in
advertising. They rely on this form of promotion
merely out of fear that their competitors may benefit
if they stop their advertising efforts. The task of the
industrial advertiser is complicated by the multiple
buying influence characteristics like, the derived
demand, etc. The objectives vary according to the
firm and the situation.,
A. Retail Advertising
This may be defined as “covering all advertising by the
stores that sell goods directly to the consuming
public. It includes, also advertising by establishments
that sell services to the public, such as beauty shops,
petrol pumps and banks.”
B. Wholesale Advertising
Wholesalers are, generally, not advertising minded,
either for themselves or for their suppliers. They
would benefit from adopting some of the image-
making techniques used by retailers – the need for
developing an overall promotional strategy. They also
need to make a greater use of supplier promotion
materials and programmes in a way advantageous to
them.
A. National advertising
It is practiced by many firms in our country. It
encourages the consumer to buy their product
wherever they are sold. Most national advertisements
concentrate on the overall image and attraction of the
product. The famous national advertisers are:
Hindustan Levers
DCM
ITC
Jay Engineering
TISCO
B. Regional advertising
It is geographical alternative for organizations.
Regional advertising is placing ads of any media
within a specific geographic location to influence
decision in one locality. A region may be defined in
different geographic sizes or terms such as city, state,
country, or continent.
C. Local advertising
It is generally done by retailers rather than
manufacturers. These advertisements save the
customer time and money by passing along specific
information about products, prices, location, and so
on. Retailer advertisements usually provide specific
goods sales during weekends in various sectors.
7. Advertising According to Medium
The most common classification of advertising is by
the medium used. For example: TV, radio, magazine,
outdoor, business periodical, newspaper and direct
mail advertising.
ADVERTISING PLANNING FRAMEWORK

 The advertising management is mainly concerned

with planning and decision making. The advertising
manager will be involved in the development,
implementation, and overall management of an
advertising plan.
 The development of an advertising plan essentially
requires the generation and specification of
alternatives.
Planning Framework
Advertising planning and decision making depends on
internal and external factors. Internal factors are
situation analysis, the marketing program, and the
advertising plan. The three legs of advertising
planning concern are the
 Objective setting and target market identification,
 Message strategy and tactics, and
 Media strategy and tactics.
Internal factors
1. Situation Analysis:
It involves an analysis of all important factors
operating in a particular situation. This means that
new research studies will be undertaken on company
history and experience.
2. Consumer and Market Analysis:
Situation analysis begins by looking at the aggregate
market for the product, service, or cause being
advertised, the size of the market, its growth rate,
seasonality, geographical distribution.
 Cont..
# Nature of demand
# Extent of demand
# Name of competition
# Environmental climate
# Stage of product life cycle
# Financial resources of the firm
 Cont..
3. Competitive Analysis:
Advertising planning and decision making are affected
by competition and the competitive situation facing
the advertiser. Competition is such a pervasive factor
that it will occur as a consideration in all phases of the
advertising planning and decision making process.
External Factors
The external factors in the planning framework are
environmental, social and legal considerations. To a
considerable extent, these exist as constraints on the
development of an advertising plan and decision
making.
In developing specific advertisement, there are
certain legal constraints that must be considered.
Deceptive advertising is forbidden by law.
Advertiser and the Advertising Agency
interface
From a situation analysis point of view, the advertiser
needs to know what kinds of facilitating agencies exist
and the nature of the services they provide. From a
planning point of view much local advertising is done
without the services of an advertising agency or a
research supplier. On the other hand, a national
advertiser may have under contract many different
agencies and research suppliers, each serving one or
more brands in a product line. Many advertising decisions
involve choosing facilitating agency alternatives.
What advertising agency should be chosen?
What media should be used?
What copy test supplier will be best for our particular situation?
Advertising Industry
The advertising industry consists of three principal
groups:
(a) Sponsors;
(b) Media ; and
(c) Advertising agencies or advertising
departments.
STRUCTURE OF THE ADVERTISING
INDUSTRY
What is an Advertising Agency?
An Advertising agency is an independent firm formed
for the purpose of rendering specialized services in
advertising, such as preparing copy and layouts for
advertisement and getting the advertisement out
through suitable media.
It also undertakes performing services such as
conducting market research, preparing sales-
promotional materials, counselling on public
relations, preparing and distributing public relations
materials and message.
Advertising Agency
According to American Advertising Agencies
Association (A. A. A. A.) an advertising agency is:
a. An independent business organisation,
b. Composed of creative and business people,
c. Who develop, prepare and place advertising
on advertising media,
d. For sellers seeking to find customers for their
goods and services.
History of Advertising Agencies
1. Period of Early Growth (1841-1865)
2. The Wholesaling Period (1865-1880)
3. Semi-Service Period (1880-1917)
4. Service Period (1917-1988)
Advertising Agencies in India
# Rajiv Menon Productions (Horlicks, Fanta)
# J.S. Films (Preethi Chef Pro Mixie, Fair&Lovely,
Milo)
# O&M (TVSE Printers, Chik Shampoo, Meera,
Sify, Nippo)
# R.K. Swamy BBDO Advertising (Tata Indicom)
# Rubikon (Prince Jewellery)
# TWC (Jeyachandran, Saravana Gold, Pothys, G
& H Gold Winner Oil)
# Marlia Ads (Aachi Masala Brand, Amman TRY)
# Maitri Ads (Reliance Communication)
Selecting an Agency
While selecting an advertising agency, the importance
of compatibility should be borne in mind. An agency
takes a long time to grasp the problems and
accumulate the facts that are necessary for the
smooth functioning of a client.
Though this investment period is long, it pays rich
dividends. Therefore, an agency should not be
frequently changed. Here are some points that can
help the advertiser to:
(i) Choose an agency ;
 The agency should be able to think independently
on various problems.
