Page 1 Page 2 Subject: ADVERTISING & PROMOTIONS Credits: 4 SYLLABUS Concepts of ...

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Subject: ADVERTISING & PROMOTIONS Credits: 4
SYLLABUS
Concepts of Advertising
The Field of Advertising, Introduction, Integrated Marketing Communication, Advertising and its types,
Comparative Advertising, case study, Communication Models in Advertising
Integrated Advertising Program
Integrated Advertising Program Analysis of Mission & Market Objective Setting & Determining Target
Audience, Understanding Segmentation, Positioning, Budget Decision, case study on Budgets
Message and Media
Understanding Message Strategy, Message & Copy in Advertising, Headlines in Print & TV Advertising,
Visualization & Layout, AD Appeals, Testimonials & Celebrity Endorsement , Media Types & Decision
Types of Media, Media Selection, Media Planning: New Perspective, Media Decision
Understanding Campaigns
Campaign Making, Three Phases of Campaign Creation, Steps of Effective Advertising, Upsetting the
applecart in the scooterette category In Style! Case study, Understanding Campaigns,
Advertising Organization
Advertising Stake Holders – Advertising Organization, Evolution & History of advertising Agency, The
working of AD agencies, Organization Structure of Advertising Department, Interface with other
Departments, Functions of Advertising Agency.
Suggested Reading:
1. S A Chunawalla, K C Sethia, Foundations of Advertising: Theory & Practice, Himalaya Pub. House
2. M. S. Ramaswamy, Marketing, Salesmanship, and Advertising
3. Rajeev Batra, David A. Aaker, Advertising Management, Prentice Hall
COURSE OVERVIEW
When ever we ask a child what do you want to become in life
the question is only limited to doctor, engineer, teacher, scientist
and so on and so forth but we forget that there is another very
important field which is advertising. It is a field, which is
glamorous and full of hard work. In fact we realize about this
field when we see advertisement and appreciate them. So this
course is basically designed to make you realize the importance
of advertising and what role is it playing in today’s competitive
era. It will also help you to decide whether you will be fit for
this profession and will guide you about the options available
in this field. Another part of this course is promotions that
will give you better insight on promotional mix (Personal
Selling, Publicity, Sales Promotion, Direct Marketing and public
relation). This course is offered with the objective of giving
students framework and knowledge with which to make more
effective advertising decisions and to communicate some of the
excitements and vitality that characterizes the advertising
business. Towards the end of this course you will know what
you currently know about how advertising works and to draw
lessons form the knowledge from the advertising decision-
making.
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ADVERTISING & PROMOTIONS
CONTENT
. Lesson No. Topic Page No.
Advertising
Role of Advertising
Lesson 1 Definition, Introduction to Advertising and its History 1
Lesson 2 Types of Advertising 10
Lesson 3 Purpose and Objectives of Advertising,
Advantages and Disadvantages 16
Lesson 4 Article discussion and a Debate 23
Lesson 5 Role of Advertising within marketing mix,
within promotional mix 25
Lesson 6 Communication Process and its Models 30
Lesson 7 Communication Process and its Models 39
Organization of the Industry
Lesson 8 What is an Advertising Agency, Types of Agency 50
Lesson 9 Tutorial 59
Lesson 10 Departments In Agency, Other Supporting Services –
PR, Sales Promotion, Marketing Research 62
Lesson 11 Tutorial 70
Working of the Industry
Lesson 12 Structures, Role of Account Handler and Account Planner,
Process and Methods of Agency Selection 73
Lesson 13 Case Study 81
Lesson 14 Agency Appointment Including Contracts and Best 85
Lesson 15 International Advertising 94
Lesson 16 Tutorial 106
Lesson 17 Career in Advertising 109
Regulation of promotions
Lesson 18 Ethics in Advertising, Advertising Standard Council of India,
Code for Commercial Advertising on Doordarshan,
Indian Advertising 121
v
ADVERTISING & PROMOTIONS
CONTENT
Lesson No. Topic Page No.
