UNIT-1

ADVERTISEMENT: Nature, importance, objective & types.

●​ The term advertising has been derived from the Latin word “advertere” which means ‘to turn’ or ‘to take notice of.’
●​ Traditionally, the term advertising meant turning the attention of people to a product, service, idea or organization.
●​ Earlier, people used advertising to just makeannouncements. But with passage of time there have been
modifications, and now, the term advertising is used not just for making announcements but is a means of
communication too.
●​ Advertising refers to a means of communicating with the users of a product or service. It is a non-personal paid form
of communication through an identified sponsor.

Nature or Feature

1.​ Paid form - Advertising is paid for by its advertisers. Advertisers pay for the time or space they purchase to tell their
stories. In case of television and radio, money is paid for per second and in case of print media, money is paid for per
column centimeter. If the communication is not paid for then, it is not advertising. For instance, the popular celebrities
appear on the reality shows to promote their newest movie is not advertising but instead is promotion of the
concerned movie.
2.​ Non- personal - Advertising is non-personal since it does not involve face-to-face interactions between the buyer
and seller. Thus, it is an impersonal means of marketing communication.
3.​ Identified sponsor - The sponsor here refers to the organization or the individual which is paying for the
advertisement.
4.​ Mass – mediated – It refers to the communication which is designed to reach not just a specific person but to mass
audience. The mass- mediated nature of advertising creates a communication environment in which message is not
communicated in face-to-face manner. In other words, it is not one-to-one communication rather addresses large
audience simultaneously.
5.​ Persuade/promotion - The core purpose of advertising is to persuade people or audience to buy the products or
services being advertised or to accept the idea being advertised.
6.​ Not just for tangible products - Advertisement is done not just for tangible goods like television, refrigerator but
also services (like Insurance policies, airline services) and for ideas like family planning, environmental protection etc.
7.​ Creativity - Advertising requires use of creative ideas and imagination because without the creative ideas target
audience might not act upon the message being delivered. It is the creativity that sells, thus, aim should be to come
up with some unique creative idea.
8.​ Media’s - Advertisement can be communicated through various medias like television, radio, newspaper, magazine,
mail, bill boards, catalogues etc.
9.​ Does not provide immediate feedback - Since, it is impersonal communication, immediate feedback is not
possible. Feedback comes in the form of number of consumers purchasing the product that cannot be measured
immediately.
10.​ No direct relation with the sales volume - No direct relationship exists between the money spend on advertising
and the increase in the amount of sales volume as it is not just the amount spend but also how well the amount has
been spent has an impact upon the sales turnover.

IMPORTANCE TO Businessmen, Customers, Society

Businessmen-

1.​ Generation of awareness -Through advertisement manufacturers can disseminate information about their product to
consumers.
2.​ Steady demand – Advertising helps in creating regular demand by way of smoothening out seasonal and cyclical
fluctuations. For this reason, only companies like Nescafe, emphasizes on both hot and cold uses of coffee to
maintain regular sales during both summer and winter season.
3.​ Increase in sales volume – Advertising is used to persuade consumers to purchase the goods which ultimately
results in increase in sales volume.
4.​ Introduction of new product – By way of advertisement manufacturers can inform consumers about their new
product. In this way advertising stimulates the interest of consumers and persuades them to buy and try out the new
product.
5.​ Building goodwill – Advertising helps in creating good image and reputation of the firm for its products. Good image
helps the firm to survive during competition and depression.
6.​ Supplements salesmanship – Advertisement acts as a supplement and facilitates the job of the salesman in finally
convincing the consumer to purchase the product.
 7.​ Boosting the employee morale – Employees always like to be associated with a company that has a good image
and reputation in the society. It in a way instills pride and loyalty in employees.

Importance to Society

1.​ Employment generation – Substantial number of people are required in designing, writing and issuing
advertisement. Thus, advertising provides direct recruitment to substantial number of people. And indirectly,
advertising increases employment opportunities by increasing the volume of production and distribution.
2.​ Higher standard of living – Through advertisement we become aware of various kinds of goods and services
available in the market which adds comfort to our lifestyle. Moreover, it educates the consumers about the different
uses of the product thereby, providing better ways of life.
3.​ Sustains the press – It has been proved through various researches that advertising provides almost 55% of the
cost of newspaper and magazines thereby being an important source of revenue to newspapers, magazines,
televisions and radio. And for this reason, only we get newspapers at lower rates.
4.​ Encourages research and development – In order to drive maximum benefit from advertising in today’s competitive
environment, manufacturers should try and their offering from others to get competitive edge. And this is possible
only by coming up with something new and better. For this reason, big business firms have their own research and
development departments to develop new products and new uses of existing products.

Importance to Consumers

1.​ Convenience – Advertising reduces the time and effort involved in purchasing as people become aware of the
variety of products and their diverse uses through advertisement.
2.​ Educates the consumers – Advertisement informs the consumer about the new product and its various features
thereby educating the consumers about it.
3.​ Improvement in quality – A impress the consumers regarding the better quality and unique features of the product
in comparison to the competitor’s product, advertising is indirectly resulting in better quality products.
4.​ Reduction in prices – Advertising has led to more of competition which has indirectly provided consumers with
better quality goods at lower prices.

Objectives

Communication Objectives

1.​ To create awareness.

2.​ To create understanding i.e. educating consumers by providing knowledge about the product.
3.​ To convince the target audience that they will get value for their money by buying the product or service.
4.​ To convert latent wants and urges into desire through persuasion. Hidden wants are provoked and brought to surface
through advertising.
5.​ To respond to advertising by purchasing the product or service.

Marketing Objectives

1.​ To increase the sales and profits of the advertisers.

2.​ To develop brand equity i.e. making more and more customers loyal to the advertised brand.
3.​ To increase the market share for the advertiser.
4.​ To help enter new market.
5.​ To create reputation for the business firm.

Types (Based on- Geo coverage, Target group, subject matter, Impact, other)

GEO COVERAGE

1.​ Local advertising/ retail advertising – Local advertising is generally undertaken by small firms like retailers, cinema
hall etc. retail advertising often includes price information, service, return policy, store location that national
advertisers usually cannot provide. The main medias which are used for local advertising are shop decoration, local
newspapers, radio, television, hoardings etc., it basically targets people in a city or town.
2.​ **Regional advertising –**This type of advertising is restricted to a region which may be one state or more than one
state, people of which have common tongue language or using common product. Regional advertising has wider
coverage as compared to local advertising.
3.​ National advertising – It is generally undertaken by manufacturers of branded goods as they need to communicate
their message all over the country. All possible medias are used for national advertising for instance- newspaper,
radio, television etc. few advertisers at national level are Reliance, HUL, Bajaj, Godrej etc.
 4.​ International advertising – Companies which operate in more than one country undertake this type of advertising.
Companies like Pepsi, Coca-Cola sell their products all over the world thus, making use of international advertising.

