advertising management.pdf

ZAD INSTITUTE OF IT & MANAGEMENT MBA-3RD SEMESTER ADVERTISING MANAGEMENT

ZAD INSTITUTE OF IT & MANAGEMENT

Question 1:Question 1:Question 1:Question 1:---- What do you mean by Promotion Mix? Explain in detail. What do you mean by Promotion Mix? Explain in detail. What do you mean by Promotion Mix? Explain in detail. What do you mean by Promotion Mix? Explain in detail. AnswerAnswerAnswerAnswer: -IntroductionIntroductionIntroductionIntroduction: : : : Promotion mix is a particular combination of promotion tools used by a company to communicate with the audiences. There are 5 major tools: advertising, sales promotion, publicity, personal selling and direct marketing. Promotion mix refers to totality of efforts made by the firm to communicate with the wholesaler retailer, present customer, potential customers, and general public. In addition to five promotional tools named above promotion mix also include Product design, Packaging, labelling.For example:-Instruction and information given on the package like------ date of manufacturing, date of expiry, ingredients, how to use it, where to store it, side effect, price,etc.all these give the message to the consumer. MeaningMeaningMeaningMeaning: - Promotion is the co-ordination of all seller initiated efforts to set up channels of information and persuasion in order to sell good and services to promote an idea. DefiniDefiniDefiniDefinitiontiontiontion:- According to PPPPhilip Kotlerhilip Kotlerhilip Kotlerhilip Kotler , “A company’s total communication mix-also called promotion mix –consist of specific blend of advertising, personal selling, sales promotion, public relations and direct marketing tools that the company uses to persue its advertising and marketing objectives."

Components of the promotion mixComponents of the promotion mixComponents of the promotion mixComponents of the promotion mix::::---- Promotion Mix consist of 5 elements

i)i)i)i) AdvertisementAdvertisementAdvertisementAdvertisement: - It is a non personal form of presentation of Ideas, Good, Services by an identified sponsor. Role of advertisemenRole of advertisemenRole of advertisemenRole of advertisementttt:- a) For quick communication. b) For communication with masses. c) For promotion of consumer goods. ii)ii)ii)ii)Personal sellingPersonal sellingPersonal sellingPersonal selling: - Oral presentation for the purpose of sale. RoleRoleRoleRole of personal selling of personal selling of personal selling of personal selling:- a) For marketing of industrial & technical goods.

Promotion Mix

Advertising Personal selling

Sales Promotion Direct

Marketing

Publicity and Public Relation

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b) For the small targeted audience. c) For costly goods. iii)iii)iii)iii)Sales promotionSales promotionSales promotionSales promotion: - An immediate inducement that adds extra value to the product. Role of sales PromotionRole of sales PromotionRole of sales PromotionRole of sales Promotion:-a) Middleman-oriented-sales promotion. b) For seasonal goods. c) For immediate increase in sales. iv)iv)iv)iv)PublicityPublicityPublicityPublicity : - Mgt. of fun that helps public to understand the policies of the organization. Role of Role of Role of Role of Publicity: Publicity: Publicity: Publicity: ---- a) Non paid formed more credible. b) Make positive image in mind of ultimate customer. c) Image is more objective and place more confidence. v)Direct MarketingDirect MarketingDirect MarketingDirect Marketing :- Direct communication with target audience to obtain immediate response and to develop long lasting relationship with the customer. Role Role Role Role of direct marketing:of direct marketing:of direct marketing:of direct marketing:---- a) Focus is on literate customer.

b) For service marketing like Banking, insurance, telecommunication. c) For expensive goods mainly.

Procedure of Determining Promotion – Mix

Determination of promotion mix refers to selection and combination of different elements of promotion mix for achieving the promotional objectives. Following procedure is used for determining the promotion mix. 1)1)1)1) Consider Consider Consider Consider all availability of promotion methods all availability of promotion methods all availability of promotion methods all availability of promotion methods: these can be advertising, sales promotion, personal selling, direct marketing, publicity ect. 2)2)2)2) Select Select Select Select optimum promotion mix optimum promotion mix optimum promotion mix optimum promotion mix : tools are combined in such a way that communication objectives are achieved at minimum cost. Each tool have its merits and demerits. Optimum promotion mix is the best combination of different promotional tools. 3)3)3)3) Appropriation Appropriation Appropriation Appropriation of the promotion mix of the promotion mix of the promotion mix of the promotion mix:- Total promotional budget is appropriate among different elements of promotion mix. Budgeting methods are: % method, marginal revenue method, judgment method, quantitative methods etc. 4) Evaluation of Effectiveness of different Promotional4) Evaluation of Effectiveness of different Promotional4) Evaluation of Effectiveness of different Promotional4) Evaluation of Effectiveness of different Promotional----tools:tools:tools:tools: - Comparing actual results with pre decided promotional tools. Evaluation tools help the business firm to amend or rectify these promotional tools.

Factors affecting the Promotion mixFactors affecting the Promotion mixFactors affecting the Promotion mixFactors affecting the Promotion mix

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Question No 2:Question No 2:Question No 2:Question No 2:---- What is advertising? What are the main characteristics of advertising? What is advertising? What are the main characteristics of advertising? What is advertising? What are the main characteristics of advertising? What is advertising? What are the main characteristics of advertising? Eplain its Eplain its Eplain its Eplain its functions and scope of advertising. functions and scope of advertising. functions and scope of advertising. functions and scope of advertising.

1)1)1)1) Nature of ProductNature of ProductNature of ProductNature of Product a) Consumer Goods - Advertising b) Industrial Goods - Personal selling 2)2)2)2) Stages of Product life cycle.Stages of Product life cycle.Stages of Product life cycle.Stages of Product life cycle. a) Introduction stage - Advertising for consumers & Personal selling for middlemen. b) Growth Stage - Advertising for consumers & Personal selling for middlemen. c) Maturity Stage - Advertising & sales promotion. d) Decline Stage - Cut in promotion expenses & Personal contact with a few customers. e) Obsolescence - No Communication. 3)3)3)3) Nature Nature Nature Nature of Target Market.of Target Market.of Target Market.of Target Market. a) Size of market Small- Personal Selling Large- Advertising b) Location and Concentration of Customer.

Concentration of the Customer – Personal Selling. Scattered Customer - Advertising

c) Socio- economic Characteristics of Customers. 4)4)4)4) The size of promotional budget.The size of promotional budget.The size of promotional budget.The size of promotional budget. 5)5)5)5) Push and pull Strategy.Push and pull Strategy.Push and pull Strategy.Push and pull Strategy. 6)6)6)6) Promotional Strategy.Promotional Strategy.Promotional Strategy.Promotional Strategy. 7)7)7)7) Price policy.Price policy.Price policy.Price policy. 8)8)8)8) Distribution policyDistribution policyDistribution policyDistribution policy 9)9)9)9) Intensity of market coverage.Intensity of market coverage.Intensity of market coverage.Intensity of market coverage. 10)10)10)10) Availability of promotional methAvailability of promotional methAvailability of promotional methAvailability of promotional methods.ods.ods.ods. 11)11)11)11) Level of compition.Level of compition.Level of compition.Level of compition. 12)12)12)12) Degree of Brand Familiarity.Degree of Brand Familiarity.Degree of Brand Familiarity.Degree of Brand Familiarity. 13)13)13)13) Branded & Unbranded Products.Branded & Unbranded Products.Branded & Unbranded Products.Branded & Unbranded Products. 14)14)14)14) Seasonal Products.Seasonal Products.Seasonal Products.Seasonal Products.

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Answer: Answer: Answer: Answer: Introduction:Introduction:Introduction:Introduction:----Consumer is the central point in every business. Now a days, attracting and satisfying customers is more difficult than producing the goods. For many products, many brands are available in the market. Every company wants to improve the market shares. Now, buyers dominate the market. Advertising is an important means to influence the potential customer. It is an important tool of marketing. Advertisement influences the customer attitudes and purchase behaviour. Advertisement increase brand-familarity develop image and help the organization in increasing its market shares. MeaningMeaningMeaningMeaning :- It is derived from the Latin word “ adverto” Add + verto Toward Turn OR we can say turn the customer towards the products. Definition:- According to American marketing association “ Any paid form of non personal presentation and promotion of Goods, Services or Ideas by an identified sponsor.” Acc. To Philip Kotler, “Advertising is non-personal form of communication conducted through paid media under clear sponsorship.”

Main Theme of AdvertisingMain Theme of AdvertisingMain Theme of AdvertisingMain Theme of Advertising

Features of Features of Features of Features of Advertisement:Advertisement:Advertisement:Advertisement:---- 1) Paid formPaid formPaid formPaid form:- Advertisement is never free of cost. The company has to make the payment to the media

used for advertisement. The payment can be large can be small depending upon media-circulation, type/ nature of media & media popularity. Payment to media is also depend upon the time when ad

Advertising

Product Differentiation

Attracting new customers

Reducing Dissonance

Increase in market share

Creating Brand Performance and Brand Loyalty

To Face Competition

Consumer Satisfaction

Increase in sales and profit

Increase in Sales and Profits

Increase in Sales and Profit

Reminding and maintaining old customers

To inform about product, price, place and promotion scheme

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is shown e.g if ad is shown in prime time or along with popular serial then its cost will be more. If ad is given on newspaper or magazine, then payment is made on the basis of space taken & in case of TV the payment is taken on the basis of time taken by ad.

2) Non personalNon personalNon personalNon personal:- In advertisement there is no face to face communication. Here message is transmitted through mass media like TV, newspaper, magazines, radio, internet etc. because of non personal feature immediate feedback from audience is not possible and message cannot be adjusted or changed according to the reaction of target audience.

3) Identified SponsorIdentified SponsorIdentified SponsorIdentified Sponsor:- The sponsor of advertisement is the advertiser. Identified sponsor me ans that the producer or the seller who advertise the product, Should be known through the advertised message. In some cases both the brand name are specified in advertisement, while in other cases only brand name is mentioned in the advertisement. If in any communication, nether brand nor company can be identified. Then such communication is not an advertisement even if it uses mass media.

4) Any formAny formAny formAny form : - Advertising can be used to create image, Presence for a company or brand. For this any form of presentation can be used, it can be in the form of a sign, symbol, message, t.v, pamphlet, banners, sky balloons etc.

5) Goods, Services, IdeasGoods, Services, IdeasGoods, Services, IdeasGoods, Services, Ideas: : : : - Advertisement is to inform, persuade and remind the prospective buyers /users about products or services but sometimes ideas may be advertised. For example, Idea of blood donation, eye donation, etc are also advertised.

6) Can be used by any Can be used by any Can be used by any Can be used by any organisorganisorganisorganisationationationation: : : : ---- Advertising can be used by any type of organization. It is done by commercial and charitable organizations. Political and non political organizations, groups and individual. So any type of organisation can take services of advertising.

7) Speedy Communication: Speedy Communication: Speedy Communication: Speedy Communication: ---- Advertising is the fastest mode of communicating with the target audience. This method is fastest then personal selling as here information can be passed to laces of consumers at one point of time. For example, if a company has to give some urgent message to the public, Then by releasing the ad in next days newspaper, company can communicate the massage to laces of people in one day only.

8) Mass Communicating:Mass Communicating:Mass Communicating:Mass Communicating: - Mass communication mean communication with a large group of persons at the same time. Media like television, newspaper, magazines, and websites pass on information. to the thousands and lakhs of persons at the same time.

9) Advertising is an Advertising is an Advertising is an Advertising is an art: art: art: art: ---- Because the creative function of advertising very much depends upon the creativity of an individual who design the ad. The creation is includes the message design, appeal design, layout, use of pictures etc. it is art of advertising, on which the success or failure of advertising campaign depends so advertising is an art.

10) Advertising is not exact science:Advertising is not exact science:Advertising is not exact science:Advertising is not exact science:- Sales is effected by a no of factors such as competition, price level, product features, consumer taste, stages of business cycle. Principles of advertising is not as exact as the principle of physical science. Hence advertising is not exact science.

11) An Important Element of An Important Element of An Important Element of An Important Element of Promotion Mix:Promotion Mix:Promotion Mix:Promotion Mix: - Advertising is an important element of promotion mix, along with personal selling, sales promotion and publicity. Advertising is the mode of mass communication while personal selling is face-to-Face communication.

12) Motivate and inspires:Motivate and inspires:Motivate and inspires:Motivate and inspires:- Advertising carry message which motivates and inspires customers to purchase a particular product. The ad message is persuasive and informative enough to motivate potential customers.

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13) Controlled:Controlled:Controlled:Controlled:- The message , time, place of advertisement is controlled by the sponsor to make advertisement effective. The selection of media is carefully done to achieve the desired results in economic ways.

Functions of AdvertisementFunctions of AdvertisementFunctions of AdvertisementFunctions of Advertisement

Scope of AdvertisementScope of AdvertisementScope of AdvertisementScope of Advertisement

1)1)1)1) Increase in Ad functionsIncrease in Ad functionsIncrease in Ad functionsIncrease in Ad functions::::---- Earlier ads were designed to satisfy informative needs of buyers in the form of public announcements but now advertising includes building brand image, Brand Loyalty, and persuading the buyer to purchase the product. Now advertising performs informative, communicating, and persuading function.