Lesson 19 Ethics in Advertising, Advertising standard council of India,
code for Commercial Advertising on Doordarshan,
Indian Advertising 129
Segmentation, Targeting and Positioning
Lesson 20 The Consumer Audience 142
Lesson 21 The Consumer Audience 150
Lesson 22 Definition, purpose and objectives of branding, benefits,concepts,
branding strategies – blanket, family, individual, multi-branding,
brand extension, own brands, situations when branding is
inappropriate, brand equity, brand evaluation techniques 158
Lesson 23 Definition, purpose and objectives of branding, benefits, concepts,
branding strategies – blanket, family, individual, multi-branding,
brand extension, own brands, situations when branding is
inappropriate, brand equity, brand evaluation techniques 164
Aspects of Advertising
Lesson 24 Media: types of media, advantages and disadvantages of each 171
Lesson 25 Media planning and scheduling messages 182
Lesson 26 Creative: message-appeals, ad design and testing, copy writing,
visuals, creative briefs, impact of IT on advertisement design 191
Lesson 27 Creative: message-appeals, ad design and testing, copy writing,
visuals, creative briefs, impact of IT on advertisement design 200
Below-the-line Techniques
Primary Techniques
Lesson 28 Types of sales promotion, role of promotion characteristics
and advantages and disadvantages 219
Lesson 29 Public relations, sponsorship, direct marketing, Packaging
and merchandising with their role, characteristics, objectives,
advantages/disadvantages 239
Lesson 30 Case Study 252
Other Techniques
Lesson 31 An overview of the role and uses of corporate identity, exhibitions,
word of-mouth, personal selling, miscellaneous and new media 253
vi
ADVERTISING & PROMOTIONS
CONTENT
. Lesson No. Topic Page No.
Promotion Strategy
Budget Formulation
Lesson 32 Percentage of sales, per unit, competitive parity, task,
Executive judgment, overview of media costs, guidelines for
budget allocation, relative costs of various promotional
techniques and low- and high-budget campaigns 266
Lesson 33 Budgeting Cases and Trends in Advertising by the Indian
Corporate Sector 277
Lesson 34 Assignment 286
Developing a Promotional Plan
Lesson35 Situation Analysis, Objectives, Target Audiences, Creative
Strategy, Promotional Strategy and Tactics, Media Selection,
Scheduling, Budget Allocation, Evaluation measures,
Inter-and Intra-Media Decisions, Burst Versus Drip 287
Integration of Promotional Techniques
Lesson 36 Advertisements Discussion 295
Lesson 37 Benefits, Methods, Role of Positioning, Importance 298
Lesson 38 Tutorial 307
Lesson 39 The Integrated Campaign 308
Measuring Campaign Effectiveness
Lesson 40 Account Planning And Research 318
Lesson 41 Account Planning And Research 327
vii
LESSON 1:
DEFINITION, INTRODUCTION
TO ADVERTISING AND ITS HISTORY
Objective Advertising puts across the message in a convincing way, and
Students by the end of this lesson I expect you to be clear with guides us to take action-buy these products repeatedly.
what is advertising and how it has evolved over a period of Now Let’s first understand the definition of advertising.
time.
The word advertising has its origin from a Latin word
The World of Advertising ‘advertire’ which means to turn to.
In this first lesson we will start with the discussion on the so-
The dictionary meaning of the word is ‘to announce publicl
called the glamour’s world and that is advertising where our
or to give public notice.’
main focus will be on what is’ advertising? What are its
American Marketing association has defined advertising as “an
important dimensions? (The standard definition of ad-
paid form of non-personal presentation and promotion of
vertising includes six elements.)
ideas, goods and services by an identified sponsor.”
To start with tell me what do you understand from advertising.
