DR NEHA PANDE, ASSISTANT PROFESSOR, VIPS

ADVERTISING
Meaning, Definition and Functions
ADVERTISING IS DERIVED FROM LATIN WORD AD VERTER WHICH
MEANS ‘TO RUN TOWARDS’ OR ‘TO ATTRACT ATTENTION TO’
 DEFINITION OF ADVERTISING
- Any paid form of non-personal presentation of any
good, idea or service by an identi ed sponsor-
American Marketing Association
- Advertising is the non personal communication of
information usually paid for and usually persuasive in
nature about products, services or ideas by identi ed
-
sponsors through the various media – Bovee, 1992

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UNDERSTANDING THE CHARACTERISTICS OF ADVERTISING
- The paid aspect of this de nition re ects the fact that the space or time for an
advertising message generally must be bought.
- The non-personal component means that advertising involves mass media (e.g., TV,
radio, magazines, newspapers) that can transmit a message to large groups of individ-
uals, often at the same time.
- The non-personal nature of advertising means that there is generally no opportunity for
immediate feedback from the message recipient (except in direct-response advertising).
Therefore, before the message is sent, the advertiser must consider how the audience
will interpret and respond to it.
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WHY IS ADVERTISING IMPORTANT?
- Creates awareness
- Creates interest
- Creates desire
- Drives consumers to purchase
- Helps the company build and maintain brand image, brand equity, brand value
- Helps in attracting new consumers
- Helps in retaining consumers
- Helps in converting non-users into users
- Helps in market expansion
- Helps consumers improve self-esteem
- Helps consumers improve standard of living
- Helps in launching a new idea/good/service
FUNCTIONS OF ADVERTISING
OBJECTIVES OF ADVERTISING
ADVERTISING GOALS
A. To Build Brand Image With Awareness
- Consumers recognise the brand
- Business to Business
- Successful Brands Possess: a. Top of Mind b. Top
choice
- Brand Equity leads to top of mind and top choice
 B. To Inform
C. To Persuade
D. To Encourage Action
- Behavioural Goals
- Encourage some type of
action: Inquiry, access
website, visit retail outlet,
send email or telephone,
business to business
E. To Support other Marketing
E orts
- Consumer promotions
- Retailers, Special Sales
- Promotional Campaign
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 ROLE OF ADVERTISING
- MARKETING ROLE
Marketing is a business process that aims to satisfy the consumer needs and wants through goods
and services. And in order to do so, advertising lets the message out to take that big role in marketing
to promote the goods and services.
- COMMUNICATION ROLE
No product and/or service can move without the proper dissemination of information. This is one role
of advertising that transmits the needed information about the goods or services to the target market.
- ECONOMIC ROLE
Advertising plays a big part in the price elasticity of products and services.
- SOCIAL ROLE
Advertising plays an important role in shaping the society. It helps in bringing changes at social level.
The moral/social appeal in advertising helps in creating awareness about social issues. It also
motivates the society.
AIDA MODEL OF ADVERTISING
- DEVELOPED BY ELMO LEWIS IN ABOUT 1898 IN AN ATTEMPT TO EXPLAIN HOW
PERSONAL SELLING WORKS.

- The model laid out a sequence that describes the process a salesperson must lead a
potential customer through in order to achieve a sale.

- IT IS A LINEAR MODEL WHICH HAS FOUR STAGES: ATTENTION, INTEREST, DESIRE AND
ACTION

- Although Lewis's work was primarily focused on helping the personal selling process, it
was avidly taken up by marketing and advertising theorists over the next half-century.
The action stage became the ultimate goal of all marketing and all advertising.
 AIDA MODEL OF ADVERTISING
Claude Hopkins a successful copywriter at Lord and Thomas designed a method of procedure
which was built directly o this concept of salesmanship in print.
- An ad that exists for no other reason but to sell should be evaluated on how many sales this
ad makes.

- A headline should hail only a few people. Not everyone is a prospect for your product it
should talk to only those that are, it should make no attempt to speak to everyone.
- Copy sells. Use as many words as many facts as possible. Those who are interested in your
product will take the time to read it. (not sure I fully agree with this point, there are some
very successful ads with little to no copy)
- A good salesman is serious and respectable and gives you information. He does not need to
dress as a clown, tell jokes or use humor. (again massively disagree)
- Pictures should only be used if they can give information more concisely than words can.
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 AIDA MODEL OF ADVERTISING
Daniel Starch then built on AIDA and stated that ads have more than one selling process there
are 3:
- It reduces sales resistance
- It develops a readiness to accept a product
- It creates a demand or desire for the product

Starch went on to de ne 5 function of ads:

- To secure attention
- To arouse interest
- To bring conviction
- To produce action
- To impress memory
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ATTRACT ATTENTION
- The product must attract the attention of the consumer. The advertisements must be
eye catchy, unique and interesting

https://youtu.be/T075-vzbnrA
https://youtu.be/lhXW8_7CaHM
 MAINTAIN INTEREST
- By providing the detail description of the product, explaining the features and bene ts of the
products, brands can motivate consumers to maintain their interest in it
Disney boosts interest in upcoming tours by announcing stars who will be performing on the
tours.
Wendy’s “Where’s the beef?” ad campaign that focused on the fact that Wendy’s hamburgers
contained more beef than their competitors’ hamburgers.
https://youtu.be/riH5EsGcmTw

- Consumer engagement is an important objective

- Interacting with the consumers online and o ine is extremely important
- Ideally, the interactions should cause customers to feel and act positively towards your
business or brand
- Brands must make themselves more relatable and meaningful. Brand authenticity is the key
- Brands must focus on retention
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CREATE DESIRE
- If interest in the product is aroused, it is the seller’s task to persuade the customer that
they want to own this product.
- In the best-case scenario, the advertisement or the product itself creates the desire to
purchase.
- The goal is to make consumers desire it, moving their mindset from “I like it” to “I want
it.”
RAYMOND THE COMPLETE MAN
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- https://youtu.be/5lSVSQT6HbE
- https://youtu.be/Bp4tUXc5wZo
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TAKE ACTION
- As soon as the desire to buy is aroused, this must be transferred into an action, that is,
the purchase.
- In the case of online shops, this would ultimately be the shopping cart process, in which
a customer is lead to a conversion. The customer can be encouraged to buy the product
with a call-to-action.
 DAGMAR MODEL
- DAGMAR model is one of hierarchical models for determining the e ectiveness of
advertisements, discussed by Russel Colley in 1961 while stating a report, subjected to
De ning Advertising Goals for Measuring

- Russell Colley advocated that e ective advertising seeks to communicate rather than to sell.
Advertisers discover whether their message conveyed enough information and understanding
of a product to their consumers and also its respective bene ts from clear objective

- DAGMAR is a marketing expression that stands for “De ning Advertising Goals for Measured
Advertising Results.

- DAGMAR attempts to guide customers through ACCA model. According to this approach,
every purchase encounters four steps; Awareness, Comprehension, Conviction, and Action.
DAGMAR method is an established technique of creating e ective advertising

- The DAGMAR method is a long-established method of creating e ective advertising. The idea
behind the method is to “communicate rather than sell”
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1. AWARENESS
- Awareness of the existence of a product or a service is needful before the
purchase behaviour is expected. The fundamental task of advertising
activity is to improve the consumer awareness of the product
- Once the consumer awareness has been provided to the target audience,
it should not be forsaken. The target audience tends to get distracted by
other competing messages if they are ignored
- Awareness has to be created, developed, re ned and maintained
according to the characteristics of the market and the scenario of the
organization at any given point of time
- The objective is to create awareness about the product amongst the
target audience

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 2. COMPREHENSION
- Awareness on its own is not su cient to stimulate a purchase.
- Information and understanding about the product and the organisation are essential.
This can be achieved by providing information about the brand features.
- The objective is to provide all the information about the product.
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 3. CONVICTION
- Conviction is the next step where the customer evaluates di erent products and
plans to buy the product. At this stage, a sense of conviction is established, and
by creating interests and preferences, customers are convinced that a certain
product should be tried at the next purchase.
- At this step, the job of the advertising activity is to mould the audience’s beliefs
and persuade them to buy it. This is often achieved through messages that
convey the superiority of the products over the others by aunting the rewards
or incentives for using the product.
- Example: Thumbs up featured the incentive of social acceptance as “grown up”.
It implied that those who preferred other soft drinks were kids.
- The objective is to create a positive mental disposition to buy a product.