Functions of Advertising

Primary Function Secondary Function Social function

1) Announcing new product and services. 2) Expand the market to new buyers. 3) Promotes new uses of the product. 4) Create demand. 5) Educate customer 6) Remind user 7) Create brand preference 8) Announce location of retailer.

1) Help to boost the morale of salesmen. 2) Supports salesmen. 3) Reaches customer left by salesmen. 4) Help to procure better customer. 5) Large scale economies 6) Lower cost of contacting per person 7) Help to neutralize competitors advertising.

1) Improving standard of living. 2) Awareness among rural masses. 3) Create Employment 4) Help to solve social problems 5) Creates awareness about dangerous dieses 6) Other social function

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2)2)2)2) Ad for Attracting and supporting Middlemen and Salesmen:Ad for Attracting and supporting Middlemen and Salesmen:Ad for Attracting and supporting Middlemen and Salesmen:Ad for Attracting and supporting Middlemen and Salesmen:- Earlier the need for advertisement for middlemen and salesmen was not realized as there were very few manufacturers and middlemen could be easily attracted. But now to attract efficient middlemen and salesmen and support them, advertising is must.

3)3)3)3) Increase in Non commercial Ads:Increase in Non commercial Ads:Increase in Non commercial Ads:Increase in Non commercial Ads:- Now a days, various non commercial ads are issued by government departments, Social organizations for general public. For example ad on awareness of various social issues, social problems viz. Fatal diseases, Female foecticide, dowry, girl education, Adult- Education etc.

4)4)4)4) Growth in media:Growth in media:Growth in media:Growth in media:- Earlier very less media sources were available to advertisers for communicating with target audience, but now a days there is phenomenal growth in media means like news papers, T.V., etc.

5)5)5)5) Increase in industrialization:Increase in industrialization:Increase in industrialization:Increase in industrialization:- With the growth in the industries, Mechanization, transportation, mean of communication, business firms go in for production at a large scale. The mass production done by these big companies can-not be marked without advertisement. So now advertisement has become more important activity.

6)6)6)6) Increase in level of competition:Increase in level of competition:Increase in level of competition:Increase in level of competition:---- The level of competition has increased manifold. For any product many brands are available. A company cannot be popular in the market without advertising. Earlier the level of competition used to be less. So earlier there was less need of advertisement. But now because of increase in level of competition, there is greater need of advertising. It has increased the scope of advertising.

7)7)7)7) Increase in Readership and Viewer ship:Increase in Readership and Viewer ship:Increase in Readership and Viewer ship:Increase in Readership and Viewer ship:-With the growth in literacy, readership of newspapers and magazines has increased and now newspapers and magazines are full of advertisements. Similarly with the growth in electronics, a computer has increased. This has led to the growth of audio visual advertising and increased the scope of advertising.

Question No3:Question No3:Question No3:Question No3:---- What do you mean by Communication Process? How it will stimulate the primary and What do you mean by Communication Process? How it will stimulate the primary and What do you mean by Communication Process? How it will stimulate the primary and What do you mean by Communication Process? How it will stimulate the primary and selective dselective dselective dselective demand?emand?emand?emand?

Answer: IntroductionIntroductionIntroductionIntroduction:::: ---- Communication has been defined as a process in which exchange of ideas and information takes place among different persons. It is a circular process which means that there are various steps one after the other. Marketing communication process has following stages/ elements.

1) Source 2) Encoding 3) Message 4) Decoding 5) Receiver 6) Response/ Feedback 7) Noice

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Marketing communication:Marketing communication:Marketing communication:Marketing communication: ---- Is the process in which two or more persons consciously or unconsciously, attempt to influence each other through some use of symbols. Communications have 4 basic components:-

• A source • A destination • A medium • A message Marketing communication done particular with 2 areas 1) External flow 2) Internal flow 1) External flow:- the targeted audience for this particular communication is

• Channel member

a) wholesaler b) Retailer

• Customer

a) Past b) Current c) Potential

• Companies

a) Competing b) Non competing

• Others a) Govt. Agencies

Sender Encoding Message/Media Receiver

Decoder Feedback/ Response

Noice Distortion

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b) Private agencies c) Experts

2) Internal flow:- the targeted audience for this particular communication is

• Company deptt. • Employee • Stockholder

WILBUR SCHRAMM’S MODAL

A well known communication expert gives a significant contribution in the field of communication. He modified the Shannon & Weaver’s Model of communication.

Limitation : - One way communication only. Schramm’s modify the modal as according to the following conditions

--- In place of “transmitter” and “receiver” he uses “encoder” and “decoder”. --- Schramm’s add the concept of “field of experience”. --- Circle indicates the accumulated experience of two individual trying to communicate. --- Both Sender and decoder have there own field of experience. --- If circles do not meet then communication is impossible --- Circles are meet then communication is possible. --- Area in circles are large communication is smooth.

Information Source

Transmitter Channel Receiver Destination

Noice Source

Field of Experience

Field of Experience

Signal

Source Encoder Destination Decoder

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--- Area in circle is small shrieked then communication is different because communicating persons belonging to another culture. Schramm’s developed a significant model to explain the process of mass communication. Source:- Media organization like Newspaper & Broadcasting station. Role of source help the organization in following manner:Role of source help the organization in following manner:Role of source help the organization in following manner:Role of source help the organization in following manner:

1) Source communication the message to the target audience. He is the person who initiates the communication process and he is also known as sender in communication process.

2) A popular source attracts the attention of target audience and makes the advertisement easy to remember. If source is a well known person then it easily attracts the attention of audience.

3) Credible source increase the credibility of message i.e. people feel that message given by credible source is correct.

4) Attractive, efficient, popular source help to increase the sales and profit of an organisation.

5) Effective source helps to face competition by improving Brand-image, Product-image, & Institution-image.

The mass Audiance Many Receivers Then decoding, Interpreting & Encoding Each connection with group Where message is intarupted Feedback Input from N.p, sources. Conclusion:Conclusion:Conclusion:Conclusion:---- Hence the Wilbur Schramm’s model explain how communication process stimulate the primary & selective demand through its integrated marketing communication and models explained.

Unit- II

Encoder Interpreter Decoder

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Question No 4:- Explain the different Types & Objectives of the advertising. Answer: Introduction-Objectives are those end points towards which every activity of an organisation is oriented. Without setting objectives it is very difficult to control and manage any activity. Setting the goal and objective is a starting point of management. Meaning: of objectives of advertising is communication task to be accomplished among a defined audience in a given period of time. Defination:- According to R.S.Davar:-“Advertising aims at educating the customers, supplementing the salesmen, enabling the dealers to face the competition but above all, it is a link between producer and consumer.”

Types of objective

DAGMAR APPROACH Defination : - Define advertising goal measuring advertising results.

Sales Objectives

Communication objective

• To increase sales • To increase market shares • To improve brand image • To improve company

image • To increase profit

• To create brand awareness • To give knowledge about the

product • To develop preference about the

products over other competitive products

• To affect buyer behavior to buy the product.

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Hierarchy- of effective model 1) Awareness:- Making the consumer aware of the existence of the brand or company.

New features are added in already existing products. Product launched for the first time.

2) Comprehension:- Next objective should be to develop an understanding of What the product is & What it will do the customer i.e How it will satisfy the needs of customer.

3) Conviction:- Persuading the consumer to by the product. Developing a mental disposition to buy the product.i.e a belief that this product can best satisy the customers need.

4) Action:- Getting the consumer to actually purchase the product. Next obj. to make the target customers buy the brand.

Classification of the advertising :- The objective of advertising differ under different situations. One advertiser may seek to generate immediate response from the customer; another may seek to develop awareness or positive image for its product over a longer period. So they need different types of advertisements. Now a days service advertisement are also very common, like financial advertisements, banking advertisement etc. 1)1)1)1) Advertising on the basis of Geographical Area.Advertising on the basis of Geographical Area.Advertising on the basis of Geographical Area.Advertising on the basis of Geographical Area.

a)a)a)a) Local/ regionalLocal/ regionalLocal/ regionalLocal/ regional b)b)b)b) NationalNationalNationalNational c)c)c)c) Global/ InternationalGlobal/ InternationalGlobal/ InternationalGlobal/ International

2)2)2)2) Advertising on the basis of TargetAdvertising on the basis of TargetAdvertising on the basis of TargetAdvertising on the basis of Target---- Audience. Audience. Audience. Audience. a)a)a)a) ConsuConsuConsuConsumer Advertisingmer Advertisingmer Advertisingmer Advertising b)b)b)b) Industrial AdvertisingIndustrial AdvertisingIndustrial AdvertisingIndustrial Advertising c)c)c)c) Professional AdvertisingProfessional AdvertisingProfessional AdvertisingProfessional Advertising d)d)d)d) Trade AdvertisingTrade AdvertisingTrade AdvertisingTrade Advertising

3)3)3)3) Advertising on the basis of Demand Influence Level.Advertising on the basis of Demand Influence Level.Advertising on the basis of Demand Influence Level.Advertising on the basis of Demand Influence Level.

a)a)a)a) Primary demand creation Ads.Primary demand creation Ads.Primary demand creation Ads.Primary demand creation Ads.

Awareness Comprehension Conviction Action

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b)b)b)b) Selective demand Stimulation Ads.Selective demand Stimulation Ads.Selective demand Stimulation Ads.Selective demand Stimulation Ads.

4)4)4)4) Advertising to promote Institution Image Or Brand Image.Advertising to promote Institution Image Or Brand Image.Advertising to promote Institution Image Or Brand Image.Advertising to promote Institution Image Or Brand Image. a)a)a)a) Institutional Ads/ Corporate Advertising.Institutional Ads/ Corporate Advertising.Institutional Ads/ Corporate Advertising.Institutional Ads/ Corporate Advertising. b)b)b)b) Product Advertising.Product Advertising.Product Advertising.Product Advertising.

5)5)5)5) Advertising on the basis of different stages of Product Life Cycle.Advertising on the basis of different stages of Product Life Cycle.Advertising on the basis of different stages of Product Life Cycle.Advertising on the basis of different stages of Product Life Cycle.

a)a)a)a) Informative/ Pioneering Advertising.Informative/ Pioneering Advertising.Informative/ Pioneering Advertising.Informative/ Pioneering Advertising. b)b)b)b) Persuasive AdvertisingPersuasive AdvertisingPersuasive AdvertisingPersuasive Advertising c)c)c)c) Reminder AdvertisingReminder AdvertisingReminder AdvertisingReminder Advertising

6)6)6)6) Advertising on the basis of Timing of RespAdvertising on the basis of Timing of RespAdvertising on the basis of Timing of RespAdvertising on the basis of Timing of Response.onse.onse.onse. a)a)a)a) Direct Action AdvertisingDirect Action AdvertisingDirect Action AdvertisingDirect Action Advertising b)b)b)b) Indirect Action AdvertisingIndirect Action AdvertisingIndirect Action AdvertisingIndirect Action Advertising

7)7)7)7) Advertising on the basis of Media Used.Advertising on the basis of Media Used.Advertising on the basis of Media Used.Advertising on the basis of Media Used. a)a)a)a) Emotional AdvertisingEmotional AdvertisingEmotional AdvertisingEmotional Advertising b)b)b)b) Rational AdvertisingRational AdvertisingRational AdvertisingRational Advertising

8)8)8)8) Advertising on the basis of Nature of Appeal Made.Advertising on the basis of Nature of Appeal Made.Advertising on the basis of Nature of Appeal Made.Advertising on the basis of Nature of Appeal Made. a)a)a)a) Print AdsPrint AdsPrint AdsPrint Ads b)b)b)b) AudioAudioAudioAudio---- Visual Ads. Visual Ads. Visual Ads. Visual Ads. c)c)c)c) AudioAudioAudioAudio

9)9)9)9) Other Type of AdvertisinOther Type of AdvertisinOther Type of AdvertisinOther Type of Advertisingggg a) Classified Advertisinga) Classified Advertisinga) Classified Advertisinga) Classified Advertising

b) b) b) b) Social Advertising Social Advertising Social Advertising Social Advertising c) Cooperative Advertising c) Cooperative Advertising c) Cooperative Advertising c) Cooperative Advertising d) Re d) Re d) Re d) Re----enforcement Advertisingenforcement Advertisingenforcement Advertisingenforcement Advertising e) Defensive Advertisement e) Defensive Advertisement e) Defensive Advertisement e) Defensive Advertisement

f) Service Advertisingf) Service Advertisingf) Service Advertisingf) Service Advertising g) Push and pull Advertisementg) Push and pull Advertisementg) Push and pull Advertisementg) Push and pull Advertisement h) Inh) Inh) Inh) In---- store Advertising store Advertising store Advertising store Advertising Question No5:Question No5:Question No5:Question No5:---- How you will determine the target market & develop advertising How you will determine the target market & develop advertising How you will determine the target market & develop advertising How you will determine the target market & develop advertising program accprogram accprogram accprogram acc.... to to to to that.that.that.that. AnswerAnswerAnswerAnswer:- Creating unique, novel, and selling ideas is known as creativity in advertisement.