 The agency should have experience in selling
goods and ideas. It should be able to bring in more
results than anticipated.
 The company should be financially sound and
should be able to cover both local and national
advertising campaigns.
 The size of the agency should not be seriously
taken into account. A big agency is not necessarily a
better than a small agency.
 Cont…
 The agency should not be one that hesitates to
correct the advertiser if it feels that he is wrong.
The agency should be able to use both research and
brains to solve problems.
Advantage of Using Agencies
1. The marketer gains a number of benefits by
employing agencies. An agency generally has an
invaluable experience in dealing with various
advertising and marketing issues.
2. An agency may employ specialists in the various
areas of preparation and implementation of
advertising plans and strategies.
3. A related point is that the company can benefit
from the agency’s experience with many other
products and clients.
 Cont..
4. They bring objective and unbiased viewpoints to
the solution of advertising and other marketing
problems.
5. The discounts that the media offer to agencies are
also available to advertisers. This is a strong stimulus
to them to use an agency, for the media cost is not
much affected thereby.
6. Another advantage is that agency feels a greater
pressure than the company’s own department to
produce effective results.
Setting Advertising Objectives
Without objectives, it is nearly impossible to guide
and control decision making. The challenge today is to
bring effective management to the advertising
process in such a way as to provide simulation as well
as direction to the creative effort. The solution is the
meaningful objective.
Advertising objectives, like organizational objectives,
should be operational. They should be effective
communication tools, providing a line between
strategic and tactical decisions. A convenient and
enticing advertising objective is immediate sales or
market share.
ADVERTISING BUDGET
 The advertising budget or appropriation is the total
amount of money which a marketer allocates for
advertising for a specific time period.
 The major part of the advertising budget is
provided for buying space and time in media.
 The expenses incurred for developing and
preparing advertisements are included in the
advertisement budget. The salaries of advertising
staff, commission to agents, research expenses etc.
are administrative expenses.
Advertising Budget Allocation by “Rule of
Thumb”
1. Profit Maximization
2. Advertising as a Percentage of Sales
3. The Objective and Task Approach
4. Competitive Parity Approach
5. All the Organization can afford approach
6. By Using Judgment
1. Profit Maximization:
The best method for determining advertising
expenditure is to identify a relationship between the
amount spent on advertising and profits, and to
spend that amount of money which maximizes the
net profits. Since the effects of advertising may be
reflected in future sales too, the advertiser maximizes
the present value of all future profits at an
appropriate rate.
2. Advertising as a Percentage of Sales:
Advertising Allocation = % ´ Rs. Sales
A pre-determined percentage of the firm’s past sales
revenue (or projected sales revenue) is allocated to
advertising.
3. The Objective and Task Approach
 The most desirable method is the objective and
task approach. It is goal oriented. The firm agrees on a
set of marketing objectives after intensive market
research. The costs of advertising are then calculated.
 The organization must define the goals the
promotional mix is to accomplish. For example, a 5
per cent increase in market share, or a 10 per cent
rise in gross sales, or a 3 per cent addition to net
profit, or more likely, a combination of several items.
4. Competitive Parity Approach
This approach ties its budget to the rupees or
percentage of sales expended by its competitions.
This approach tries to match the competitor’s outlays
and meet competition either on absolute or relative
basis. It involves an estimate of industry advertising
for the period and the allocation of an amount that
equal to its market share in the industry.
5. All the Organization can afford
approach
It involves the income statement and the balance
sheet. It asks how much is available to the firm. The
decisions based wholly on them ignore the
requirements of the advertising.
6. By Using Judgment
This method relays upon the judgment of experienced
managers. Over the years, some of these individuals
develop a feel for the market that permits them to
arrive at appropriate decisions, given the
organization’s objectives and limitations.
It is a vital input for the determination of the budget.
When the management uses other methods, it should
temper them with the judgmental evaluations made
by experienced managers. Judgment is subject to
error and bias.
Media Brief
Each medium has its merits and its handicaps. The
suitability and profitability of any one type varies from
manufacturer to manufacturer and may vary for a
single manufacturer too.
Changes are the only rule. The buyers constitute his
market; they are to receive his advertising coverage
consists of the advertiser’s reaching the maximum
number of these buyers include both his current and
prospective customers.
Difficulties in Selection of Media Types
1. Audience Measurement
2. Difficulty of Cost Comparisons
3. Reliance on a Particular type of Medium
a. Availability
b. Selectivity
c. Competition
Selection of Individual Media
1. The Advertising Schedule
2. Duplication
3. Frequency
4. Size of advertisement
5. Colour
6. Re-run on Advertisement
7. Timing
8. Positioning
Case Study
New Trend in Advertising in India
Booming markets and high consumer willingness to spend have
made companies spend lavishly on advertising and brand-
building. Therefore, the Indian advertising industry is upbeat.
Since many corporates are looking at accelerating their
businesses at a much higher pace through both organic and
inorganic means, the ad spends are expected to move up to
address their aggressive pace and pitch. Considering the
tremendous bullishness in the market, companies want to
spend money on advertising for various reasons. While some of
them want to connect with their target audience due to their
higher spending abilities, there is a new breed of companies
which want to be visible as they have an IPO in the offing. And
these companies are typically non-traditional advertisers. They
could be even from sectors such as infrastructure which want to
advertise because they have plans for IPOs.
New increase in corporate advertising campaigns is
also expected, which would contribute substantially
to the advertising industry revenues. Aditya Birla
Group and the Tata group have already invested in
lavish campaigns. The coming months would see
more corporate campaigns.
New advertising media beyond TV and print – With
digital and mobile telephony registering huge growth
figures, advertisers would be allocating huge spends
to digital advertising this year. It does not mean that
digital will eat into the shares of TV and print. Digital
spends is still far away from being on par with the
print and TV spends for at least another 10 years.