Advertising is a paid form of communication, although some
As all of you would have noticed that, whenever you are
forms of advertising, such as public service announcements
watching any channel or coming from your home they’re too
(PSAs), are donated space and time.
many advertisement, but have you ever thought why it is being
Second, not only is the message paid for, but also the sponsor
done? If no, then start thinking and if yes then lets discuss.
is identified.
Third, most advertising tries to persuade or influence the
consumer to do something, Although in some cases the poin
of the message is simply to make consumers aware of the
product or company.
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,
is also non-personal.
A definition of advertising, then, includes all six features.
Advertising is paid non-personal communication from an
identified sponsor using mass media to persuade or influence
an audience.
In an ideal world every manufacturer would be able to talk one
on-one with every con-sumer about the product or service
being offered for sale. Personal selling is typically a one-on-one
approach, but it is very expensive.
Although advertising delivered through interactive technology
Before getting into the definition try and recall this might be considered personal rather than mass communicatio
advertisement. Tell me this is the advertisement of which it is still a far cry from personal selling. Adver-tises can provide
brand? more customization through interactive media such as the
World Wide Web, but it is not the same as meeting with every
What is Advertising?
customer individually to discuss a product or service. The key
Advertising is known to each one of us. This is so because right
point is that interactive advertising reaches a large audience just
from morning till night we come across a number of them in
like traditional advertising.
newspapers, in magazines, on the roads as hoardings, in shops
The costs for time in broadcast media, for space in print media
as posters, in films and on TV. In fact, in stares at us from all
and for time and space in interactive and support media are
sides and is all-pervasive. What function does it perform
spread over the tremendous number of people that these
essentially? It influences our decisions, especially buying
media reach. For example, $1.2 million may sound like a lot o
decisions.
money for one Super Bowl ad; but when you consider that th
If you want to see the effect of advertising ask a nursery going
advertisers are reaching over 500 million people, the cost is not
child these days he/she are aware of brands like Colgate and
so extreme.
Rasna and Nirma thanks to TV advertising. Jingles of the
Lets us discuss the salient features of Advertising in detail.
products are hummed by the young and old alike.
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Thefollowingarethesalientfeaturesofadvertising: • Advertising now is practiced as a profession. The advertising
• Paid Form: .An advertising message is paid for by the industry consists of the advertising agencies with billing
advertiser and this distinguishes it from publicity which is running to Rs. 10,000 crores per annum. Then we have a
not paid, for. When an advertiser makes payment, he body of advertisers, mostly manufacturers, distributors,
exercises control over its contents, form schedule, and media large retailers; service institutions etc. who sustain the
selection. advertising activity. We have the media consisting of the
press, broadcast media (radio, TV), outdoor publicity etc. In
• Any Form: Advertising can take several forms. It could be a
all these three components, there are trained professionals
sign, a symbol, and an illustration. It could be a message
like the Advertising Manager, the Media Manager, the
which is either written in words or shown on TV or aired on
Accounts Manager, the Space Selling Manager, the Art
radio. It could be a mailer received in post it could be a
Director etc.
handbill distributed at a “street corner. Advertising could be
• Psychological, Social, and Economic Force: Advertising
outdoor advertising such as posters or billboards or neon
influences our attitudes and- predisposes us favourably
signs. Any form of presentation, which fulfils the functions
towards certain products. It is thus a psychological force.
of an advertisement, can be employed.
Advertising reflects the contemporary society. It is thus a
• Non-Personal: Advertisement does not include any
social force. Advertising attempts to influence’ demand and
personal selling done on person-to-person basis or people-
so it is an economic force.
to-people basis. It is a substitute for a personal salesman. It
uses mass media to deliver the message. Advertisement is • A Discipline: Advertising is studied as a discipline having a
meant for a larger ‘target audience and is not directed to an body of knowledge at journalism and mass communication
individual. schools and in business schools, and now in University’s
regular programmes (e.g., B.Com. of Mumbai and Goa
• Goods, Services, Ideas: Advertising can promote a wide
University).
range of products. It can also promote services such as
mobile telephony, internet and banking. Besides, this I think by now you are clear with the concept of advertising
advertising is used to propagate socially relevant causes such now let us move on two views that are for advertising.
as family welfare, fuel, economy, adult literacy etc. All of you Thefunctionofadvertisingcanbeviedintwobasicways:
must have seen advertisements on TV advising care and
1. As a tool of marketing
caution while bursting crackers at the time of Deepavali.
