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Advertising Management: Meaning, Nature and Scope of

Advertising
Meaning of Advertising - Advertising is an activity of attracting public
attention to a product or business, as by paid announcements in the print,
broadcast, or electronic media.
Advertising is a paid form of a non-personal message communicated through the
various media by industry, business firms, nonprofit organisations, or individuals.
Advertising is persuasive and informational and is designed to influence the
purchasing behaviour and/or thought patterns of the audience. Advertising is a
marketing tool and may be used in combination with other marketing tools, such
as sales promotions, personal selling tactics, or publicity.
Definition of Advertising - Advertising is defined differently by different
people, some of the definitions are as follows:
According to Richard Buskirk, "Advertising is a paid form of non-personal
presentation of ideas, goods or services by an identified sponsor."
According to Wheeler, "Advertising is any form of paid non-personal
presentation of ideas, goods or services for the purpose of inducting people to
buy."
According to William J. Stanton, "Advertising consists of all the activities
involves in presenting to a group, a non-personal, oral or visual, openly
sponsored message regarding disseminated through one or more media and is
paid for by an identified sponsor."
Objectives of Advertising - The real objective of advertising is effective
communication between producers and consumers with the purpose to sell a
product, service, or idea. The main objectives of advertising are as follows:
Informative
Objective of advertising is to inform its targeted audience/customers about
introduction of new product, update or changes in existing products or product
related changes, information regarding new offers and schemes. Informative
advertising seeks to develop initial demand for a product. The promotion of any
new market entry tends to pursue this objective because marketing success at
this stage often depends simply on announcing product availability. Thus,
informative advertising is common in the introductory stage of the product life
cycle.
Persuasive
Objective of advertising is to increase demand for existing product by persuading
new customer for first time purchase and existing customers for repurchases.
Persuasive advertising attempts to increase demand for an existing product.
Persuasive advertising is a competitive type of promotion suited to the growth
stage and the early part of the maturity stage of the product life cycle.
Reminder
The objective of advertising is to remind customers about existence of product,
and ongoing promotional activities. Reminder advertising strives to reinforce
previous promotional activity by keeping the name of a product before the

public. It is common in the latter part of the maturity stage and throughout the
decline
stage
of
the
product
life
cycle.

Mathews, Buzzell, Levitt and Frank have listed some specific objectives of
advertising.
To make an immediate sale.
To build primary demand.
To introduce a price deal.
To build brand recognition or brand insistence.
To help salesman by building an awareness of a product among retailers.
To create a reputation for service, reliability or research strength.
To increase market share.
COMMUNICATION IS ADVERTISING WHEN THREE CRITERIA ARE MET

Communication Must be Paid For

Communication Must be Delivered to an Audience via Mass Media

Communication Must be Attempting Persuasion

ADVERTISING, ADVERTISEMENTS, AND ADVERTISING CAMPAIGNS

Advertising Paid, Mass-Media Attempt to Persuade

Advertisement Specific Message Placed to Persuade an Audience

Advertising Campaign Series of Coordinated Advertisements that


Communicate a Reasonably Cohesive & Integrated Theme

Theme May Be Made Up of Several Claims Should be Essentially One Theme


Advertising Campaigns may be Developed Around a Single or Several
Advertisements
Audiences for Advertising: Audience and Target Audience
Audience Categories
Household Consumers
Business Organizations
Trade Channel
Professionals
Government

