Advertising

The word Advertising originates from a latin word advertire, which means to turn to. The dictionary meaning of this term says to
give public notice or to announce publicly. It may be defined as the process of buying sponsor identified media space or the time
to promote a product or an idea. It is the most visible of all the elements in the promotion mix, and is therefore, subject of much
criticism from consumer groups. It is also subject to government regulation.
Advertising vs Publicity
Advertising
Paid and commercial in nature
Sponsored communication designed to influence
buyer behaviour
Non-personal (Visual, spoken or written)
Directed at mass audience
Sponsored authority
Intention is there

Publicity
Unpaid
Journalists/Reporters designs news or information to
be provided
Personal
Unsponsored/only media house is involved
There may be or may not be an intention

Philip Kotler
It consists of non-personal forms of communication conducted through paid media under clear sponsorship.
Advertising is designed to arouse the demand of the target group, i.e., potential customers.
American Marketing Association
States advertising as any paid form of non-personal presentation and promotion of ideas, goods and services by an identified
sponsor.
Advertising as a part of Promotion Mix
As we all know that advertising, sales promotion, publicity and personal selling are the four elements in the promotion mix.
Among them, advertising has been considered as a most effective method of promotion, as it creates demand, stimulates sales, and
reaches customers quickly and effectively. It is cost-effective method for communication with large audiences. Radio, TV,
Newspapers, Billboards and magazines, etc. are some of the examples of mass communication media used for advertising.
Advertisement carries a message motivating and inspiring customers to purchase a particular product. Message can be in the form
of written text, sound, colour, etc. or can be combined together to make the message very effective and is designed to influence the
target group.

Characteristics of Advertising
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It is an element of Marketing Mix.

Most effective method in Promotion Mix.
It is a cost effective method of mass communication.
Consist of an inspiring/motivating message for the customers to buy.
A paid activity.
Sponsored activity.
Persuasive and informative message to motivate potential customers.
Controlled time, place, message and direction.
Identifiable advertisement.
Setting of a target group

Importance of Advertising
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2.
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Realisation of marketing objectives.

Role in politics
Promoting consumer satisfaction.

4.

Influencing economic growth

Role of advertising
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Low-cost way of conveying selling messages to numerous prospects, and is important in most marketing programmes.
It can be used to stimulate market demand.
It secures leads for salesmen and middlemen by convincing readers to request more information by identifying outlets
handling the product.
It helps dealers salesmen in product uses and applications.
Builds dealer and consumer confidence
Assists selling task by using advertising to pre-sell customers.
Performs informative and educative task for the society.
Helps to increase mass marketing while aiding the consumer to choose from amongst the variety of products offered for
selection.
Inform customers of the choices available to them.

Various types of advertising to mould general public opinion

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2.
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Product related advertising

i.
Pioneering
ii.
Competitive
a. Direct
b. Indirect
iii.
Retentive Advertising
Institutional Advertising
Public Service Advertising

Models of Advertising Budget

Theoretical Issues in Budget Setting
The theoretical basis o fbudget is rooted in marginal analysis or contribution margin analysis. According to this analysis a firm
would continue to spend money on advertising as long as the marginal revenues created by these expenditures exceed the
incremental advertising costs. The optimal expenditure level is at the point where M.C. equals M.R. The analysis suffers from the
weakness of
a) It assumes sales as a direct result of advertising expenditure
b) That advertising are solely responsible for sales this assumption ignores the marketing mix of price, product and
distribution.
i) Sales-Response and Decay Model (by Vidale and Wolfe)
In this model, the change in the rate of sales at a time is a function of four factors
Advertising budget (A)
Sales-response constant (r)
Saturation level of sales (M)
Sales-decay constant ()
The basic equation is dS/dt = rA(M-S/M) S
ii) Adaptive-Control Model
This advertising budgeting model assumes that the advertising sales-response function is not stable but changes through time. But
because of changing competitive activity, advertising copy, product design, and economic climate the parameters are not stable.