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Advertising creativity is an art; it is the ability to generate fresh, original & unique idea in communicating with the target audience. Ad-creativity is the outcome of imaginative skills of copywriter, commercial artist or layout designer. To be successful, creative idea must be related with product features, customer characteristics. Creating such unique selling idea which is original and different in difficult task. Steps in creative design processSteps in creative design processSteps in creative design processSteps in creative design process

• Deciding advertising objective.Deciding advertising objective.Deciding advertising objective.Deciding advertising objective. • Collecting information about customers, product, Collecting information about customers, product, Collecting information about customers, product, Collecting information about customers, product, and competitionand competitionand competitionand competition.... • Generation of new ideas by creativeGeneration of new ideas by creativeGeneration of new ideas by creativeGeneration of new ideas by creative specialists. specialists. specialists. specialists. • Approval of creative ideas by advertising manager and marketing manager of advertisers.Approval of creative ideas by advertising manager and marketing manager of advertisers.Approval of creative ideas by advertising manager and marketing manager of advertisers.Approval of creative ideas by advertising manager and marketing manager of advertisers. • DecidingDecidingDecidingDeciding message message message message----contents, messagecontents, messagecontents, messagecontents, message----formaformaformaformatttt, and, and, and, and designing Ad designing Ad designing Ad designing Ad----copy.copy.copy.copy. • Copy/ Layout test beforCopy/ Layout test beforCopy/ Layout test beforCopy/ Layout test before e e e actually launching the actually launching the actually launching the actually launching the advertisementadvertisementadvertisementadvertisement.

AdvertisementAdvertisementAdvertisementAdvertisement contents contents contents contents 1)1)1)1)MessageMessageMessageMessage:- Consist of Facts, opinion, symbols, Pictures related to the product. Purpose:- Communication with the target audience Effectiveness of advertising is depending upon how advertisement is framed.

1. Message-Content- What to Say? 2. Message-Format- How To Say? 3. Message-Source- Who should say it?

This decision regarding message content, Message format and message source depends upon factors like competition consumer characteristics buyer behavior product feature. Legal factors amount of ad- budget. 1. Message contentsMessage contentsMessage contentsMessage contents::::----

a) What ads. Wants to communicate to targeted audience through advertisement copy. b) Message is regarding:- c) High quality of product d) Low price appeal. e) Good after sales services f) Durability of the product. g) Information’s about exchange offers

h) Discount Offer, Festival Offers etc 2. Message format:Message format:Message format:Message format:----

a) Ad- copy for print media b) Ad-copy for broad cast media. c) Radio d) T.v

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3. MessageMessageMessageMessage----Source:Source:Source:Source:---- Person who communicate the message of advertiser to the target audience. Also known as brab-ambassoder example film star, sport person, winner of beauty contests etc. Example- ORAL-B toothpaste & brush-dentist give the ad message. Elements/Component of print Advertising Copy:Elements/Component of print Advertising Copy:Elements/Component of print Advertising Copy:Elements/Component of print Advertising Copy:---- Advertising-Copy is prepared after combining various components or elements of Ad-copy. Elements/ Components of ad-copy made for different media are different. In the future discussion, Elements/components of print ad copy and broadcast ad copy are discussed. Components of print-Ad- copy are headlines, subheads, body-copy, slogans, blurbs, boxes & panels, Illustrations, Identification- marks, Closing ideas etc. 1)Headline:1)Headline:1)Headline:1)Headline:---- It refers to words which are in leading positions of advertisement. These words are read first by the audience. These are given in larger type size. Headline is the most important part print ad- copy. Headlines attract the attention of audience and arouse the interest of readers in rest part of ad- copy. It should be simple, clear, short and should attract/hold attention of the audience. It must be shown in a prommenent manner in the advertisemnt copy. It can be about important feature of the product, manufacturer’s achievement, Special offers or special news etc. Functions of Headlines:Functions of Headlines:Functions of Headlines:Functions of Headlines:----

• to attract attention of audience • to highlight main features of the product • to give main message of the ad in brief • to arouse interest for further reading of ad-copy

Essentials of Headlines:Essentials of Headlines:Essentials of Headlines:Essentials of Headlines:---- • It should be attractive. • It should be brief. • It should be easy to memorise. • It should narrate the whole of message in nutshell • It should arouse the interest to read further ad-copy. • It should be original, unique, different, innovative and specific. • Its type-size should be large enough to contrast from rest of ad copy. • It must be linked with rest of ad-copy.

Different Forms of Different Forms of Different Forms of Different Forms of HeadlinesHeadlinesHeadlinesHeadlines::::---- • Direct Benefit Headlines • Question Headlines • Announcement Headlines. • Provocative Headlines

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• Selective Headlines • Label Headlines • Negative Headlines

Illustrations:Illustrations:Illustrations:Illustrations:---- It is the visual elements of print-ad-copy. It may be in the form of attractive photo of the product, drawing, cartoons, pictures, symbols graphs, paintings. It is often a dominant part of print-ad and plays an important role in increasing the effectiveness. Illustration attracts attention; communicate an idea or image of advertising message. Types of Illustration:Types of Illustration:Types of Illustration:Types of Illustration:----

• Photo of Product. • Photo of Product in use. • Photos from different angle. • Photo-in-comparison. • Photo highlighting product results. • Photo of message source person/ model. • Symbolic photos. • Photo of product Mix.

Purposes of Illustration:Purposes of Illustration:Purposes of Illustration:Purposes of Illustration:----

• Illustration helps in attracting attention and arousing desire/ interest in advertisement. • It help the buyer in identifying product, Brand-name and successive ads by simply having

a look on illustrations. Thus, use of illustrations help the viewer to memorise the ad. • It helps the buyers in understanding the ad-message given in ad-copy. • Illustration helps to improve the design and look of advertisement copy. • Through illustration, even illiterate customers can receive the message given in ad-copy.

C C C Copy:opy:opy:opy:---- Design and production of advertisement involves a number of activities, among them are writing copy, Developing illustrations, developing other visual elements of advertisement and bringing all pieces together to create effective ad-copy. Copy-writing is different for print ads, Broadcast ads and T.V. commercials. The Basic components of print- ad are: headlines, sub-heads, body-copy, illustrations, slogan, logo, identification-marks, blurbs, boxes or panels, colors, closing ideas, layout etc. Requisites of Effective Advertisement Copy:Requisites of Effective Advertisement Copy:Requisites of Effective Advertisement Copy:Requisites of Effective Advertisement Copy:----

• Attractive • Interesting • Retention Value • Suggestive • Educative

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• Believable • Appropriate

Miscellaneous Characteristics:Miscellaneous Characteristics:Miscellaneous Characteristics:Miscellaneous Characteristics:----

• Brief • Language • Confirm to Rules • Avoid Obscenity • Simple and Easy to understand • Matching to consumer’s Requirements • Entertainment.

Types of advertisement Types of advertisement Types of advertisement Types of advertisement copy: copy: copy: copy: ---- Advertisement Copy may be of various types based on functions, Appeal, Purpose, Media of advertising. Mainly advertising copies are of following types: 1) Descriptive Copy 8) Technical Copy 2) Questioning Copy 9) Reason-why-Copy 3) Comparative Ad-copy 10) Dramatisation Copy 4) Announcement Copy 11) Prestige Copy 5) Institutional Copy 12) Reminder-ad-copy 6) Topical Copy 13) Test-ad-copy 7) Personality Copy 14) Animation-ad-copy Advertising Appeal/ Advertising Themes:Advertising Appeal/ Advertising Themes:Advertising Appeal/ Advertising Themes:Advertising Appeal/ Advertising Themes:---- Ad appeal refers to the approach used in attention of audience or influencing their feeling/ Behaviour towards advertiser’s product or service. Appeals help to arouse interest of audience towards advertiser’s product. Ad appeal can be of many types. The main ad appeals are as follows:

• Rational Appeal • Feature Appeal • Favorable Price Appeal • Competitive Advantage appeal • Announcement Appeal • Emotional Appeal • Pride Appeal • Affection Appeal • Comfort Appeal • Fear Appeal • Humour Appeal • Safety Appeal • Sex-Appeal 3) Combining Rational and Emotional Appeals.

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Question No 6:Question No 6:Question No 6:Question No 6:----What is media planning & Strategy. How you will evaluate the broadcast, What is media planning & Strategy. How you will evaluate the broadcast, What is media planning & Strategy. How you will evaluate the broadcast, What is media planning & Strategy. How you will evaluate the broadcast, print & suprint & suprint & suprint & support media.pport media.pport media.pport media. Answer :Answer :Answer :Answer : IntroductionIntroductionIntroductionIntroduction ::::---- Media plan decides how advertising time and space in various media will be used to achieve the advertising and marketing objective of the company. The basic goal of media plan is to find out that combination of media which enables the advertiser to communicate the ad-message in the most effective manner at lowest cost in communicating with the target audience.

An advertising plan is decided by the advertiser to achieve advertising objectives. Advertising objective are decided keeping in view the marketing objectives of the company.In media plan following main media decision are taken:-

1) Selecting suitable media to serve the advertiser’s need i.e selecting media which can reach the target audience of advertiser.

2) Selecting best combination or mix of media which is within the advertiser’s ad-budget.

3) Selecting most suitable media schedules. In Brief media planning includes the answer to following 5 W’s: 1) 1) 1) 1) WhomWhomWhomWhom: Whom do we want to reach? i.e identifying target audience(potential customers). 2) 2) 2) 2) WhereWhereWhereWhere: Where are potential customers located? i.e identifying geographical area. 3) 3) 3) 3) WhatWhatWhatWhat : What type of message is to be selected for communicated? i.e the message is informative or demonstrative in nature. 4) 4) 4) 4) Which:Which:Which:Which: Which media is to be selected for communicating with our target audience?i.e Identifying suitable media-mix. 5) 5) 5) 5) WhenWhenWhenWhen:-When ad is to be issued? i.e deciding month,day time of ad. Steps Involved in media planningSteps Involved in media planningSteps Involved in media planningSteps Involved in media planning::::----

1)1)1)1) To know about target market.To know about target market.To know about target market.To know about target market. 2)2)2)2) To Consider various Factors AfTo Consider various Factors AfTo Consider various Factors AfTo Consider various Factors Affecting Media Planning.fecting Media Planning.fecting Media Planning.fecting Media Planning.

• InternalInternalInternalInternal----factorsfactorsfactorsfactors • ExternalExternalExternalExternal----factorsfactorsfactorsfactors

3)3)3)3) TTTTo identify the geographical Area.o identify the geographical Area.o identify the geographical Area.o identify the geographical Area. 4)4)4)4) Establishing MediaEstablishing MediaEstablishing MediaEstablishing Media----Objectives.Objectives.Objectives.Objectives. 5)5)5)5) Selecting Optimum mediaSelecting Optimum mediaSelecting Optimum mediaSelecting Optimum media---- mix. mix. mix. mix. 6)6)6)6) Selecting SuitableSelecting SuitableSelecting SuitableSelecting Suitable----media Vehicle within each selected.media Vehicle within each selected.media Vehicle within each selected.media Vehicle within each selected. 7)7)7)7) MediaMediaMediaMedia----SchedulingSchedulingSchedulingScheduling. 8)8)8)8) Execution of advertising ProgExecution of advertising ProgExecution of advertising ProgExecution of advertising Programme.ramme.ramme.ramme. 9)9)9)9) FollowFollowFollowFollow----up and Evaluation.up and Evaluation.up and Evaluation.up and Evaluation. Factors affecting media PlanningFactors affecting media PlanningFactors affecting media PlanningFactors affecting media Planning ::::----

(1) Nature of ProductNature of ProductNature of ProductNature of Product:::: Product to be advertised can be industrial/technical product or consumer product: Industrial/Technical products can better be advertised in their specific

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trade-journals/magazines. Consumer products can better be advertised through mass media such as :

� Television � Newspaper � Outdoor Advertising etc. Similarly, products for export can be advertised in such magazines which have circulation on other countries like- ‘products from India’, ‘Product finder’. Fashionable products can be advertised in fashion magazines like- � Film fare � Femina � Stardust etc.

(2) Nature of Customers:Nature of Customers:Nature of Customers:Nature of Customers: An appropriate media plan must consider the type or class of consumers, for whom advertising is to be done. Different consumers differ in their age-group, sex income, personality, educational level, attitude. On the basis of consumer traits, consumer groups can be:

� men, � women, � children, � young � Old � Professional � Businessmen � High income group � Middle-income group � Low-income group � Literate � Illiterate etc. (a) Age: For advertising for kids-products, television is the best media for communicating

message; Even in T.V., and can be given in carton related T.V. channels. IF target audience is young then television, magazines are suitable. If target audience consists of old-age-group, then newspaper, television, is a good choice.

(b) Level of Education: If target-audience are highly educated, then advertisement should b given in magazines, national newspapers, internet, television. If target audience are less educated, then local newspaper printed in local languages, low-profile magazines, T.V. are suitable. If audience are illiterate, then print-media is not suitable. Here braodcast media is a good choice.