TARGET GROUP

1.​ Consumer advertising/ end-product advertising – This type of advertising is directed towards consumers who buy
products for their own personal and household use. Few examples of consumer advertising are advertisements for
cosmetics, ready-made garments, washing machines, television etc. i.e. advertisements for all fast-moving consumer
goods such as Surf-Excel, Dove soap, etc.
2.​ Industrial advertising – Advertisements undertaken by distributors or manufacturers to stimulate demand among the
industrial buyers is called industrial advertising. The industrial goods may be raw material, machinery, equipment’s,
fabricated material. For instance- advertisements for ball bearings, electric motors etc may be directed at
manufacturers of refrigerators, washing machines. It is directed at a very specialized and relatively small audience.
Features such as quality, service, durability and economy are stressed in such ads.
3.​ Trade advertising – Such an advertising is directed at wholesalers and retailers. The aim behind this type of
advertising is to secure distribution for the product. Such advertisements try to stimulate wholesalers and retailers to
stock and sell goods of the manufacturers. Main medias used for trade advertising are direct mail, specialised trade
journals or business publications.
4.​ Professional advertising – Such advertising is directed towards professional like doctors, architects, chartered
accountants, engineers etc. such advertisement is intended to persuade them to buy and recommend the advertised
products i.e. such advertisement is undertaken by those producers and distributors of product who are dependent on
professional people to recommend, specify or prescribe their products to the ultimate buyers or users. For instance-
pharma companies advertise medicines and medical equipment’s to doctors who use and prescribe those products to
their patients. Main medium for such advertisement is professional journals.

SUBJECT MATTERS 5. Product –This type of advertising is used to promote the sale of tangible goods like television, car,
washing machine, lipstick etc. 6. Service advertising – This attempt to promote the sale of services which are intangible,
inseparable and perishable. Advertisements undertaken by airlines, banks, hotels, health care services, educational services
etc., fall under this category. Personal advertising such as matrimonial advertisements can also be included in this category. 7.
Idea advertising – It is used when advertising is required to influence special interest groups and sway public opinion.
Advertisements related to environmental protection, energy conservation, water conservation, family planning etc., belong to
this category and mass medias are used for such advertisements.

IMPACT

1.​ Primary demand advertising–Product demand basically refers to demand for a class of product rather than brand
i.e. it is designed to increase demand for generic product or service. It tries to convert non-users to users. Here the
goal is to increase the consumption of the product regardless of the brand choice. In other words, such advertisement
is undertaken to inculcate the habit for a class of product. For instance- Lipton, Taj mahal etc advertise to inculcate
tea and coffee drinking in India.
2.​ Secondary demand advertising/ selective/ competitive advertising – Such advertising aims to stimulate demand
for the specific brand of product. Such advertisement tries to switch users preference from brand ‘a’ to brand ‘b’ by
pointing at the uses, features and advantages that benefit consumers and may not be available in competing brand.
Example – Kent water purifier, IFB automatic dish washers.
3.​ **Direct action advertising–**This kind of advertising stresses and persuades immediate buying of the product being
advertised. In a way it requests the consumers for immediate action. For instance- time bound offers and coupons
are given by companies like mother care, lifestyle etc., to create immediate response.
4.​ Indirect action advertising – Here, the main aim of advertiser is to build up image and reputation of the firm. Its
effect can be seen in long run over the sales. It tries creating the favourable attitude towards the brand.

Other Forms of Advertising

1.​ Reminder advertising – Purpose of such advertisement is to remind the consumers from time to time about the
existence of the particular brand. And also enhances the awareness.
2.​ Comparative advertising – Here, two or more recognizable brands of the same product class are compared. The
comparison is made on the basis of various attributes. The comparison can be implicit or explicit.
3.​ Political advertising – Used by politician to persuade people to vote for them.
4.​ Teaser advertising – Basically designed to build curiosity, interest and excitement about a brand by talking about it
but not showing it. Such advertisements are used to draw attention to upkeeping campaign and generate interest for
them.
5.​ Surrogate Advertising- Advertising Indirectly Surrogate Advertising is prominently seen in cases where advertising
a particular product is banned by law. Advertisements for products like cigarettes or alcohol which are injurious to
health are prohibited by law in several countries and hence these companies have to come up with several other
products that might have the same brand name which indirectly remind people of the cigarettes or beer bottles of the
same brand.
ADVERTISEMENT BUDGET- factors, setting etc

Advertising Budget: Setting, Determinants, and Major Methods

1. Advertising Budget – Meaning & Importance

The advertising budget refers to the amount of money a company allocates for advertising within a specific period. It is an
essential part of marketing because it determines how much can be spent on advertising campaigns, media selection, and
promotional activities.

Importance of Advertising Budget

●​ Helps in effective planning and allocation of resources.

●​ Ensures the company does not overspend or underspend on advertising.
●​ Helps in achieving marketing objectives like brand awareness and sales growth.
●​ Assists in evaluating the effectiveness of advertising efforts.

2. Determinants of Advertising Budget

Various factors influence how a company decides its advertising budget. These are classified into internal and external
factors.

A. Internal Factors

1.​ Financial Position of the Company – Stronger financial conditions allow higher spending on advertising.
2.​ Sales Revenue & Profitability – Higher sales and profits enable greater ad expenditure.
3.​ Advertising Objectives – If the goal is to launch a new product, a higher budget is needed compared to maintaining
brand loyalty.
4.​ Stage of Product Life Cycle –
○​ New Products require heavy advertising to create awareness.
○​ Mature Products need minimal advertising for brand recall.
5.​ Past Advertising Performance – If past campaigns were successful, companies may allocate a higher budget.

B. External Factors

1.​ Market Competition – Companies increase their budget if competitors spend heavily on advertising.
2.​ Consumer Behavior – If customers need detailed product knowledge (e.g., electronics, insurance), advertising
spending is higher.
3.​ Economic Conditions – In a recession, companies reduce advertising budgets, while in a booming economy, they
increase spending.
4.​ Industry Standards – Some industries like FMCG and automobiles require higher ad budgets than industrial goods.
5.​ Cost of Media & Advertising Channels – The cost of TV, digital, and print ads affects how much companies can
afford.

3. Setting the Advertising Budget

Deciding how much to spend on advertising is crucial because it affects how and where ads will be shown.

Two Ways to Set a Budget:

1.​ Top-Down Budgeting

○​ Senior management decides the total advertising budget.
○​ They estimate costs and plan advertising activities accordingly.
 2.​ Bottom-Up Budgeting
○​ First, the company sets clear advertising objectives.
○​ They identify what tasks are needed to meet those objectives.
○​ The cost of each task is estimated, leading to the final budget amount.

Major Methods of Setting Advertising Budget

Companies use different methods to determine their advertising budget.

A. Percentage of Sales Method

●​ Advertising budget is set as a fixed percentage of past, current, or expected sales.

●​ Example: If a company’s sales are ₹10 crore and it spends ₹50 lakh (5% of sales) on advertising, next year’s budget
is calculated similarly.

✅ Pros:
●​ Simple and easy to apply.
●​ Ensures spending aligns with company revenue.
●​ Helps maintain competitive parity (since all firms spend a similar percentage).

❌ Cons:
●​ Lacks a scientific basis for determining the percentage.
●​ Ignores market conditions and advertising objectives.
●​ Assumes advertising depends on sales, but advertising also influences sales.

B. Objective and Task Method (Most Logical Method)

●​ The budget is based on specific objectives and required advertising tasks.

●​ Steps Involved:
1.​ Define advertising objectives (e.g., increase brand awareness by 20%).
2.​ Identify advertising tasks required to achieve the objectives.
3.​ Estimate the cost of each task.
4.​ Sum up all costs to determine the final budget.

✅ Pros:
●​ Ensures the budget is directly linked to marketing goals.
●​ More scientific and logical than the percentage of sales method.
●​ Helps in long-term strategic planning.

❌ Cons:
●​ More complex and time-consuming to calculate.
●​ Requires detailed market research and cost estimation.

C. Competitive Parity Method

●​ The advertising budget is based on the amount spent by competitors.

●​ Example: If a competitor spends 3% of net sales on advertising, the company may allocate a similar percentage.