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4. ACTION
- This is the nal step which involves the nal purchase of the product. The objective is
to motivate the customer to buy the product.
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 MAJOR CONTRIBUTION OF DAGMAR APPROACH
- A major contribution of Colley’s DAGMAR approach was a speci cation of what constitutes a
good objective.
- According to Russell Colley, there are various advantages of well-founded objectives such
as:
- Be concrete and measurable
- Have a well-de ned target audience or market
- Identify the benchmark and the degree of change
- Specify a timeframe to accomplish the objective
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TARGET AUDIENCE
- DAGMAR claims the target audience is well de ned. A group of potential customers, who
have the highest likelihood of purchasing the product, is the target market.

- Identifying the target market includes the process of demographic, geographic, and
psychological segmentation. Target markets can be segmented into Primary and
secondary groups.

- Primary markets are the main target audience, on whom the marketing e orts are mainly
focused.

- Secondary markets are the target audience on whom the marketing e orts will focus
after the primary market goals are achieved. After identifying the target audience, the
organization devises objectives for advertising and later the objectives for
communication.
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CONCRETE AND MEASURABLE
- The objective of communication should be a precise and clear statement of whatever
message the advertiser wants to communicate to the target audience.

- The speci cation must include all the details and descriptions of the measurement
procedure.
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SPECIFIED TIME FRAME AND BENCHMARKS
- A good objective has a speci ed time frame, during which the objective is to be achieved.
Understanding the speci cations enables advertisers to de ne goals that will yield the
best result.

- Setting a speci c timeframe assures e ective evaluation of results. The timeframe should
be realistic to prohibit skewed results from static marketing.

- Creating the benchmark is essential for an appropriate measurement of the e ectiveness

of the advertisement.
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WRITTEN GOAL

- The goal should be committed on a paper. When the goals are clearly
written, basic shortfalls and aws are exposed, it becomes eventually easy
to determine whether the goal contains the crucial aspects of the DAGMAR
approach. fl
OBJECTIVES OF DAGMAR APPROACH
- Persuade a prospect to visit the showroom
- Growth in market share
- Improve sales turnover
- Perform complete selling function
- Advertise a special reason to buy
- Stimulate impulse sales
- Remind people to buy
- Create awareness about product and brand existence
- Create favourable emotional disposition towards the product
- Impart information regarding bene ts and distinctive features of the product
- Combat and o set competitive claims
- Correct false impressions, wrong information and other hindrances to sales
- Aid sales force with sales promotion and selling activities and boost their morale
- Establish brand recognition and acceptance
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 MASLOW’S HIERARCHY OF NEEDS

- For nding out the factors that motivate a person to do better in life and work and to
understand what encourages the most, psychologist Abraham Maslow in 1943
introduced the concept of a hierarchy of needs in his paper titled “A Theory of Human
Motivation”.

- This hierarchy suggests that people are motivated to ful l basic needs before moving
on to other, more advanced needs.
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PHYSIOLOGICAL NEEDS
PHYSIOLOGICAL NEEDS
SAFETY NEEDS
LOVE AND BELONGING
LOVE AND BELONGING
ESTEEM
ESTEEM NEEDS
SELF ACTUALISATION
SELF ACTUALISATION
SELF ACTUALISATION
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TYPES OF ADS
Categories of Ads

- Target Audience

- Geographical Spread

- Product Advertising

- Medium
TARGET AUDIENCE
- Consumer Advertising

- Industrial Advertising

- Professional Advertising

- Trade Advertising
 CONSUMER ADVERTISING
- Is directed and intended for domestic markets such as individuals and families

- The goal of consumer advertising is to introduce, or sometimes re-introduce products to

families and individuals for daily use and consumption

- Such advertisements are often focused even more narrowly on a speci c demographic or
target audience to increase e ectiveness and message penetration among that audience

- It is also called brand advertising

- It often seeks to nd ways to relate the entire population or more commonly a speci c
demographic and appeal to people’s sense of consumer desire
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INDUSTRIAL ADVERTISING
- Ads issued by manufacturers / distributors to the buyers of industrial products

- Industrial advertising is also known as Business to Business advertising

- The purpose of such ads is to drive customers by logic and incentives

- The purchase is made for long-term solutions, resulting in a longer sales cycle, longer
contracts, and longer relationship with the companies
TRADE ADVERTISING
- Ads directed by the manufacturers to the distribution channel members, such as
wholesalers or retailers

- It aims at motivating the retailers or wholesalers to stock more or to attract new outlets

- An example of trade advertising would be a Coca-Cola advertisement placed in a trade

magazine, such as Progressive Grocer, in order to promote Coca-Cola to food store
managers
PROFESSIONAL ADVERTISING
- There are certain products where the consumers are themselves not responsible for the
buying choices

- Example: Pharmaceuticals where the decision is made by the doctors while the
consumers are the patient.
MEDIUM- PRINT ADS- NEWSPAPERS
PRINT ADS- MAGAZINES
RADIO AD
1. LIVE Read

A format where you can hear commercials read in real-time online by a radio
announcer, a type of commercial also known as a live read. This type of
advertisement is more e ective with a really popular on-air host because advertisers
hope that the host’s voice will carry extra weight with the show’s audience.
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 WHY TO USE LIVE READS TYPE OF ADVERTISING?
- It is an outright endorsement
When the host is reading your ad live on air, people think they have already bought the product
or used the services. The reading is so passionate that it entices potential buyers to listen
keenly to the advert. This has the most signi cant ROI among di erent types of radio
advertisements.

- It gives you more time

The average radio advert length is between 10 seconds and 60 seconds. Nevertheless,
hurrying the ad can be detrimental to the marketing campaign: Listeners might not get the
information you are sharing. However, a live-read can occur in segments for the entire show.
The extension means that you can pass more information to potential buyers. Therefore the
audience will interact more with the endorsement for a longer period
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- The listeners enjoy the creativity of the host
They also use a natural or conversational approach to live reading, creating a bigger impact on the
target audience. In fact, most live-read ads do not feel like advertisements because listeners hear
the same information in di erent words, eliminating monotony.

- It is an engaging form of advertising

An engaging ad generates better response and sales. The host asks questions, makes adlib
comments, and may even o er promotional products. The engagement makes your advertising
memorable, increasing the chances of current and future purchases.
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 Sponsorship
- Many radio stations implement sponsorships for certain types of radio segments, such as
tra c, weather, or sports scores during halftime of the big game. It will generally sound
something like this:
This hours tra c update brought to you by ….the brand’s name…

- It is a subtle way in which the sponsor is mentioned and the quality of information he
provides to the listeners endears them to the product.

“Tra c updates for this hour were brought to you by Michelin Tyres. Michelin, a tire for all
roads.”
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WHY TO CHOOSE SPONSORSHIP ADS?
- Listeners wait for your advert. Yes, people are waiting to hear about tra c, the latest in
sports, business, and such other sections.

- The products link to the sponsored section- for example, sporting sections are
sponsored by products that relate to sporting. As a result, the chances of selling
increase drastically. It is the best example of targeting the right audience.

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Produced Spot

- You (advertiser) record the ad beforehand and present it to the marketing department of the
radio station. Unlike in live-reads, the personnel at the station have nothing to do with your
ad. The station only provides advertisement space.
- The cost of advertisement spots depends on the popularity of the show where you wish to
advertise. A slot at a popular primetime show is likely to be more expensive.
- Spot ads help in maintaining a consistent message because you script the message. You can
also run the same ad on di erent stations and shows without appearing inconsistent.
- The challenge with spot advertising lies in the cost. Primetime and popular shows are always
expensive. Furthermore, your time is limited, meaning that you cannot give all the
information desired. The spot is also not suited to engage potential buyers or provide
promotional gifts.
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INTERNET
- Banner Ad

An advertising graphic image or animation displayed on a website, in an application, or in

an HTML email. This form of online advertising is older than the search engines
themselves.