Advertising Classification of Advertising

5 Different Classifications of Advertising are as follows:


(1) Primary v. Selective Advertising:
One way of classifying advertising is into primary as against selective demand
advertising. The objective of commercial advertising is generally to stimulate
demand for the goods or services of the company placing the advertisement.
Demands are of two types namely, primary demand and selective demand. The
demand for a generic product of a whole industry is described as primary
demand such as the demand for motor cars, television receivers, etc.
Selective demand refers to demand for a particular brand such as Fiat motor
cars. Generally, primary demand advertising is indulged in by trade associations
to create a general demand for the products of the industry concerned. Selective
demand advertising is loaned by the companies who are interested in selling
their own products.
(2) Product v. Institutional Advertising:
The commonest type of advertising is product advertising, where the company
tries to sell its product or service through advertising. At times however, the
objective of the company is to create a good image or sell ideas.
This is referred to as institutional advertising to distinguish it from product
advertising. For example, institutional advertising may be of the patronage
institutional advertising type. Here the objective is to sell the idea to the reader
to patronize particular producer or shopkeeper or retailer for reasons mentioned
such as wider selection, reliability, etc.
As against this, there is also public relations institutional advertising indulged
in more today to create a better image to the public. For example, when there is
a strike which affects the community both the employer and at times even the
employees advertise in the papers to justify their own stand.
These are illustrations of public relations institutional advertising. A slight
variation of this is called the public service institutional advertising, where the
company attempts to create the image that it is conscious of social service and
indicates how it helps the community such as developing a village and so on.
(3) Institutional Sports Sponsorship:
Another form of Institutional Image Advertising is the modern trend of companies
sponsoring sports events. The two outstanding illustrations are (i) the Charminar
Challenge sponsorship by Vazir Sultan Tobacco Company and (ii) the Reliance
Cup sponsorship of the 1987 World Cup Cricket Championship by Reliance
Industries Ltd.

Under the Charminar Challenge umbrella, VST sponsors a wide variety of events
ranging from cricket, badminton, table tennis and golf to car-rallying.VST sports
sponsorship budget is estimated at Rs.1.5 crores per annum.
The Ranji Trophy, the Deodhar Trophy and all one-day internationals for the
period 1986-89 will be Charminar Challenge championship matches, which ties
up the domestic circuit pretty comprehensively. Charminar is the identity of the
company.
The word challenge is inspiring, competitive and adventurous. This gives the
way for a suitable image for VST and is close to the identity of the companys
products.
This is therefore an entertainment-related corporate image and brand advertising concept. Reliance Industries Ltd. paid a mammoth sum of Rs.4.8 crores. This
sponsorship was done to ensure that an Indian company sponsored the
prestigious 1987 World Cup Cricket event.
This patriotism certainly improved the companys image. The Reliance Cup
extravaganza focused attention on the commercial and promotional potential
inherent in the corporate sponsorship of sports.
(4) Commercial v. Non commercial Advertising:
Commercial advertising is concerned with selling a product or an idea to help a
commercial institution. It may consist of consumer advertising aimed at the
ultimate consumer or business or industrial advertising aimed at industrial
producers inducing them to purchase the product.
It may even include professional advertising directed at professionals such as
doctors, lawyers, etc. Non-commercial advertising is advertising indulged in by
non-profit organization such as the government or charitable institutions to
support ideas, solicit donations, etc.
The methods used for preparing the advertisements are however the same
whether one is concerned with commercial or non-commercial advertising.
(5) Classification by Media:
Advertising can also be classified in terms of the media used such as window
dressing in case of shops, press advertising, outdoor advertising and the use of
advertising literature.
The several forms media will now be detailed in the subsequent chapters
followed by discussions on preparation of an advertisement as well as an
advertising campaign.

Types of advertising
Virtually any medium can be used for advertising. Commercial advertising media
can include wall paintings, billboards, street furniture components, printed flyers
and rack cards, radio, cinema and television adverts, web banners, mobile
telephone screens, shopping carts, web popups, skywriting, bus stop
benches, human billboards and forehead advertising, magazines, newspapers,
town criers, sides of buses, banners attached to or sides of airplanes
("logojets"), in-flight advertisements on seatback tray tables or overhead storage
bins, taxicab doors, roof mounts and passenger screens, musical stage shows,
subway platforms and trains, elastic bands on disposable diapers, doors of
bathroom stalls, stickers on apples in supermarkets, shopping cart
handles (grabertising), the opening section of streaming audio and video,
posters, and the backs of event tickets and supermarket receipts. Any place an
"identified" sponsor pays to deliver their message through a medium is
advertising.
1. Television advertising / Music in advertising
2. Infomercials
3. Radio advertising
4. Online advertising
5. New media
6. Product placements
7. Press advertising
8. Billboard advertising
9. Mobile billboard advertising
10.In-store advertising
11.Coffee cup advertising
12.Street advertising
13.Sheltered Outdoor Advertising
14.Celebrity branding
15.customer-generated advertising
16.Aerial advertising