✅ Pros:
●​ Helps maintain competitive balance.
●​ Prevents excessive or inadequate spending on advertising.
❌ Cons:
●​ Not suitable for new product launches (no competitor data available).
●​ Ignores company-specific needs and focuses only on competition.
●​ Different companies have different market strategies, so copying competitors may not be effective.

D. Affordable (Fund-Available) Method

●​ Companies spend what they can afford after covering other expenses.

✅ Pros:
●​ Simple and does not put financial strain on the company.
●​ Suitable for small businesses with limited funds.

❌ Cons:
●​ Ignores market competition and advertising needs.
●​ May lead to under-investment, reducing ad effectiveness.

E. Expert Opinion Method

●​ Advertising budgets are set based on recommendations from internal or external experts.
●​ Internal Experts: Marketing managers, sales managers.
●​ External Experts: Consultants, ad agencies.

✅ Pros:
●​ Reduces bias, as multiple experts provide input.
●​ Useful for new businesses without past data.

❌ Cons:
●​ No fixed formula; decisions depend on judgment.
●​ External experts may not fully understand the company’s internal situation.

4. Key Considerations in Advertising Budgeting

1.​ Flexibility – Budgets should allow adjustments based on market changes.
2.​ Timing – Large companies set annual budgets, while small firms may revise quarterly.
3.​ Budget Size – Should align with marketing goals and financial strength.

DAGMAR

DAGMAR (Defining Advertising Goals for

Measured Results)
Introduction
DAGMAR is a model developed by Russell Colley in 1961 to improve advertising effectiveness. The full form of DAGMAR is
"Defining Advertising Goals for Measured Results". This model emphasizes that advertising should have clearly defined
measurable objectives rather than just focusing on creative messaging.

DAGMAR provides a structured approach to setting advertising goals, ensuring that each stage of communication is linked to
consumer behavior. It helps in evaluating the success of an advertising campaign by measuring how well consumers progress
through different stages of understanding and decision-making.

Key Concept of DAGMAR

The DAGMAR approach is based on the idea that advertising should guide consumers through a series of mental stages
before they make a purchase. Colley identified four main stages in this process:

1.​ Awareness
2.​ Knowledge (Comprehension)
3.​ Conviction
4.​ Action

Each stage represents a step in the customer’s journey from being unaware of a product to making a purchase decision.

Four Stages of DAGMAR Model

1. Awareness

●​ Before a consumer can buy a product, they must first be aware of its existence.
●​ The goal of advertising in this stage is to introduce the product or brand to the target audience.
●​ Various media such as TV, social media, billboards, and digital ads are used to ensure that the brand name gets
noticed.
●​ If awareness is not built properly, consumers may ignore the product and prefer competing brands.

Example:

A new smartphone brand launches a nationwide advertising campaign with catchy slogans and eye-catching visuals to make
people recognize its brand name.

2. Knowledge (Comprehension)

●​ Awareness alone is not enough; consumers need detailed knowledge about the product.
●​ This stage involves educating potential customers about the features, benefits, and unique selling points (USPs) of
the product.
●​ Sometimes, companies compare their product with competitors to highlight why it is better.

Example:

An electric vehicle brand not only advertises its name but also provides detailed information about battery life, mileage,
charging speed, and cost savings compared to petrol vehicles.

3. Conviction (Persuasion)
 ●​ At this stage, advertisers try to convince consumers that their product is the best choice.
●​ This is done by building trust and creating a positive perception of the product.
●​ Techniques such as customer testimonials, expert reviews, emotional appeals, and promotional offers are
used to create confidence in buyers.

Example:

A skincare brand shares customer reviews and dermatologist recommendations to convince potential buyers that its products
are safe and effective.

4. Action (Purchase Decision)

●​ The final stage is to motivate customers to take action and buy the product.
●​ Call-to-action (CTA) strategies like discounts, free trials, and limited-time offers are commonly used to encourage
immediate purchases.
●​ The goal is to convert potential customers into actual buyers.

Example:

An online store offers a 20% discount for first-time customers to encourage them to make a purchase.

Importance of DAGMAR Model

●​ Provides clear, measurable advertising goals.
●​ Helps marketers assess whether their ads are effective.
●​ Encourages a structured and logical approach to advertising.
●​ Ensures that advertisements are aligned with consumer decision-making processes.
●​ Allows companies to adjust their advertising strategy based on performance.

Criticism of DAGMAR Model

Although the DAGMAR approach is widely used, it has some limitations:

1. Consumers Do Not Always Follow a Linear Process

●​ In real life, customers do not always go through the four stages step by step.
●​ Some may skip stages, while others may go back and forth before making a decision.

Example: A customer may directly buy a product after seeing a positive review without going through the awareness stage.

2. Too Much Focus on Strategy, Not Execution

●​ The model concentrates heavily on planning and goal-setting but provides little guidance on how to execute
advertising effectively.

Example: A company may define clear advertising goals but fail in creating engaging advertisements.

3. Overemphasis on Creativity

●​ While creativity is important, DAGMAR does not consider other crucial factors like pricing, distribution, and
competition.
●​ Advertising alone may not always be the key factor influencing consumer behavior.
Example: A company may run creative and engaging advertisements, but if the product is overpriced, sales may still remain
low.

Communication Process-basic and elements;

Communication Process: Basics and Elements

Introduction to Communication Process

Communication is the process of imparting, sharing, or exchanging information, ideas, thoughts, attitudes, or views
between two or more people. It plays a vital role in marketing, where organizations use communication to influence customer
behavior, create brand awareness, and persuade potential buyers.

Marketing communication is a complex and dynamic process influenced by factors such as:

●​ The nature of the message.

●​ The audience’s interpretation.
●​ The environment in which the message is received.
●​ The medium used for communication.

For effective marketing, businesses need to craft messages that are clear, persuasive, and targeted to the right audience.
The Integrated Marketing Communication (IMC) approach ensures that all promotional tools (advertisements, public
relations, personal selling, etc.) work together to deliver a consistent message.

Basic Model of Communication

The communication process involves the exchange of messages between a sender (source of the message) and a receiver
(recipient of the message). The process consists of multiple steps, ensuring that the message is properly encoded, transmitted,
decoded, and acted upon.

Elements of Communication Process

1.​ Sender (Source)​

○​ The sender is the individual, group, or organization that initiates communication.

○​ In marketing, the sender is typically the brand, company, or advertiser that wishes to convey a message
to the audience.
○​ The sender determines the objective of communication and selects the best way to present the
message.
2.​ Example: A clothing brand launching a new collection and promoting it through social media ads.​

1.​ Encoding​

○​ Encoding is the process of converting a message into symbols, images, sounds, words, or other
formats that can be understood by the receiver.
○​ The tone, format, and structure of the message must align with the audience’s preferences.
○​ Effective encoding ensures that the message is clear, engaging, and easy to interpret.
2.​ Example: A brand creates an advertisement using catchy slogans, engaging visuals, and emotional storytelling to
connect with the audience.​
1.​ Message​

○​ The message is the content of communication that the sender wants to convey.
○​ It could be in the form of advertisements, social media posts, emails, or TV commercials.
○​ A good message is clear, persuasive, and tailored to the needs of the audience.
2.​ Example: A food delivery app creating a message that highlights "Fast, Fresh, and Free Delivery."​

1.​ Medium (Channel of Communication)​

○​ The medium is the channel through which the message is transmitted from the sender to the receiver.
○​ The choice of medium depends on factors such as the target audience, the nature of the product, and
the objective of the campaign.
2.​ Types of Media Channels:​

