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‡ Public criers, Pictorial signs in Ancient Egypt, also Greek
& Roman merchants
‡ Handbills ± in the late 1400s, similar to to-day¶s wanted
ads.
‡ Trade Marks


‡ Johaan Gutenberg invented movable type and the
printing press in Germany in mid-1400¶s leading to large
scale production of printing material-printed shopbills &
posters.
‡ Industrial Revolution opened many businesses &
factories who turned to advertising
‡ Rapid Growth
‡ Electronic Media ± in early 20th Century Radio - 1922,
TV ± 1941 in US
‡ Today a over communicated society.
 |

 |  is any paid form of non-personal


presentation of ideas, goods and services by an
identified sponsor.
- AMA

 |  is controlled, identifiable,


information and persuasion by means of mass
communication media.
 ± To persuade and influence people
and their behaviour.
 ± To Build / enhance corporate and
brand equity.
'
  |||  | 
  
 | '

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Control Institutions  

Advertising
Agency
Government

ADVERTISER Media

Competition Research
Suppliers

Market & Consumer Behaviour


 !
"
‡ To differentiate products from their
competitors.
‡ To communicate product information.
‡ To urge product use.
‡ To expand product distribution
‡ To increase brand preference and loyalty.
‡ To reduce overall sales costs.
# !$%
‡ To build an identity in the public¶s mind.
‡ To communicate information.
‡ To bring about a change in thinking /
mindset among certain sections of society
aver a long or medium time period.
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 & !!'!!'(
By Target By Geographic By Media By Purpose
Audience Area used
Consumer International Print Product
National - News Paper -Goods
Business Regional - Magazine -Services
-Industrial Local / Retail Electronic -Ideas
-Trade -TV / Internet Non Product
-Professional -Radio -Corporate
-Agricultural Out of Home -Institutional
- Out door Commercial / non
- Transit Commercial
Direct Mail Primary Demand
Directories Secondary Demand
Internet Direct Action /
Others Indirect Action
 
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)  |) *+

,"
' %-./ -
a. Does it expand markets ? Not necessarily in saturated, mature
economies.
Mostly, it works to position brands within a market. For developing
economies like ours, not always true.
b. In relation to price, it adds premiums through branding, at the same time,
tries to keep prices down through competition.
0"-! !! 
a. Good Advertising elicits immediate response1but it also builds for the
future. It is a continuing investment in the brand, unalike say, promotion.
b. Long & Short terms effects of advertising should be seen as a part of
the same continuum.
2"3# !! -1( 3 
"
a. Purchase is not the immediate response
b. Two ways in which consumers can be classified:
Passive ± moved in sequence of communication hierarchy
Active ± Selective perception, make choices based on ³Liking´ ±
interest & relevance
How Advertisers & Agency Planners Think it
Works?
A study among Advertising, Marketing and
Research professionals in which they were
asked to agree or disagree with a wide
range of statements about ³How
Advertising Works´. Response factors
were analysed and respondents clustered
on the main factors.
-4 ''
 %
1. |3   ' % Sales is the only indicator of
campaign effectiveness.
2. |3  ' % Advertising works and can be
measured through a linear sequence from awareness to
understanding to choice.
3. |3 - ' % The purpose of Advertising is to
build a relationship with consumers by talking to them
intelligently and entertainingly.
4.|3   ' % Advertising differentiates the product,
makes it stand out.
5 |3 4--( ' % Advertising is entirely functional.
A non-model, responses mostly provided by small
advertisers & non-users of agencies.
|3-!
"
‡
3 -(%
Influence on -
1. Consumer Demand 2. Competition
3. Pricing 4. Media
5. Barrier to entry
‡
  (%
1. Contrasting views on influence on Vulnerable
sections of society such as ± Children, Poor.
2. Deception through words.
3. Manipulate & exploit audience by creating fears and
artificial demands.
4. Creating stereotypes.
5. Can be offensive or in bad taste.
6. Influences living standards.
7. Media ± may present impartial views.
‡
   &(
- Obligations to society.
- Social responsibility Vs. profitability.

‡
 %
- Advertising of harmful products.
- Comparative Advertising.
- Deceptive or misleading advertising.
- Making unrealistic claims.
- Industry self ± regulation ± ASCI
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1. Treat consumers fairly by avoiding


± Stereotypes that are unfavorable.
± Prejudice towards gender, caste, religion, colour.
± Exploiting physical disability.
± Exploiting children.
± Vulgarity.
± Advertisements to promote bad products.
± Intrusion on privacy by way of too much
telemarketing or direct mailers etc.
2. Treat clients ( of Ad Agencies) fairly.
± Respecting confidentiality.
± Keeping them informed.
± Cost consciousness.
± Maintaining discreetness.
± Listening to your clients.
± Believing in them and their brands.
3. Treat stakeholders fairly.
± Employees and their family.
± Suppliers.
4. Treat competition fairly.

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