Advertising Appropriation
The portion of the total marketing budget that is allocated to advertising over a
specific time period. The advertising appropriation policy for a company may be
based on any one of a number of approaches. For example, spending an amount
on advertising that is a fixed percentage of sales or based on the ad spend level
of the competition.
In practice, the amount of the advertising appropriation is not very easy to
establish. This is because of the lack of a definite relationship, in most cases,
between the amount of advertising and the company's sales and profitability.
Advertising appropriation is also sometimes referred to as advertising budget.

Advertising campaigns Process of Advertising


Advertising campaigns are the groups of advertising messages which are similar
in nature. They share same messages and themes placed in different types of

medias at some fixed times. The time frames of advertising campaigns are fixed
and specifically defined. The very prime thing before making an ad campaign is
to know- Why you are advertising and what are you advertising ?
Why refers to the objective of advertising campaign. The objective of an
advertising campaign is to

Inform people about your product

Convince them to buy the product

Make your product available to the customers

The process of making an advertising campaign is as follows:


1. Research: first step is to do a market research for the product to be
advertised. One needs to find out the product demand, competitors, etc.
2. Know the target audience: one need to know who are going to buy the
product and who should be targeted.
3. Setting the budget: the next step is to set the budget keeping in mind all
the factors like media, presentations, paper works, etc which have a role in
the process of advertising and the places where there is a need of funds.
4. Deciding a proper theme: the theme for the campaign has to be decided
as in the colors to be used, the graphics should be similar or almost similar
in all ads, the music and the voices to be used, the designing of the ads,
the way the message will be delivered, the language to be used, jingles,
etc.
5. Selection of media: the media or number of Medias selected should be the
one which will reach the target customers.
6. Media scheduling: the scheduling has to be done accurately so that the ad
will be visible or be read or be audible to the targeted customers at the
right time.
7. Executing the campaign: finally the campaign has to be executed and then
the feedback has to be noted.
Mostly used media tools are print media and electronic media. Print media
includes newspaper, magazines, pamphlets, banners, and hoardings. Electronic
media includes radio, television, e-mails, sending message on mobiles, and
telephonic advertising. The only point to remember is getting a proper frequency
for the ad campaign so that the ad is visible and grasping time for customers is
good enough.
All campaigns do not have fix duration. Some campaigns are seasonal and some
run all year round. All campaigns differ in timings. Some advertising campaigns
are media based, some are area based, some are product based, and some are
objective based. It is seen that generally advertising campaigns run successfully,
but in case if the purpose is not solved in any case, then the theory is redone,

required changes are made using the experience, and the remaining campaign is
carried forward.