○​ Personal Channels: Direct interactions, such as personal selling, face-to-face meetings, and
word-of-mouth communication.
○​ Non-Personal Channels: Mass communication methods, including television, newspapers, social
media, and online advertising.
3.​ Example: A tech company using YouTube ads to demonstrate the features of a new smartphone.​

1.​ Receiver (Target Audience)​

○​ The receiver is the individual, group, or market segment that the sender is trying to reach.
○​ The receiver’s attitude, background, perception, and prior knowledge affect how they interpret the
message.
○​ Effective marketing communication requires an understanding of consumer behavior and audience
segmentation.
2.​ Example: A luxury car brand targeting high-income individuals with premium advertising campaigns.​

1.​ Decoding​

○​ Decoding is the process of interpreting and making sense of the received message.
○​ It depends on the receiver’s experience, cultural background, language proficiency, and knowledge
of the subject.
○​ The effectiveness of communication increases if the sender and receiver share similar experiences or
cultural references.
2.​ Example: A consumer watching an ad for organic skincare products and understanding its benefits due to prior
knowledge of natural ingredients.​

1.​ Feedback​

○​ Feedback is the receiver’s response to the message, which allows the sender to measure the
effectiveness of communication.
○​ It can be direct (a customer purchasing a product after watching an ad) or indirect (social media
engagement, surveys, or customer reviews).
○​ Feedback helps marketers refine and improve future communication strategies.
2.​ Example: A company receives customer feedback through online reviews and modifies its product based on
consumer suggestions.​
 1.​ Noise​

○​ Noise refers to any disturbance or interference that disrupts the communication process.
○​ It can occur due to external distractions, competing messages, unclear wording, or audience
misinterpretation.
○​ Noise reduces the effectiveness of communication, making it difficult for the receiver to understand the
intended message.
2.​ Types of Noise:​

○​ Physical Noise: Loud sounds, poor video quality, or network issues.

○​ Psychological Noise: Biases or preconceptions affecting message interpretation.
○​ Semantic Noise: Use of technical jargon or complex language that the audience cannot understand.
3.​ Example: A television ad airing during a power outage, preventing the audience from viewing it.​

Importance of Analyzing the Receiver in Marketing

Communication
For effective communication, marketers must analyze the target audience’s needs, preferences, and buying behavior.

Levels of Audience Aggregation

1.​ Individuals – Personalized communication through direct marketing and personal selling.
2.​ Groups – Decision-making units, such as family members or organizational buyers, that influence purchases.
3.​ Market Niches – Small, well-defined groups with specialized needs, often targeted through direct mail and niche
advertising.
4.​ Market Segments – Larger groups of consumers with similar needs and preferences, targeted through TV ads,
social media, and mass media.
5.​ Mass Markets – Large audiences targeted through mass communication channels like television, radio, and
online platforms.

Communication Response Hierarchy Models: AIDA Model & Hierarchy of Effects Model

Communication Response Hierarchy Models: AIDA Model & Hierarchy of Effects

Model

Marketing communication plays a crucial role in shaping consumer behavior by guiding them through a structured process of
decision-making. The Communication Response Hierarchy Models help marketers understand how consumers react to
promotional messages and progress from initial awareness to purchase.

The two major models are:

1.​ AIDA Model (Attention, Interest, Desire, Action)

2.​ Hierarchy of Effects Model (Awareness, Knowledge, Liking, Preference, Conviction, Purchase)

These models are essential for designing effective advertising campaigns and understanding consumer psychology in
marketing.

1. AIDA Model
The AIDA Model was developed by E. St. Elmo Lewis in the late 19th century. It describes the four key stages a consumer
goes through before making a purchase decision.
Stages of AIDA Model
Stage Explanation Marketing Example

A – Attention The first step is to grab the consumer’s attention. This can be A bright, bold billboard or viral social
achieved through eye-catching advertisements, slogans, media post introducing a new product.
or creative visuals.

I – Interest Once attention is captured, the marketer must generate A video ad showcasing how the product
interest by highlighting key features and benefits of the solves a problem.
product.

D – Desire The marketer builds a strong desire for the product by Customer testimonials or influencer
making it appealing and relatable. endorsements increase the product's
attractiveness.

A – Action The final step encourages the customer to take purchase A "Buy Now" button in an online ad or a
action. limited-time discount.

Application of AIDA Model in Advertising

●​ Used in digital marketing, TV commercials, direct sales, and print advertisements.

●​ Helps in structuring persuasive advertising messages to drive consumer actions.
●​ Used for designing landing pages, email marketing, and social media campaigns.

Limitations of AIDA Model

●​ Assumes a linear consumer journey, while real-life decision-making is more complex.

●​ Does not account for brand loyalty and post-purchase behavior.
●​ Focuses only on individual consumers, ignoring social or psychological influences.

2. Hierarchy of Effects Model

Developed by Robert Lavidge and Gary Steiner (1961), the Hierarchy of Effects Model describes how advertising
influences consumer decisions through a six-step psychological process.

Stages of the Hierarchy of Effects Model

Stage Explanation Example

1. Awareness The consumer first becomes aware of the A smartphone brand launches a TV commercial.
product through advertising.

2. Knowledge The consumer gathers information about the Visiting a company’s website to read about the phone’s
product's features and benefits. specifications.
 3. Liking The consumer develops a favorable attitude Watching positive customer reviews and testimonials.
toward the product.

4. Preference The consumer starts preferring the product Comparing features of the smartphone with other
over competitors. brands and choosing it as the best option.

5. Conviction The consumer is convinced to buy the Seeing a promotional offer or discount that solidifies
product. the decision.

6. Purchase The final step where the consumer completes Ordering the smartphone online or visiting a retail store
the purchase. to buy it.

Application of Hierarchy of Effects Model in Advertising

●​ Used in brand-building strategies where purchasing decisions take time.

●​ Applicable for high-involvement products like electronics, real estate, and automobiles.
●​ Helps marketers plan multi-stage advertising campaigns to move consumers through the buying process.

Limitations of the Hierarchy of Effects Model

●​ Assumes rational decision-making, while many purchases are impulsive.

●​ Not suitable for low-involvement products (e.g., snacks, daily-use items).
●​ Difficult to measure consumer movement through each stage.

Key Differences Between AIDA Model & Hierarchy of Effects

Model
Aspect AIDA Model Hierarchy of Effects Model

Number of Stages 4 stages (Attention, Interest, Desire, 6 stages (Awareness, Knowledge, Liking, Preference,
Action) Conviction, Purchase)

Focus Immediate sales conversion Long-term brand engagement

Type of Purchase Suitable for impulse buying Suitable for high-involvement purchases

Consumer Behavior Linear decision-making process Gradual psychological progression

Integrated Marketing Communication (IMC) – Meaning and Process

Integrated Marketing Communication (IMC) – Meaning and Process

Meaning of Integrated Marketing Communication (IMC)

Integrated Marketing Communication (IMC) is a strategic approach to marketing communication where different promotional
tools are coordinated and integrated to deliver a consistent and unified message across multiple channels. It ensures that
all marketing efforts work together to create a seamless and impactful communication experience for consumers.

IMC focuses on combining various communication methods such as advertising, public relations, direct marketing, sales
promotion, personal selling, and digital marketing to maximize effectiveness. The primary goal is to present a consistent brand
message and improve customer engagement.

Key Features of IMC

1.​ Customer-Centric Approach – Focuses on building strong relationships with consumers by providing relevant and
personalized communication.
2.​ Consistency – Ensures uniformity in brand messaging across all platforms.
3.​ Synergy – All promotional activities work together to amplify the overall marketing impact.
4.​ Multiple Communication Channels – Uses various mediums like TV, print, social media, and direct marketing for
wider reach.
5.​ Measurable Impact – Helps track and analyze the effectiveness of different communication strategies.