The other segment which is expected to draw
considerable attention this year is below-the-line
communication, such as out-of-home advertising, public
relations and sponsored activities. BTL activities are
expected to gain prominence but will not replace the 30-
second TVC (TV commercials) in India as yet. The
dominance of print and TV will continue for the next few
years. However, over the next five years, there will be
greater interdependence of media, not disintegration of
media. That will be the new phenomenon.
Most channels are coming up with methodical
approaches to capitalize on revenue from in-program
product placements. The contribution of product
placement to the overall revenue of the industry is likely
to go up by six to nine percent this year.
Non-traditional advertisers-While the FMCG
companies have traditionally been the highest
spenders, the industry expects to see other categories
such as retail, banks, financial products, automobiles
and travel and leisure increasing their advertising
spends substantially this year. While automobiles,
white and brown goods, financial services sector,
technology and IT and mobile telephony will clearly
be the largest spenders this year, FMCG spends may
not go up further as FMCG brands will be investing
heavily in distribution and market expansion through
outlets in smaller towns where there is a significant
consumer boom.
But it is the retail sector which is going to take the
cake in terms of ad spends this year. Brand surround
will become more important, with customer events
offering new ways for brands to connect with
consumers. The opening of malls and supermarkets
across big and small cities will offer new ways for old
brands to connect with consumers. Given the
apparent growth in retail, the will be a large focus on
engaging customers within the retail premises. Hence,
there will be a large focus on research into consumer
insights as well as developing programs to capture
consumer interest at the store level.
Questions
1. Do you think the increasing independence and
control, consumers gain through new technologies
like the internet, digital advertising, cell phones will
make advertising and product branding less
important? Explain.
2. As cable-TV channels continue to proliferate and
the TV-viewing audience becomes ever more
fragmented, how would you expect the advertising
industry to be affected?
UNIT - 2
Copy Decisions – Visualizations of Ad Layout –
Elements of Ad Copy and Creation – Principles of
Verbal Versus Visual thinkers, Styles and Stages in
Advertising Copy Creation – Copy (Pre) – Testing
Methods and Measurements.
Advertisement Layout
 The layout of an advertisement consists of its
overall structure or the way in which the various
elements are positioned with regard to one another.
 Layout is the arrangement which assigns positions
to each unit in the advertisement.
 It is a plan, a diagram, a blue-print which differs
from the earlier visualizations in that it is more
specific, more complete, more polished and sound.
 It displays the exact visualisation of what the
decided advertisement should contain.
Advertisement Layout
 A complete and finalised advertisement is the
combination of a number of units such as headline,
sub-headlines, text-matter, slogan, identification
mark, the white space, decorations and the border
including the illustration.
 The layout is a visual expression of the ideas of the
creator of an advertisement.
 The visual composition of an advertisement is the
layout. It is the working drawing or the blue-print for
an advertisement.
Functions of Layout
1. It organizes all the Elements
2. It brings together Copy writer and the Art
director
3. It enables the Advertiser to visualize his
future Advertisement
4. It acts as a guide to the copy specialist
Design and Layout
The word ‘design’ means an arrangement of the parts
in one sense. The other meaning is that it stands for
the plan behind the arrangement providing a desired
structure.
Designing a good layout means arranging the parts of
an advertisement to attain certain goals.
Principles of Good Design and Layout
1. Balance
2. Proportion
3. Contrast and Emphasis
4. Eye Movement
5. Unity or Harmony
Elements of a layout
1. Background 9. Name Plate (logo)
2. Border 10. Price
3. Caption 11. Product
4. Coupon 12. Slogan
5. Decoration 13. Space
6. Heading 14. Sub-heading
7. Illustration 15. Text
8. Mascot 16. Trade Mark
CREATIVITY IN ADVERTISING
The success of advertising depends to a great
extent on the quality of the message or copy of
advertisement rather than the money spent on
advertising.
Most of the advertisers believe that the message in
advertisement copy must attract the attention and
interest of the consumer if buying is to result.
The conventional theory of advertising includes the
concept of AIDA (Attention, Interest, Desire and
Action).
CREATIVITY IN ADVERTISING
An artiste, writer, poet, novelists, play writer takes
well known ideas, words and phrases and relates
them in a fresh, often brilliant manner while
preparing an advertising copy.
The advertising copy writer writes with a purpose
to achieve client’s objectives to express features or
attributes of particular products and services,
presented in terms of consumer benefits.
Thus advertising messages should present
merchandise in ways that interest people in buying.
Activities Comprising Creative Design task
Process
1. Advertising objectives
2. Information to creative People
3. Target Audience
4. Copy and Layout Design
5. Credibility or Back-up Claim
6. Copy Layout Tests
7. Allocation to Creative Task
8. Creative Strategy and Tactics
QUALITIES OF ADVERTISEMENT COPY
1. Attention value,
2. Suggestive value,
3. Memorising value,
4. Conviction value,
5. Sentimental appeal value,
6. Education value,
7. Instinctive value,
1. Attention Value:
a. Use of Pictures
b. Use of Display Type or Heading
c. Boarder etc
d. Price Quotation
e. Reply Coupons
CLASSIFICATION OF COPY
1. Descriptive Copy 11. Suggestive Copy
2. Scientific Copy 12. Expository Copy
3. Institutional Copy 13. Questioning copy
4. Topical Copy
5. Reason why Copy
6. Human Interest Copy
7. Colloquial copy or Conversational Copy
8. Personality Copy
9. Prestige Copy
10. Educational Copy
6. Human Interest Copy
a. Humorous Copy
b. Fear Copy
c. Story Copy
Measuring Advertising Effectiveness
 All advertising efforts are directed mainly towards
the achievement of business, marketing and
advertising objectives i.e., to increase the sales
turnover and thus to market the maximum profit.