Customer and Competitor Analysis, STP Strategies for


Advertising.
A smart businessman knows very well that his business can succeed only if it
can create true value to its customers. Businesses must use a customer-driven
marketing strategy to create the right impression and deliver on the promises
made. Market segmentation, targeting and positioning are the basic elements
of creating a customer-centric marketing strategy, that can help you stand out
from the crowd.
Market Segmentation
To cater to the different consumer groups, any business must divide its targeted
market into smaller units with specific needs or preferences, who may need to
be served with unique products or marketing mixes. This process of dividing a
market into several smaller sub-groups and offering different products or
services is called market segmentation. For example, the sports apparel
manufacturer, Nike, captured the womens sports apparel market by creating a
separate line for them and opening several Nike Women stores across the
country. By using gender segmentation, the company was able to step up its
marketing and sales efforts and reach out to a whole new market.
Look at the classic example of how Dunkin Donuts shifted its focus from
doughnuts to coffee in the 90s, and went on to earn 62 per cent sales from
coffee within a few years. That clearly shows the value proposition in
understanding your customer segments, and giving them what they want.
Further, look at the competition with Starbucks, youll realize that Dunkin
Donuts targets different customers and has clearly created a separate segment
for itself in the coffee house sector. Unlike Starbucks, Dunkin Donuts is a nofrills coffee chain, which focuses on serving customers who dont quite care
about the couches and music and instead want quality products at economical
cost. By positioning the brand strongly and carving out a niche for itself
amongst the working-class, Dunkin Donuts used market segmentation and
targeting to its advantage, successfully.
Kinds of Segmentation
Businesses ply in markets that have different kinds of buyers, who differ in their
buying preferences, needs, where they are located, resources etc. Companies
make use of these differences to create products and services that cater to a
larger audience though they may be segmented into smaller groups. This way,
they match the unique needs of the consumer effectively. Market segmentation
is normally done based on four main categories:
Segmenting Consumer Markets
Different methods are used to segment markets based on the consumer
attitudes and preferences. It could be geographic, demographic, psychographic
or behavioral segmentation. Any kind of segmentation should be based on

thorough market research. This can be outsourced to various marketing


research firms, or can be done in house for smaller businesses.
Once the research data is available, the market can be broken up into various
segments based on the following criteria
1. Geographical Segmentation Based on the consumers location,
companies may divide their market into countries, regions, states, cities
or different neighbourhoods too. Our course in tips for market
segmentation for small business owners will give you a step-by-step
approach to creating market segments. By localizing their products,
businesses can put in concentrated efforts with regard to advertising,
promotions, sales and services so that they meet the individual needs of
that particular geographical group. Say for example, Coca-Cola, in its
efforts to popularise its products in the Japanese market, developed four
different kinds of ready-to-drink canned coffees, each targeted for a
specific region of the country. Similarly, for the curry lovers in England,
Pringles created the now famous Curry Pringles whereas for the Asian
markets, the company launched the Funky Soy Sauce Pringles!
2. Demographic Segmentation Depending on the consumer age,
gender, family life cycle, family size, income, occupation, religion,
education etc. companies come up with different kinds of products. One
can see this in the several toothpaste brands, which cater to children and
adults in different ways.
3. Psychographic Segmentation Based on their social class, lifestyle
and personal preferences, consumers can enjoy tailor-made products and
services, and companies can benefit from their psychographic outlooks. If
you look at the Pottery Barn stores, you will find that they sell more than
just home furnishings. The PB Kids stores offer products that are ideal for
a perfect childhood whereas the PB Teens section offers trendy products
that are a reflection of the users fashion statement. This way Pottery
Barn not only serves an upscale, family focused lifestyle but also gives
an impression of being casual yet sensible.
4. Behavioral Segmentation Markets can also be divided based on the
users knowledge, attitudes or response to a product. For example,
holidays and occasions, benefits that the consumer looks forward to,
usage patterns or loyalty status, are the different ways in which
businesses can come up with several products targeted for each type of
consumer.
Segmenting Business Markets
Companies also serve other business markets based on the firms operating
characteristics, situational factors, etc. This way the right value proposition is
delivered to each business segment. This can be explained better with an
example, such as the American Express credit cards. While the company caters
to consumers, it also has a specialized operation for businesses belonging to
different categories like merchants, small businesses and corporations. While
corporations are provided with services for their employees and travel
management or retirement planning, small businesses are given access to a
network of other small businesses among other services.