In this case marketers put some sort of banner (usually with a catchy image and headline)
on a relevant website. Users who choose to click the banners will end up on marketers
website and hopefully will make a purchase.

The problem is that these days, web users have developed “banner blindness” so only a
small percentage of people actually click on the ad.
Interstitial Ad
- An interstitial ad is a full screen ad that covers the entire interface of the host app.
- These ads are designed to be placed between content, and are typically displayed at
transition points in an app ow, such as between activities, during a pause, or between
levels in a game.
- When a user is shown an interstitial ad, they have the choice to either click into the ad and
continue to its destination or close it and return to the app.
- Interstitial ads are similar to pop-up ads, but are di erentiated by their full screen
coverage.
- They can also be expandable (known as expandable ads), which start out as regular
banner ads before taking up the whole screen.
- Interstitials can be displayed in di erent formats, such as text, a static image, rich media,
or a video.
- The timing of the close option depends on the ad type. Usually, static ads can be closed
instantly while interstitial video ads may have up to a 5-second delay before allowing the
user to close the ad.
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 Floating ad
- An ad which moves across the user's screen or oats above the content

- They are somewhat similar to a pop up advertisement, but typically o er a more unique
viewing experience and may include animation, sound, and other aspects that make for a
more eye-catching advertisement.
- This type of ad will usually appear when a website is loaded, will appear “over” the website
itself and likely disappear on its own in a set period of time.
- A oating ad can include the ability for a user to close it if desired, and may take up the entire
screen or only a portion of it.
- A oating ad usually seeks to combine the best traits of each of pop up ads and banner ads,
often seeming somewhat less obtrusive than a pop up, while not being as easily ignored as a
plain banner advertisement.
- While a oating ad still appears over a website, similar to a pop up, it does not usually exist in
a separate window but is rather part of the website itself.
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 - A oating ad for a new car, for example, might feature an animation of the car itself
driving across the bottom of the screen, perhaps followed by the car returning at the top
of the screen and then turning and driving toward the viewer before disappearing.
- In the end, the advertisement will usually grab the attention of the computer user,
generating a clickthrough rate about equal to pop up ads, while potentially being less
obtrusive.
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Floating Ad
- Expanding Ad
An ad which changes size and which may alter the contents of the webpage
An expanding creative is an ad with two sizes, an initial size and a larger size

The smaller size ts within a standard banner ad space, while the larger size appears to
expand outside the initial ad boundaries.
The ad can expand automatically or when a user clicks or rolls over it. A close button on
the expanded ad will collapse the ad to its original size.
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- Expandable ads bene ts
- Higher CTR: because of the action-driven expansion users tend to click more on ads and
increase chances to nally reach the advertiser’s landing page
- Encourage user engagement: expandable ads are designed to get clicks or responses
from the users. Furthermore, upon expanding, these ads can provide more details that
increase brand awareness.
- Opportunity to show more details: expandable ads are designed in two states, and only
interested users will click on on the smaller one and get to the larger ad size. This gives
advertisers an opportunity to deliver more details to only interested users.

- Expandable ad units extend to cover over the content on a site. A similar implementation
is the pushdown, which moves all content on a page lower in order to create additional
space for an ad unit.
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- Wallpaper Ad- An ad which changes the background of the page being viewed.
- Trick banner- A banner ad that looks like a dialogue box with buttons
- A trick banner is an online banner ad that is designed to copy the style of an operating
system or important software error message in order to trick people into clicking it.
Clicking on the trick banner takes the visitor to the advertiser's website. Advertisers that
use trick banners are primarily concerned with increasing the click-through rate (CTR) for
their website.

- Click-through rate (CTR) refers to the number of times a user clicks on a Web page
advertisement compared to the total numbers of visitors viewing the ad.

- A trick banner is also known as a deceptive banner.

- Pop up ad

It is a type of advertisement that appears over a web page and usually consists of a secondary
window or box with the advertisement in it, and often needs to be manually closed.
Such ads are somewhat notorious for being seen as obtrusive and annoying by many users,
but they often provide signi cantly greater numbers of “clickthroughs,” people clicking the
ad, than banner ads.

- Pop-under
Similar to a pop-up except that the window is loaded or sent behind the current window so
that the user does not see it until they close one or more active windows.
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- Contextual advertising is advertising on a website that is relevant to the page’s content. In
traditional contextual advertising, automated systems display ads related to the content of
your site based on keyword targeting.
- One of the more well-known examples of contextual advertising is Google AdSense.
Google robots automatically serve ads that relevant to your users.

- For example, if you run a movie review blog, AdSense might serve contextual ads to buy
movie tickets or sign up for a movie streaming service. The ads are selected from the
inventory of advertisers who register through Google Ads.
- Native Advertising

Native advertising is the concept of creating ads that are so cohesive with the page content,
assimilated into the design, and consistent with the platform behavior that the viewer feels
the ad belongs there.

Native ads, a tactic that supports performance marketing, work in terms of supply and
demand. On the supply side are publishers, with an audience and reach, looking to monetize
their sites. On the demand side are advertisers looking to reach an audience and hit goals
around awareness, sales, or lead generation.

When a user visits a website with ad space, a publisher’s SSP (Supply Side Platform) sends a
bid request to a DSP (Demand Side Platform) which sends back an advertiser’s bid and
metadata metrics. The advertiser with the winning bid has their ad shown to the user.
- Video Ads
Video advertising is promotional content that plays before, during or after streaming content.
Some marketing professionals also expand the video advertising de nition to include display ads
with video content, such as those that start playing when a person puts a mouse cursor over
them and native video ads promoted on digital ad networks.

A video advertising strategy is how a company can use video content to reach their marketing
goals. Video marketing could be used to promote a brand, present a how-to guide, share
customer testimonials or stream live events. A video advertising strategy refers to the process of
setting goals and planning how to use the videos, how to determine the impact, how to reach
a target audience and how you test and analyse the results.

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 Companies generally distribute ads to online channels using a demand-side platform or DSP. A
DSP will allow an advertiser to upload a video to reach digital audiences where they're
spending time consuming media.

Once the campaign is set up and targeted, the DSP will automatically deliver the ad to various
environments according to the company and the KPIs of the campaign. There are many
di erent areas where consumers can see video ads, like during a commercial break on
traditional TV or on connected TV devices like Roku, between levels on mobile games or before
or after video content on sites like YouTube.

* KPIs or Key Performance Indicators are quanti able measures used to evaluate marketing
campaign performance. They are valuable resources to make decisions and validate returns on
your marketing spend. (Return on Ad Spend, CTR, CPC, Cost Per Thousand impressions(CPM),
CvR(Conversion Rate), Conversions, Cost)
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- Email Advertising
It is one of the least expensive type of online advertising. It is just a few sentences of text
embedded in the rm's content. Advertisers purchase space in the email sponsored by others.
They generally prefer sending e-mail newsletters to them informing about the product. It is one
of the oldest method used till date. This makes it much simpler to reach an audience that wants
to read the email with their website content information included.

Email advertising is a type of marketing performed via email whereby the recipient has
consented to receive promotional messages from a brand. In this form of advertising, marketers
seek to gain permission from their prospective customers by giving them an option to opt-in
before sending emails.

Opt-in is an inbound marketing approach whereby a marketer solicits a potential customer’s

permission to send them promotional or other types of content about a brand. It is also known
as permission marketing and can be single opt-in or double opt-in.

Double opt-in is an email subscription method. It means that users are added to your mailing
list only after they con rm the subscription two times. With this method, you’ll get high-quality
leads and better email deliverability.
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- Mobile Advertising

Mobile advertising is any form of advertising that appears on mobile devices such as
smartphones and tablets using wireless connections.