 The advertiser spends lakhs of rupees into this
advertising activity. In the background of all these
efforts, is an attempt to attract the customer towards
the product through advertising.
Measuring Advertising Effectiveness
 It has achieved the desired results i.e. desired
sales profitability or results in terms the change in
customer’ behaviour in favour of the company’s
product which will naturally, affect the future sale of
the product.
 In order to measure the effectiveness of
advertising copy, two types of tests i.e., pretests and
post tests can be undertaken.
Importance of measuring the
Effectiveness of Advertising
1. It acts as a Safety measure
2. Provides feed back for remedial measures
3. Avoids possible failure
4. To justify the Investment in Advertising
5. To know the communication Effect
6. Compare two markets
METHODS OF MEASURING ADVERTISING
EFFECTIVENESS
1. Direct Measures of Advertising Effectiveness
(a) Historical Sales Method
(b) Experimental Control
2. Indirect Measures
(a) Exposure to Advertisement
(b) Attention or Recall of Advertising Message
Content
(c) Brand Awareness
(d) Comprehension
(e) Attitude Change
(f) Action
Copy Testing
Copy testing is a tool involving a procedure where the
effectiveness of an advertisement is measured before
it appears in its final form, during and after its
exposure to the audience to determine whether and
to what extent, it has accomplished its assigned task.
In this way, the copy testing is a method used to
control the effectiveness of future advertising.
Copy Testing
It addresses the following questions
(a) Will a proposed copy theme be effective at
achieving advertising objectives?
(b) Does the set of advertisings that makes up an
advertising campaign create the Desired interest level
and image? And
(c) Will an individual advertisement attract the
attention of the audience?
Types of Tests
1. Pre-test methods
2. Post-test methods
3. Concurrent methods
1. Pre-test methods
Pre-test method refers to testing the potentiality of a
message or copy before printing or broadcasting. It is
useful because the concepts in advertising may
appear to be simple and effective to the advertiser or
advertising to be simple and effective to the
advertiser or advertising agency.
All the elements in the advertising copy requires
careful pre-testing to see that the matter it intends to
be conveyed has been really conveyed, ‘prevention is
better than care’.
1. Pre-test methods
a. Check list method
b. Consumer Jury method
c. Sales Area Test
d. Questionnaire
e. Recall test
f. Reaction test
g. Readability test
h. Eye-movement test
2. Post-test methods
1. Recognition Test
2. Recall or Impact Test
3. Psychological Analysis
3. Concurrent Methods
1. Consumer diaries
2. co-incidental surveys and
3. Electronic devices.
UNIT 3
Media Planning and Selection – Concepts of Reach
Frequency, Continuity and Selectivity – Measures of
Media Cost Efficiency – Media (Readership/Viewer
ship) Research.
The Internet as an Advertising Medium: Tracking
Website Visits, Page Views, Hits and Click Stream
Analysis, Permission Marketing and Privacy, Ethical
Concerns.
MEDIA
• Advertising message goes to the target audience
through media or the communication channels.
• The front line media are – newspapers, TV, direct
mail, radio, magazines, business/trade publications
and outdoor advertising.
Types of Media
TYPES

Indoor Outdoor Directive Display

1.Press 1.Posters 1.Envelope 1.Display

2.Radio 2.Painted Display 2.Board Sides 2.Showrooms
3.Television 3.Travelling/Transit 3.Booklet & 3.Exibilitions
Catalogs & Trade Fairs
4.Film 4.Sky Writing 4.Sales Letter
5.Video 5.Electric Sign 5.Gift Novelties
6.Internet
Media Planning
The two basic tasks of marketing communications are
message creation and message dissemination. Media
Planning supports message dissemination. Media
planning helps you determine which media to use--be
it television programs, newspapers, bus-stop posters,
in-store displays, banner ads on the Web, or a flyer on
Facebook.
It also tells you when and where to use media in order
to reach your desired audience. Simply put, media
planning refers to the process of selecting media time
and space to disseminate advertising messages in
order to accomplish marketing objectives.
Media Objectives
How is a media plan developed? Media planning is a
four-step process which consists of
1) setting media objectives in light of marketing and
advertising objectives,
2) 2) developing a media strategy for implementing
media objectives,
3) 3) designing media tactics for realizing media
strategy, and
4) 4) proposing procedures for evaluating the
effectiveness of the media plan.
MEDIA PLANNING
‘Media Planning’ includes all decisions regarding the
time and place of advertising, in addition to the
selection of the media.
A ‘media plan’ thus outlines how advertising time and
space in various media will be used to achieve the
marketing objectives of the company through
advertising.
MEDIA SELECTION
It refers to the selection of a specific vehicle or a
combination of vehicles, or more broadly the
selection of a specific medium or a combination of
media (‘media mix’). Thus, for the launch of a new
detergent – it may be introduced by cinema
advertising and also on television, with the press and
outdoor media being selected as ‘reminder’ media.
MEDIA STRATEGY
‘Media Strategy’ is a part of the marketing strategy;
hence the ‘media plan’ is part of the overall market
plan, and media selection is the final stage in the
process of the promotion of a product through
advertising.
As we have often remarked, advertising is only one
element in the ‘marketing mix’; the primary objective
is marketing the product, and advertising is just the
means of creating a need for the product.
MEDIA RESEARCH
‘Media Research’ involves the collection of data about
the various advertising media, surveying consumers
on their media preferences, and carrying out primary
and secondary research on effectiveness of each
medium for selling different types of products.
STEPS INVOLVED IN ADVERTISING
PLANNING
1. Target Market Study
a. Demographic data
b. Psychographic data
c. Consumer profile
d. Media profile
2. Deciding the Advertisement Message
3. Matching Media and Target Group
4. Media Selection
5. The Media Schedule
MEDIA REACH & FREQUENCY
Media planners should plan the optimal use of media
budget while deciding about the reach, frequency,
and the number of advertising cycles affordable for
the year.