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(c) Number of Customers; If number of target customers is more, then mass-media like television, newspaper will be considered. If number of target customers is les, then direct mail-media, tele-advertising are suitable.

(3) Characteristics of Distribution ChannelsCharacteristics of Distribution ChannelsCharacteristics of Distribution ChannelsCharacteristics of Distribution Channels:::: Distribution channels can be classified on

the basis of geographical distribution of goods or services of advertiser. Distribution channels may be classified as local distributor, regional distributors, national distributors, international distributors.

a)a)a)a) Local Distributor: If the product is to be distributed locally or regionally, then media

with local coverage and reach should be considered like local newspaper, cable-network etc.

b)b)b)b) National Distributors: If product is distributed on national level, then media with

national coverage like national dailies (newspaper), national-level-T.V. channels will be suitable.

c)c)c)c) International Distributors: If the product is to be sold at international level, then media

having reach and circulation in foreign countries will be effective e.g. Internet, Magazines with circulation in foreign countries, T.V. channels having international coverage like B.B.C should be considered. If number of dealers is less, then direct-mail-media can also be selected.

(4) Advertising Objectives:Advertising Objectives:Advertising Objectives:Advertising Objectives: The major objective of every advertising campaign is to get

favorable response from customer, but the specific objectives can be different. If the objective of advertising compaign is to get immediate results, then fast media of communication like newspapers will be considered. If the objective of advertising is to build corporate-goodwill, and bran-equity, then magazines, television will be considered.

(5) Nature of MessageNature of MessageNature of MessageNature of Message: If advertising message is informative in nature, then newspaper will

be suitable. If ad-message is to persuade consumers, then they need to be given emotional-appeal, rational-appeal, demonstration of product, then television media will be considered for advertising. For example, if ad-message is to inform the potential customers of sale-promotion schemes, discount-offers, exchange-offer, festival-offers, then it can be advertised through posters, banners, newspaper-inserts and newspaper. If ad-message is to inform and persuade for the new product launched by advertiser, it can be advertised in television, newspaper. Through T.V., advertiser can demonstrate the new product, show its uses, compare it with existing products and create the need for the new product.

(6) Size of AdSize of AdSize of AdSize of Ad----BudgetBudgetBudgetBudget: If amount of advertisement budget is more, then costly media like

television, national dailies, popular magazines can be selected. If amount of Ad-budget is less, then media like posters, banners, cable-network, local newspaper, pamphlets will be suitable.

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(7) Media Used by CompetitorsMedia Used by CompetitorsMedia Used by CompetitorsMedia Used by Competitors: While planning for media the advertiser must consider the

media selected by competitors and leaders of that industry. If advertiser does-not consider competitors and leaders of that industry. If advertiser does-not consider competitors move regarding media, then it is possible that advertiser’s market share is taken by competitors. If industry-leader is using T.V. as media, then the advertiser, too, must consider the same media. The advertiser must have a close watch on media-strategies, ad-budget of competitors. However, competitor’s strategies should not be followed blindly, as it is possible that decision of competitor is wrong.

(8) MediaMediaMediaMedia----AvailabilityAvailabilityAvailabilityAvailability :::: Sometimes it is possible that desired space for advertisements, in

print media is already booked by some other advertiser. For example, advertiser wants to issue an advertisement on front page of newspaper or on the cover-page of any magazine, but this space is already booked by some other advertises, then this media is not available to the advertiser, and he will plan for some other media or he will have to change timing of advertisement. Similarly if an advertisement is to be issued on television during a particular programme, then it is possible that advertising time is not available on that programme, as it may have been booked / sponsored by other advertisers. SO, media-availability must be considered for media planning.

(9) Media Reach and Coverage: Media Reach and Coverage: Media Reach and Coverage: Media Reach and Coverage: Such media should be selected which has wide reach and

can cover our target customers. If the advertiser has two available media, involving same cost, then media with more reach and coverage of our target audience will be selected. Media reach means total circulation/viewership of media in a given period of time, will be called its reach per day. If ad is given on T.V., then expected audience size of that TV programme in which ad is issued, in a given period of time is called its reach. If measurers the number of persons who are exposed at least once to this media in a specific period of time. Media coverage refers to the potential audience who might receive the message given by media. Higher media reach will ensure higher media coverage, if the media matches with the features of our target audience. So selected media must match with out target audience.

(10) Media CostMedia CostMedia CostMedia Cost: : : : Advertiser should compare the cost of each media by considering the number of audience covered by such media. It is possible that a media seems to be costly, but if it can cover large number of audience, then cost per audience will be less. In case, advertisement is to be given in newspapers, then cost of different newspaper is computed on the basis of cost per one lac of its circulation.

(11) MediaMediaMediaMedia----FrequencyFrequencyFrequencyFrequency:::: Media-frequency refers to average number of times; the audience is

exposed to media-vehicle in a specified period of time. Higher media-frequency is preferred. Greater the frequency, more are the chances of advertisement message making deep impression on the minds of consumers. In case of print media, frequency of newspaper is very less as the receiver is not exposed to the same newspaper for a long period of time. On

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the next day he will be getting the new newspaper and old newspaper will be discarded the same day. In case of magazine, media-frequency is more as same magazine may be opened by audience may a time, as the magazine will be repeated after a month or after a fortnight.

In case of television, if an advertisement is given in a weekly T.V. programme, and if it is given once in every episode, and say ad is given for four episodes, then here frequency means number of times, the audience are exposed to this advertisement in four week duration period. Higher frequency will create better impressions on target audience. So media with higher frequency should be selected. (12) MediaMediaMediaMedia----ImageImageImageImage: Some media-image vehicles enjoy better image in comparison to other

media vehicles. Media-image enhances the communication value of advertisement. Good reputation of editorial board, well established media, enjoy better image among public, so advertisements given in such media enhance the credibility and trust of advertisements. So media with good image should be selected. Question No7:Question No7:Question No7:Question No7:----How you will evaluate the broadcast, print & support media.How you will evaluate the broadcast, print & support media.How you will evaluate the broadcast, print & support media.How you will evaluate the broadcast, print & support media. Evaluation of Advertising Media: 1) PRINT MEDIA:- Print media is also known as press advertising. It is one of the media of communication also with broadcast media and outdoor advertising media. It mainly include the advertisement through newspaper and magazines.Print media is mainly of two types:-

a) Newspaper b) Magazines & Jurnals

a) Newspaper: - Newspaper are brought largely for their news values. Newspapers are published in various languages. In India, maximum newspapers are published in Hindi and English. Newspapers include following types of advertisement:

• Local Advertisement • National Advertisement • Classified Advertisement • Special Ads and Inserts

AdvantagesAdvantagesAdvantagesAdvantages::::----

• Wide coverageWide coverageWide coverageWide coverage • Low cost per readerLow cost per readerLow cost per readerLow cost per reader • FlexibilityFlexibilityFlexibilityFlexibility • Quick delivery of messageQuick delivery of messageQuick delivery of messageQuick delivery of message • Geographical SelectivityGeographical SelectivityGeographical SelectivityGeographical Selectivity

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• More CredibilityMore CredibilityMore CredibilityMore Credibility • Most Suitable for ComparativeMost Suitable for ComparativeMost Suitable for ComparativeMost Suitable for Comparative----Advertising.Advertising.Advertising.Advertising.

DisadvantagesDisadvantagesDisadvantagesDisadvantages • Short life spanShort life spanShort life spanShort life span • Limited coverageLimited coverageLimited coverageLimited coverage • Advertisement OverloadAdvertisement OverloadAdvertisement OverloadAdvertisement Overload • Poor ProductionPoor ProductionPoor ProductionPoor Production • Wasteful CirculationWasteful CirculationWasteful CirculationWasteful Circulation • Proves Costly if Number of Customer is lessProves Costly if Number of Customer is lessProves Costly if Number of Customer is lessProves Costly if Number of Customer is less Magazines and JournalsMagazines and JournalsMagazines and JournalsMagazines and Journals::::---- Are another form of print media. These are published periodically at regular intervals like fortnightly, monthly, quarterly, annually. Magazines are classified as:

• Consumer-magazines • Special interest magazines • Business magazines • Regional magazines • Professional magazines Advantages:Advantages:Advantages:Advantages:---- • FlexibilityFlexibilityFlexibilityFlexibility • Long life SpanLong life SpanLong life SpanLong life Span • Better QualityBetter QualityBetter QualityBetter Quality • Leisure ReadershipLeisure ReadershipLeisure ReadershipLeisure Readership • CredibilityCredibilityCredibilityCredibility Disadvantages:Disadvantages:Disadvantages:Disadvantages:---- • LimitLimitLimitLimited Reached Reached Reached Reach • Long Life SpanLong Life SpanLong Life SpanLong Life Span • Overloaded with AdsOverloaded with AdsOverloaded with AdsOverloaded with Ads • Delayed ReadershipDelayed ReadershipDelayed ReadershipDelayed Readership • High CostHigh CostHigh CostHigh Cost • Disadvantages of Print MediaDisadvantages of Print MediaDisadvantages of Print MediaDisadvantages of Print Media • High CostHigh CostHigh CostHigh Cost Broad Cast Media:Broad Cast Media:Broad Cast Media:Broad Cast Media:---- It includes advertisement in ratio, television , cable etc. It differs from print advertising media as it has both audio and visual effect. Broadcast is a media carrying advertiser’s message.to the target audience.Broadcast media is mainly of two types:- a)a)a)a) TelevisionTelevisionTelevisionTelevision b)b)b)b) RadioRadioRadioRadio

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a) Television:Television:Television:Television:---- Commercial television advertising was introduced in India in 1976. with the reduction in T.V. price and increase in economic status of an average Indian, available of T.V. Sets has increased speadly.

Advantages:Advantages:Advantages:Advantages:---- • Strong ImpactStrong ImpactStrong ImpactStrong Impact • Wide CoverageWide CoverageWide CoverageWide Coverage • Emotional AppealEmotional AppealEmotional AppealEmotional Appeal • FlexibilityFlexibilityFlexibilityFlexibility • Attractive MessageAttractive MessageAttractive MessageAttractive Message • Geographical SelectivityGeographical SelectivityGeographical SelectivityGeographical Selectivity

Disadvantage:Disadvantage:Disadvantage:Disadvantage:---- • ExpensiveExpensiveExpensiveExpensive • Long ProLong ProLong ProLong Production Timeduction Timeduction Timeduction Time • High Production CostHigh Production CostHigh Production CostHigh Production Cost • Not suitable when the number of audience is lessNot suitable when the number of audience is lessNot suitable when the number of audience is lessNot suitable when the number of audience is less • Overloaded advertisingOverloaded advertisingOverloaded advertisingOverloaded advertising • Detailed message cannot be givenDetailed message cannot be givenDetailed message cannot be givenDetailed message cannot be given • DistrustDistrustDistrustDistrust • Obscenity and vulgarityObscenity and vulgarityObscenity and vulgarityObscenity and vulgarity • Fragmented ViewersFragmented ViewersFragmented ViewersFragmented Viewers

Support Media:Support Media:Support Media:Support Media:---- Message is brief, legible, written in bold letters, eye-catching, attractive, and it must depict the brand name. It has long exposure and can reach to larger population which is continuously on the move. Moreover, people are exposed to such advertising again and again by passing from the same side. Types of support media are:-

• NonNonNonNon----signsignsignsign----boardsboardsboardsboards • PostersPostersPostersPosters • Vehicle AdvertisingVehicle AdvertisingVehicle AdvertisingVehicle Advertising • Sky advertisingSky advertisingSky advertisingSky advertising • StickersStickersStickersStickers • SendwhichmenSendwhichmenSendwhichmenSendwhichmen • BannersBannersBannersBanners • Wall paintingWall paintingWall paintingWall painting

Advantages:Advantages:Advantages:Advantages:---- 1) These have long life these are not easily perishable. 2) It has wide coverage. 3) It offers geographical selectivity. 4) It is economical 5) It is flexible as advertiser is free to choose any form of support advertising. With in the form also he is free to select any size, shape, color scheme etc. 6) Because of large size and bright colours, support advertisement is attractive and is

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capable of gaining attention. 7) IT has repeated exposures, so it helps to remember the brand name of advertiser. 8) It act as last minute reminder for persons who are going to purchase a particular product. 9) Support advertisement is very useful for local advertising.

Disadvantages:-

1) Detailed message can’t be given through support advertising as passers by view the signboards are only for few seconds.

2) Sometimes posters and wall paintings create nuisance for the house owners when these are pasted/ made without there permission.

3) It is expensive if employed on a national –basis. 4) Sometimes Obscene and vulgar posters are posted at public places for advertising of

movies. It has adverse public reactions. 5) It may distract the attentions of the drivers of vehicles and may lead to accidents

Question No7:- What is Advertising Budget? Discuss various steps involved in Budgeting. How you will measure adds effectiveness. Answer:-Introduction:- Quantitative expression of future plan of activities prepared for fix period of time. Advertising budget is a financial document that show the total amount to be spent on advertising and list the way this amount is to be allocated. Advertising budget shows how much is to be spent on promotional efforts and how this amount is allocated among different media, sales territories. Advertising Budget differ from company to company. Some companies spend large amount on advertising, While there are companies spent very less amount on advertising.