John D.C. Little proposed the following adaptive control method for setting advertisement expenditures. Suppose the company
has set its advertising expenditure rate for the coming period based on its most current information on the sales function. It spends
in all markets except in subset of 2n markets randomly drawn. In n of the test markets the company spends at a lower rate and in
the other n it spends at a higher rate. This will yield information on the average sales created by low, medium and high rates of
advertising that can be used to update the parameters of the sales-response function, which is used as a guiding factor in
determining the next best possible advertising-expenditure rate for the next period.
iii) Competitive-Share (Parity) Model
This model takes competitors expenditure into account. While there are many competitors, none of whom is large; or where it is
difficult to know what competitors are spending, a firm try to gather the information regarding advertisements that are showed in
different media and try to maintain competitive parity.
In other words, it is difficult to state that only a firm advertising expenditure will generate more sales. Sometimes a by building a
far superior quality product can also lead to higher sales generation.
Budgeting Approaches
a) Affordable method i.e. what the firm can afford to spend on advertising.
b) Arbitrary method i.e., budget amounts are set aside on an arbitrary method.
c) Percentage of sales method i.e. advertisement budget is based on sale of the product.
d) Return on investment method i.e. advertisement investment is also expected to earn certain return.
Steps in deciding on the message
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Message Generation
Inductive method (by talking to customers, dealers, experts and competitors)
Deductive method (Crossing four types of reward i.e. rational, sensory, social & ego with three types of experience
generate twelve types of advertising messages)
Message evaluation and selection (desirability, exclusiveness and believability)
Message execution
i)
Execution styles
a) Slice of life
b) Lifestyle
c) Fantasy
d) Mood/Image
e) Musical
f) Personality symbol
g) Technical expertise
h) Scientific evidence
i) Testimonial evidence
j) Tone
ii)
Words (memorable and attention getting words)
Theme
Creative copy
7-up is not a cola
The Un-Cola
Let us drive you in our bus
Take the bus, and leave the driving to us
instead of driving your car
iii)

4.

Headlines - Creative is especially required for headlines. There are six basic types:
a) News (New boom and more inflation...what you can do now)
b) Question (Have you had it lately?)
c) Narrative (They laughed when I sat down at the piano to play...)
d) Command (Dont buy until you try)
e) Ways (10 way sto save your tax)
f) How-What-Why (Why they cant stop buying)

Format
Ad size, colour and illustration

Steps in deciding on the media

1.

Deciding on Reach, Frequency and Impact

Media selections is the problem of finding the most cost-effective way to deliver the desired number of exposures to the
target audience such as
(How many exposures to produce a level of awareness). Effect of exposures on audience awareness depends on the
exposures reach, frequency and impact.
a) Reach (R)
The number of different persons or households exposed to particular media schedule at least once during a specified
time period.
b) Frequency (F)
The number of times within the specified time period that an average person or household is exposed to the message.
c) Impact (I)
The qualitative value of an exposure through a given medium.

Media Planning the media planning challenge is a s follows suppose the media planner is willing to use average-impact
media. This leaves the task of deciding how many people to reach with what frequency. It would make sense to settle the issue of
frequency first. Once this target frequency is decided then reach will fall into place. Many advertisers believe that the target
audience needs a large number of exposures for the advertising to work. Too few repetitions may be a waste. According to Darrell
B. Lucas and Steuart Henderson Britt, It can be reasoned that introductory advertisements make too weak an impression to
initiate much interest in buying. Succeeding advertisements may sometimes be more effective by building up already established
weak impressions to the action level. Many researchers doubt the value of many exposures. They feel that after people see the
same ad a few times, they either act on it, get irritated by it, or notice it. The job of advertising repetition is partly to put the
message back into memory. The higher the forgetting rate associated with that brand, product category, the higher the warranted
level of repetition.
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Choosing among major media types (newspapers, TV, direct mail, radio, etc.) The media planner has to know the
capacity of the major media types to deliver reach, frequency and impact.

Advantages and disadvantages of major media types

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Newspapers
Advantage: Flexibility, timeliness; good local market coverage; broad acceptance; high believability.
Limitations: Short life, poor reproduction quality; small pass-along audience.
Television
Advantage: Combines sight, sound and motion; appealing to the senses; high attention, high reach.
Limitations: High absolute cost; high clutter; fleeting exposure; less audience selectivity.
Direct Mail
Advantage: Audience selectivity, flexibility; no ad competition within the same medium: personalization
Limitations: Relatively high cost junk mail
Radio
Advantage: Mass use; high geographic and demographic selectivity; low cost
Limitations: Audio presentation only; lower attention than TV; non-standardized rate structures; decreasing exposure
Magazines
Advantage: High geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long-life;
good pass-along readership
Limitations: Long ad purchase lead time; some waste circulation; no guarantee of position
Outdoor
Advantage: Flexibility; high repeat exposure; low cost; low competition
Limitations: No audience selectivity; limitations in creativity

Variables of choice for media planers considering variables such as

a) Target-audience media habits (e.g. Radio/TV most effective in reaching teenagers)
b) Product (e.g. Polaroid cameras best displayed in TV)
c) Message (e.g. announcing a major sale through newspapers)
d) Cost (e.g. TV costly; newspaper less expensive)

e) Selecting specific media vehicles (e.g. before selecting a magazine the media planner goes through its
circlulation/costs/credibility/prestige/reproduction quality/editorial/lead time/psychological impact on readers/geographical
detaining/occupational auditioning).
f) Deciding on media timing
Macroscheduling the ad over a particular period (when, or at what time of the day it needs to be shown)
The firm can vary its advertising expenditure to follow the seasonal pattern, to oppose the seasonal pattern or to be constant
throughout the year. It also has to decide whether the expenditures should be intense, less intense or proportional than the amount
of sales.
Microscheduling problem calls for allocating a set of advertising exposures over a short-period of time to obtain the maximum
impact.
a) Timing pattern (buyer turnover, purchase frequency, forgetting rate)
b) Launching (continuity is achieved by scheduling exposures evenly within a given period while pulsing refers to scheduling
exposures unevenly over the same time period)