2. As a means of communication
• Identified Sponsor: An advertisement is put by an
1. As a tools of marketing: the advertising, in the above lines
advertiser. The advertiser could be a company or corporation
has been defined as a tool of marketing. It is used as a tool
or society or an individual. The sponsoring organization
for selling the products, ideas and services of the identified
puts either its name or the name of the brand or both on
sponsor i.e. advertiser, through non-personal intermediaries
the advertisement.
or media. It supplements the voice and personality of the
• Information: An advertising message informs the
individual salesman.
consumers about the features of the products and their
2. Advertising as a means of communication and
availability.
persuasion: advertising presents and promotes the ideas,
• Persuasion: Advertising goes beyond information. It
goods and services of an identified advertiser. In presenting
persuades the potential consumers about the suitability of
and promoting an item (ideas, goods and services), the
the product.
advertiser, is engaging in a very important function of
• Target Audience: An advertising message is meant for a communication. It informs the prospective buyers and users
specific group of people who are the potential or actual users about the product and the producer. It, thus, serves as a
of the product. A lipstick is meant for young college girls. A communication link between the producer and the
luxury car is meant for, high income business and prospective buyers who are interested in seeking the
professional people. An advertiser directs his message to a information. Surely, advertising may be taken as the most
selected group called its target audience. efficient means of reaching people with product
• Creativity: Advertising has to sell. But beyond that- it is information.
also an art, which employs creativity to create an ad message. A part from disseminating the information to the prospective
Advertising as a profession employs both creative and on buyers about the product and the producer, the advertising
creative - people. Those who write advertisements are called serves as a mass persuader. While creating awareness and
copywriters and work in the creative section. Those who popularity, it seeks to persuade. In fact advertising is a mass
visualize the written words are also create the message so- persuasion. It is a more effective widespread and less costly way
generated is produced to be put across through different of establishing contact than salesmanship. Clyde R. Miller
media. Production and media are the two other important points out that “ all success in business in industrial produc-
departments of advertising business. tion, in invention, in religious conversion, in education and in
politics depend upon the process of persuasion’.
Persuasion is the essence of a democratic society. Every adver-
tiser in modern times intends that all creative advertising must
2
serve more than merely inform or entertain. It must change or agencies came in the USA. In 1875, the first modern advertising
reinforce an attitude or behaviour. And the consumer-the agency was set up in Philadelphia (N.W. Ayer & Son). They
average man-should recognize the advertisers persuasive offered not only space selling but also many other services to
intention. clients.
Thus advertising, in its broader sense must include only its Towards the end of the 19th century, creative advertisement
commercial functions but at the same time, it should also developed. Painting came to be used in advertising (1887).
convey adequately its purpose. The definition of advertising in Consolidation: In the last century (20th century) advertisement
the light of the above view, may be given as-”Advertising is bloomed to its full form. More emphasis was laid on advertise-
controlled, identifiable information and persuasion by means ment copy. Art services and advertisement production became
of mass communication media” more and more important. Media selection was also considered
AudiencesforAdvertising equally important. By 1920, the agencies started planning
• Household Consumers campaigns. In 1917, AAAA (American Association of Advertis-

ing Agencies) was founded.
• Business Organizations
In the early part of the century, advertising form underwent
• The Trade Channel
metamorphosis. In 1914, ABC (Audit Bureau of Circulation)
• Professionals was founded.
• Government After the First World War, advertisement got established. MR
also came up on the scene. Radio commercials in the USA
became common. Advertisement films also became prominent.