Steps in framing advertising Budget

1) Setting advertisement Objective:- Before deciding on advertising budjet, the advertising manager must be clear about advertising objectives which help him to determine and allocate the ad budget. Main Objectives of advertisement are:-

• AchieveAchieveAchieveAchieve the leve the leve the leve the level of salesl of salesl of salesl of sales • Enhance the market share by specific %Enhance the market share by specific %Enhance the market share by specific %Enhance the market share by specific % • To increase awareness regarding Products and its uses.To increase awareness regarding Products and its uses.To increase awareness regarding Products and its uses.To increase awareness regarding Products and its uses. • To develop preference of our product To develop preference of our product To develop preference of our product To develop preference of our product • To convinces the customer to buy our product. To convinces the customer to buy our product. To convinces the customer to buy our product. To convinces the customer to buy our product.

2)Determining Tasks to be performed to Achieve Advertising Objective:-The next step is to determine tasks, activities, strategies, functions to be performed to achieve the advertising Objectives. This task includes

• Selection of Selection of Selection of Selection of mediamediamediamedia, , , , • selection of advertising agencyselection of advertising agencyselection of advertising agencyselection of advertising agency

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• designing of advertising copydesigning of advertising copydesigning of advertising copydesigning of advertising copy • Deciding frequency of Deciding frequency of Deciding frequency of Deciding frequency of advertisementadvertisementadvertisementadvertisement • Designing of advertisementDesigning of advertisementDesigning of advertisementDesigning of advertisement • Timing of Timing of Timing of Timing of AdvertisementAdvertisementAdvertisementAdvertisement • Quantum of space to be taken in print mediaQuantum of space to be taken in print mediaQuantum of space to be taken in print mediaQuantum of space to be taken in print media....

3)Preparing Advertising Budget3)Preparing Advertising Budget3)Preparing Advertising Budget3)Preparing Advertising Budget::::---- After identifying various activities to be done to achieve advertising objectives, the next step is to find out the cost of all such activities. Total cost of all such activities is amount required for advertising budget. To keep the budget flexible, certain amount in the form of provision of contingencies is added to the total cost. 4444) Approval:) Approval:) Approval:) Approval:----After preparing advertising budget, it is sent to Top-Management through chief of marketing-department for necessary approval. Top-Management will see if the budget is affordable and justified it will pass the budget. 5)5)5)5) Allocation of advertising Budget:Allocation of advertising Budget:Allocation of advertising Budget:Allocation of advertising Budget:---- After the budget is approved by the top management, the next step is to allocate it. Allocation means dividing the budget on different products and activities. Budget should be flexible to accommodate sudden changes in market, competetior’s strategies, and change in another components of market.

6) Monitor and Control:Monitor and Control:Monitor and Control:Monitor and Control:---- After allocation of resource it is essencial to have an adequate monitoring and control over it. In control, actual expenditure is compaired with planned expenditure. In case if expenditure is greater then the planned expenditure then corrective actions are taken responsibilities are fixed to ensure cost control.

Methods of preparing advertisement Methods of preparing advertisement Methods of preparing advertisement Methods of preparing advertisement Budget:Budget:Budget:Budget:---- Every advertiser sets apart a sum of money to be spent on advertising which is refered to as advertising appropriation. The amount is not fixed arbitrarily but is determined on some scientific basis. Following methods are commonly used in determining the size of advertising budget:

1) % of sales Method 2) Competitive party Method 3) Objective and task Method 4) Affordable Method 5) Judgments Method 6) Increase over Past Year’s Budget 7) Return on investment 8) Quantitative methods 9) Marginal Approach to Ad budget

1) % of Sales Methods:1) % of Sales Methods:1) % of Sales Methods:1) % of Sales Methods:---- the amount to be appropriated to advertising is arrived at by multiplying the value of past year’s sales or projected sales for the budget period with a pre determined percentage.

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Advertising budget amount = Past Year’s Sales or Anticipated Sales Advertising budget amount = Past Year’s Sales or Anticipated Sales Advertising budget amount = Past Year’s Sales or Anticipated Sales Advertising budget amount = Past Year’s Sales or Anticipated Sales xxxx Pre Pre Pre Pre----determined determined determined determined PercentagePercentagePercentagePercentage.... For Example:For Example:For Example:For Example:---- If the sales are Rs:300 lakhs and percentage decided by top management is 4, then advertiser will spend Rs:12 lakhs(300x 4%) on advertisement. In this method two main decision are to be taken i) % figure ii) whether to take past or future sale. 2) Competitive Parity Method:2) Competitive Parity Method:2) Competitive Parity Method:2) Competitive Parity Method:---- It is traditional approach in which advertising budget is framed in such a way that our company is at par with competitors in spending money on advertising. Competitive parity budget can be determined in several ways. These are as follows: a) Spend the same rupee amount on advertising as major major competitor does. b) Spend the same % of sales on advertising as major competitor does: 3) Objective and Task Method:3) Objective and Task Method:3) Objective and Task Method:3) Objective and Task Method:---- This approach considers advertising as an investment and a mean to achieve long-term business objectives. Krick Patrick has defined ‘objectives and task approach’ as “listing the advertising objective and identifying the task to be done to achieve there objective.” This method involves the following step for framing advertisement budget. a) Determining Objectives.a) Determining Objectives.a) Determining Objectives.a) Determining Objectives. b) Identifying Advertisingb) Identifying Advertisingb) Identifying Advertisingb) Identifying Advertising Tasks. Tasks. Tasks. Tasks. c) Estimating Costs of these Tasksc) Estimating Costs of these Tasksc) Estimating Costs of these Tasksc) Estimating Costs of these Tasks. 4) Affordable Method:4) Affordable Method:4) Affordable Method:4) Affordable Method: ---- This method is also known as ‘all you can afford’, ‘Residual Method’, ‘Available-fund-Approach’. As the company does not spend more than what it can afford, There is an element of financial decision and company remain away from the war. This method have some weaknesses which are as follows:- 1) Lack of Financial Resources 2) Unscientific 3) Ignores Role of Advertising 4) Lack of Stability 5) Judgement Method:Judgement Method:Judgement Method:Judgement Method:---- In this method, advertising budget is decided by the experienced manager of company on the basis of their judgments. Here advertising budget is based on arbitrary thinking of some experienced managers and not based on scientific lines. They decide the advertisement budget at a lump sum figure by considering all relevant figure like Objective of advertising, actions and reactions of competitors, customers, level of sales, availability of funds, type and cost of media, stages in product life cycle. 6) Return on Investment:6) Return on Investment:6) Return on Investment:6) Return on Investment: ---- Return on investment method is entirely different method from other methods. This method consider advertising expenditure as an investment and not as routine revenue expenditure. Like other investment of the company, advertising is also expected to give certain returns. Advertising buildup an intangible asset that is Brand EquityBrand EquityBrand EquityBrand Equity . This method correlate sales and profit with advertising expenditure. It is based on very logical consideration but in pracits it is very difficult to assess the return provided by advertising because the returns are often spread over along period of time because of its complexity it is not used in real life. 7) 7) 7) 7) QuantitiesQuantitiesQuantitiesQuantities Methods: Methods: Methods: Methods: ---- Statistical techniques like multiple regression, profitability, simulation or programming techniques etc. are used to prepare advertisement budget. Multiple regressions help to determine the contribution and effect of advertisement budget on the level of sales. These techniques assumes that current sales are dependent on current advertising and carry over effect from previous period advertising.

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8) Marginal Approach to Ad8) Marginal Approach to Ad8) Marginal Approach to Ad8) Marginal Approach to Ad----budget:budget:budget:budget:---- In this approach advertisement budget is decided on the basis of marginal costs and marginal revenue of advertising. Marginal cost here means increment in advertising spending. Marginal revenue means increment revenue because of increase in advertising spending. Acc. to this approach, the firm should increase advertising spending if marginal revenue is more then marginal cost. The marginal cost and marginal revenue should be equal be equal in determining the optimum level of advertising. Any further spending after the level at which incremental revenue will be unprofitable

Factors affecting the Advertising BudgetFactors affecting the Advertising BudgetFactors affecting the Advertising BudgetFactors affecting the Advertising Budget

1)1)1)1) Market SizeMarket SizeMarket SizeMarket Size 2)2)2)2) Stage in Product Life Cycle.Stage in Product Life Cycle.Stage in Product Life Cycle.Stage in Product Life Cycle. 3)3)3)3) Advertising StratAdvertising StratAdvertising StratAdvertising Strategyegyegyegy 4)4)4)4) Product DifferentiationProduct DifferentiationProduct DifferentiationProduct Differentiation 5)5)5)5) Price ChargedPrice ChargedPrice ChargedPrice Charged 6)6)6)6) Competitive SpendingCompetitive SpendingCompetitive SpendingCompetitive Spending 7)7)7)7) Nature of the ProductNature of the ProductNature of the ProductNature of the Product 8)8)8)8) Priced Charged Priced Charged Priced Charged Priced Charged 9)9)9)9) Competitive Spendings Competitive Spendings Competitive Spendings Competitive Spendings 10)10)10)10) Nature of productNature of productNature of productNature of product 11)11)11)11) Financial resourceFinancial resourceFinancial resourceFinancial resource 12)12)12)12) Market PotentialMarket PotentialMarket PotentialMarket Potential

Question No 8:Question No 8:Question No 8:Question No 8:---- What is Advertising Agency? How does it work? Also explai What is Advertising Agency? How does it work? Also explai What is Advertising Agency? How does it work? Also explai What is Advertising Agency? How does it work? Also explain CAR.n CAR.n CAR.n CAR. Answer:Answer:Answer:Answer:---- Introduction: Introduction: Introduction: Introduction:---- Advertising Industry involves three main components. Media, advertiser, advertising agency. The person who decide to advertise the product is called advertiser, sponsor or clint. Media refers to the vehicle that carries the message to public. The sponsor often relies on some outside experts to perform task involved in launching of the product. These out side experts business houses are called advertising agency. Meaning:- Advertising agency is an independent business organization specialized in advertising work which undertakes the work of Planning, Preparing, executing advertising compaign for its clints. It is a body of experts who specialize in advertising. Defination:Defination:Defination:Defination:---- Acc. to Philip Kotler, “Advertising agency is a mar Acc. to Philip Kotler, “Advertising agency is a mar Acc. to Philip Kotler, “Advertising agency is a mar Acc. to Philip Kotler, “Advertising agency is a marketing services firm that assists keting services firm that assists keting services firm that assists keting services firm that assists its client in planning, preparing, its client in planning, preparing, its client in planning, preparing, its client in planning, preparing, implementing and evaluating various activities of advertising implementing and evaluating various activities of advertising implementing and evaluating various activities of advertising implementing and evaluating various activities of advertising compaign.”compaign.”compaign.”compaign.” Organisation of AdOrganisation of AdOrganisation of AdOrganisation of Ad----agency on Department basisagency on Department basisagency on Department basisagency on Department basis ::::----

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In departmental basis organization structure, a separate department is created for each major advertising function. Each department is headed by a specialist in that particular field.

Organisation of AdOrganisation of AdOrganisation of AdOrganisation of Ad----Agency on Group BasisAgency on Group BasisAgency on Group BasisAgency on Group Basis::::---- For effective supervision of various advertising departments and there functions, different advertising departments are classified in groups and then a particular group is given the authority and responsibility to manage the functions related to the group. The main groups in an advertising organizations are related to:-

i) Planning of Advertising ii) Preparation of Advertisement. iii) Placement and Execution of Advertising. iv) Marketing Services.

1. Client Liaison Department 2. Research Department 3. Copy Writing Department 4. Art Department 5. Media Department 6. Audio-Visual Ad Production Department 7. Accounting Department 8. Public Relation Department 9. Public Relations Department 10. Evaluation Department

FUNCTIONAL DEPARTMENT OF AD-AGENCY ORGANISATION

Advertising Agency

Board of Director

General Manager

Manager Planning Department

Manager Ad-preparation Department

Manager Ad-placement Execution Deptt.

Manager Marketing Service Deptt.

Clint Product Analysis Market Analysis

Message Contents Message Appeals

Media Selection Media Scheduling

Production Services • New product Development • Product Design

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Selection of an Advertising Agency:Selection of an Advertising Agency:Selection of an Advertising Agency:Selection of an Advertising Agency:---- The advertiser must be very careful in selecting the advertising agency. The success of advertising-compaign largely depends on the selection of suitable ad-agency. There are about 625 registered advertising agencies operating in India. All agencies do not suit all advertisers. Advertisers may have different needs and requirements. Before making the choice of an advertising agency, the advertiser should first be clear about the objectives of advertising, appropriation for advertising budget. Following Factors should considered while selecting an Advertising Agency. 1) LOCATIPON:1) LOCATIPON:1) LOCATIPON:1) LOCATIPON:---- A major consideration in the choice of an advertising agency is location of office of agency. A considerable amount of communication is required at various stages of decision making with regard to ad-planning and ad-execution. Many meetings are done between top-executives of advertiser and ad-agency. Some agencies charge the client for additional visits by their executive. Office of ad-agency is Located nearly and is easily accessible.