Some advertising concepts

Copy
Text (collection of words) of a print, radio, or television advertising message that aims at catching and holding the interest of the
prospective buyer, and at persuading him or her to make a purchase all within a few short seconds. The headline of an advertising
copy is said to be the most important part, and quite often a small change in its wording brings disproportionate results. Although
a short advertising copy is more common in consumer-product advertising, according to the UK advertising guru David Ogilvy
(1911-1999) people do read (and listen or attend to) lengthy advertisements if they are skill-fully written. Most advertising copy is
based on advertising/consumer research and is composed by professional copywriters hired by advertising agencies. Also called
advertisement copy, ad copy, or just copy.
A logo is a graphic mark or emblem commonly used by commercial enterprises, organizations and even individuals to aid and
promote instant public recognition. Logos are either purely graphic (symbols/icons) or are composed of the name of the
organization (a logotype or wordmark).
Its hard to think of an industry where logo designs are more important than in marketing. Marketing is an intensely image based
business where appearances are everything. Customers will be looking at the way you brand and market yourself, including your
logo design, as an example of your best work. This means that marketing logos are one of the most important parts of your
businesss success.
People who work as consultants know that logos are all around us. If you look at your car, your computer, your shoes, or even
your dish soap, you will see a logo. Chances are good that you chose these products in part due to these logos and what they mean
to you personally. Our world is covered with logos, and with good reason. Logos are a companys best way of communicating and
building a relationship with the customer. Similarly, branding can help you develop a relationship with people who are prospective
clients.
Have a unique identity. Its hard to explain the Nike logo to someone who has never seen it; nonetheless, most people associate it
indelibly with the famous shoe company and its tagline. This is the power of an identity. These brands dont have to follow the
rules as long as they create an identity that customers will come to associate with you. Being unique is the only way to stand out
in a world where people encounter tens of thousands of logos every day.
Be consistent. These logos must be consistent with the rest of the company brand as well as with the customer experience. If you
are a fun, easygoing operation, let this attitude be expressed in your logo. Similarly, if you are more formal and traditional, this is
something to explain to your logo designer. Another thing to consider is colors and shapes. If there are certain colors or shapes that
are used throughout your locations, be sure to use these are used in your logo as well. Make sure your style is consistent between
your locations and your logos so customers always know exactly what to expect.
To use the logo everywhere. There is a lot of competition in this industry, but you can come out ahead by making sure your logo
gets as much exposure as possible. Once your logo is complete, it should be included on all company communications, both on

paper and on the internet, as well as signage, websites, word of mouth marketing and anywhere else it will fit. This branding will
do a company no good if they are never seen by the potential customers who have the ability to make or break your business.
Because you involved in this industry, you know how important image can be. Think of your logo design as a way to
communicate as in email marketing your image to your customer base. Let a professional with experience in the field design a
logo that will gain positive attention from your community and help your company to build an image.
Illustrations
Illustrations are set to work in advertising fundamentally to catch the eye of the reader. Commercial art is as much a substantial
part of the basic selling idea as the most persuasive text. It most completely and satisfactorily justifies itself when it merges with
the fabric of the copy.
Advertisers are periodically called upon to decide whether or not their campaigns shall be illustrated. The most supporters of
pictures in advertising will admit that occasions arise and peculiar conditions develop, which call for all type display. To use
illustrations for the sake of "having pictures in the advertisement" is a false premise and folly.
The value of white space is regulated by what is put into it. The page of the periodical is an empty vessel, until hard work coupled
with genius, sets it aflame with reader interest. The progress of trade journals has, until recently, been retarded by the oldfashioned idea that because the space was moderate in cost, the quality of its contents need not rise above a restrained level.
Briefly put, the several objectives of illustrations in advertising are as follows:
1. To visualize the product, that an advertisement may become a show case, a counter, a store shelf.
2. To picturize the story of a service performed, its pleasures, its convenience, its profit, its utilitarian advantages.
3. To whet a desire for the product, either through a reflection of service or through the beauty of appearance.

