Introduction

to
Advertising
Prepared By

Prof.Taiseen Patankar Shaikh

 Defining Modern Advertising
• Advertising is paid persuasive communication

• Uses non-personal mass media to reach broad audiences

to connect an identified sponsor with a target audience.
• According to American Marketing Association:
 “Advertising is any paid form of non-personal presentation and
promotion of ideas, goods and services by an identified
sponsor.”

2
• Advertising includes the name
of a product or service and
how that product or service
could benefit the consumer, to
persuade potential customers
to purchase or to consume
that particular BRAND.
• Modern
advertising developed with
the rise of mass production in
the late 19th and early 20th
centuries.
3
Five basic
components:
1. Paid communication
2. Sponsor is identified
3. Tries to persuade or
influence
4. Reaches a large
audience
5. Conveyed through
impersonal mass
media
4
 The Functions of Advertising
1. Builds awareness of products and brands
2. Creates a brand image
3. Provides product and brand information
4. Persuades people
5. Provides incentives to take action
6. Provides brand reminders
7. Reinforces past purchases and brand
experiences

5
Basic Functions Of Advertising

5
Inform Function
Persuasive Function
Reminder Function
 History & Evolution
• Egyptians used papyrus
to make sales messages
and wall posters.

• Commercial messages
and political campaign
displays have been found
in the ruins of Pompeii
and ancient Arabia.

6
 History & Evolution
• In 1704 The first newspaper advertisement, an announcement seeking a
buyer for an Oyster Bay, Long Island, estate, is published in the Boston
News-Letter.
• In June 1836, French newspaper La Presse was the first to include paid
advertising in its pages.
• Around 1840, Volney Palmer established a predecessor to
advertising agencies in Boston.
• The first radio commercial is credited to WEAF, New York on August 28,
1922 for the Queensboro real estate corporation.
• The world's first television advertisement was broadcast July 1, 1941. The
watchmaker Bulova paid $4 for a placement on New York station WNBT
before a baseball game. 7
• Strategy • The logic and planning behind the ad

• Creative idea • Advertisers develop ads to meet

objectives
• Execution • Advertisers direct ads to identified
• Media audiences

• Advertisers create messages that speak

to the audience’s concerns

• Advertisers run ads in the most

effective media
 Key Concepts of Advertising

• Strategy • The central idea that grabs the

• Creative idea consumer’s attention

• Creativity drives the entire field of

• Execution advertising

• Media
 Key Concepts of Advertising

• Strategy • Effective ads adhere to the highest

• Creative idea production values in the industry

• Clients demand the best production the

• Execution budget allows

• Media
 Key Concepts of Advertising

• Strategy • Communication channels that reach a

• Creative idea broad audience

• How to deliver the message is just as

• Execution important coming up with the creative

• Media idea of the message

 Roles of Advertising

• Marketing • The process a business uses

• Communication to satisfy consumer needs by

• Economic providing goods and

services
• Societal
– Product category

– Target market

– Marketing mix

– Brand
 Roles of Advertising

• Marketing • Can reach a mass audience

• Communication • Introduces products
• Economic • Explains important
• Societal changes
• Reminds and
reinforces
• Persuades
 Roles of Advertising

• Marketing • Moves from being

informational to creating
• Communication
demand
• Economic
• Advertising is an objective
• Societal means for providing price-
value information,
thereby creating a more
rational economy
 Roles of Advertising

• Marketing • Informs consumers about

innovations and issues
• Communication
• Mirrors fashion and
• Economic design trends
• Societal • Teaches consumers about new
products
• Helps shape consumer self-
image
• Perpetuates self-expression
20
 • The purpose or objective behind advertising
• include sales promotion, information and guidance
MISSION
to consumers, developing brand loyalty etc

• (Advertising budget). It means the budget allocation

Money made by the company for advertising

• The message is given through written words, pictures,

Message slogans and so on. The message is for the information,
guidance and motivation of prospective buyers.

• selection of media depends on the budget provided,

Media products to be advertised, and features of prospective
buyers, so on.

• Effectiveness of advertising
Measure
21
 Types of
Advertising
Brand Ad

Brand Ad also known as national consumer focuses on developing a long-term brand

identity and image.