2) Size: 2) Size: 2) Size: 2) Size:---- Both large size-agencies and small size agencies are available, each has its own merits and demerits. Large-agencies have wide range of facilities, services and more experienced staff. But larger size agencies have certain limitations Viz. These are costly, these can not give personal attention to all clients because of large number of clients, these don’t give much attention to small clients as these companies have big clients.

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3) Agencies working for competitors: 3) Agencies working for competitors: 3) Agencies working for competitors: 3) Agencies working for competitors:---- Advertiser should avoid giving his advertising work that agency that handles the advertising work of his competitor. Because in that case ad agency may not be in a position to prepare ads which help the advertiser to take an edge over competitor and agency will not prepare such ads which go against our competitors, i.e. agency will not make competitive ads for us.

4)4)4)4)Image of Agency:Image of Agency:Image of Agency:Image of Agency:---- Before selecting the ad-agency advertiser should enquire about its image, integrity, its ethical standards, its relation with clints. The add agency should command a good image in the public. Image of agency can be scanned through media, past and present clints, its employee etc. 5) Service Offered by Ad5) Service Offered by Ad5) Service Offered by Ad5) Service Offered by Ad----agencyagencyagencyagency:- Now a days ad agencies give wide range of servives like planning and preparation of ad, execution of ad, selection of media, Followup to evaluate ad-effectiveness, sales promotion, public relation, publicity, market analysis, market research etc. The ad-agency should see the services offered by the ad-agency are serving its need or not. 6) Rates Charged6) Rates Charged6) Rates Charged6) Rates Charged:- The rates charged by the advertising agency should be quite responsible. These rates should suits the pocket of clint and should be within ad-budget of client. It is of particular importance to the advertiser to know the rates charged by ad-agency for rendering various services so that advertisement can compare advertising cost with benefits expected from advertising. Rate of different ad-agencies which can serve our needs, should be compared so as to select competitive ad-agency. 7)7)7)7) Creative Skills and New Ideas:Creative Skills and New Ideas:Creative Skills and New Ideas:Creative Skills and New Ideas:---- Creativity is the main element of advertising. If the

ad-agency is capable of generating new ideas which are creative and profitable then such agencies will be more successful in attraction of audience. Creative imagination enables an agency to develop such advertisement attention and face competition more effective.

8)8)8)8) Past Record of Agency:Past Record of Agency:Past Record of Agency:Past Record of Agency:---- Past record of agency should be checked to know: Past record of agency should be checked to know: Past record of agency should be checked to know: Past record of agency should be checked to know: 1) Who were the past clients of agencies; why they left the agency; how long were they with agency. How big were they?

2) Who are the present clients, how big are they; since how long are they with agency;their agency-client relationship. 3)3)3)3) Brand-image of products of agency’s clients. 9) Quality and Quality and Quality and Quality and CCCCalibrealibrealibrealibre of Staff: of Staff: of Staff: of Staff:---- Ad-agency has various specialists like copy-writers, artists,

models,etc. This agency is more suitable which has experienced, efficient and high caliber experts in its team, because it is only with the help of competent and efficient workforce that ad-agency can serve the needs to advertisers effectively.

10) Financially Sound: Financially Sound: Financially Sound: Financially Sound:- The ad-agencies which are financially sound and have good turnover have better contract with media owners.The agencies which are financially sound can

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afford better infrastructure, well equppied-ad labs, specialist, national and international image. Such agencies are in a better position to serve the client.

11) AgencyAgencyAgencyAgency----Experienced:- Agency Which has long existence generally performs better because of its experience and familiarity with different components of marketing environment like competitors’s policies, taste of consumer, fashions and trends, circulation and reputation of different media.

CLIENT AGENCY RELATIONSHIP

Meaning: Clint agency relationship between advertiser and the ad-agency. Cordial Relationship with full trust and confidence is must to get maximum from ad agency and agency can also work with free hand. Advertising agencies have enables many small business units to grow into large ones. Now a days almost all advertisiers rely on ad agencies for its services creative skills objective thinking etc. Client agencies Relationship includes the following:

• Principle of Effective Clint Agency Relationship. • Reasons of client turnover. • How agencies gain clients • How relationship can be more cordial.

Principle of Effective Clint Agency Relationship:-following points improve the CAR effective.

1) Not to advertise for Immediate Competitive Units. 2) Clint’s Prior Approval of all Expenditure. 3) Prompt Payment. 4) Passing Down Cash Discounts to Client. 5) Not to Blame Agency for Media-Lapses. 6) Good Services. 7) Trust and Confidence 8) Written Agreement 9) Frequent Contact Between Agency And Clint

How agencies gain clients:How agencies gain clients:How agencies gain clients:How agencies gain clients:----

1) Obtain new clients as a result of referrals from existing clients. 2) Searching of new clients by writing letters, making calls and visiting probable clients. 3) Presenting Information about itself its experience, its experts, its previous work,

marketing services offered for clients, names of popular brands developed by agency etc. This information can be in the form of a brochure, booklet for convincing new clients.

4) Creating good image and reputation of the agency by providing efficient services. Agency that consistently develops excellent advertising campaigns, acquires favorable reputation among its clients. This helps the ad agency to search for more clients.

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5) Offering marketing services along with ad developing and designing. The clients can be attracted by providing specialised services like sales promotion, public relations, market research, consumer research, publicity, developing, placing and evaluating ad.

How Relationship can be Improved:How Relationship can be Improved:How Relationship can be Improved:How Relationship can be Improved:----

1) Not advertising for immediate competitive units of its clients. 2) Prior approval of client for all expenditure incurred. 3) Making prompt and adequate payment by clients. 4) Passing down cash discount to clients. 5) Building mutual trust, confidence by constant interaction and clarifying the

misunderstanding. 6) Written agreement of terms and conditions. 7) Satisfying client with the quantity of advertisement, and ad campaign. 8) Providing better marketing services of clients. 9) Giving due weightage to suggestion of clients. 10) Clients should not unnecessarily interfere in the creative work of ad agency.

Question No9:Question No9:Question No9:Question No9:---- Explain briefly Social, ethical, legaExplain briefly Social, ethical, legaExplain briefly Social, ethical, legaExplain briefly Social, ethical, legal& economical aspect of advertising.l& economical aspect of advertising.l& economical aspect of advertising.l& economical aspect of advertising. Answer :- Social aspect of advertising:- Advertising affects various aspects of social and cultural of the people. It affects life style, Cultural-Values, Standard of living, Media, Tastes, Likings etc. Some advertising appeals badly affect children and undermine the status of women and aged persons in society. Various social aspects are as follows:- 1) Untruthful/Decertive Advertising:1) Untruthful/Decertive Advertising:1) Untruthful/Decertive Advertising:1) Untruthful/Decertive Advertising:---- Deceptive Advertising refers to misleading, Untruthful, fraudulent advertisement. Some advertisements make tall claims are called deceptive ads or exaggerated. Ads showing such false claims are called deceptive ads or. Not disclosing material facts about the product/ Service is also covered in deceptive advertising. For example, Showing only brighter side and not disclosing the major side effects, Weeknesses of product is description. 2) Effect on Culture:- Culture refers to the way of life of group of people. It includes- Life styles, values customs, morals, habits etc. Through advertising, Cultural-exchange takes place. This cultural exchange can be within in the country and with other countries also. Through this exchange, people become brand-minded, and learn modern style of living. Some sections of society appreciate this modern style of living, while some others sections are against it. 3) Effect on Media:3) Effect on Media:3) Effect on Media:3) Effect on Media:---- All types of media, viz newspaper, magazines, T.V., earn a lote of revenue from advertisement. A newspaper is sold for one rupee only because it covers its cost through ad-revenues. So advertisement is helpful in reducing the cost of media, availability of

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media within the reach of common man. Moreover, media does not publish any negative remarks/ news against the person who are giving large ad-revenues. But for this, advertising is not to be blamed. It is the media who should take moral responsibility for it 4) Effect on Standard of Living:4) Effect on Standard of Living:4) Effect on Standard of Living:4) Effect on Standard of Living:---- Advertising has reduced the cost of production, distribution, promoted competition and thus resulted in price reduction. It has promoted demand. Now middle-income people use such goods which were earlier consumed only by reach society. Consumer now has wider choice and now can procure best products at lowest prices. Advertising persuades the people to buy more and more goods and services to raise there standard of living. 5) Materialism:5) Materialism:5) Materialism:5) Materialism: ---- Advertising makes people buy the things which they don’t need. Advertising unnecessarily attaches status/prestige/ pride symbol with some products and thus make the people buy the things they don’t need or cannot afford. Similarly it makes the people replace the things before their actual useful life. People want to accumulate more and more things. Ads never compelled them to buy more and more goods. Consumers can ignore the ads for products and services which they don’t need or they can’t afford. 6) Effect on Children:6) Effect on Children:6) Effect on Children:6) Effect on Children: ---- When kids and children watch an advertisement, they are unable to assess the advantages and disadvantages of the product. They feel that whatever is advertised is true. They insist their parents to purchase advertisement product. Moreover when they observe vulgarity and violence in ads, their thinking is polluted. Such ads can be given at night, when children do not watch T.V. 7) Stero7) Stero7) Stero7) Stero----typing in Advertisingtyping in Advertisingtyping in Advertisingtyping in Advertising :- Stereotyping refers to presenting a group of people in certain roles only. Advertising has received criticism for stereotyping women and aged persons. Women are usually shown in advertising as housewives, as mother or for making sex appeal. Women and is always portrayed as a decorative object and she is not given the role of professional, holding key-position. Decision maker etc. 8)Wrong Advertising8)Wrong Advertising8)Wrong Advertising8)Wrong Advertising----Appeals:Appeals:Appeals:Appeals: These are

• Sex Appeals • Fear Appeals • Confusion Appeals • Too persuasive

EconomicEconomicEconomicEconomic Aspects of Advertising Aspects of Advertising Aspects of Advertising Aspects of Advertising Advertising has various positive and negative economic aspects. The main positive economic effects are: It helps the producer in reducing production- cost, Distribution-cost, facing compition. It helps the consumers in winding their choice and knowledge of products and services. Economy is benefited by advertising as it helps in promoting economic growth. Critics of advertising argue that advertising has negative effect also . The main negative economic effects are Advertising ads to cost of production, discourage competition, creates

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monopoly and results in higher prices. The main economic aspects of advertising are discussed below:- 1)1)1)1) Effect on production cost, Distribution cost, PricesEffect on production cost, Distribution cost, PricesEffect on production cost, Distribution cost, PricesEffect on production cost, Distribution cost, Prices::::---- Advertising effects the production, distribution, price as Advertising effects the production, distribution, price as Advertising effects the production, distribution, price as Advertising effects the production, distribution, price as followsfollowsfollowsfollows:::: A)A)A)A) Effect on Production Cost:Effect on Production Cost:Effect on Production Cost:Effect on Production Cost: ---- Advertising create demand and expand market size, this

necessitate mass production. Mass production results in various economics of large scale, like better-utilization of fixed expenses, availability of good quality raw material at lower price, availability of better technology and machinery. All this results in lower per unit cost of production

B) Effect on Distribution Cost:Effect on Distribution Cost:Effect on Distribution Cost:Effect on Distribution Cost: ---- Production cost is one aspect of cost picture, the other aspect is distribution cost. Spending higher amounts on advertising increase distribution cost in absolutely terms. But the advertising result in reduction in personal selling expenses as buyers are already aware and have detailed knowledge of product and they come to purchase the product at there own, hence lesser personal selling is required. Moreover this increase in sales, per unit selling distribution cost comes down.

C) Effect on Prices:Effect on Prices:Effect on Prices:Effect on Prices:---- The supporter of advertising argue that advertising helps to reduce prices Advertising results in reduction of per unit selling and distribution cost. So for increasing computers market-share and attracting customers, advertiser reduction in prices. It is clear from the example of reduction in prices of competitive products viz television, computers, mobile phones, air-conditioners, etc.

2) EEEEffect on Dffect on Dffect on Dffect on Demand:emand:emand:emand:---- In case of new products, advertising, creates primary demand by

educating the audience regarding uses of the product. Even in case of existing product through rational and emotional appeals. So advertisement create demand. But critics argue that advertisements simply transfer business from one producer to another producer, Consumers start purchasing other instead of present brand. So there is no real increase in demand.

3) Effect on CompetitionEffect on CompetitionEffect on CompetitionEffect on Competition:::: ---- Advertising promotes competition among different brand of the same product. The company offering good quality products at reasonable price often gets advantages in the competition. Through advertisements, company can communicates its good quality, reasonable price, sales promotion schemes, and advertising appeals to the target customers. When one advertiser launches such schemes, other advertiser also follows it. It promotes competition.

Critics argue that large firms creates barriers to entry of new firms as these large firm enjoy economies of large scale and can afford costly and efficient media for advertising. 4) Effect on Consumer ChoiceEffect on Consumer ChoiceEffect on Consumer ChoiceEffect on Consumer Choice::::---- Advertising has favorable effect on consumer-choice.