4. To provide essential "atmosphere." Products and projects, in themselves rather commonplace or uninspiring, maj' be made to
take on unexpected aristocracy.
5. To implant, in the public mind, a consciousness that one product of a class is superior to all others. And here again
"atmosphere" is the chief ingredient.
6. To "humanize" the inanimate. Certain advertised articles seem to demand this artificial stimulus.
7. To demonstrate an argument or a service visually where words might fail, when unaccompanied by illustrations or by diagrams.
8. To create that impelling desire on the part of the prospect to read the advertising message, which is inherent in all art. Art
embellishment is to advertising what stage scenery and costumes are to drama.
9. To individualize one campaign from another a growing necessity where products are widely duplicated and as widely
advertised.
10. To familiarize people with packages, containers, the physical appearance of the thing advertised that there may be no
consequent confusion.
11. To bring home, as words could never hope to do, the magnitude, traditions, and institutional functioning of an enterprise.
12. To make the tie-up more complete between the point of final buyer contact and the advertising which has aroused a desire to
purchase.
13. To supply continuity, thereby solidifying and unifying a progressive series of advertisements.
14. To put the prospect in a more receptive mental frame of mind, due, in part at least, to skilful play upon emotions.
15. To dramatize the undramatic.
16. To influence the dealer the seller of the goods, whose interest, collaboration, and enthusiasm are absolutely indispensable.
17. To make mechanical problems easier of understanding.

18. To make it "eye catching" for the careless, indifferent eye, not inclined to read text.

Layout
Advertising layout definition is the design or final arrangement of something that is laid out and waiting to be reproduced
especially by printing e.g advertisement, magazine book etc. It lays out several graphic elements e.g color, body, headlines and
establishes the overall appearance and importance and is usually prepared to explore different arrangements before the final
layout.
Ten Components of a Good Ad Layout
1. Border. How do we separate the ad from the surrounding type?with a border. Borders should complement the look that you
are developing with your ad and should never be the most prominent part of your ad. Straightforward and simple is best.
2. Heading. Ad legend David Ogilvy stated once that The headline is a key part of the sales message; no matter how well the ad
is presented, it cant succeed if it is not read. If your headline does not include a selling message, you may be wasting 80 percent
of your dollars. Following the headline, youll have subheads that either clarify or amplify the thought in the headline. Subheads
should be handled in much the same way as headlines, but are visually weighted somewhere between the body copy and the
heading.
3. Illustrations. A highly effective way to draw the readers attention to an ad is with the illustration. Studies have shown that an ad
with an illustration that takes up 50 percent or more of the ad space increases readership by as much as 37 percent.
4. Price- Price is an important (and often dominant) element in a layout. Many local advertisers build their ads around the price.
You can accent price in several ways: (1) as part of the heading, (2) the core the ad is built around, (3) preceding the copy, and (4)
in the text space.
5. White space. Use as much white space as you can afford to use. It minimizes distraction and draws attention to what matters
most.
6. Body copy. Body copy expands benefits offered in the headline. The power of well written advertising copy is proven by the
billions of dollars of sales directly resulted from great newspaper advertising. Benefits should be written as though you were
making friendly, personal conversation.
7. Signature. The signature is often a logotype. Though often used synonymously with logo, signature means the name of the
advertiser in any form, and unlike the logo, may change form from one ad to the next. Remember not to let the signature
overpower other important aspects.
8. The one second test. The one second test is a way of determining whether a reader can tell at a glance what the advertiser is
selling. You should be able to look at a layout for a second, then close your eyes and recall its sales message. If you didnt get the
message, you need to improve the layout. Another factor that affects eye appeal is concentration, grouping your selling points into
display headings and text masses.
9. Color. Try to achieve contrast in layout by effective use of different size type, bold type and color. If you can, try to fit color
into your advertising budget. Introducing color increases impact.
10. Creativity. Simplicity, focal point and sequence in mind, will be appealing to the eye. However, some ads are more visually
appealing than others. The difference is in creativity.
Campaign Planning
An advertising campaign is a series of advertisement messages that share a single idea and theme which make up an integrated
marketing communication (IMC). Advertising campaigns appear in different media across a specific time frame of frequent flyers
points.
The critical part of making an advertising campaign is determining a campaign theme as it sets the tone for the individual
advertisements and other forms of marketing communications that will be used. The campaign theme is the central message that
will be communicated in the promotional activities. The campaign themes are usually developed with the intention of being used
for a substantial period but many of them are short lived due to factors such as being ineffective or market conditions and/or
competition in the marketplace and marketing mix.

5Ws and 1H of campaign

Effective campaign must answer 5Ws and 1H:
Who: The target audience/segment or target market.
What: What is to be said to elicit the desired response. What to say? It includes the key communication proposition.
Where: Where our target audience located, wha media do they attend to. It include the media vehicals for the campaign.
Why: The objectives of the campaign, both advertising and marketing objectives.
When: It decides the timetable. Some products are all season, while other are seasonal. It includes the scheduling of the campaign.
How: The crucial strategy. It is the art and science of deploying available resources to attain objectives in the face of active
competition. Strategy needs to cover both creative and media angle.