Companies advertise through text ads via SMS or through banner advertisements that appear
embedded on a mobile web site.

Ads are tailored based on consumer tastes and/or browsing history using data mining and other
information gathering techniques.
- Types of mobile advertising

1. Push noti cations: These are pop-ups that appear on a mobile device. These are delivered
to consumers at any time. This means users don't actually have to be on an app in order to
get a noti cation.
2. Image text and banner ads: Users who click on their ads are redirected to the advertiser's
page by opening it up on a browser.
3. Click-to-download ads: When a consumer clicks on these ads, they will route them to the
Google App or Apple App store. The destination depends on the consumer's operating
system and device.
4. Click-to-call ads: Advertisers allow users to click on their ads in order to call them directly
with their smartphones.
5. Click-to-message ads: A consumer who clicks on this type of ad is directed to contact the
advertiser directly via SMS.
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PRODUCT ADVERTISING
- Product advertising is categorised as:

1. Pioneering Advertising
2. Competitive Advertising
3. Comparative Advertising
 - Pioneering Advertising
Pioneer advertising is the promotion employed in advertising for new products, which is primarily aimed at customer education and
involves expensive and sustained advertising campaigns

Stimulates primary demand for new product or category

- Comparative Advertising
Comparative advertising is a technique that involves presenting a product or service from your business as being superior to a
similar product or service from a competitor
Comparative advertising is used if the growth is sluggish
It is used if the competition is strong
It compares two or more brands’ product attributes

- Competitive Advertising
In uence demand or brand in the growth phase

Often uses emotional appeal

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- Reminder advertising is the process of creating ads that are meant to remind your
audience that your product or service is available. This is di erent from other forms of
advertising because you won't try to inform or persuade your audience.
- Reminder advertising is a paid method of marketing that targets people in your audience
who are in the consideration stage of the buying process.
- During this stage, users are reviewing their options. They're aware of their problem and
the companies that might be able to help them.
- In this stage, it's important to stay at the forefront of your audience's mind. That's where
reminder advertising comes in.
- This type of advertising doesn't introduce a new product. Instead, these ads are targeted
at customers who are already aware of your brand and the products you o er.
- These types of ads won't contain a lot of information. Rather, they'll just reinforce key
messages and brand awareness.

- https://youtu.be/8mKFF5K4aUI
- https://youtu.be/Yz2Gi8nHdgo

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- Brand reinforcement refers to an activity associated with getting those consumers who
have tried a particular brand to become repeat purchasers along with attracting new
users. It is a key objective of the growth stage of the product's life cycle.

- Brand reinforcement is majorly concerned with maintaining brand equity. It makes sure
that the consumers have desired knowledge structures in place so that the brand
continues to have its necessary sources of equity. This could be done by marketing
activities related to brand awareness and brand image that would carry the identity and
meaning of the brand to the consumers.

- Reinforcement advertising, which is targeted at consumers who have already tried and
used the product before and aims at reminding them of its continued existence and
unique bene ts. Such advertising is also intended to reassure customers that they have
made the right choice. It is commonly used for big ticket items like boats, cars and
condos. Sometimes it includes instructions on how to get the most value or satisfaction
from their purchase.
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ASCI
- Advertising Standards Council of India was established in 1985. It is committed to the cause of
Self-Regulation in Advertising, ensuring the protection of the interests of consumers.

- ASCI seeks to ensure that advertisements conform to its Code for Self-Regulation, which
requires advertisements to be legal, decent, honest and truthful and not hazardous or harmful
while observing fairness in competition.

- ASCI is a voluntary Self-Regulation council, registered as a not-for-pro t company under

Section 25 of the Indian Companies Act

- The sponsors of ASCI, who are its principal members, are rms of considerable repute within
the Industry in India, and comprise of Advertisers, Media, Advertising Agencies and other
Professional/Ancillary services connected with advertising practices.

- ASCI is not a Government body, nor does it formulate rules for the public or the relevant
industries.

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 PURPOSE OF ASCI
- The purpose of the Code is to control the content of advertisements, not to hamper the sale
of products which may be found o ensive, for whatever reason, by some people.

- Provided, therefore, that advertisements for such products are not themselves o ensive,
there will normally be no ground for objection to them in terms of this Code.

- The Code’s rules form the basis for judgement whenever there may be con icting views
about the acceptability of an advertisement, whether it is challenged from within or from
outside the advertising business. Both the general public and an advertiser’s competitors
have an equal right to expect the content of advertisements to be presented fairly, intelligibly
and responsibly. The Code applies to advertisers, advertising agencies and media.
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DECLARATION OF FUNDAMENTAL PRINCIPLES
- To ensure the truthfulness and honesty of representations and claims made by
advertisements and to safeguard against misleading advertisements.

- To ensure that advertisements are not o ensive to generally accepted standards of

public decency.

- To safeguard against the indiscriminate use of advertising for the promotion of products
which are regarded as hazardous to society or to individuals to a degree or of a type
which is unacceptable to society at large.

- To ensure that advertisements observe fairness in competition so that the consumer’s

need to be informed of choices in the marketplace and the canons of generally accepted
competitive behavior in business is both served.
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 RESPONSIBILITY FOR THE OBSERVANCE OF THIS CODE
- The responsibility for the observance of this Code for Self-Regulation in Advertising lies with all
who commission, create, place or publish any advertisement or assist in the creation or
publishing of any advertisement.

- All advertisers, advertising agencies and media are expected not to commission, create, place
or publish any advertisement which is in contravention of this Code. This is a self-imposed
discipline required under this Code for Self-Regulation in Advertising from all involved in the
commissioning, creation, placement or publishing of advertisements.

- This Code applies to advertisements read, heard or viewed in India even if they originate or are
published abroad as long as they are directed to consumers in India or are exposed to
signi cant number of consumers in India.

- “The Code for self-regulation in advertising has been recognized by the Ministry of Information
and Broadcasting, Government of India by inserting Rule 7(9) in the Cable Television Networks
Rules, 1994 framed under Cable Television Networks (Regulation) Act, 1995.”
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 REGULATIONS
A. Truthful and Honest representations
- Advertisements must be truthful. All descriptions, claims and comparisons which relate to matters
of objectively ascertainable fact should be capable of substantiation. Advertisers and advertising
agencies are required to produce such substantiation as and when called upon to do so by The
Advertising Standards Council of India.

- Where advertising claims are expressly stated to be based on or supported by independent

research or assessment, the source and date of this should be indicated in the advertisement.

- Advertisements shall not, without permission from the person, rm or institution under reference,
contain any reference to such person, rm or institution which confers an unjusti ed advantage
on the product advertised or tends to bring the person, rm or institution into ridicule or disrepute.

- Advertisements shall neither distort facts nor mislead the consumer by means of implications or
omissions. Advertisements shall not contain statements or visual presentation which directly or by
implication or by omission or by ambiguity or by exaggeration are likely to mislead the consumer
about the product advertised or the advertiser or about any other product or advertiser.
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- Advertisements shall not be so framed as to abuse the trust of consumers or exploit their
lack of experience or knowledge. No advertisement shall be permitted to contain any
claim so exaggerated as to lead to grave or widespread disappointment in the minds of
consumers.
- Obvious untruths or exaggerations intended to amuse or to catch the eye of the consumer
are permissible provided that they are clearly to be seen as humorous or hyperbolic and
not likely to be understood as making literal or misleading claims for the advertised
product.

- In mass manufacturing and distribution of goods and services it is possible that there may
be an occasional, unintentional lapse in the ful lment of an advertised promise or claim.