Process of Integrated Marketing Communication (IMC)

The IMC process involves six key steps that help in effective planning, execution, and evaluation of marketing communication
strategies.

1. Identifying the Target Audience

●​ The first step in IMC is to define the target audience based on demographics, psychographics, behavior, and
purchasing patterns.
●​ Different customer segments respond to different types of communication; therefore, understanding the audience
helps in crafting the right message.

2. Establishing Communication Objectives

●​ After identifying the audience, the next step is to set clear and measurable communication goals.
●​ Objectives could include:
○​ Increasing brand awareness
○​ Generating leads
○​ Influencing consumer perception
○​ Driving sales and customer loyalty

3. Designing the Message

●​ The message should be engaging, persuasive, and aligned with the company’s branding.
●​ It should address customer needs, highlight unique selling propositions (USP), and differentiate the brand from
competitors.
●​ The message should be tailored according to the chosen communication channels (TV ads, social media, email
marketing, etc.).

4. Selecting the Right Communication Channels

●​ Companies use multiple channels to maximize impact.

●​ IMC involves both personal and non-personal communication channels:
○​ Personal Communication – Face-to-face selling, customer service, influencer marketing.
○​ Non-Personal Communication – Television, print media, social media, digital ads, PR.

5. Implementing the IMC Strategy

●​ This step involves executing the marketing plan by aligning all communication efforts across different platforms.
●​ Coordination between departments such as advertising, PR, and sales teams is crucial for consistency.
6. Measuring and Evaluating IMC Effectiveness

●​ The final step is to track the performance of IMC campaigns using Key Performance Indicators (KPIs) such as:
○​ Sales growth
○​ Brand awareness metrics
○​ Customer engagement and feedback
○​ Return on Investment (ROI
●​ Marketers use surveys, analytics tools, and customer insights to refine future communication strategies.

UNIT-2

Advertising Appeals & Advertising Copy – Notes for 36 Marks Question

1. Advertising Appeals – Types

Advertising appeal refers to the theme or message strategy used to attract consumers and influence their purchasing
decisions. It is the emotional, rational, or psychological approach used in advertising to connect with the audience.

Types of Advertising Appeals

1. Rational Appeals (Informational Appeals)

These appeals focus on logic, facts, and reasoning. They highlight the functional benefits of the product.

●​ Feature Appeal – Emphasizes unique product features.

●​ Competitive Appeal – Compares the product with competitors (e.g., “Better than the leading brand”).
●​ Price Appeal – Focuses on affordability and discounts.
●​ Quality Appeal – Promotes superior quality (e.g., "100% organic").
●​ USP (Unique Selling Proposition) – Highlights a distinct product benefit.

2. Emotional Appeals

These appeals aim to trigger emotions such as happiness, sadness, fear, or excitement to connect with the audience.

●​ Humor Appeal – Uses comedy to make the ad memorable.

●​ Fear Appeal – Creates concern to drive action (e.g., health warnings in smoking ads).
●​ Love/Romance Appeal – Used in personal care and lifestyle brands.
●​ Happiness Appeal – Associates the brand with positive emotions (e.g., Coca-Cola’s “Open Happiness” campaign).
●​ Nostalgia Appeal – Evokes past memories to create a connection.

3. Social & Ethical Appeals

These appeals address social issues and values to influence consumer behavior.

●​ Moral Appeal – Focuses on right vs. wrong (e.g., anti-smoking, anti-drug campaigns).
●​ Environmental Appeal – Promotes eco-friendly products.
●​ Social Responsibility Appeal – Encourages ethical consumption (e.g., Fair Trade products).

4. Endorsement-Based Appeals

These appeals use influential personalities to build trust and credibility.

●​ Celebrity Endorsement – Uses famous personalities to promote the brand.

●​ Expert Appeal – Uses industry experts (e.g., dentists recommending toothpaste).
 ●​ Consumer Testimonial – Real customers share experiences.

2. Advertising Copy
Advertising copy refers to the text and visuals used in an ad to convey the marketing message effectively. It varies
between print and broadcast advertisements.

Elements of Print Advertisements

Print advertisements appear in newspapers, magazines, billboards, brochures, etc. The key elements are:

1.​ Headline
○​ The most important part of an ad.
○​ Should be attention-grabbing and summarize the key message.
○​ Example: “50% Off on Your Favorite Brands!”
2.​ Sub-Headline
○​ Provides additional details supporting the headline.
○​ Example: “Limited Time Offer – Grab Your Discounts Now!”
3.​ Body Copy
○​ The main content of the ad that explains product benefits.
○​ Can be structured as:
■​ Problem-Solution format
■​ Storytelling approach
■​ Bullet points for clarity
4.​ Slogan/Tagline
○​ A catchy phrase that reinforces the brand identity.
○​ Example: “Just Do It” (Nike).
5.​ Visuals & Graphics
○​ Images, colors, and illustrations that enhance appeal.
○​ Example: A luxury watch ad featuring a high-resolution product image.
6.​ Call-to-Action (CTA)
○​ Encourages the reader to take immediate action.
○​ Example: “Call Now,” “Visit Our Website,” “Order Today.”
7.​ Logo & Branding Elements
○​ Helps in brand recognition and recall.
○​ Example: The McDonald’s Golden Arches logo.

Elements of Broadcast Advertisements (TV, Radio, Digital Ads)

Broadcast advertisements are delivered via television, radio, and online platforms. The key elements are:

1.​ Opening Hook

○​ The first few seconds should grab attention.
○​ Example: A suspenseful scene or an intriguing question.
2.​ Script (Dialogue/Narration)
○​ The spoken content of the ad.
○​ Should be clear, engaging, and easy to remember.
3.​ Background Music & Sound Effects
○​ Used to set the mood and enhance impact.
○​ Example: Dramatic music in car advertisements.
4.​ Jingles
○​ Short, catchy tunes associated with a brand.
○​ Example: “I’m Lovin’ It” (McDonald’s).
5.​ Visual Storytelling
○​ Uses video sequences to convey the message effectively.
○​ Example: A commercial showing happy families using a product.
6.​ Brand Placement & Logo
○​ Ensures the brand is visually present throughout the ad.
 7.​ Call-to-Action (CTA)
○​ Directs viewers/listeners on what to do next.
○​ Example: “Subscribe Now,” “Visit Our Store Today.”

UNIT-3

Types of advertising media & merits and demerits

Here's a detailed explanation of various media types used in advertising, along with their merits and demerits:

1. Print Media

Print media refers to advertising through printed materials such as newspapers, magazines, and directories.

i. Newspapers

●​ Definition: Advertisements placed in daily, weekly, or monthly newspapers.

●​ Merits:
○​ Wide reach across different demographics.
○​ Flexibility in terms of ad placement.
○​ Cost-effective compared to TV or digital ads.
●​ Demerits:
○​ Short lifespan; newspapers are discarded quickly.
○​ Limited color and visual appeal.
○​ Lower engagement compared to digital media.

ii. Magazines and Journals

●​ Definition: Advertisements placed in periodic magazines and industry-specific journals.