After the II World War, there was mass production. Advertising
Students let us see how adverting has originated and
activity therefore increased.
gained importance over a period of time
TV also came later in 20th century as a powerful medium of
Origin and Growth of Advertising
advertising:
Advertising history runs parallel to, the history of mankind.
Advertising as we know it today is a. phenomenon’” hardly Let us tabulate the history of Indian Advertising.
sixty years’ ‘old. . Prior to the invention of the printing, press
Period Characteristics
(1450 AD) there were town criers who sold their goods through
shouting Generally, this was a method of ‘ sale in fairs and Pre- Press Advertisements
market yard. This simple method was’ supplemented by shop- Independen
’signs. The oldest written advertising is preserved in the British ce India
museum (3000 years old). Albums (a place for writing on the 1930s The talkie and radio emerge as media
wall) and stone-tablets were the media. Placards followed these. 1940s War Years
With the fall of the Roman empire, advertising died too. Till Famine.
1400 AD, there was not much of it. Fight for Independence
1950s Watershed years for advertising
LetusfirstseewhathappedinearlyyearsofPrinting
Many Indian Industries came up.
Printing press invention (Germany, ‘Gutenberg) gave a boost to
Wood’s survey of rural market.
writing and advertising. Handbills were first printed in 1477.
Burmah Shell propagated kersosene by transit
Soon the newspaper came up on the scene. Towards the end of advertising on vans.
the 16th century all publications in Germany and Holland Cinema advertising began ( 2-3 minutes films).
carried advertisements. Product advertised were: new pam- Calcutta gets the privilege of having India’s first
phlets; books and treatises. ad club (1956).
Press syndicate: leading ad agency
Periodical advertising on, a regular basis began in the early part
National created the Murphy baby – still a
of the 17th century. England had a weekly newspaper (1692). popular figure.
But a form similar to newspaper of today came after 50 years.
1960s India’s first Advertising convention ( Calcutta –
Newspapers -started accepting picture advertising.
1960).
In 1650s some advertisements occasionally appeared. Coffee Advertising should be Indian in thought and
was offered for the first time in 1652, chocolate in 1657 and the content. (Dr. Keskar in this convention).
in 1658 Shift to marketing orientation.
Professionalisation within agencies.
Handbills are the fore-runners of the present day advertise-
Asian Advertising Congress at New Delhi.
ments. They appeared on the scene in the 18th century. The first
1960s Research data generated.
daily newspaper started publication in 1702. Patent Medicines
MRI (Market Rating Indices).
were advertised most in all the newspapers.
Shop Audits.
Expansion: In 19th century advertising marked a great expan- NRS.
sion. In 1892, the first advertising agency sprang up in London Creativity was emphasized.
Photography finds increasing use
(Reynell and Sons). In 1841, in the USA the first advertising
Social marketing.
agency was started (founded by Volney Palmer). More such
3
1970s Media boom. Simpson, ContemporaryQuotations, 1964, Binghamton,
Special magazines. NY: Vail-Ballou Press, p. 84.
Asian Advertising Congress at New Delhi • “Advertising is the life of trade.”
Life-style studies Positioning.
Calvin Coolidge, quoted in John P. Bradley, Leo F. Daniels &
Rural Marketing
Thomas C. Jones, The International Dictionary of
1980s Indigenisation though there is still Western Thoughts, 1969, Chicago, IL: J. G. Ferguson Publishing Co.,
execution.
p. 13.
Public Sector advertising.
Expansion and diversification of agencies • “Advertising - a judicious mixture of flattery and
TV as a powerful medium threats.”
Colour printing more popular Northrop Frye, quoted in Robert I. Fitzhenry, The Fitzhenry
Regional broadcasts. & Whiteside Book of Quotations, 1993, Canada: Fitzhenry&
Expansion of radio.
Whiteside Limited, p. 18.
Marketing techniques in print medium
• “The art of publicity is a black art.”