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B. Non-O ensive to Public

- To ensure that advertisements are not o ensive to generally accepted standards of public decency.
- Advertisements should contain nothing indecent, vulgar, especially in the depiction of women, or
nothing repulsive which is likely, in the light of generally prevailing standards of decency and
propriety, to cause grave and widespread o ence.
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C. Against Harmful Products/ Situation

- No advertisement shall be permitted which:

i. Tends to incite people to crime or to promote disorder and
violence or intolerance.
ii. Derides any race, caste, color, creed, gender or nationality.
iii. Presents criminality as desirable or directly or indirectly encourages people - particularly children - to emulate it
or conveys the modus operandi of any crime.
iv. Adversely a ects friendly relations with a foreign State.

-Advertisements addressed to children shall not contain anything, whether in illustration or otherwise, which
might result in their physical, mental or moral harm or which exploits their vulnerability.

-Advertisements shall not, without justi able reason, show or refer to dangerous practices or manifest a disregard
for safety or encourage negligence.

-Advertisements should contain nothing which is in breach of the law, nor omit anything which the law requires.

-Advertisements shall not propagate products, the use of which is banned under the law.

-Advertisements for products whose advertising is prohibited or restricted by law or by this Code must not
circumvent such restrictions by purporting to be advertisements for other products the advertising of which is not
prohibited or restricted by law or by this Code
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D. Fair in Competition

- To ensure that advertisements observe fairness in competition such that the consumer’s need to be informed on choice in the marketplace
and the canons of generally accepted competitive behavior in business are both served.
- Advertisements containing comparisons with other manufacturers or suppliers or with other products including those where a competitor is
named, are permissible in the interests of vigorous competition and public enlightenment, provided:

i.It is clear what aspects of the advertiser’s product are being compared with what aspects of the competitor’s product.

ii.The subject matter of comparison is not chosen in such a way as to confer an arti cial advantage upon the advertiser or so as to
suggest that a better bargain is o ered than is truly the case.

iii.The comparisons are factual, accurate and capable of substantiation.

iv. There is no likelihood of the consumer being misled as a result of the comparison, whether about the product advertised or that
with which it is compared.

v. The advertisement does not unfairly denigrate, attack or discredit other products, advertisers or advertisements directly or by
implication.

- Advertisements shall not make unjusti able use of the name or initials of any other rm, company or institution, nor take unfair advantage of
the goodwill attached to the trademark or symbol of another rm or its product or the goodwill acquired by its advertising campaign.
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 - https://www.livemint.com/industry/advertising/asci-acts-against-scores-of-misleading-ads-of-online-gaming-
rms-11612431091637.html

- https://indianexpress.com/article/explained/explained-consumer-protection-body-sensodyne-ad-
scrapping-7770071/
- https://mib.gov.in/sites/default/ les/Advisory.pdf

- https://www.moneylife.in/article/asci-bans-344-ads-including-republic-tv-hero-motocorp-blenders-pride-pg-loreal-
india-head-and-shoulders-hul-ponds-sensodyne-lenskart-rasna-dabur-goodknight-patches-in-october-and-
november-2018/56506.html

- https://www.dailyo.in/variety/sensodyne-naaptol-misleading-ads/story/1/35389.html
- https://retail.economictimes.indiatimes.com/news/food-entertainment/personal-care-pet-supplies-liquor/25-
patanjali-ads-found-violating-advertising-code/53460522
- https://www.moneylife.in/article/asci-bans-51-ads-including-pg-colgate-palmolive-dabur-patanjali-airtel-4g-rcom-
timesnow-dominos-pizza-in-october/44728.html
- https://www.business-standard.com/article/companies/patanjali-moves-high-court-against-ad-regulatory-
body-116091500875_1.html
- https://brandequity.economictimes.indiatimes.com/news/advertising/asci-guidelines-nft-crypto-digital-asset-
advertising-standards-council-of-india/89764605
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AAAI
The Advertising Agencies Association of India is the o cial, national organisation of
advertising agencies, formed to promote their interests so that they continue to make an
essential and ever-increasing contribution to the nation, by working towards the following
objectives:
- To bene t Indian consumers and to protect their interests by helping ensure that
advertising is honest and in good taste.
- To bene t Indian advertisers by promoting their sales, increasing their sales and
increasing productivity & pro tability, to stimulate business and industrial activity.
- To bene t media by establishing sound business practices between advertisers and
advertising agencies and each of the various media owners.
- To bene t the nation by harnessing advertising for the good of the country, its institutions,
its citizens to co-operate with the Government in promoting its social objectives and in the
task of nation-building.
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- To question advertising that is wasteful and extravagant to make it possible for the small
entrepreneur to grow through advertising and to compete with the biggest to encourage
market and media research to serve society by meeting its social responsibilities.
- To encourage the interest of young individuals in the business of communication, to assist
in education and training programmes and to provide information of bene t to members.
Non-members are also provided this service for a fee.
- To establish a common platform in building and sustaining the prestige of the advertising
profession and to serve as a spokesman against unwarranted attacks or restrictions on
advertising. To establish a forum where representatives of advertisers, advertising
agencies, media owners and Government can meet on mutual ground and examine
problems of mutual concern.
- To o er e ective co-operation and liaison with Government o cials and bodies for the
purpose of broadening their understanding of the role of advertisers, advertising and
advertising agencies.
- To co-operate with Government bodies in discussion of matters such as taxes, radio and
TV advertising, legislation, political campaign advertising, controls on pharmaceuticals,
tobacco or liquor advertising and other subjects of similar complexity and sensitivity.
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CREATIVITY IN ADVERTISING
- Creativity is generally de ned in aesthetic terms the ability to produce useful ideas,
originality, imagination, or the capacity to join two or more elements to form a new
unity or purpose
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Creative impact is expected to achieve the desired response
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SYSTEMATIC APPROACH TO CREATIVITY
- June Valladares (Author of ‘Ideate with June a Valladares) : in creative thinking the
system often fails and the mind refuses to work perhaps it is log jammed with information
and over ideation or just plumb weary.
- A big idea cannot be forced it can only be wooed.
- Bernstein’s Double ended funnel model of the creative process

With a wide mouth into which all facts and gures are poured. They are eventually
concentrated into the proposition or the o er to be made to the reader, listener or viewer
that is the targeted consumer. This according to Bernstein goes into the narrow central tube
and emerges as the creative idea. The funnel opens up into a second mouth from which the
advertising, conveying the creative idea, spreads out through the media to reach the target
audience.
The proposition according to audience to the author is arrived at through reason and P
becomes I through imagination. The idea thus, becomes an ad largely as a result of craft.
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JAMES WEB YOUNG’S FIVE-STEP MODEL OF CREATIVE PROCESS
- Immersion: Gathering raw material and information through background research and
immersing yourself in the problem.
- Digestion: Taking the information, working it over and wrestling with it in the mind.
- Incubation: Putting the problem out of your conscious mind and turning the information
over to the subconscious to do the work.
- Illumination: The birth of an idea – the phenomenon, “Eureka! I have it!”
- Reality or veri cation: Studying the idea to see if it still looks good or solves the
problem, then shaping the idea to practical usefulness.
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- Roger von Oech in his book A Kick in the Seat of the Pants described four essential
activities that every art director and copywriter has to perform at some point in the
creative process, what he has explained by using metaphor of four imaginary roles.

- i. The explorer role gathers new information and looks for any unusual patterns.
- ii. The artist role considers many di erent approaches to come up with an original idea.
- iii. The judge role evaluates the results of these approaches and selects the most
practical one.
- iv. The warrior role overcomes hurdles and idea killers to bring a creative concept to
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DIMENSIONS OF ADVERTISING CREATIVITY
- Originality https://www.youtube.com/watch?v=gx-zPheFnHo&list=PPSV
- Flexibility
- Elaboration https://www.youtube.com/watch?v=oJxH6ek_3Rc&list=PPSV
- https://pages.charlotte.edu/visualrhetoric/projects/individual-projects/think-small-
advertising-campaign/
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CREATIVE BRIEF
- The creative brief is a document that spells out the advertising strategy and key
execution details. After a strategy statement has been nalised based on research and
discussion with the client, the account manager or planner prepares a creative brief to
give some direction and inspiration to the creative team.
- It is a tailored adaptation of the strategy statement and every agency has its own
version. While a strategy statement helps at arriving at the advertising strategy, a
creative brief guides the creative team in executing an individual advertisement or an
entire campaign.
- It provides short and snappy information on the product, target audience, problem to be
solved, objectives of advertising, key message or the big idea, reason why audience
should believe the idea, intended brand personality, media to be used, mandatory
creative elements (company’s logo, product shot etc), tone of the ad and other
execution related considerations.