●​ Merits:
○​ Targeted audience based on niche interests.
○​ Higher engagement due to quality content.
○​ Better print quality and longer lifespan.
●​ Demerits:
○​ High cost for premium ad placements.
○​ Longer lead time for publishing.

iii. Trade Directories

●​ Definition: Business listings where companies advertise their services in industry-specific directories.
●​ Merits:
○​ Provides direct business visibility.
○​ Used for B2B marketing.
●​ Demerits:
○​ Limited reach.
○​ Outdated quickly due to new businesses emerging.

2. Electronic Media

Electronic media includes advertising through audio-visual formats like radio, television, and cinema.

i. Radio

●​ Definition: Audio advertisements broadcasted on FM/AM radio channels.

 ●​ Merits:
○​ Low cost compared to TV ads.
○​ High reach, especially in rural areas.
○​ Repeated airing increases recall value.
●​ Demerits:
○​ No visual appeal.
○​ Listeners may ignore ads.

ii. Television

●​ Definition: Visual and audio advertisements aired on TV channels.

●​ Merits:
○​ High engagement and wide reach.
○​ Strong emotional impact.
○​ Combination of sight and sound for better recall.
●​ Demerits:
○​ Expensive to produce and air.
○​ Viewers can skip ads using streaming services.

iii. Cinema

●​ Definition: Advertisements displayed before movies in theaters.

●​ Merits:
○​ Captive audience with no distractions.
○​ High visual impact.
●​ Demerits:
○​ Limited to cinema-goers.
○​ Expensive for premium slots.

3. Direct Mail

Direct mail refers to advertising materials sent directly to customers via postal services.

i. Catalogues

●​ Definition: Booklets showcasing products with detailed descriptions.

●​ Merits:
○​ Provides comprehensive product details.
○​ Directly reaches potential buyers.
●​ Demerits:
○​ Expensive printing and mailing costs.
○​ May be discarded without being read.

ii. Circulars

●​ Definition: Single-sheet advertisements distributed to promote offers or events.

●​ Merits:
○​ Cost-effective and easy to distribute.
○​ Good for limited-time promotions.
●​ Demerits:
○​ Often ignored or discarded.
○​ Limited space for information.

iii. Brochures

●​ Definition: Informative booklets used for branding and marketing.

●​ Merits:
○​ Provides detailed information about products/services.
 ○​ Can be visually appealing.
●​ Demerits:
○​ Requires high design and printing costs.
○​ Limited audience reach.

iv. Leaflets and Pamphlets

●​ Definition: Small paper advertisements handed out to the public.

●​ Merits:
○​ Low cost and easy distribution.
○​ Good for local marketing.
●​ Demerits:
○​ Low attention span from customers.
○​ May be thrown away without being read.

4. Outdoor Media

Outdoor advertising focuses on public spaces for brand promotion.

i. Posters

●​ Definition: Large printed ads displayed in public areas.

●​ Merits:
○​ Low-cost marketing tool.
○​ Easy visibility in high-traffic areas.
●​ Demerits:
○​ Limited to static visuals.
○​ Prone to vandalism or weather damage.

ii. Billboards

●​ Definition: Large hoardings placed along roads and highways.

●​ Merits:
○​ High visibility and reach.
○​ Constant exposure to commuters.
●​ Demerits:
○​ Expensive rental costs.
○​ Cannot convey detailed messages.

iii. Wall Writings

●​ Definition: Advertisements painted on walls in urban or rural areas.

●​ Merits:
○​ Low-cost advertising.
○​ Permanent visibility.
●​ Demerits:
○​ Limited aesthetics.
○​ Prone to fading over time.

iv. Hand Bills

●​ Definition: Small paper ads distributed in public places.

●​ Merits:
○​ Cost-effective and easy distribution.
○​ Good for small businesses.
●​ Demerits:
○​ Often ignored by the audience.
○​ Short lifespan.
v. Skywritings

●​ Definition: Messages written in the sky using smoke by aircraft.

●​ Merits:
○​ Unique and attention-grabbing.
○​ Large visibility range.
●​ Demerits:
○​ Very expensive.
○​ Temporary, as messages disappear quickly.

vi. Vehiculars

●​ Definition: Ads placed on public transport like buses, taxis, and metro trains.
●​ Merits:
○​ High mobility ensures a broader reach.
○​ Cost-effective for long-term advertising.
●​ Demerits:
○​ Limited exposure time per viewer.
○​ Difficult to measure effectiveness.

5. Miscellaneous Media

Miscellaneous advertising methods involve unconventional and digital approaches.

i. Telemarketing

●​ Definition: Advertising through phone calls to potential customers.

●​ Merits:
○​ Direct interaction with customers.
○​ Can be personalized.
●​ Demerits:
○​ Considered intrusive.
○​ High rejection rate.

ii. Email Marketing

●​ Definition: Promotional emails sent to potential customers.

●​ Merits:
○​ Low cost and high scalability.
○​ Easy performance tracking.
●​ Demerits:
○​ Can end up in spam folders.
○​ Low response rates.

iii. Online Marketing

●​ Definition: Digital advertising through websites, social media, and search engines.
●​ Merits:
○​ Global reach with precise targeting.
○​ Cost-effective compared to traditional media.
●​ Demerits:
○​ High competition for attention.
○​ Requires continuous optimization.

iv. Window Display

●​ Definition: Showcasing products in retail store windows.

●​ Merits:
 ○​ Attracts walk-in customers.
○​ Enhances brand appeal.
●​ Demerits:
○​ Limited to local audiences.
○​ Requires regular updates.

v. Point of Purchase (POP)

●​ Definition: Ads placed near checkout counters in stores.

●​ Merits:
○​ Encourages impulse buying.
○​ Immediate impact on purchase decisions.
●​ Demerits:
○​ Limited to in-store shoppers.
○​ Requires strategic placement.

😊
Each advertising medium has its own advantages and disadvantages. The best choice depends on the business objective,
budget, and target audience. Let me know if you need a summarized table for easy reference!

Factors affecting adv decisions

1.​ Marketing Objectives of Firm- The development and execution of the media plan must be according to the marketing
objectives of the firm. Company’s overall objectives are the prime considerations in media selection. Different media
have varying capacity to meet the objectives.
2.​ Nature of product- The nature of a product makes it more suitable to one medium than to another. For examples,
Industrial products are advertised mostly in print media than broadcast media; products like cigarettes, alcohols and
wines are never advertised on radio and television. Also, the newness of the product may affect its media decisions.
3.​ Nature of customer- A suitable media plan must be made only after carefully assessing the number, type and nature
of consumers for which advertising is to be done.
4.​ Distribution of the product- If the product or service is to be made available locally or regionally, advertisement
medias having local or regional coverage are selected. For example, local newspapers. If the product or service is to
be made available at a national level, advertisement medias having national coverage are selected.
5.​ Pricing strategy – It can have a noticeable influence on the media plan. Products with a low unit sales price and
limited sales potential should not be advertised through the medium of television as its cost of advertisement is high,
while luxurious products like cars, smartphones, laptops, etc. should be advertised through the medium of television.
In other words, a company cannot spend huge amounts on advertisement of a low-priced product that has a limited
sales potential like second hand text books, while the company spends heavily on advertisement of high-priced
luxurious goods.
6.​ Media reach and coverage – The media which has a wider reach and can cover out target consumers should be
selected.
7.​ Competitive forces – The nature and number of competitors existing in the market also affect the selection of media.
For example, if the print media is captured by competitors, the media planners might opt for television advertising.

UNIT-5

Advertising Agency: Role, types and selection; Agency remuneration - methods

Advertising Agency: Role, Types, Selection

& Remuneration Methods
An advertising agency is a professional service organization that helps businesses create, plan, and execute advertising
campaigns. These agencies provide expertise in brand promotion, media planning, and creative advertising strategies.