We have seen in the hierarchy models that the first
stage requires awareness of the product or brand.
Obviously, if more people are aware of the product,
there is more likelihood that many of them will move
to the later stages and finally to purchase action.
Creating awareness among audience requires reach
which is nothing but exposing potential customers to
the advertising message.
MEDIA REACH & FREQUENCY
So far, there is no known way to determine how much
reach is required to achieve desired levels of
awareness, attitude change, or purchase intention.
Also, there is no certainty that an advertisement
placed in a particular media vehicle will actually reach
the target audience.
For example, if an advertiser buys 30 or 60 seconds of
TV time during a certain programme, everyone who is
tuned to this programme may not necessarily see the
commercial for a number of reasons.
MEDIA REACH & FREQUENCY

Frequency = Total exposures / Reach

Example
Survey sample size = 10 households with TV
Survey period = 4 weeks
TV programme = P
Total Exposures = 20
Households that watched TV = 8
programme (reach)

Frequency = Total exposures / Reach

= 20 / 8
= 2.5
IMPORTANT FACTORS IN DETERMINING
FREQUENCY LEVELS
1. Marketing Factors
2. Message Factors
3. Media Factors
1. Marketing Factors
a. Brand history
b. Brand share
c. Brand Loyalty
d. Purchase cycles
e. Usage cycle
f. Competitive share of voice
g. Target group
2. Message Factors
a. Message complexity
b. Message uniqueness
c. New campaigns
d. Creation of image
e. Message variation
3. Media Factors
a. Clutter
b. Attentiveness
c. Number of media used
FACTORS GOVERNING THE CHOICE OF
MEDIA
1. Availability of Funds
2. Nature of Product
3. Geographical Coverage
4. Demographic factors
Audience Research
Identifying the audience for a magazine or newspaper,
or determining who watches television at a given
time, is a specialized form of market research, often
conducted on behalf of media owners.
Press figures are slightly complicated by the fact that
there are two measures: readership (total number of
readers of a publication, no matter where they read
it), and circulation (the number of copies actually
sold, which is mostly independently validated).
ETHICS IN ADVERTISING
 The world of advertising has its own set of stories
about the good and the bad, truth and dishonesty.
This unit focuses on truth and deception in
advertising and on the ethical dilemmas of those who
produce advertising.
ETHICS IN ADVERTISING
 standards or moral values which dictate what is
right and what is wrong, or good or bad, which are
 culturally-based and formed based upon society’s
expectations
 vary by person, and by situation
 everyone develops their own “code of ethics”
WHAT IS DECEPTIVE ADVERTISING
 claiming that a product can
do something that it cannot is
a clear-cut case of deception.
 this is the picture by NIKE
showing the strength of their
food ball but in reality neither
the footballs are so huge nor
so powerful.
 it is ethically wrong to
show something that doesn’t
exist.
INTERNET MARKETING
The fastest growing media outlet for advertising is the
Internet. Compared to spending in other media, the
rate of spending for Internet advertising is
experiencing tremendous growth. However, total
spending for Internet advertising remains relatively
small compared to other media.
Yet, while Internet advertising is still a small player, its
influence continues to expand and each year more
major marketers shift a larger portion of their
promotional budget to this medium.
Internet as an Advertising Medium
There are two primary ways to advertise on the
Internet:
1. Register your Web site with major search engines
so Internet visitors can find you.
2. Place a banner ad for your site on another Web
site that has a lot of traffic (viewers). Banner ads
allow viewers to visit your site when they click on
the banner.
The Internet offers many advertising options with
messages delivered through :
- Website Advertising
- Email Advertising
Website Advertising
Advertising tied to a user’s visit to a website accounts
for the largest spending on Internet advertising.
Email Advertising
Using email to deliver an advertisement affords
marketers the advantage of low distribution cost and
potentially high reach.
In situations where the marketer possesses a highly
targeted list, response rates to email advertisements
may be quite high.
Advantages
• Messages can be timely because editing the content
is often easy and instantaneous.
• Ads on the Internet can be interactive. You can
request viewer feedback, take orders or answer
questions instantly.
• Ad banners can run with as much frequency as you
choose. The Internet is constantly available.
• Internet advertisers can potentially reach a global
audience. Aside from language barriers, anyone at any
location in the world can access information about
your products or services.
PAGE VIEW
 a page view (PV) or page impression is a request to
load a single page of an Internet site.
 On the World Wide Web a page request would
result from a web surfer clicking on a link on another
HTML page pointing to the page in question.
 This should be contrasted with a hit, which refers to
a request for a file from a web server. There may
therefore be many hits per page view since a page can
be made up of multiple files.
PAGE VIEW
 these page views may be counted as part of web
analytics. For the owner of the site this information
can be useful to see if any change in the page (such as
the information or the way it is presented) results in
more visits.
 if there are any advertisements on the page, the
advertisers would also be interested in the number of
page views to determine their expected revenue from
the ads. For this reason it is a term that is used widely
for internet based marketing and advertising.
PAGE HITS
 a hit is a request to a web server for a file (web
page, image, JavaScript, Cascading Style Sheet, etc.).
 when a web page is uploaded from a server the
number of “hits” or “page hits” is equal to the
number of files requested.
 therefore, one page load does not always equal
one hit because often pages are made up of other
images and other files which stack up the number of
hits counted.
PAGE HITS
 because one page load does not equal one hit it is
an inaccurate measure of a website’s popularity or
web traffic.
 hits are useful when evaluating the requirements of
your server, depending on the number and size of
files which need to be transferred for one request.