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 CREATIVE BRIEF
- Date
- Brand
- Jobs
- Background
- The Problem
- Campaign Objectives
- Target Group
- Task
- Tone
- Creative Mandatory
- Creative Deliverables
- Outdoor
- Deadline
 CREATIVE BRIEF CHECKLIST
- It is pertinent to ask the following questions:

- What is being advertised?

- What is the key task this campaign is designed to accomplish?
- Whom do you need to in uence?
- What do you know about your audience?
- What do you want them to do?
- What can you say or what reward can you associate with the action that will
get them to do that?
- Who are your major competitors?
- How do they advertise?
- What is the main reason consumers should choose you over your competitors?
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- What is your ‘big idea’ or ‘key message’?
- How will you know it worked?
- What is your tone or style of voice?
- What personality do you want to convey?
- Where and when would the audience be most receptive to the communication?
- What is the key insight in this strategy?
- What are the mandatory creative elements?
MARKET SEGMENTATION PROCESS
MARKET SEGMENTATION
- In a large product market, consumers are diverse in their needs and buying requirements.
A company cannot serve all these consumers or develop marketing strategies for all of
them. Segmentation divides a large market into smaller and more manageable sub
markets in order to identify homogeneous markets (consumer groups)

- These homogeneous groups are:

A. Similar in their needs and reactions to a company’s marketing activities

B. Are considerably di erent from other such groups in the market
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MARKET SEGMENTATION
- A market segment is thus a group of consumers in a market who have similar needs.

- For example, The Incredible India Campaigns have strategically tailored their messages
according to di erent markets. For instance, in Berlin in March 2007, vivid images of a
warm, sunny India were shown against the backdrop of the city’s wintry grey streets. The
same campaign was used in Scandinavia where there is no sunlight for months. On the
contrary, in West Asia, the focus was on the monsoons as there is lack of rainfall in that
area.

- It is important to note that marketers cannot create segments; these segments pre exist in a
product market. Marketers only identify the existing segments and their varying
requirements and decide which one to target.
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 MARKET SEGMENTATION
- On the other hand, mass marketing is the process of selling the same product with the same
marketing actions to all consumers in a market. It is a standardization strategy that saves the
company money and makes coordination easy, but products, price, communication or
distribution formats may not be the best t for all segments.

- Segment marketing reduces the waste in trying to cater to the entire market and gives the
company a better understanding of the competitive, socio cultural and general environment
of that segment.

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 MARKET SEGMENTATION
- Segments should be measurable: Marketers should be able to estimate their purchasing
power, audience size etc
- Segments should be of a substantial size: the segments should be of a certain size so that
the marketer is able to seek pro ts.
- Segments should be physically accessible: There should be a developed distribution and
communication network. For example, some of the northeast mountainous regions of India
have no media access and hence cannot be reached with a tailored communications
programme.
- Segments should be di erentiable: All the segments of a product market should be
di erentiable with di erent needs and responses to marketing activities. For example, if
men and women buy paintbrushes in the same manner, they do not form separate
segments.
- Segments should be actionable: It should be possible for marketers to develop di erent
products pr use di erent marketing strategies for them.
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MARKET SEGMENTATION
 GEOGRAPHIC SEGMENTATION
- This technique is useful if a company nds consumers of di erent regions exhibiting
di erent needs, buying patterns, reactions to marketing strategies etc.

- For example, McDonald’s in India has segregated its vegetarian and non vegetarian
kitchens. 70 percent of its products are localised to suit Indian palette. It also
discontinued mutton products after it realised that Indians did not prefer consuming
mutton out of home. The company’s pricing is also designed to appeal to the large mass
of Indian middle class. Introduction of the Rs 7 Soft Serve Cone and the Rs 20 Happy
Price Menu are the two major crowd pullers. Its communication also has a distinct Indian
appeal with an emphasis on attracting families, promoting attractively priced items and
celebrating Indian festivities
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 DEMOGRAPHIC SEGMENTATION
- This is the most commonly used segmentation in which the market is divided on the
basis of the characteristics of the population.
- These characteristics can be Age, Gender, Income, Occupation, Family size, Family life
cycle, Education, Religion, Nationality, Martial Status

- For example, Hero Honda introduced its maiden scooter Hero Honda Pleasure in the
women’s 2 wheeler segment. The scooter’s ABS body makes it easy to handle and its
self start option makes it a comfortable ride for women, even the colour palette is
customised to women’s tastes. The scooter was developed for women’s segment based
on the insight that women are dependent on the male family member for moving
around, which substantially limits their mobility. Even the promotion is directed at the
women’s market with ‘Just for her’ women’s exclusive stores and a tagline that
questions, ‘Why should boys have all the fun?”
PSYCHOGRAPHIC SEGMENTATION

- Clari es consumers according to their attitudes, aspirations, values,

lifestyle, personality traits, interests.
- Among these lifestyles and values are most frequently used with
extensive research done to group consumers by these characteristics.
- Segmentation by lifestyles is usually based on the activities, interests
and opinions (AIOs) of consumers.
- Psychographic segmentation has become easy to use with values and
lifestyle (VALS) model developed by the US based SRI international.
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PSYCHOGRAPHIC SEGMENTATION
- VALS segments American consumers into 8 categories on the basis of their personality
and motivations. The model is based on the assumption that people with same
demographics can have di erent motivations and personalities which will drive their
purchases.

- When segmentation is based on consumer personalities, marketers try to endow their

products with a brand personality that matches the actual or desired personality of
their target consumers. For example, a brand may appear ‘sincere’(BBC or Aqua Guard),
‘sophisticated’ (Chevrolet Optra), ‘exciting’( MTV, Radio Mirchi), ‘competent’ (Whirlpool,
Ariel) or ‘rugged’ (Thumps up or Mountain Dew).
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VALS
 BEHAVIOURAL SEGMENTATION
Consumers are divided on the basis of various behavioural characteristics like
- Purchase/use occasions (regular/special)
- Bene ts (speed, service, economy, quality, warranty)
- User status(non user, ex user, potential user, rst time user, regular user)
- Usage rate (light user, medium user, heavy user)
- Product knowledge (unaware, aware, informed, interested, desirous, intending to
purchase, purchaser, rejecter)
- Loyalty status ( hard core loyal, split loyal, shifting loyal, switcher)
- Attitude towards product (enthusiastic, positive, indi erent, negative, hostile)
- Extent of involvement ( minimum e ort, comparison, special e ort)
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BENEFIT SEGMENTATION
- Consumers may be segmented on the basis of the bene t they seek from the product.
For example, while air conditioners are primarily bought for cooling, consumers may also
seek other bene ts that they consider equally important, for example, fresh and clean air,
no sound, and energy e cient.

- Similarly various consumers may buy a hotel room for di erent primary bene ts like
pampered relaxation, temporary night halt, business visit, clandestine deals or economy
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HYBRID SEGMENTATION VARIABLES FOR DEODORANTS
Segments Demographic traits Primary Psychographics Behavioural Brands
Benefits Characteristics Favoured
Sought

Bold teenage Teenage Fragrance, Carefree, rebellious, Regular users but not Elle 18
girls girls ,economy freshness bold too loyal; try new
segment variants all the while

Feminine Women, 25+ Fragrance, Feminine Regular, medium users Ponds

women freshness

Unisex appeal Men and women, 24hour Sociable, active Regular, medium users Rexona, Nevia
value for money protection form
segment body odour

Cultish Young Males 16-24, Fragrance that Cultish, with a go get it Regular, loyal, medium Axe
men premium segment seduces the attitude to heavy user
fairer sex

Middle aged Middle aged men Long lasting Modern, masculine, Regular, loyal, medium Denim
masculine men fragrance casual, sophisticated, to heavy user
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TARGET MARKETING PROCESS
- Target marketing is a process by which marketers develop di erent marketing strategies
to satisfy di erent consumer needs. Target marketing process involves four basic steps:
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 TYPES OF MARKETING
- Undi erentiated Marketing: Involves ignoring segment di erences and o erings just one
product or service to the entire market. For example, Coca Cola, o ered only one product
version. While this standardization strategy saves the company money; it does not allow the
opportunity to o er di erent versions of the product to di erent markets.