1. Role of an Advertising Agency

Advertising agencies act as intermediaries between businesses and their target audience. Their main roles include:

a) Market Research & Consumer Insights

●​ Conduct research on consumer behavior, market trends, and competitors.

●​ Use surveys, focus groups, and data analytics to understand target audiences.

b) Creative Development

●​ Design advertisements for print, TV, radio, digital, and outdoor media.
●​ Create logos, slogans, jingles, and brand messaging to enhance brand identity.

c) Media Planning & Buying

●​ Identify the best advertising channels (TV, social media, billboards, etc.).
●​ Negotiate with media houses for ad placements at optimal costs.

d) Campaign Execution & Monitoring

●​ Launch ad campaigns across multiple platforms.

●​ Track campaign performance using metrics like engagement, reach, and conversion rates.

e) Public Relations & Brand Management

●​ Handle brand reputation and crisis management.

●​ Manage social media, press releases, and influencer marketing.

f) Digital Marketing & Social Media Advertising

●​ Run online campaigns via Google Ads, Facebook, Instagram, and YouTube.
●​ Optimize websites and content for SEO (Search Engine Optimization).

2. Types of Advertising Agencies

Advertising agencies vary based on the services offered, specialization, and client needs.

a) Full-Service Advertising Agency

●​ Provides end-to-end services, including market research, media planning, creative design, and PR.
●​ Suitable for large corporations with diverse marketing needs.
●​ Example: Ogilvy, JWT, McCann Erickson.

b) Creative Boutique

●​ Specializes in the creative aspect of advertising (copywriting, graphic design, video production).
●​ Best for companies needing unique, high-impact advertisements.
●​ Example: Wieden+Kennedy, Droga5.

c) Media Buying Agency

●​ Focuses on purchasing ad space across TV, print, digital, and outdoor media.
●​ Helps brands optimize ad placement and reduce costs.
●​ Example: GroupM, Zenith Media.
d) Digital Advertising Agency

●​ Specializes in online marketing (SEO, PPC, social media, email marketing).

●​ Helps brands create targeted digital campaigns for better audience engagement.
●​ Example: Webchutney, iProspect.

e) Public Relations (PR) Agency

●​ Manages brand reputation, media relations, and crisis management.

●​ Creates press releases, influencer collaborations, and event promotions.
●​ Example: Edelman, Adfactors PR.

f) In-House Agency

●​ A company’s internal advertising team handles all marketing activities.

●​ Helps reduce costs and maintain brand consistency.
●​ Example: Coca-Cola, Apple, Amazon have in-house marketing teams.

3. Selection of an Advertising Agency

Selecting the right agency is crucial for a successful advertising campaign. Companies evaluate agencies based on:

a) Expertise & Industry Experience

●​ Agencies with experience in a specific industry (e.g., FMCG, banking, fashion) are preferred.

b) Creative Portfolio & Case Studies

●​ Review previous advertising campaigns and success stories.

●​ Check innovation, creativity, and effectiveness in past projects.

c) Media & Digital Capabilities

●​ Ensure the agency has strong media planning and digital marketing expertise.
●​ Look for agencies with experience in Google Ads, SEO, and social media.

d) Budget & Cost Structure

●​ Compare agency fees with the company’s advertising budget.

●​ Choose an agency that offers a cost-effective pricing model.

e) Client References & Reputation

●​ Check testimonials, reviews, and ratings from previous clients.

●​ Agencies with good industry recognition are more reliable.

f) Communication & Team Compatibility

●​ Agencies should have clear communication, transparency, and collaboration.

●​ Strong client-agency relationships lead to better campaign execution.
4. Advertising Agency Remuneration – Methods
Advertising agencies are paid through different methods based on their services, campaign scope, and client agreement.

a) Commission-Based Model

●​ Agencies charge a percentage (usually 15%) of the total ad spend.

●​ Common in traditional media like TV, print, and radio.
●​ Advantage: Encourages agencies to optimize ad spending.
●​ Disadvantage: May lead to higher costs for clients.

b) Fee-Based Model (Retainer Fee)

●​ Clients pay a fixed monthly or yearly fee for the agency’s services.
●​ Common for long-term contracts and in-house agency partnerships.
●​ Advantage: Predictable costs for budgeting.
●​ Disadvantage: Fixed fees may not align with campaign success.

c) Project-Based Model

●​ Payment is based on a specific project or campaign.

●​ Suitable for one-time advertising needs (e.g., product launches).
●​ Advantage: Flexible and cost-effective.
●​ Disadvantage: Not suitable for long-term marketing strategies.

d) Performance-Based Model

●​ Agencies are paid based on ad performance metrics like sales, clicks, or engagement.
●​ Suitable for digital marketing campaigns.
●​ Advantage: Ensures agencies are motivated to deliver results.
●​ Disadvantage: Hard to define measurable outcomes in traditional advertising.

e) Hourly Rate Model

●​ Agencies charge an hourly rate for work done.

●​ Used for consultation, market research, and strategy development.
●​ Advantage: Transparent billing for clients.
●​ Disadvantage: Costs can escalate if work takes longer than expected.

Social, ethical and legal aspects of advertising in India

Social, Ethical, and Legal Aspects of Advertising in India

Advertising plays a crucial role in business and consumer decision-making. However, it must be conducted responsibly,
considering social, ethical, and legal factors. In India, advertising is regulated by various laws and ethical guidelines to ensure
fair practices.

1. Social Aspects of Advertising in India

Advertising influences society in multiple ways—both positively and negatively. Some key social aspects include:

a) Impact on Consumer Behavior

 ●​ Advertising shapes consumer preferences, desires, and consumption patterns.
●​ It can create awareness about products and services, leading to informed decision-making.
●​ However, excessive advertising can lead to materialism and unnecessary spending.

b) Promotion of Cultural Values

●​ Some advertisements celebrate India's diversity by showcasing regional languages, festivals, and traditions.
●​ However, misleading or culturally insensitive advertisements can hurt sentiments.

c) Stereotyping and Representation Issues

●​ Gender Stereotypes: Many advertisements reinforce gender roles, portraying women in domestic roles and men as
decision-makers.
●​ Unrealistic Beauty Standards: Cosmetic and skincare brands often promote unrealistic beauty ideals, affecting
self-esteem.
●​ Ethnic and Regional Bias: Some ads favor specific regions or communities, leading to biased perceptions.

d) Advertising and Children

●​ Children are vulnerable to misleading advertisements, especially for junk food and gaming apps.
●​ Unregulated digital ads can lead to excessive screen time and unhealthy habits.

e) Public Service Advertising

●​ Government and NGOs use advertising for social causes like health awareness, anti-smoking campaigns, and road
safety.
●​ Campaigns like "Swachh Bharat Abhiyan" (Clean India) use ads effectively to spread awareness.

2. Ethical Aspects of Advertising in India

Ethical advertising ensures honesty, fairness, and responsibility in communication. Some key ethical concerns include:

a) Truthfulness and Misleading Claims

●​ Advertisements must not deceive consumers with false claims about product effectiveness.
●​ Example: Misleading health drink ads claiming to boost height or intelligence.

b) Comparative Advertising

●​ Some brands compare their products with competitors, but unfair comparisons can mislead consumers and harm
reputations.
●​ Example: Detergent brands often compare washing results, sometimes exaggerating claims.

c) Subliminal Advertising

●​ Some ads use hidden messages to manipulate consumer behavior unconsciously, raising ethical concerns.

d) Use of Celebrities and Influencers

●​ Celebrities and social media influencers must promote only genuine products and services.
●​ Ethical concerns arise when celebrities endorse harmful or substandard products.

e) Privacy and Data Protection

 ●​ With digital advertising, companies collect user data to target ads, sometimes without proper consent.
●​ Ethical advertising should respect user privacy and ensure transparency in data collection.

f) Advertising of Harmful Products

●​ Ethical concerns arise when advertising promotes tobacco, alcohol, or unhealthy foods.
●​ The government regulates such ads, especially for products affecting public health.