TRACKING WEBSITE VISITORS
 if you have a website or blog, collecting data on visitors
to your site is extremely important. Whether you have a
business or just develop websites or blogs as a hobby,
data from your visitors can be extremely helpful in
tweaking and fine-tuning your site.
 the more data you can collect from visitors, the more
productive and effective your content, campaigns and
services can be. There are many ways to track website
visitors. Some of the more popular include:
Free website tracking software
Analytic software
Services that track and analyze data for you.
CLICK STREAM ANALYSIS
A Clickstream is the recording of what a computer
user clicks on while Web browsing or using another
software application.
As the user clicks anywhere in the webpage or
application, the action is logged on a client or inside
the Web server, as well as possibly the Web browser,
routers, proxy servers, and ad servers.
Clickstream analysis is useful for web activity analysis,
software testing, market research, and for analyzing
employee productivity.
PERMISSION MARKETING
Permission marketing is a term coined by Seth Godin
used in marketing in general and e-marketing
specifically. The undesirable opposite of permission
marketing is interruption marketing. Marketers
obtain permission before advancing to the next step
in the purchasing process.
For example, they ask permission to send email
newsletters to prospective customers. It is mostly
used by online marketers, notably email marketers
and search marketers, as well as certain direct
marketers who send a catalog in response to a
request.
This form of marketing requires that the prospective
customer has either obtained explicit permission to
send their promotional message (e.g. an email or
catalog request)or implicit permission (e.g. querying a
search engine).
UNIT 4
Ad Effectiveness – Measuring Advertising
Effectiveness – Control of Advertising by Practitioners,
Media and the Market. Advertising in the
International Market Place. Advertising and Principles
of Integrated Marketing Communication and Image
Building.
MEASURING ADVERTISING EFFECTIVENESS
 An unnecessarily large amount is sometimes spent
without any reward. An improper display may tarnish
the image of the product.
 An advertising measurement is adopted both
before and after an advertising campaign is launched.
 After a campaign has been launched, it is essential
to know how far the advertising plans, strategies and
programmes are successful in achieving the objectives
so that they may be modified and redesigned for
better performance if needed.
OBJECTIVES OF MEASURING ADVERTISING
EFFECTIVENESS
Some advertisers do not bother to measure
advertising effectiveness. They expect that the sales
will ultimately increase by reason of advertising.
But, recently, problems and difficulties have
compelled them to measure advertising effectiveness.
The producers also adopt a measuring device because
they incur a sizeable amount of expenditure on
advertising.
The effectiveness of media and message are also
assessed for their use in future.
 Cont…
Only through the measuring of advertising
effectiveness the success of a particular campaign can
be known.
Various measuring techniques have been developed
to measure effectiveness at every stage to isolate the
effects of advertising from those of other promotional
and marketing activities.
The copy, media and other advertising components
have been tested. The factors like readership,
consumer opinion, belief or disbelief, recall, attention,
comprehension, attitude, etc are taken into
consideration for measuring effectiveness.
MEASURING SALES AND
COMMUNICATION PERFORMANCE
Two important aspects of measurements, viz., sales
and communication objectives are measured to judge
the advertising effectiveness.
1. Sales Measurement
2. Measurement of Communication Effects
WHEN TO MEASURE?
Pre-testing is adopted to measure the effectiveness
and accuracy of an advertising plan before its
implementation.
Post-testing is done after the advertising activities
have been completed to examine the effectiveness of
these advertising activities.
A mid-test involves a test before the completion of
advertising functions and after the implementation of
the advertising plan.
METHODS OF MEASUREMENTS
There are two methods of measuring advertising
effectiveness, viz, experimental method and survey
method.
Under experimental method, consumers are given a
controlled exposure to the message and the effects
are measured on the basis of the change in opinion or
attitude.
The results of the exposure in almost all the situations
are recorded. The alternative effects of each exposure
are considered for comparison and with a view to
establishing a relationship between the exposure and
the effects.
 Cont…
Field experiments are conducted to measure the
effects of mass communication.
Sample surveys or interviews or questionnaires are
used to obtain information about people's exposure
to the advertising campaign.
The effectiveness is evaluated on the basis of the
correlations between the exposure and the attitude
or action.
 TESTING

Pre Testing Post Testing

Methods Methods
1. Recognition Test
1. Consumer Jury 2. Call Test
i. Aided Recall
2. Story Board Test ii. Unaided Recall
3. Laboratory Test iii. Combined Recall
4. Tachistoscope Test
3. Attitude Change
5. Psychogalvanometer i. Semantic
6. Eye Camera Differential
7. Pupil Dilation ii. Likert Scale
iii. Ranking Techniques
8. Attitude Test iv. Projective
9. Depth Interviewing Techniques
4. Sales Test
1. Consumer Jury
Consumer reaction has greater validity than the
reactions of non-consumers. Consumers can provide
true information on reaction to an advertising
campaign. Others may underestimate or
overestimate the reactions.
The copy, illustrations, filming techniques, layout, etc.
can be properly evaluated by the consumers
concerned with the product. The consumer jury
technique is adopted for print media, broadcast
media and direct mail.
2. Storyboard Tests
The storyboard prepared for television advertising is
tested before it is used. The storyboard pictures are
transferred to a film strip and the audio section onto a
tape. Vision and sound are synchronized and shown
to an audience for evaluation. This test uncovers the
unnecessary part.
The important part of advertising is accepted for
telecasting. The anteroom trailer method is used to
test the commercial. The anteroom contains
magazines, newspapers, distractions and television
recorded programmes.
3. Laboratory Tests
The respondents are placed in laboratory situations
and are asked to explain the measurements regarding
the effectiveness of the advertisement. Laboratory
conditions offer a controlled environment that
excludes the variables which may invalidate the test.
It is used to measure awareness, attention, desire,
retention, etc.