Usually, no retail sales messaging. You can identify a brand name. The ad is driving the
brand’s identity. It is targeted at national consumer.
 Types of
Advertising
Retail / Local advertising
Selling products in certain geographical area

With an aim to create awareness about the brand

by letting people experience the actual product,
the brand has also placed some of its best-selling
chairs on display at the lounge
 Types of
Advertising
Political Advertising- Politicians use advertising to
persuade
people to vote for them or their ideas.
 Types of
Advertising
Directory Advertising used by people
to
find how to
buy a product or service

OLX
Quikr
Click.i
n
Sulekh
a
 Types of
Advertising
Direct Response Advertising
Tries to stimulate sales directly

Sign for direct response ad: Number to

dial, website to login (where u need to
respond
Types ofAdvertising

Business to Business advertising

messages directed at retailers,
wholesalers, distributors, purchasers and
professionals
 Types of
Advertising
Institutional Advertising
Corporate advertising used to establish an
identity or influence public opinion
Types ofAdvertising
Public Service advertising

Also known as nonprofit advertising)

communicates a message for a good
cause
 Types of
Advertising
Interactive Advertising
Delivered to individual consumers who have access to a computer and the
internet
Various Models of
Advertising
 AIDA MODEL
• The design and development of advertising follows the AIDA
formula. The effectiveness of advertising depends upon to what
extent the advertising message is received and accepted by the
target audience.

• American advertising and sales pioneer, Elias St. Elmo Lewis, is

largely credited for developing the AIDA model.

• Research has identified that an advertisement to be effective has to

(i) Attract Attention

(ii) Secure Interest
(iii) Build Desire for the product and finally
(iv) Obtain Action.
 Attention
• Most campaigns rely on a mix of visual stimuli
Typography , Color, Layout , Size , Celebrity , model etc.

• Text is then employed to further grab attention, enticing the

reader to continue reading in search of more information.
That is why the first paragraph of a sales letter, direct mail
piece or ad needs to be the strongest.
· Have you ever...? · Are you noticing...? · Can you see...?

• Presenting a shocking fact or statistic that identifies a

problem
 Interest
• Raise customer interest by focusing on and demonstrating advantages and
benefits .

• Keep them engaged.

• Establish a need, create a bond .

• Being able to establish a need in the mind of a consumer is the

cornerstone of an effective ad campaign.

• A demonstration or illustration can help the recipients to further identify

with the problem and want to actively seek possible solutions

• Hinting at something special to keep their interest in what you have to

say.
 Desir
e
• This is the stage where you stoke the flames of their desire until
they are absolutely certain they have to have what you are selling.

• Convince customers that they want and desire the product or

service and that it will satisfy their needs.

• This is often accomplished through the problem-solution

technique.

• Desire is like a fire, and can be stoked by many methods, such as:
(Scarcity principle), how other people approve of the item etc.

• There are certain barriers here - certain reservations in the mind of

customers. We have to overcome them. We have to convince by
giving evidence, testimonials, endorsements, and facts and figures
 Actio
n
• You've attracted their attention, built their interest and
fanned their desire.

• Lead customers towards taking action and/or

purchasing.

• A call to action should be in every single ad, regardless of

format. Whether it is a special offer, a free gift or time-limited
discount.

• Whether it's going to your website, picking up the phone or

sending an order, the last section of advertisement
needs to contain a powerful call to action.
 Example: Film Industry
• Before the films are to be released, they start with airing their promos on
television. Later they use the outdoor and the press to create more
AWARENESS AND ATTENTION. The producers bank on the star cast,
music, locations and the crew of the film to catch the eyes of the public.

• To create INTEREST among the consumers, they then release the music
and also introduce the theme of the film. The purchase of the music
cassettes and CDs is an indication of the interest generated by their
efforts.

• Later at the DESIRE stage, along with continuous promos on television,

press and hoardings, they have promotions through contests and movie
tickets as prizes. They also have interactive programs like the star cast of
the film visiting different music shops and creating desire among the
audience.

• After all these promos and activities, if the film is successful in creating
interest and desire among the people, there is immediate ACTION which is
seen through purchases of tickets at movie halls.
 Hierarchy-of-Effects Model
Awareness
Cognitive Stage
Knowledge