Segmenting International Markets


This might seem similar to the geographical segmentation but its not so.
International markets not only differ geographically but also in economy,
politics, legal or cultural factors etc. These criteria help businesses enter the
markets with different marketing campaigns that are suited to the particular
environment of that country.
Market Targeting
After creating the different market segments, its time for a company to target
the audience and analyse which segments it will cater to and how. For this, a
business must essentially look at the following step-by-step approach:
1. Evaluate market segments Companies must find out the segment
size, growth pattern, segment attractiveness, competitors operating in
that segment and company objectives etc. One needs to decide whether
or not the segment has the ability to provide a long-term attractiveness
and the platform for growth.
2. Selecting target market segments A business can either target the
buyers broadly or in narrow fashion. Based on this concept, one might
create mass marketing strategies, differentiated, concentrated or
micromarketing strategies.
3. Choosing a Targeting Strategy Based on the product life-cycle
stage, company resources, market variability and competitors
strategies, businesses can choose a targeting strategy with lot of
consideration. In todays competitive age, companies must see to it that
they involve the consumers in all phases of product development and
buying process. Its imperative to reach out to them and understand their
preferences before adopting a targeting strategy.
4. Socially responsible market targeting While creating a market
targeting plan, ensure that it is in line with the social and legal policies
and sensitivity of the markets. For example, McDonalds drew severe
criticism for pitching high-fat foods to the low-income urban markets,
who are heavier consumers than their sub-urban counterparts.
Market targeting helps businesses come up with tailor-made products and
marketing campaigns to address the needs of the different market groups, but
companies need to factor in the current market environment, buyer
preferences, competitor actions etc. to launch their targeting plan.
Positioning
Positioning is all about creating an impression in the minds of the consumer. It
is the way in which the end-user will define your product or service in
comparison to your competitors offerings. For example, Tide is positioned as a
powerful, all-purpose family detergent whereas Appledees positioning strategy
is Eatin Good in the Neighborhood.
Businesses must first create a positioning map based on customer perceptions
of their brands with respect to an existing competitors brands. Depending on

the price and orientation, they can find out the brands relative share in the
market, based on which the positioning can be developed. Creating a unique
set of benefits is crucial to a brands success. There are several factors that can
help companies choose the right positioning strategy such as:
1. Identifying value differences Businesses must understand what the
buyer values more while purchasing a product. Say for example, the user
gives more importance to quality instead of price; then you must cater to
that need not just by creating an attractive tagline but also delivering on
quality.
2. Choosing competitive advantages Upon market research and
evaluating segments, businesses may come across several potential
differentiations that may provide competitive advantages with regard to
other players. But it is essential to choose the advantages properly
before diving into all of them. Create a USP for your brand and
communicate the benefits and unique offerings to your consumers. Also,
remember that some differences may not be good to promote. In such a
case, you need to factor in the importance, profitability and superiority of
that difference before promoting it.
3. Selecting Positioning Strategy Once a business has decided on the
differences to promote and its brand USP, it must develop an overall
positioning strategy, which is also called value proposition. The
positioning statement must be clear and provide the following
information: which market segment is being catered, what is your brand
concept, and what is the competitive advantage of choosing your
product.
Companies spend a lot of time in creating the right marketing mix and
developing a positioning strategy, but it is also essential to communicate the
same in an integrated way to the end-users. Businesses with a good plan for
segmentation, targeting and positioning have already conquered half the battle
of marketing and reaching out to their potential customers.

Advertising Agencies their role, functions,


organisation, Remuneration, client agency relationship,
account Planning
"An Advertising agency is an independent business organisation composed of
creative and business people who develop, prepare and place advertising in
advertising media for sellers seeking to find customers for their goods and
services."
Advertising Agency is an independent business organisation specialised in
advertising related work which undertakes the work of planning, preparing, and
executing advertising campaign for its clients. Advertising Agency is a body of
experts specialised in advertising. Advertising Agency performs following
activities for its clients:
1. Planning: Advertising agency studies the product or services of clients to
identify the inherent qualities in relation to competitor's product or