Formation of Indian Chapter of International
Advertising Association. Learned Hand, American jurist, quoted in Robert I.
Formation of ASCI. Fitzhenry, The Fitzhenry & Whiteside Book of Quotations,
Adoption of a new code. 1993, Canada: Fitzhenry& Whiteside Limited, p. 19.
History of Indian Advertising has been taken up
• “[A]dvertising is a symbol-manipulating occupation.”
as a project by Advertising Club of Bombay.
S. I. Hayakawa, Language in Thought and Action (1964),
Reach 1 and Reach II.
1990s NRS IV, V, VI and PRS ( 1997) Surveys. New York: Harcourt, p. 268.
Niche magazines. • “Advertising is salesmanship mass produced. No one
Opening of print media for foreign
would bother to use advertisingif he could talk to all his
collaboration.
prospects face-to-face. But he can’t.”
F.M. Radio in private hands.
Morris Hite, quoted in Adman: Morris Hite’s Methods for
Emphasis on brand equity.
Several satellite channels and pay channels of Winning the AdGame, 1988, Dallas, TX: E-Heart Press, p.
TV. 203.
Consumer satisfaction and tracking studies. • Advertising is “the lubricant for the free-enterprise
Prasar Bharati, Cable TV Regulation and
system.”
Conditional Access System (CAS)
Leo-Arthur Kelmenson (1976), quoted in Michael McKenna,
The Stein & Day Dictionary of Definitive Quotations, 1983,
“Quote-Unquote what few stalwarts have to say about
New York: Stein & Day Publishing Co., p. 11.
Advertising.”
• “Advertising is the principal reason why the business • “Advertising may be described as the science of
arresting the human intelligence longenough to get
man has come to inherit the earth.”
money from it.”
James Randolph Adams, quoted in John P. Bradley, Leo F.
Stephen Butler Leacock, quoted in Michael Jackman, Crown’s
Daniels & Thomas C. Jones, The International Dictionary of
Book of PoliticalQuotations, 1982, New York: Crown
Thoughts, 1969, Chicago, IL: J. G. Ferguson Publishing Co.,
Publishing Inc., p. 1.
p. 12.
• “Advertising is of the very essence of democracy. An • “Advertising is the greatest art form of the twentieth
century.”
election goes on every minuteof the business day across
Marshall McLuhan (1976), Canadian social scientist (quoted
the counters of hundreds of thousands of stores
in Robert Andrews, The Routledge Dictionary ofQuotations
andshops where the customers state their preferences
1987, p. 5, London: Routledge & Kegan Paul).
and determine which manufacturerand which product
shall be the leader today, and which shall lead • “Ads are the cave art of the twentieth century.”
tomorrow.” Marshall McLuhan, quoted in Robert I. Fitzhenry, The
Bruce Barton (1955), chairman of BBDO, quoted in James B. Fitzhenry & Whiteside Book of Quotations, 1993, Canada:
Simpson, ContemporaryQuotations, 1964, Binghamton, Fitzhenry& Whiteside Limited, p. 19.
NY: Vail-Ballou Press, p. 82. • “Advertising is an environmental striptease for a world
• “Advertising is the ability to sense, interpret . . . to put of abundance.”
the very heart throbsof a business into type, paper and Marshall McLuhan, introduction to Wilson Bryan Key,
ink.” Subliminal Seduction: Ad Media’s Manipulation of a Not So
Leo Burnett, quoted by Joan Kufrin, Leo Burnett: Star Innocent America, 1974, New York: Signet (New American
Reacher(1995), Chicago, IL: Leo Burnett Company, Inc., p. Library), p. vii.
54. • “Advertising is the rattling of a stick inside a swill
• “Advertising is what you do when you can’t go see bucket.”
somebody. That’s all itis.” George Orwell, quoted in Angela Partington, The Oxford
Fairfax Cone (1963), ad agency partner, quoted in James B.
4