Liking

Preference Affective Stage

Conviction

Purchase Behavior Stage

Hierarchy-of-Effects Model
• The hierarchy-of-effects theory is a model of
how advertising influences a consumer's decision to purchase or not
purchase a product or service. The hierarchy represents the
progression of learning and decision-making consumer experiences as
a result of advertising.
• The Hierarchy of Effects Model was created in 1961 by Robert J
Lavidge and Gary A Steiner. This marketing communication model,
suggests there are six steps from viewing a product advertisement
(advert) to product purchase. The job of the advertiser is to encourage
the customer to go through the six steps and purchase the product.
Hierarchy-of -Effects
Model
 Awareness : If most of the target audience is unaware of the
object
Knowledge : If target audience might have brand awareness
but
do not know much more.
 Liking : If the audience does not view the value proposition of
the brand favorably.
 Preference : If target audience like the product but not prefer it
to others.
Conviction : If target audience might prefer a particular
product
but not develop a conviction about buying
it.
 Purchase: If target audience might have conviction but not quite
get around to making the purchase
Example-“Lifebuoy se haath dhoya kya”
• Lifebuoy came up with the roti reminder which caught consumer’s
attention. They stamped millions of rotis with its hand washing
message at Kumbh mela.
•  It also placed soap in the washroom of eateries.

•  They gained huge media coverage.

Example – Micromax Turbo
• Awareness – Released teaser starring Hugh Jackman where he tells
the story of a “Hero in
• everyone’s life”. A voiceover said “Presenting the revolutionary new
• Canvas Turbo – Juggling many lives.
•  Knowledge – high speed processor makes multitasking easier.

•  Liking - For the first time A prominent Hollywood actor was made

the brand ambassador for an Indian brand.

• Preference- More features. Less price

• Conviction

• Purchase
 Means End Theory
• An advertisement contains a
message/means to lead the consumer
Personal Values
to a desired end state.
Comfortable life
Equality •  Means End Chain causes a chain
Excitement
Freedom reaction, where viewing the ad leads the
Fun, Exciting Life consumer to believe that product will
Happiness Inner
Peace achieve one of the personal values.
Personal
accomplishment
Pleasure Salvation
‘Security Self
Fulfillment Self
Respect
Sense of Belonging
Social Acceptance
Wisdom
 Example 1- GOOGLE Reunion
Ad
 “Reunion”- an ad depicting two childhood
friends who are reunited following their
separation during the partition of India and
Pakistan went viral online.
 The advertisement explains how the two
friends are brought together again by their
grandchildren using Google searches.
 Personal values- Happiness, Peace,
Sense of Belonging
 Example 2- Airtel “Har ek Friend Zaroori Hota

hai”
Targeting the youngsters (the age group which uses
maximum voice and data services. The ad focused on
the building the brand and telling they are the best
service provider.
 Benefits - Lazy friend- easy recharge and online
bill payment
 Proxy friend- Career guidance
 Kadkee friend – Talk time transfer
 Status update friend- update FB
status
 Personal value- fun, exciting life, happiness, social
acceptance
 Verbal and Visual Imagery
 The model determines degree of emphasis given to
visual elements v/s
the verbal elements in the ad.
 Verbal ad is the central route of brain function.
 Visual images of the ad is processed by the peripheral
route.
 Visual images lead to more favorable attitudes
towards ad and brand.
 High recall value
Example - Heinz
Ketchup
 The ad signifies that Heinz ketchup is
all natural and made mostly of tomatoes
when we all know that its like 75 percent
tomato and the rest is sugar and water.
But the ad really conveys the point by
displaying the ketchup bottle as being
made up of slices of tomatoes.
Advertising
In the advertising communication process there are five key players:

The Advertisers

The Advertising Agencies

The Support Organizations

The Media

The Consumers
Concern

Got Ethics????
Good
Philosophy Bad
Ethics

• The term is derived from the Greek word ethos which can mean
custom, habit, character or disposition.

• Ethics covers the following dilemmas:

• how to live a good life

• our rights and responsibilities

• the language of right and wrong

• moral decisions - what is good and bad?

Introduction
 Ethics
Ethics: Moral and value standards that
act as behavioral guidelines for a
society’s citizens

• Unlike laws and regulations,

ethical codes are generally not
written down
Ethics in Advertising and
Promotion
Ethics: Moral principles and values that govern the
actions and decisions of an individual or group.

A marketing or Marketers must decide

Not all issues can be
promotion action may the appropriateness
regulated
be legal but not ethical of their actions
Marketers encounter constant tension between

The competitive The fear of crossing

drive to develop the the line beyond what
most effective is legal, ethical, and
attention-grabbing socially acceptable
messages possible
What’s illegal and what’s unethical?
• Marketing communications has an obligation to perform legally and ethically, and with the social welfare in
mind.

• Advertising is routinely and legitimately attacked for many of its practices.