Advertising give information about various brand, products available in the market, their features, price, place of availability etc. Consumer can make comparative study of all such choices to purchase most suitable products. Without advertising it is impossible to know about the various brands. Critics argue that advertising unnecessarily persuade the prospective buyer to purchase the prospective brand. Persuasion in advertising only impels the consumer, but does-not buy the advertised products.

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5)5)5)5) Effect on Business CycleEffect on Business CycleEffect on Business CycleEffect on Business Cycle:::: ---- Supporters of advertising argue that advertising help in reducing the extent of business-cycles. In period of recession, advertisers increase their ad-expenditure to revert their falling sales. In boom period advertisers curtail to ad-expenses they are able to sell their entire production with less advertising efforts. Critics argue that advertisers overspend in boom period and underspend in recession-period as amount of ad-expenditure is usually based on %age of sales.

6)6)6)6) Effect on National Income:Effect on National Income:Effect on National Income:Effect on National Income: ---- Advertising promotes demand, increase productive and industrial activities, promotes growth in agriculture, Growth in service sector, increase in employment increase in exports etc. Critics are wrong as advertising definitely creates demand, promotes new products, expand markets, promotes and thus results in increase in national income.

7) Advertising and Creation of UtilityAdvertising and Creation of UtilityAdvertising and Creation of UtilityAdvertising and Creation of Utility:::: ---- Advertising creates time, place and perception utility. In case seasonal products, it creates time utility by creating demand even in off season period. It creates place utility by creating demand even in those market areas where the product not earlier sold. It creates perception utility by making positive image of the product in the mind of the audience. Critics argue that advertising is-not a productive activity, so it is not create any utility. But this argument is baseless as advertising is a service activity and creates utility by providing services to different sections of society viz:-manufacturers, distributors, salesmen etc.

8) Effect on EmploymentEffect on EmploymentEffect on EmploymentEffect on Employment:::: ---- Advertising has created both direct and indirect employment to various persons in the society. Now a days advertising is recognized as a big industry. It provides direct employment to persons engaged in various jobs like copy writers, artists, graphics designer.

9) Effect on ProductEffect on ProductEffect on ProductEffect on Product----QualityQualityQualityQuality::::---- Advertising promotes competition and every advertiser wants to succeed in this competition. Advertiser knows that for long term success in business and for effective rational advertising, good quality production is must. For this advertisers send lot of resources on research and development-work to improve product quality. Critics of advertising argue that advertiser is selling inferior quality products by showing persuasive and untruthful advertisement. But this criticism is wrong as advertisers supplying inferior products can’t be successful in long run.

Ethical Aspect of advertisingEthical Aspect of advertisingEthical Aspect of advertisingEthical Aspect of advertising

Ethics are moral principles are values that govern the action of individual or group. It is a branch of social- science which helps us to choose between good and bad, right and wrongs. Ethics in advertising should not exercise fear and sexual appeal, indecent language, exercise persuasion, false claims, baseless and misleading comparisons, should not undermine the position of women aged-persons, shouldn’t pollute the thinking of children, shouldn’t promote the use of undesirable products like tobacco, alcohols etc. Following are the main ethical aspects of advertising:- 1) Effect on culture:1) Effect on culture:1) Effect on culture:1) Effect on culture:---- Culture refers to the way of life of group of people. It includes life style, values, customs, morals, and habits of society. Some advertisement are disdortting our cultural values. Effect of advertising on various aspects of culture is discussed as bellow:

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a) Fooda) Fooda) Fooda) Food---- Habits: Habits: Habits: Habits:---- Excessive advertisement of junked food/ preserved food viz. noodles, burger, bread etc is adversely affecting the food-habits of children and young. Now children prefer such junked/preserved food to wholesome nutritious food. b) Costumeb) Costumeb) Costumeb) Costume----Styles:Styles:Styles:Styles: ---- Some advertisement show models wearing western vulgar dresses. Our youth imitate such dress styles. Many sections of our society criticize the western vulgar dress style. c) Wrongc) Wrongc) Wrongc) Wrong----ProductProductProductProduct----PositioningPositioningPositioningPositioning::::---- Some advertisements attach personality/ Status/ prestige symbol with some undesirable products, so such ads are distorting our cultural value. For example, in an advertisement, it is shown that wife is feeling pride, when her husband is drinking, This does not match with our culture. d) Languaged) Languaged) Languaged) Language :- Some advertisement use indecent languages, which has bad effect on kids and children as they imitate such language in their day to day conversation.

2) Undermining the Position of Women, Aged 2) Undermining the Position of Women, Aged 2) Undermining the Position of Women, Aged 2) Undermining the Position of Women, Aged----Persons:Persons:Persons:Persons:---- Some ads are undermine the position of women, aged persons. In some cases women are shown as sex-object. They are rarely shown as professionals, corporate-officials. Similarly aged-persons are mostly shown as dependent, helpless, sick. This undermine their position in socity. Some women-organisations have raised objections agains this sterio-typing. 3) Moral Degradation: 3) Moral Degradation: 3) Moral Degradation: 3) Moral Degradation:---- Giving sexual-appeal has become very common practice for gaining attaintion of viewer. It is very common in the ads of liquor, cigarette, personal products, deodorants etc. Such ads have very wrong impact on the mind of viewers particularly children and youths. They are loosing their moral values. 4) Promoting Materialism: 4) Promoting Materialism: 4) Promoting Materialism: 4) Promoting Materialism:---- Advertising is often criticized for its excessive persuasiveness. It creat unnecessary desire for the products which buyers don’t need or can’t affored. Sometimes by promoting attractive schemes , buyers are lured to buy the product, but later, they realize that they are not in the position to pay the instalments. It lead to frustration and loss of peace of mind. It mislead the people to replace existing products before there economic life. 5) Promotes Social 5) Promotes Social 5) Promotes Social 5) Promotes Social Evils:Evils:Evils:Evils:---- Some advertisements give birth to social evils. They appeal to buy the products which are injurious to health, not acceptable to society. Like ads of cigarette, wine, whisky, promote social evils as even common persons start using these products after being utilized by such ads. 6) Misapplied Facts: 6) Misapplied Facts: 6) Misapplied Facts: 6) Misapplied Facts:---- Some advertisements misapply the facts to misguide the people.e.g. some advertiser use the term, ‘Made in U.S.A’. Here U.S.A. means United stna accociation mislead by United state of Amarica. 7) Feeling Of Insecurity: 7) Feeling Of Insecurity: 7) Feeling Of Insecurity: 7) Feeling Of Insecurity:---- Some advertisement create felling of insecurity among the audience by giving fear appeal e.g. Some ads of accident insurance. Life insurance create excessive fear. It promotes the feeling of insecurity in the mind of those persons who can’t afford these policies.

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8) Back 8) Back 8) Back 8) Back----Door PopularityDoor PopularityDoor PopularityDoor Popularity of Brands of of Brands of of Brands of of Brands of Prohibited Products:Prohibited Products:Prohibited Products:Prohibited Products:---- Government has prohibited the advertisement of cigarette, liquor on television. Some times advertisers of prohibited product sponser sport events like match which is to be relied on television. So in this way they can show their brand name on t.v. it is unethical. 9) Bait Advertising: 9) Bait Advertising: 9) Bait Advertising: 9) Bait Advertising:---- Some advertisers attract the audience through bait-advertising. In bait advertisement, advertiser lures the audience by offering products at very low price and attract them toward its outlet. But audience visits the advertiser’s outlet, they found that low price offered item are inferior in quality and normal quality products are offered on market price. Such advertisement is unethical. 10) Nuisance of Outdoor Advertising: 10) Nuisance of Outdoor Advertising: 10) Nuisance of Outdoor Advertising: 10) Nuisance of Outdoor Advertising:---- Some advertisers paste, indecent postures at public place like bus stop busy market area, near schools, colleges. It is unethical.

Legal Regulations on AdvertisingLegal Regulations on AdvertisingLegal Regulations on AdvertisingLegal Regulations on Advertising

Today advertisers face several legal restrictions. Consumer-movement has forced the government to pass laws to regulate advertising and protect consumer interest. Legal restrictions and regulations are enforced by Government to check deceptive and misleading advertisements. On 1st August, 1984, MRTP Act was amended and Unfair Trade Practices were covered within the purview of MRTP Act. The main object of incorporating such provisions in MRTP Act was to check deceptive and misleading advertisements in the public interest. In 1986, Government enacted Consumer Protection Act to protect the interest of consumers. In 1987 Government passed Code for Commercial Advertising on Doordarshan. From time to time, various amendments are made in these Acts, but the main theme is to control untruthful and deceptive advertising and to promote the interest of consumers. (1) Unfair Trade Practices of MRTP Act:Unfair Trade Practices of MRTP Act:Unfair Trade Practices of MRTP Act:Unfair Trade Practices of MRTP Act: For preventing deceptive and misleading

advertisement, MRTP Act has declared certain trade practices as unfair. These Unfair Trade Practices are controlled by MRTP Act. In case any advertiser is found indulged in issuing deceptive advertisements, he is directed to immediately withdraw such ad, not to repeat such ad in future, issue corrective ad, making necessary clarifications, give damages to cheated consumers and he is also liable to fines, prosecution or both under the Act.

Sachar Committee was appointed to review MRTP Act. It made some recommendations with regard to unfair trade practices, which were incorporated in MRTP Act under the head ‘Unfair Trade Practices’.

a) Types of Unfair Trade PracticesTypes of Unfair Trade PracticesTypes of Unfair Trade PracticesTypes of Unfair Trade Practices: Following trade practices related to advertising are held as Unfair Trade Practices under MRTP Act.

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(i) Falsely representing that goods/services are of a particular standard, quality, grade or model;

(ii) Falsely representing second-hand, renovated goods as new goods;

(iii) Falsely representing that goods have particular sponsorship, approval, which such

goods do not have;

(iv) Makes a false or misleading claim regarding usefulness of any product, like making claims about the product without any documentation or support such as laboratory test;

(v) Gives guarantee of performance or length of life of product which is not based on proper test;

(vi) Gives guarantee of performance or length of life of product which is not based on

proper test;

(vii) Gives misleading discount schemes to attract the customers by offering higher discounts, where as price-tags have been up-marked. In simple words, even after discount the price charged will be equal to original price and discount scheme is only an eyewash;

(viii) Offers some free gifts on the purchase of products while actually the cost of gift has

been covered in the price of main product. In simple words price of product has been inflated so as to include cost of gift.

(ix) Ad of food products, using words ‘natural’, ‘cholesterol free’, ‘fat free’ etc. are

deceptive if these are not certified by department of food and supplies.

(x) Ads not disclosing material negative effects/side effects of a product.

(xi) Holding contests is also unfair if adequate disclosure is not made regarding exact number of prizes to be awarded, date of draw, the persons in whose presence draw is to be made, place of draw etc.

(xii) Endorsement of product by an eminent person without having testimonies regarding

truthfulness of advertisement is unfair on the part of endorser.

b) Some Examples of Unfair Trade PracticesSome Examples of Unfair Trade PracticesSome Examples of Unfair Trade PracticesSome Examples of Unfair Trade Practices:

(i) Advertisement regarding weight-loss-claims of any medicine without proper test.

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(ii) Using the words ‘Government Approved’, ‘Government Supported’, ‘Government Sponsored’, ‘Certified’ in the advertisement without actual approval/certification.

(iii) In an advertisement of cigarette, it was claimed that it has lowest level of tar and

nicotine, this ad was found deceptive because, on actual test, it was found that it had the same level of tar and nicotine as the other brands of cigarette had.

(iv) In an advertisement of ready made garments, it was claimed that that the colour of

garments will not fade. But on actual use, it faded, such ad is deceptive

(v) An advertisement of washing powder claim that a spoon-full of powder can wash a full bucket of clothes. On actual use it was found that it could wash only one or two clothes; this ad was held deceptive.

(vi) In the advertisement of tablet ‘Disprin’, the major side-effects were not mentioned.

This ad was held deceptive.

(vii) In the ad of car-tyre, it was claimed that the tyre will run for 25000 Kms, but it worked only for 5000 Kms. Manufacturer’s claim in ad was found deceptive.

(viii) In the ad of Ready-made garments, it was claimed that the garments are crease

resistant and need no ironing, but on actual use, it needed regular ‘ironing’. This ad was found deceptive.

c) InquiryInquiryInquiryInquiry into Unfair Trade Practices: into Unfair Trade Practices: into Unfair Trade Practices: into Unfair Trade Practices: The inquiry against unfair trade practices can be

initiated:

(i) On receiving a complain from any consumer (ii) On receiving a complaint from registered-consumer-association or trade association.

(iii) Upon reference made by Central-Government or State-Government

(iv) Upon MRTP Commission’s own knowledge or information

d) Type of Order Issued by MRTP Commission Regarding Unfair Trade Practices Type of Order Issued by MRTP Commission Regarding Unfair Trade Practices Type of Order Issued by MRTP Commission Regarding Unfair Trade Practices Type of Order Issued by MRTP Commission Regarding Unfair Trade Practices

: : : : After making inquiry into unfair trade practices, if commission finds that these trade practices are deceptive and misleading, then it may pass any or more of the following orders:

(i) Cease-and-Desist-Order (Injunction-order): It means the deceptive trade-

practice/advertisement will be discontinued with immediate effect and it will not be repeated in future.