- Di erentiated Marketing: Involves marketing in number of segments, developing separate

marketing strategies for each. Di erentiation allows ad appeals for various segments,
increasing the opportunity to satisfy the needs and wants of various groups.

- Concentrated marketing: Is when the rm selects one segment and attempts to capture a
large share of this market. Volkswagen used this strategy in the 1950s when it was the only
major automobile company competing in the economy car segment in the US.
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MARKET POSITIONING
- The art and science of tting the product or service to one or more segments of the broad
market in such a way as to set it meaningfully apart from the competition.
- Positioning can focus on either the consumers or on competitors.
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JACK TROUT & AL RIES ASKS SIX BASIC QUESTIONS TO DEVELOP POSITIONING STRATEGY
- What position? (Do we have any in the prospect’s mind) this information
comes from the marketplace and not the manager’s perceptions.
- What position do we want to own?
- What companies must be outgunned if we are to establish that position?
- Do we have enough marketing money to occupy and hold that position?
- Do we have the guts to stick with one consistent positioning strategy?
- Does our creative approach match our positioning strategy?
- Positioning by product attributes and bene ts (Odomos is positioned as a mosquito
repellant, hit is positioned as instant cockroach killer, Nokia was positioned as a user friendly
cell phone, Monaco positioned itself as ‘light’ even the visuals demonstrated the attribute)
- Positioning by price/quality ( Nirma and Surf)
- Positioning by use or application (Moov especially for women backache problems)
- Positioning by product class
- Positioning by product user
- Positioning by competitor (Tata Salt and Captain Cook Salt, Savlon and Dettol)
- Positioning by cultural symbols (Maharaja: Air India, Ronald Mc. Donald)
- Image or personality positioning ( Axe, thumps up, Lux (celebrity image )

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- In order to extend its core essence of happiness to yet another moment of joy in one’s life
with the tagline ‘kuch meetha ho jaye’, cadbury Dairy milk used the occasion of passing
out of school nal exams to position itself.
- Every year 4 crore children appear for school nal exams in the country and about 50
percent pass out. Using this insight, Cadbury strengthened its positioning through the
‘Pappu pass ho gaya’ ad campaign.
- The brand also tied up with Reliance infocomm and gave results to students who SMSed
their exam ID number to Reliance.
- For all those who passed, the marks came with an accompanying message, ‘Pappu Pass
ho gaya’ and persuaded the students to have some meetha in terms of Cadbury dairy
milk, this creative use of communication at the exact moment of passing out forti ed
Cadury’s position.
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REPOSITIONING
- Repositioning a product usually occurs because of declining or stagnant sales or
because of anti entrenched perceptions about the product or brand.
DETERMINING THE POSITIONING STRATEGY
- Identify competitors
- Assessing consumers’ perceptions of competitors
- Determine competitors’ positions
- Analysing the consumers’ preferences
- Making the positioning decision
ADVERTISING APPEALS
- According to Belch and Belch (1998), advertising appeal is applied to attract consumers’
attention. Advertising appeal aims at in uencing consumers’ attitude and emotions about
a related product or service. It is classi ed into rational and emotional appeals

- Advertising appeal may change consumers’ attitude. By using broadcast messages to

trigger consumers’ inner momentum psychologically, consumers are likely to echo and
recognize the advertising messages and further change their attitude towards the
advertised product
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- Emotional identi cation comes before rational identi cation during a cognitive process.
Emotional messages are more vivid and thus rational appeal works better than emotional
appeal in attracting consumers’ attention

- The advertising attitude created by rational appeal is better than that by emotional
appeal. Rational appeal appears to provide information explicitly and directly related to a
product, which attracts consumers’ attention more easily and generates a better
advertising attitude
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- Rational appeals promise that the product will deliver certain bene ts. They attract the
reasoning side of the brain. Messages focusing on quality, price, value for money,
performance etc. are examples of rational appeal
- Rational appeals such as value, economy, popularity, convenience, health, performance or
durability emphasize the functional value of the brand.
- Emotional Appeals tend to rouse positive or negative emotions (humour, fear, pride, guilt,
shame, sex, pleasure, a ection, status) to drive purchase. Consumer behaviour analysts
say that some purchasing decisions are based more on reason while others are based
more on emotions.
- Emotional appeals such as humor, sex, guilt, nostalgia, pride, joy or security stir feelings
around the brand message.

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 ADVERTISING AGENCY
- The advertising agency is de ned as “a service organization that specializes in planning and
executing advertising programs for its clients” (Belch and Michael, 1995)
- The modern advertising agency provides various types of services to clients, including media
planning and buying, research, market information, sales promotion assistance, campaign
development, creation of advertisements; services created to help advertiser achieve
marketing objectives(AAAA.org, 2011; Enotes.com, 2011)
- A rm engaged in providing services of advertisement for clients to create awareness and
market for them is known as advertising agency.
- These agencies involve people with specialized skills and knowledge who are well versed in
marketing, advertising and consumer behavior. These experts combine their talent to create
advertisement for their clients.
- Therefore, an advertising agency is a specialized organization helping its clients to adopt
advertising for marketing their goods and services in most e ective manner.
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- According to American Association of Advertising Agency an advertising
agency is one

i. Which is an independent organization

ii. Which is composed of creative and business people
iii. Who develop, prepare and place advertisements in media
iv. Which is for sellers seeking to find customers for their goods and services

Philip Kotler suggests that “Advertising agency is a marketing service firm that
assists its clients in planning, preparing, implementing and evaluating various
activities of advertising campaign.”
Another view expressed by Rozer and Borton is that “Advertising agency is a
group of persons who have a specialization in advertising. It includes ad
copywriters, ad designers, media selectors and advisors for various advertising
issues”
Advertising Agency is a rm that:
- Creates new promotional ideas
- Design print, radio, television, and internet ads
- Books advertisement space and time
- Plans and conducts advertising campaigns
- Commissions research and surveys
- Provides other such services that help a client in entering and succeeding in
an identi ed market
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- Common Features of An Ad Agency:

- Advertising agency is an independent business organization

- Advertising agency provides services to its clients who are searching for
customers for their goods and services

- Agency employs experts, researchers etc

- Agency performs the functions like planning, implementation of campaign,

research, follow up advertisement, measuring e ectiveness of various media
for its clients