3. Legal Aspects of Advertising in India

Advertising in India is governed by various laws and regulatory bodies to protect consumers from misleading or harmful
advertisements. Key legal aspects include:

a) The Consumer Protection Act, 2019

●​ Prohibits false and misleading advertisements.

●​ Allows consumers to file complaints against deceptive advertising.
●​ The Central Consumer Protection Authority (CCPA) monitors unfair trade practices.

b) The Advertising Standards Council of India (ASCI)

●​ A self-regulatory body ensuring ethical advertising practices.

●​ Advertisements must follow ASCI’s Code for Self-Regulation, ensuring honesty, decency, and fairness.
●​ ASCI can take action against misleading advertisements.

c) The Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954

●​ Prohibits false claims in advertisements related to medicines, cures, and health treatments.
●​ Prevents misleading medical advertising.

d) The Cable Television Networks (Regulation) Act, 1995

●​ Regulates advertisements on television to prevent vulgar, misleading, or harmful content.

●​ Ensures that ads do not promote obscenity, violence, or misleading health claims.

e) The Information Technology (IT) Act, 2000

●​ Governs digital advertisements and online marketing.

●​ Prohibits fraudulent and misleading advertisements on digital platforms.
●​ Regulates spam and deceptive online promotions.

f) The Cigarettes and Other Tobacco Products Act (COTPA), 2003

●​ Bans direct and indirect advertising of tobacco products.

●​ Requires statutory health warnings in films and advertisements featuring smoking.

g) Competition Act, 2002

●​ Prevents unfair trade practices, including false advertising and anti-competitive behavior in marketing.

Role of Advertising Standards Council of India (ASCI), Recent developments and issues in Advertising
Role of Advertising Standards Council of India (ASCI), Recent Developments, and
Issues in Advertising

Advertising plays a significant role in influencing consumer behavior and brand perception. However, misleading, unethical, or
offensive advertisements can harm consumers and society. The Advertising Standards Council of India (ASCI) is a
self-regulatory organization that ensures ethical advertising practices. In recent years, advertising has evolved with digital
media, leading to new challenges and regulatory measures.

1. Role of the Advertising Standards Council of India (ASCI)

The Advertising Standards Council of India (ASCI) was established in 1985 as a self-regulatory, non-governmental body
that ensures fairness, honesty, and responsibility in advertising. It works to protect consumers from misleading, offensive, or
unfair advertisements.

a) Objectives of ASCI

●​ Ensure truthfulness and honesty in advertisements.

●​ Prevent advertisements that promote unsafe or harmful products.
●​ Ensure advertisements do not offend public morality or religious sentiments.
●​ Promote fair competition by preventing misleading claims.
●​ Safeguard consumer rights against false and deceptive advertising.

b) Code for Self-Regulation in Advertising

ASCI has developed a self-regulatory code that all advertisers, agencies, and media outlets must follow. The key principles of
this code include:

1.​ Honesty – Advertisements must be truthful and not mislead consumers.

2.​ Decency – Ads must not contain offensive or indecent content.
3.​ Fair Competition – Advertisements should not unfairly discredit competitors.
4.​ Safety and Health – Ads should not promote dangerous products or behaviors.

c) Functions of ASCI

●​ Monitoring advertisements for misleading claims, indecency, or harmful content.

●​ Handling consumer complaints and taking action against false advertising.
●​ Issuing guidelines for advertising standards across industries.
●​ Collaboration with government bodies such as the Ministry of Consumer Affairs for enforcement.
●​ Regulating digital advertising and influencer marketing.

d) ASCI’s Complaint Redressal Mechanism

Consumers, competitors, and regulatory bodies can file complaints against misleading advertisements. The Consumer
Complaints Council (CCC) reviews complaints and directs advertisers to modify or withdraw ads if they violate ASCI’s code.

2. Recent Developments in Advertising

Advertising has evolved with technology, digital media, and changing consumer expectations. Some recent developments
include:

a) Rise of Digital and Influencer Marketing

●​ Social media platforms like Instagram, YouTube, and TikTok have become major advertising channels.
 ●​ Influencer marketing is widely used, leading to concerns about transparency and misleading promotions.
●​ ASCI introduced guidelines in 2021 requiring influencers to disclose paid promotions using hashtags like #ad or
#sponsored.

b) Regulation of Surrogate Advertising

●​ Many brands use surrogate advertising to promote banned products (e.g., tobacco and alcohol) by advertising
soda, music CDs, or events.
●​ The Cigarettes and Other Tobacco Products Act (COTPA), 2003, and ASCI guidelines aim to prevent this
misleading practice.

c) AI and Personalization in Advertising

●​ Artificial Intelligence (AI) is used to create highly personalized advertisements.

●​ Targeted ads based on consumer behavior raise concerns about privacy violations and data protection.

d) Focus on Responsible Advertising

●​ Sustainability and ethical branding have gained importance.

●​ Consumers prefer brands that promote social responsibility, environmental sustainability, and inclusivity.
●​ Companies are shifting towards purpose-driven advertising rather than just selling products.

e) Government’s Increasing Role in Ad Regulation

●​ The Consumer Protection Act, 2019, allows action against misleading advertisements.
●​ The Central Consumer Protection Authority (CCPA) actively monitors advertisements and imposes penalties for
false claims.

3. Issues in Advertising
Despite regulations, several challenges and issues persist in advertising:

a) Misleading and False Advertising

●​ Many brands make exaggerated or false claims about product effectiveness.

●​ Example: Ads for fairness creams promising instant skin whitening.
●​ The Consumer Protection Act, 2019, penalizes such misleading ads.

b) Ethical Issues in Influencer Marketing

●​ Many influencers fail to disclose when they are promoting a product for money.
●​ ASCI’s influencer guidelines (2021) mandate clear disclosures to prevent consumer deception.

c) Promotion of Harmful Products

●​ Advertising of alcohol, tobacco, and unhealthy food products raises health concerns.
●​ Many companies use surrogate advertising to bypass regulations.
●​ Fast food and sugary drinks are often marketed to children, leading to rising obesity rates.

d) Cultural Sensitivity and Offensive Ads

●​ Some advertisements hurt religious, cultural, or social sentiments.

●​ Example: Controversial ads from Fabindia and Tanishq faced backlash for cultural insensitivity.
●​ Advertisers must ensure that ads respect social and religious diversity.
e) Invasion of Privacy in Digital Advertising

●​ Companies track user behavior through cookies and AI-driven algorithms.

●​ Targeted advertising raises concerns about data privacy and consumer consent.
●​ The IT Act, 2000, and Personal Data Protection Bill aim to regulate digital ads.

f) Gender Stereotyping and Objectification

●​ Many advertisements reinforce gender stereotypes, portraying women in traditional roles.

●​ Some ads objectify women to attract male consumers, raising ethical concerns.
●​ ASCI encourages brands to promote gender-neutral and progressive messages.

g) Lack of Consumer Awareness

●​ Many consumers are unaware of ASCI and their right to file complaints against misleading ads.
●​ Stronger consumer education campaigns are needed to empower individuals against deceptive advertising.