4. Tachistoscope
It is a projector that can project objects on to a screen
at rates so fast that the viewer cannot detect the
message. It is slowed down to a level where the
message can be perceived easily. The respondents
should understand and appreciate the message,
interesting words, slogans, headlines, etc. They can be
easily segregated from the less interesting message.
5. Psychogalvanometer
It is a mechanical device that measures the amount of
perspiration. It measures a respondent's reactions to
new records and slogans. Electrodes are attached to
his palms to detect changes in electrical resistance
arising from perspiration. If the machine registers
lower electrical resistance it is the existence of
tension.
The main objective is to attract attention to the
product which is reflected by the galvanic skin
response. But it should not be concluded that greater
tension reflects the greater success of the
advertisement.
6. Eye Camera
The eye movements are recorded by a video camera.
It records the activity of the eye by is movements. The
audience is asked to look at a series of pictures on a
screen but unaware that their eye actions are being
photographed. It shows what the respondent sees. If
a commercial is interesting and if he is attracted by it,
his eyes will be fixed on that. The respondents may be
asked some questions about the advertisement.
7. Pupil Dilation
The size of the pupil changes as people see different
things. The change follows different advertising
stimuli. It becomes wider as greater interest is
aroused. The pupil shrinks if the eye is not interested.
A pupilometer records the dilation which is
involuntary and measures the interest shown by the
respondent.
8. Attitude Test
The attitude is closely related to advertising
effectiveness. Respondents are asked to give answers
to the questions on a seven-point bipolar scale about
their feelings about a particular advertisement. The
semantic differential rating scale has been used
extensively to measure advertising effectiveness. If
the attitudes of potential customers are changed
toward the products, the advertisement is considered
effective. The attitude of potential customers or
respondents can be measured accurately on the
attitude scale.
SEMANTIC DIFFERENTIALS
Known ------------------------------------------------------unknown
Informative.-----------------------------------------Un informative
Realistic----------------------------------------------------Unrealistic
Persuasive ------------------------------------------Not persuasive
Instructive -----------------------------------------------Destructive
Effective ---------------------------------------------------Ineffective
Useless----------------------------------------------------------Useful
9. Depth Interviewing
It is concerned with getting the respondent to react
freely to the brand, organisation and product. By
suitable questions, the interviewer brings out his
unconscious reactions to the surface. The reactions
are noted to bring out the facts. Depth interviewing
involves non-structured questions. The flexibility and
intelligence of the interviewer identify the significant
points made in the interview and achieve meaningful
and valid results.
POST-TESTING METHODS
It is applied after the advertisement has ended to find
out how far advertising has been successful. The
objective of advertising is to arouse consumer
awareness, his interest, desire and develop his
attitude to the product. These are recognition tests,
recall tests, attitude change, sales and recognition
tests.
1. Recognition test
It is developed by Danial Starch. It measures the
readership of printed advertisements. It is also called
the readership test. It is based on the assumption that
there is a high correlation between the reading of the
advertisement and the purchase of the product. A
particular advertisement may be examined by sending
the whole newspaper or magazine wherein it is
published. Afterwards readers are approached to find
out whether they have read the advertisements or
not.
2. Recall Tests
A recall test depends on the memory of the
respondents. This test is applied to measure the
impression made by an advertisement on the reader's
mind.
3. Attitude Change
There are several techniques for the measurement of
attitude change after the advertising has ended.
These techniques are as follows:
# Semantic differential,
# Likert scale,
# Ranking techniques and
# Projective technique.
(i) SEMANTIC DIFFERENTIALS
Known ------------------------------------------------------unknown
Informative.-----------------------------------------Un informative
Realistic----------------------------------------------------Unrealistic
Persuasive ------------------------------------------Not persuasive
Instructive -----------------------------------------------Destructive
Effective ---------------------------------------------------Ineffective
Useless----------------------------------------------------------Useful
(ii) The Likert Scale
Particulars Strongly Agree Uncertain Disagree Strongly
Agree Disagree
Radio advertising
has been
heard by a majority
of the
population.
Nirma
Advertisement
appealed to people
who
have accepted it.
Repetition of
advertisement
has reminded
4. Sales Test
It is designed to evaluate the effects of advertising on
the purchase behaviour of the consumer. It is
successfully applied to examine the consumer
behaviour to advertisements of consumption goods.
Sales are effected after creating an image of and
interest in, the product. With the help of sales audit
and audience response, it is possible to evaluate the
effects of advertising on sales.
Control on Advertising by practitioners;
media and market
Advertising puts across messages and their
presentation may be against the accepted values of
society. Moral and ethical values have been discarded
by several advertisers. These unsocial, immoral and
unethical values are controlled by government and by
consumers.
With the growing criticisms of advertising, advertisers
have been considering the idea of self-regulation.
Self- regulation would result in true and accurate
messages. Many advertisers were skeptical of the
success of self regulation.
Self-Regulation by Media
The media people can reject any advertisement if
they consider that it is misleading and incorrect. The
objectionable advertisements are not published or
viewed or advertised by the media. Television in India
and France is quite selective in accepting a particular
message or mode of advertising. Television and radio
are more concerned about the content of
advertisements than the print media.
 Cont…
Television does not accept bait advertising,
advertisement bearing on sexual themes and
representations of certain professions. The time
allotted to advertisers is restricted by television and
radio. Many newspapers do not accept objectionable
advertisements. They are famous for refusing to
publish such advertisements.
CONTROL BY CONSUMERS
Consumers have started exercising control over
misleading advertisements since the latter part of the
nineteenth century. They exert control in different
forms: direct and indirect, formal and informal, short
as well as long-range. They have devastating power to
accept or boycott the product, which they do through
consumer groups, through businessmen and through
a law-enforcing authority. We have discussed the
control by businessmen.