• Most of these criticisms come under the heading of unethical rather than illegal practices
• Advocacy – Advertising tries to persuade the audience to do something that is not correct. It is not objective or
neutral.
• Accuracy – Subtle messages trouble critics, especially when aimed at groups such as children, the elderly or the
disabled.
• Acquisitiveness – Consumers are continually persuaded that they continually need more and more new
products. However, consumers make the final decision.
Generic Ethical Principles in
Advertising
• Principles of the moral order must be applied to the domain of media

• Human freedom has a purpose: making an authentic moral response. All attempts to inform and
persuade must respect the purposes of human freedom if they are to be moral

• Morally good advertising therefore is that advertising that seeks to move people to choose and act
rationally in morally good ways; morally evil advertising seeks to move people to do evil deeds
that are self-destructive and destructive of authentic community

• Means and techniques of advertising must also be considered: manipulative, exploitative,

corrupt
and corrupting methods of persuasion and motivation
Specific Moral Principles in
Advertising
• Respect Truthfulness
• Never directly intend to deceive
• Never use simply untrue advertising
• Do not distort the truth by implying things that are not so or withholding relevant facts
• Respect The Dignity Of Each Human Person
• Do not exploit our "lower inclinations" to compromise our capacity to reflect or decide either through its content or
through its impact: using appeals to lust, vanity, envy and greed, and other human weakness.
• Give special care to the weak and vulnerable: children, young people, the elderly, the poor, and the culturally
disadvantaged
• Respect Social Responsibilities
• Example: Concern for the ecology—advertising should not favour a lavish lifestyle which wastes resources and
despoils the environment
Criticisms Concerning The Influence of
Advertising on Society
Puffery/
Creates
fraudulation Untruthful or Offensive or in materialistic
(metaphor of deceptive bad taste demand
idea)

Makes people Comparative Advertising and

buy the Stereotype
things not advertising sex
needed

Improper
Excessive
language
Advertising and Untruthful or Deceptive

General mistrust of advertising

among consumers. Many do not perceive ads as
honest or believable

Abuses involving sales promotions such as contests,

sweepstakes, premium offers

Unethical and/or deceptive practices

involving mail order, telemarketing and other forms
of direct marketing

Internet scams and abuses

 Advertising and
Children

Children's TV
Watching Behavior

Children ages 2-11 80% of all advertising

watch an average of targeted to children
22 hours of TV per falls in four
week and see 30,000 product categories:
commercials per year
Toys, cereal, candy &
fast food restaurants
 Perspectives on Ads for Children

Advocates Argue That Children:

Cannot differentiate
Lack the knowledge and skills to
between programs and
evaluate advertising claims
commercials

Marketers Argue Children:

Must learn Must acquire skills needed to

through socialization function in the marketplace
Social and Cultural Consequences

Does advertising
encourage materialism?

Does advertising make people

buy things
they don’t need?

Is advertising just
a reflection of society?
Economic Impact of
Advertising

Effects on Consumer Choice

• Differentiation
• Brand Loyalty

Effects on Competition
• Barriers to entry
• Economies of scale

Effects on Product Costs and Prices

• Advertising as an expense that increases the
cost of products
• Increased differentiation
 Do you agree with Leo Burnett?

“It must be said that without advertising we

would have a far different nation, and one
that would be much the poorer-not merely
in material commodities, but in the life of
the spirit.”

Excerpters is from a speech given by Leo Burnett on the American

Association or Advertising Agencies’ 50th anniversary, April 20,1967
Why ‘Ethical’ Advertising?

Not to hurt sentiments of the society

Maintain a code of conduct
Avoid misrepresentation
Adhere with social norms
Social acceptance
Helps in image building
 Industry Self-Regulation
Groups
Children’s
Better Business
Advertising
Bureau
Review
Uunitt

National Regulating National

Advertising Groups Advertising
Review Board Review Council

National
Advertising
Division
 Government Oversight

Federal Trade Patent and

Commission Trademark
Office

Government
Oversight

Foreign State and Local

Regulations Regulations
Case Study

Obscene Objectionable Misleading Sexy

Case Study – Nestlé

• In early 70’s claimed to provide baby milk powder which can

replace mother’s milk as baby food.
• Claim proved to be false as
• Lacks nutrients and antibodies found in mother’s milk
• Creates addiction to babies
• High in cost
• Nestlé got banned in USA(1977), U.K.(1980) and Canada(1984).
• Current Status
• Nestlé boycott is currently coordinated by the International Nestlé
Boycott
• Committee
• Company practices are monitored by the International Baby Food Action Network
(IBFAN)