services, analyses competition and marketing environment to formulate


advertising plan.
2. Preparing: After the study of product, competition, and marketing
environment the experts of agency has to write, design, and produce the
advertisement, it is also called formulation of ad-copy.
3. Executing: Now, media is selected for time or space, ad is delivered to
media, checked, verified, and released in media. After ad release payment
is done to media and client is billed for the services provided.
Functions of Advertising Agency
Advertising agency performs following functions:
1. Contacting Clients: Advertising agency first of all identify and contact
firms which are desirous of advertising their product or services. Adagency selects those firms which are financially sound, makes quality
products or services, and have efficient management.
2. Planning Advertisement: Advertising agency's next function is to plan
ad for its client. For ad planning following tasks are required to be
performed by ad-agency:
Study of clients product to identify its inherent qualities in relation
to competitors product.
Analysis of present and potential market for the product.
Study of trade and economic conditions in the market.
Study of seasonal demand of the product
Study of competition, and competitors spending on advertising.
Knowledge of channels of distribution, their sales, operations, etc.
Finally, formulation of advertising plan
3. Creative Function: Creative people like - the copywriters, artists, artdirectors, graphic-specialists have to perform the creative function which
is most important part of all advertising function.
4. Developing Ad-Copy: Ad-agency with the help of their writers, artists,
designers, animators, graphic-designers, and film-directors prepares and
develops Ad-copy.
5. Approval of Client: Ad-copy is shown to the client for his approval
6. Media Selection and scheduling: It is very important function of adagency to select appropriate media for its clients. Ad-agency has to
consider various factors like- media cost, media coverage, ad-budget,
nature of product, client's needs, targeted customer, and etc while
selecting media.
7. Ad-Execution: After approval, verification, and required changes, the adcopy is handed to the media for ad-execution.
8. Evaluation Function: After execution, it is the responsibility of ad-agency
to evaluate the effectiveness of ad to know how beneficial the ad is for its
client.
9. Marketing Function: The advertising agency also performs various
marketing function like- selecting target audience, designing products,

designing packages, determining prices, study of channel of distribution,


market research, sales promotion, publicity, etc.
10.Research Function: Ad-agency performs various research functions likeresearch of different media, media cost, media reach, circulation, entry of
new media, information regarding ratings, and TRP's of TV programmes,
serials.
11.Accounting Function: Accounting function of ad-agency includes
checking bills, making payments, cash discounts allowed by media,
collection of dues from clients, payment to staff, payment to
outside professionals like- writers, producers, models, etc.
Account Planner
"The account planner is that member of the agency's team who is the expert,
through background, training, experience, and attitudes, at working with
information and getting it used - not just marketing research but all the
information available to help solve a client's advertising problems." - Stanley
Pollitt
"Planners are involved and integrated in the creation of marketing strategy and
ads. Their responsibility is to bring the consumer to the forefront of the process
and to inspire the team to work with the consumer in mind. The planner has a
point of view about the consumer and is not shy about expressing it." - FortiniCampbell
The ultimate goal of the planner is to work with consumers as partners in the
process of developing advertising. This relationship with the consumer allows
planners to involve their input at every stage of the process and to inform and
inspire creative ideas that guide and validate the resulting campaign in the
consumers interests. Planners are the consumers representative of the
account team. According to Jon Steel advertising can exist without account
planning, but planners add an element of creativity to the advertising mix. They
are typically people who are interested in meeting people and talking to the
consumers. Planners want to find out what makes people tick and use that
market information and research data to guide the campaign process. It is the
planners job to take all this information and funnel it down into a short idea that
helps inspire and directionalize the creative department.
Planners have the ability to bridge together their understanding of the consumer
and the awareness of how this knowledge will be used within their own business.
It is the account planners' job to understand and draw insightful conclusions not
only from the consumer, but also the brand. Because communication channels
have presently multiplied, it is even harder, and more crucial, for communication
to break through this clutter and reach the target audience. The planner must
provide "the edge" that will ensure that a client's message will do just this