- It charges fees, service charges and commission from its clients

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 PRIMARY SERVICES OF AN ADVERTISING AGENCY
- Complete a marketing analysis
- Develop an advertising plan
- Prepare a creative strategy
- Create advertising executions
- Develop and implement a media plan
- Handling bills and payments
- Integrate other marketing communications
FUNCTIONS OF ADVERTISING AGENCIES
A. Account Planning: Advertising agencies typically have account planners who work as the
go-between for the client and the agent. They ensure that client needs are expressed to
the research and creative teams.
- They also work to ensure that necessary information is transferred to the client regarding
creative, research, competition or any of other factor that may somehow a ect how the
client's product gets marketed to consumers. Account planning is where agencies start
their initial interaction with clients.
B. Marketing Research: Advertising agencies work with companies to establish the
characteristics of their target markets through marketing research. Advertising agencies
spend a substantial amount of time researching consumers to understand what they buy
and what motivates them to buy.
- Knowing the competition, account managers at advertising agencies research the
environment, identify competitors, and research their marketing tactics.
- Through market research, advertising agencies also identify political, social, technological
and economic factors that may a ect a client's campaign.
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 C. Creative: Advertising agencies are known for their creative output, which can
include website design, advertising copy, magazine advertisements, and radio and
television commercials.
- The medium of advertising often varies by campaign. Graphic designers, web
designers, writers, editors and creative directors make up an advertising
agency's creative department.
D. Selling Advertising Space: Advertising agencies don't just create advertising
pieces for clients; they also give clients insight as to which media will be most
e ective for their product, service, event or cause. In the process, they work to
secure advertising placements for customers either online, in print, on television or
on the radio.
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 TYPES OF ADVERTISING AGENCIES
A. Full Service Agencies: A full service ad agency is one that provides a range of marketing
services. A full services agency provides services that are directly related to advertising such as
copywriting, artwork, production of ads, media planning etc. It also provides such services in
respect of pricing, distribution, packaging, product design etc
B. Modular Agencies: A modular agency is a full service agency that sells its services on a piece
meal basis. Thus an advertiser may commission an agency’s creative department to develop an
ad campaign while obtaining other agency services elsewhere. Or, an advertiser may hire an
agencies media department to plan and execute a program for advertising that another agency
has developed. Fees are charged for actual work undertaken.
C. In house Agencies: Those companies, which prefer to have closer control over advertising,
have their own in-house agency. This type is owned completely by the advertiser. It performs
almost all functions that an outside advertising agency would perform and that’s why some
people refer to it as full-service advertising department of the advertiser.The di erence between
an in-house agency and an advertising department is that the in-house agency can undertake
to serve several other clients, if the owner so desires, but an advertising department solely
undertakes that work of its owner and not of outside clients.

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D. Specialist Advertising Agencies: There are some agencies who undertake advertising
work only in certain areas. There are agencies that specialize only in nancial services or only
in publicity or only in point-of-purchase material etc.
E. Creative Boutiques: These are shop agencies that provides only creative functions and not
full-service. The specialized creative functions include copy writing, artwork and production of
ads, they charge a fee or percentage of full service agencies, and as such most of them
convert into a full service agency or merge with other agencies to provide a wide range of
services.

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 ADVANTAGES OF USING AN ADVERTISING AGENCY
1. Extensive skills, resources and experiences
2. Advertising agencies can specialise in certain elds
3. Variety of services to match all budgets
4. Saves the rm time
5. The ability to buy media in bulk at rates that a single business cannot obtain
6. They can help you ne tune your target market so that the message is designed to reach those
you want to reach
7. Easily administered
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DISADVANTAGES OF USING AN ADVERTISING AGENCY
- A main disadvantage of using an advertising agency would be the communication
factor. If an agency does not communicate or relay it's clients goals and creative wishes
properly problems can occur within a contract and lawyers may have to become
involved
- Another disadvantage would be the media buying discounts you may not be able to
take full advantage of due to commission barriers within an agency
- Likely to cost more than an in house marketing
- Risk of inadvertent marketing leaks prior to launch date
- Advertising agency may not understand the rm’s vision
- Advertising agency may not be as enthusiastic as the rm
- There is a chance that the agency may have competitors on their books
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 HOW TO SELECT AN ADVERTISING AGENCY?
- Planning techniques: Do they know how to plan a campaign e ectively? For example, do
they provide an e ective time-line for developing a campaign? Do they consider alternative
strategies? Do they have contingency plans? Did they plan the meeting e ectively? Much
evidence exists that formal planning techniques will improve the performance of an
organisation. Is the agency fully aware of the recommended research and procedures

- Objectives: Do they focus on your primary objectives? Do they know how to assess the
e ectiveness of advertising so as to be able to determine whether the advertising is meeting
these objectives? Can they tell whether the advertising is providing a good ROI? What are the
measurable outcomes and what Lebel of success might be expected on each? Will they
provide any guarantees on the success of the campaign? Is their own compensation tied into
your success?
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-
Target Market Research: If it is necessary to obtain additional information
about the target market, do they know how to design and evaluate such
studies so that they will relate e ectively to the advertising campaign?Do
they know how to e ectively use survey research methods? An examination
of one of their prior reports might be useful here. Are they aware of
research in this area?
-
Creativity Techniques: What techniques and procedures do they use to
enhance creativity? For example, when they say that they brainstorming,
does this merely mean that a group of people sat around and tossed out
ideas, or does it mean that they actually followed a highly structured
brainstorming procedure?
-
Persuasion Research: Are they familiar with the extensive research ndings
on how to persuade people? If yes, how do they ensure that this research is
brought to bear on the advertising campaign? Do they have good grounds
for violating this research (for example, research on the speci c product
may show that it is an exception from the general principles
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 - Copy Alternatives: What copy alternatives would they consider and why? If they base this
on the “big idea” what alternative “big ideas” were considered. And why was this bug
idea selected?

- Copy Testing: What procedures would they recommend to test and select the most
e ective of their copy alternatives?

- Media Alternatives: What media alternatives would they consider and why?

- Media Testing: How would they determine the optimal amount to spend on an advertising
campaign? What procedures would they recommend to select the most e ective media?
Do they focus on the objectives? For example, how would they calculate the ROI (Return
On Investment) by media?
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- Capabilities of the Team: What are the capabilities of the people who
will be working on the proposed account? DO they have any con icts
of interest? DO they have a complete list of clients served so that
failed as well as successful relationship might be examined?
- Taste/Legal/Ethical guidelines: what procedures does the agency
take to protect your company from causing o ence to interest groups,
from boycotts, or from legal or ethical consequences? For example, do
they have a formal review board that has legal expertise and that
recognises the interests of groups that might be a ected? Do they
have a written code of ethics that they formally apply to each
campaign?

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AGENCY HIERARCHY

- An agency hierarchy groups sta members according to their general responsibilities,

such as within the Marketing department or a division of Customer Service
- It also shows how roles are structured so that everyone knows who is their professional
superior
- They are of two types: Mechanistic and Organic
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Mechanistic structures centralize power and create formal relationships between team members. Organic structures allow for cross-
divisional collaboration and reduce the “gatekeeper” mentality that can surround division leads and slow process.
THE TRADITIONAL STRUCTURE
 - The organization is broken into di erent divisions -- creative, production, client
services, or nance. Each division is led by a department head, such as an Advertising
Manager or Director of Advertising, and includes all the team members who specialize
in that eld.

- The downsides to this structure are that it naturally silos people o and impedes cross-
divisional collaboration. As a result, it’s not a great t for agencies who o er several
di erent services to the same client and depend upon constant communication.

- This model works best when clients typically come to an agency for a specialized
service that can be contained within a single department, such as SEO or brand design.
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THE MATRIX MODEL
 - The Matrix Model keeps traditional divisions and division heads but is
exible enough to allow for the formation of cross-divisional teams

- With this model, full service advertising agencies are able to meet all of
their client’s needs without creating large barriers in communication
between divisions. It tries to blend the best of both mechanistic and organic
hierarchical structures.
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 THE POD SYSTEM
- Leeann Leahy, CEO of The VIA Agency, developed this organizational structure for her
sta . Under the pod system, traditional account managers are gone and clients have
access to four project leads, including:
A. Business/Consumer Strategy Lead
B. Planning Lead
C. Creative lead
D. Project Management Lead
- The main objective of this model is to shorten approval process times, eliminate
extraneous senior positions, increase peer accountability, and encourage what Leahy
describes as “fast and furious” creativity
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 WHY AGENCIES LOSE CLIENTS?
- Poor performance or service
- Poor communication
- Unrealistic demands by the client
- Personality con icts
- Personnel changes
- Changes in size of the client or agency
- Con icts of interest
- Changes in the client’s corporate and/or marketing strategy
- Declining sales
- Con icting compensation philosophies
- Changes in policies
- Disagreements over creative or marketing strategy
- Lack of integrated marketing agencies
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AGENCY COMPENSATION