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(ii) Necessary Modification: Commission may order the advertiser to make necessary changes in the advertisement so that it no longer remains deceptive.

(iii) Compensating Damages: Commission may direct the advertiser to compensate the

applicant for the damages because of deceptive advertisement.

(iv) Corrective-Advertising: Corrective-advertising requires advertiser to rectify past deceptive ads by making appropriate statements in future advertisements. It is a corrective step by the advertiser to remove mis-impressions resulting from earlier deceptive ads given by advertiser. In corrective ads, advertisers accept that the earlier ad was wrong. Corrective advertising is issued to dispel the impression of consumer about the earlier deceptive advertisements. It will bring justification to the future-customers.

(2) Remedy Under Consumer Protection Act, 1986:Remedy Under Consumer Protection Act, 1986:Remedy Under Consumer Protection Act, 1986:Remedy Under Consumer Protection Act, 1986: A consumer, registered consumer-

association central government or state government can lodge a complaint of unfair trade practices adopted by advertiser, under consumer protection act. In consumer protection act, there is three-tier-machinery for redressal of consumer grievances i.e. at the district level, state-level and national-level. Procedure for filing a complaint under consumer protection act is simple as district-forums are available in each district and complains can be made on plain paper without any court fees.

(3) Code for Commercial Advertising on Doordarshan: Code for Commercial Advertising on Doordarshan: Code for Commercial Advertising on Doordarshan: Code for Commercial Advertising on Doordarshan: This code was passed by

parliament in 1987. It suggests 33 ‘Do’s and Don’ts’ for advertisers. It main purpose is to ensure that advertisement confirms to law and does not offend against morality, decency. Ads on Doordarshan should follow the following code of conduct:

(i) Ads should not be against any caste, community, nationality. (ii) Ads should no excite people to crime or should not affect friendly relations with

foreign states.

(iii) No advertisement should be presented as news

(iv) Ads should not show national emblem, national flag, any national leader or state dignatory.

(v) Ads should not have any relation to religious, political or industrial dispute.

(vi) Ads should not promote chit funds, private money-lenders, fortune-tellers.

(vii) Ads should not portray women as passive/submissive.

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(viii) Documents of guarantee for guaranteed goods will have to be made available to Director General of Doordarshan for inspection, if demanded.

(ix) Ads should not give derogatory remarks for competitive products

(x) Ads should not show excessive violence such as gunfire, bombardments, etc.

(xi) Ads should follow moral decency i.e, it should not give vulgar, indecent scenes.

(4) Control of Municipality over OutControl of Municipality over OutControl of Municipality over OutControl of Municipality over Out----door Advertising:door Advertising:door Advertising:door Advertising: Municipalities have been

given powers to check and regulate outdoor-advertising in their respective municipality areas. If municipal authorities find indecent, vulgar posters, banners on public places, then these authorities can remove such posters banners and can take action against such advertiser. Further, before fixing sign-boards on roadsides, prior permission from municipal authorities is required.

Legal Regulation on TabacooLegal Regulation on TabacooLegal Regulation on TabacooLegal Regulation on Tabacoo----AdvertiseAdvertiseAdvertiseAdvertisements:ments:ments:ments: In May, 2004 Government banned Tobacoo-advertisements on television. Tobacoo-advertisements include ads related to Cigarettes, Zarda, Gutka. This ban includes brand-extension-bans. It means tobacoo-manufacturers can not advertise tobacco-brands even through non-tobacco-products. So now back-door entry through non-prohibited products is also banned. For example, Red and White, a cigarette manufacturer is now banned to advertise for Red and White Bravery Awards. Similarly Gutka manufacturer Manik-Chand is prohibited from advertising Manik-Chand Filmfare Awards. Indian Tobacco Company is prohibited from sponsoring sports-even in the name of ‘Wills brand’. The responsibility for enforcement of this regulation is on state-government. This regulation is not applicable on advertisemet. Question No10:Question No10:Question No10:Question No10:---- How you will you measure the effectiveness of the advertisement? How you will you measure the effectiveness of the advertisement? How you will you measure the effectiveness of the advertisement? How you will you measure the effectiveness of the advertisement? Answer:Answer:Answer:Answer:---- Advertising is a non personal form of mass communication whose objective is to attract attaintion, to provide information about the product, increase in sales, brand popularity, and improvement in image of the product, brand and institution. Advertiser want measure the effectivness of advertising to evaluate the worth of spending large amount of money on advertising. It is important to determine how well the advertising campaign is working and to measure its performance against predetermine advertising objectives. The performance evaluation of advertising campaign is known as advertising effectiveness. Advertising objective can be sales objective or communication objective.... In the evaluation process, it it is estimated that up to what extent advertising campaign has been able to achieve its scale or communication objective. If the advertising fails to achieve the desired result the money spent on advertisement will go waste.

Measuring the Advertising EffectivenessMeasuring the Advertising EffectivenessMeasuring the Advertising EffectivenessMeasuring the Advertising Effectiveness

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The need or importance of evaluating the effectiveness of advertising arises for a number of reasons.

1)1)1)1) To Justify the cost of ATo Justify the cost of ATo Justify the cost of ATo Justify the cost of Advertisingdvertisingdvertisingdvertising 2)2)2)2) To Exercise control on Advertising CampTo Exercise control on Advertising CampTo Exercise control on Advertising CampTo Exercise control on Advertising Campaignaignaignaign

3)3)3)3) To Evaluate AdTo Evaluate AdTo Evaluate AdTo Evaluate Ad----Copy.Copy.Copy.Copy.

4)4)4)4) To Compare Different Market AreaTo Compare Different Market AreaTo Compare Different Market AreaTo Compare Different Market Area

5)5)5)5) For Effective MediaFor Effective MediaFor Effective MediaFor Effective Media----Planning and MediaPlanning and MediaPlanning and MediaPlanning and Media----Scheduling in Future.Scheduling in Future.Scheduling in Future.Scheduling in Future.

6)6)6)6) To Know the Saturation Point of advertising.To Know the Saturation Point of advertising.To Know the Saturation Point of advertising.To Know the Saturation Point of advertising.

7)7)7)7) To Reduce Wastage in the Amount Spent on Advertising. To Reduce Wastage in the Amount Spent on Advertising. To Reduce Wastage in the Amount Spent on Advertising. To Reduce Wastage in the Amount Spent on Advertising.

Difficulties in Evaluation Difficulties in Evaluation Difficulties in Evaluation Difficulties in Evaluation Advertising effectivenessAdvertising effectivenessAdvertising effectivenessAdvertising effectiveness There are many difficulties and hindrances in the evaluation of advertisement –effectiveness. The main difficulties are as following 1)1)1)1) Advertising Advertising Advertising Advertising is not the only factor affecting sales: is not the only factor affecting sales: is not the only factor affecting sales: is not the only factor affecting sales: ---- Most of the methods used for evaluation effectiveness of advertisement assume that advertisement is the only factor affecting sales. But there are many other factors which may be responsible for increase in sales viz. change in price, improvement in product features, placement, sales-promotion schemes etc. So assuming that, increase in sale is the result of advertisement only, is wrong. 2) Effect of past2) Effect of past2) Effect of past2) Effect of past----advertisement: advertisement: advertisement: advertisement: ---- Methods of evaluation advertisement effectiveness assumes that response of customers in test-area is the outcome of advertisement done in test period but actually, the response of customers may be because of past advertisement. For e.g. if a person had seen an advertisement long ago but at that time either because of financial constraints or because of no need, he didn’t buy that product. But it is possible that he is carrying deep favorable impressions of that past advertisement till now. If at present he is financial sound or need is relished then he has purchased that product. So in this case, sale has occurred on account on past advertisement and not present advertisement. 3) Difficult to evaluate the effectiveness of goodwill3) Difficult to evaluate the effectiveness of goodwill3) Difficult to evaluate the effectiveness of goodwill3) Difficult to evaluate the effectiveness of goodwill Advertisement Advertisement Advertisement Advertisement:::: - Goodwill ads are issued to improve the image of the organization in the long run. The purpose of these ads is to improve the image of the organization by meeting some responsibilities like growing more trees, ads for eye donation save environment etc. Effect of these advertisements on sale, image or goodwill can’t be measured.

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4) Ad4) Ad4) Ad4) Ad----effectiveness using a communication Objective is not seffectiveness using a communication Objective is not seffectiveness using a communication Objective is not seffectiveness using a communication Objective is not sufficient in Itself:ufficient in Itself:ufficient in Itself:ufficient in Itself: ---- Some advertisement may achieve communication objectives, but may not promote sales. Some advertisement may be vary attractive, well remembered, entertaining and liked buy many viewers/ audience, but still it may be ineffective in generating additional sales, These advertisement may be well recalled because of attractive modals, easy to remembered phrases, homeruns appeal etc. But viewers still may not be buying the product; because they have no liking that product. For e.g. Advertisement of bagpiper with sunny deol as model is remembered by many viewers because its model is attractive. But still all such viewers don’t buy bagpiper products. So measuring ad-effectiveness only on the bases on the bases of communication objectives is not sufficient in itself. 5) Subjective method for measuring advertising Effectiveness: 5) Subjective method for measuring advertising Effectiveness: 5) Subjective method for measuring advertising Effectiveness: 5) Subjective method for measuring advertising Effectiveness: ---- There are various methods given by different experts for measuring ad-effectiveness. But most of the methods are subjective in nature, as they don’t give any universal criterion for measuring ad-effectiveness. There are various criterions like increase in sale, attention gaiting ability easy to remember, entertaining, humorous, persuasive etc. For measuring accepted criterion. It is possible that an advertisement is effective on one criterion but effective on the basis of other criterion. 6) Not suggestive in nature6) Not suggestive in nature6) Not suggestive in nature6) Not suggestive in nature:- Most of the methods of evaluating effectiveness of advertisement classify the ad as effective or ineffective but these methods don’t suggest what extra points should be added, what modification be made to making the advertisement more effective. 7) Difficult to Evaluate % response:7) Difficult to Evaluate % response:7) Difficult to Evaluate % response:7) Difficult to Evaluate % response: ---- For evaluating effectiveness, some response is desired from the customers. But because total numbers of readers/ viewers of media is not exactly know, so % of response generated because of advertisement can’t be generated because of advertisement can’t be measured. If ad is given only through mail then this % can be calculated easily, as total number of persons who are contacted through mail are known, but if ad is given by any other source like T.V., radio, magazine then the % of viewers can’t be precisely obtained, as total number of reader/ viewer is unknown to us. 8) Difficulties of sampling methods: - Almost all methods of evaluating advertising effectiveness are based on sampling. Some respondents and market area are selected for measuring effectiveness. It may involve following difficulties:- a) Selected Sample Units may not be representative of whole group or area. b) Simple Size may be very small in comparison to total no of actual-buyer. c) The area selected as control area or test area may differ in terms of economic or demographic features. d) Selection of Simple Unit may be biased.

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Methods of Measuring AdvertiMethods of Measuring AdvertiMethods of Measuring AdvertiMethods of Measuring Advertising Effectivenesssing Effectivenesssing Effectivenesssing Effectiveness

Measuring Advertising Measuring Advertising Measuring Advertising Measuring Advertising Effectiveness (testing)Effectiveness (testing)Effectiveness (testing)Effectiveness (testing)

PrePrePrePre----tetetetesting Methodssting Methodssting Methodssting Methods • Consumer Jury MethodsConsumer Jury MethodsConsumer Jury MethodsConsumer Jury Methods • Paired Comparison TestPaired Comparison TestPaired Comparison TestPaired Comparison Test

Advertising Concept TestingAdvertising Concept TestingAdvertising Concept TestingAdvertising Concept Testing Trial Area TestTrial Area TestTrial Area TestTrial Area Test Trailer TestTrailer TestTrailer TestTrailer Test EyeEyeEyeEye----Movement cameraMovement cameraMovement cameraMovement camera----testtesttesttest

PostPostPostPost---- testing Methods testing Methods testing Methods testing Methods i)i)i)i) Recognition TestRecognition TestRecognition TestRecognition Test ii)ii)ii)ii) Gallup Robinson Recall TestGallup Robinson Recall TestGallup Robinson Recall TestGallup Robinson Recall Test iii)iii)iii)iii) Associate TestAssociate TestAssociate TestAssociate Test iv)iv)iv)iv) Sales Result TestSales Result TestSales Result TestSales Result Test v)v)v)v) Split run TeSplit run TeSplit run TeSplit run Testststst vi)vi)vi)vi) Rating Scales TestRating Scales TestRating Scales TestRating Scales Test vii)vii)vii)vii) Day After Recall TestDay After Recall TestDay After Recall TestDay After Recall Test viii)viii)viii)viii) Inquiry TestInquiry TestInquiry TestInquiry Test ix)ix)ix)ix) Portfolio TestPortfolio TestPortfolio TestPortfolio Test

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