CONTROL BY GOVERNMENT
Control by the government is felt to be necessary to
check deceptive, misleading, highly competitive and
immoral advertising. The government is after all
responsible to see to it that there is no undesirable
advertising. It has the power to control it. It should
exercise this power to protect the interests of
consumers, small businesses and other sections of
society and to ensure that there is no deceptive and
misleading advertising. The content of advertisements
has to be regulated by the Government.
Advertising in the international market
place
The top world-wide markets began spending more
then 50 percent of their advertising dollars outside
the United States in the early 1990s. The non-U.S.
gross income of the top 500 agencies reached $9
billion as the twentieth century drew to a close. Of
the top 25 agencies, more than half are
headquartered in the United States, with the
remainder in Great Britain or Japan. The following
discussion would explore the evolution of advertising
from a local venture to a global one.
Global Brands
A global brand is one that has the same name, design,
and creative strategy everywhere in the world and is
marketed in most of the major regional market blocs.
Example: Coca-Cola, McDonald's, Henkel, Rolex,
Nissan, Toyota, Gillette, and Avis.
The Global Advertising Plan
The strategic advertising plan usually is prepared in
conjunction with the budget. Basically, the plan
outlines the marketing strategy, whereas the budget
allocates the funds. Two major approaches to
advertising in foreign cultures differ in their
orientation:
1. The Market Analysis Model
2. The Culture-Oriented Model
THE INTEGRATED MARKETING
COMMUNICATION
Integrated marketing communication (IMC) is the
practice of unifying all marketing communication
tools and corporate and brand messages to
communicate in a consistent way to and with
stakeholder audiences (that is, those who have a
stake or interest in the corporation). An IMC campaign
plan is even more complex than a traditional
advertising plan because it considers more message
sources, more communication tools, and more
audiences. IMC programs are designed to coordinate
all the various communication messages and sources.
The Tools of IMC
The tools used in an IMC campaign include traditional
marketing communication tools such as advertising
and sales promotion. However, the IMC approach
recognizes that other areas of the marketing mix too.
The price of the product signals a level of quality. The
cleanliness of the store and helpfulness of the
customer service department send powerful
messages. The product's reliability also
communicates. IMC planners should consider all
message sources and marketing communications that
reach stakeholder audiences.
Corporate Level Marketing Communication Level
o Employees Consumers
o Investors Target Audiences
o Financial Community Trade Audiences
o Government Regulators Local Community
Marketing Level Media
o Consumers Interest Groups
o Target markets Activist Groups
o Retailers General Public
o Distributors
o Competition
o Suppliers
o Vendors
Case Study
Rasna Juc-Fit
Rasna launched an ad campaign for its new drink,
Rasna Juc-Fit. This was part of an aggressive 360
degree marketing strategy that had the company
hiking marketing spends by 15 percent compared with
the previous year. The ad campaign marked a shift in
Rasna’s strategy. The target segment for the product
is the family rather than just the children or adults as
in previous advertising, as it seeks to reach out to a
larger audience.
Rasna hopes to leverage the health angle with Juc-Fit.
Juc-Fit was named so, to convey its benefits-it is claimed
to be the country’s only drink with the 100 per cent
recommended daily allowance of Vitamin A, C and E in
addition to vital minerals and calcium. This is the
positioning of the brand. The company also plans to set
up a Rs.13 crore packaging unit in New Delhi for the new
product.
Juc-Fit, which was launched in October 2005, will
compete with Tropicana, Dabur and other player in the
ready-to-drink fruit juice market and in the larger fruit-
based drinks market. With a 95 per cent share in the
dilutable/soft drinks concentrate market, it was only a
matter of time before the company entered these
categories. The company was waiting for the right
product and the right time, and wanted to get the price
right.
Juc-Fit will be available in orange, mango and pineapple
flavours at Rs 50 for a 1-litre pack and Rs.10 for a 200 ml
pack. The prices of the product are lower compared to its
competitors, offering a very good product at a
competitive price. Rasna is completing the national roll-
out. The launch was restricted to modern stores and A-
class outlets, essentially SECs A and B, and with this
product, the company had a range catering to a variety of
customers. The company’s soft drink concentrates span
all customer classes from SEC A-D.
Questions
1. What is 360-degree marketing strategy? Explain
2. Suggest an effective advertising strategy to Rasna Juc-
Fit, keeping in mind the strategy used by competitors,
assume when company decide to market it in Delhi
through whole range of distributors and local stores.
CASE STUDIES
This case is about the advertising war between two
popular health drink brands Horlicks and Complan in
India. The war for supremacy between these two brands
started as early as in 1960s and had continued ever since.
Over the years, the brands were involved in aggressive
comparative advertising in print and television over
attributes such as ingredients, protein content, growth,
and flavors. However, in late 2008, the makers of Horlicks,
GlaxoSmithKline Consumer Healthcare (GSK), and the
makers of Complan, Heinz India (Heinz), came out with
advertisements that directly compared the brands using
the competitor brand's trademarks. Industry observers
felt that in their bid to outdo each other, the two
companies had ended up denigrating the competitor
brand.
Usually issues related to disparaging ads by rival
companies were resolved by the Advertising Standards
Council of India (ASCI). But with constant mudslinging at
each other, the two companies decided to solve the issue
in courts. In September 2008, Heinz moved the Bombay
High Court objecting to the Horlicks ad , while in
December 2008, GSK approached the Delhi High Court
against the Complan ad.
Experts felt that the latest tiff between GSK and Heinz
had brought to the fore the issues and challenges
involved in comparative advertising and the legal/ethical
issues involved in such kind of advertising.
QUESTIONS
1. Analyze the advertising strategies adopted by
Complan and Horlicks over the years.
2. Understand the issues and challenges faced by
companies while using comparative advertising.
3. Examine the efficiency of comparative advertising
in enhancing brand image and sales.
4. Study the implications of the advertising war
between Complan and Horlicks.
5. Discuss and debate the legal/ethical issues involved
in the case.