TYPES OF

ADVERTISING
C

F.Y.B.A.M.M.C
Good morning!
 What is advertising?
• Advertising is a Paid, non- personal communication

through various media about a business firm, not-for-

profit organization, product, or idea by an identified
sponsor in a message that is intended to Inform,
Persuade Or Influence audience.
• There are many forms of media that can be utilized to
get advertisers message to its intended audience such
as news paper, television, radio, internet and billboards
are effective tools to this effort.
• In 1704 The first newspaper advertisement is published
in the Boston News-Letter. It was an announcement for
seeking a buyer for an estate Oyster Bay, Long Island,
NY, US.
• The first radio commercial is credited to
Western Electric AT&T Fone WEAF(AM), New York
on August 28, 1922 for the Queensboro real estate
corporation.
• The world's first television advertisement was broadcast
July 1, 1941. The watchmaker Bulova paid $4 for a
placement on New York station WNBT before a game. 
• Omnicom is the world biggest advertising agency.
• It was formed in 1986 in New York.
• The account for about 1,57,000 employees in well over
100 countries. Omnicom alone says it has 5,000 clients.
First newspaper commercial
Types of advertising
• Consumer, • National,
• Industrial, • Global,
• Retail, • International,
• Classified, • Social ( CSR) and
• Corporate , • Advocacy
• Public service,
• Generic,
 Consumer advertising
• Consumer advertising is messages paid for by
companies and delivered through mass media. The
objective is to inform or persuade consumers of the
merits of your brand and products.
• Consumers are a large and common target of ads
presented through several traditional types of media.
• Consumer advertising is distinct from trade market or
business-to-business ads presented to business buyers.
Unlike business-to-business advertising, consumer
advertising often relies more on emotion than reason.
• A businessperson is responsible for his company's
bottom line and wants facts to support your claims that
your product or service will improve revenue or other
objective measures.
• Consumers often look for intangible benefits, such as
status, fun or convenience. e.g. McDonalds for fun, get
together.
• Marketing includes advertising, public relations,
promotions and other means of promoting your
product or service. Buying a radio spot is advertising,
while getting an article on your company or product in
a newspaper is public relations.
• Purchasing a banner on a website is advertising, while
sponsoring a sporting event is promotion. Advertising
gives you the most control over how your message is
delivered.
 Media for consumer
advertising
• TV
• Newspaper
• Magazines
• Radio
• Transit
• Direct response
• Outdoor advertising
Types of consumer
advertising
• Generic advertising
• Product advertising
• Brand advertising
• Range advertising
• Corporate advertising
• Retail advertising
• Co-operative advertising
 Generic advertising

Does not promote a particular

Generic advertising means
supplier but promotes the overall
advertising a product type rather
benefits and advantages of the
than a brand and is usually
product type. E.g., Got milk?,
undertaken by a trade association,
Sunday ho ya Monday roz khaao
manufacturers and supplier.
ande, mutual funds etc.
Product advertising
• Concentrates on promoting the benefits and
advantages of the product, such as the price, value
and performance.
 • The emphasis of brand
Brand advertising advertising is on the brand
name, with sometimes little
or no reference to the
product.
• The essence of brand
advertising is usually image
building for the total
product offering-developing
that feeling of goodwill
between the branded
product or brand name and
the customer.
Range
advertising
• Promote complete range of
products. Range are
frequently promoted in a
single commercial or
advertisement.
• There is no need to make
different commercial for
range. It makes marketing
cost-effective.
 Direct response advertising
• Direct advertising is advertising
to customer who deal with the
manufacturer or supplier
without intermediate
wholesalers and retailers.
• E.g. direct response T.V. ads on
Star CJ live, Home shop 18.
This helps the supplier to
address the consumers directly
with the help of toll free
numbers provided, availing
some discounts.
 Cooperative advertising
• Cooperative advertising Strategy in which a retailer shares
advertising costs with a manufacturer or wholesaler.
• Manufacturers supports a retailers by helping to pay for the
cost of advertising its product locally.
• Manufacturers are most likely to initiate a cooperative
advertisement with the retailers, distributors and franchises
who carry their products. 
• One of the most common forms of cooperative advertising
exists between “big business,” such as when you see the
country's largest cola makers place their products alongside
the offerings of fast-service restaurants. The subliminal
message in the advertisement is clear: The two products
“go” together, and consumers should order them together,
too.
 Industrial advertising
• The most popular terminology used for industrial advertising is Business to Business advertising. This
type of advertising generally includes a company advertising its products or services for the companies
which actually uses same or similar products or services or we can say that the advertising company should
produce the products which the other company needs for its productions or functions.
• For e.g. some mineral water companies which work on a smaller scale outsource the packaging bottles, the
caps for bottles, the cover with name printed on it, etc. so for this, the advertisements of the manufacturers
of bottles, caps and outer packaging paper can work.
• A smaller to smaller and largest of all, every company has to do industrial advertising. For e.g. if a
company is making coffee powder, it will sell its powder to the distributors who in turn will sale it to the
retailers and wholesalers and also to the big companies who has a coffee machine for their employees. Thus
companies manufacturing any products can be advertised to the other companies, like raw materials, the
machineries used by other companies, spare parts of the machines which makes it work, anything.
Role of Industrial Advertising
• It minimizes the search for buyers.
• It helps in increasing sales of the company.
• It helps in making more and more distribution channels.
• It makes company work more efficiently to produce the desired product or
service.
• It creates awareness among the customers or other companies about the
products and services.
 Media types in Industrial Advertising
• The media generally used in the industrial advertising is print media and direct
marketing.
 Print Media
• Print Media includes business magazines, trade publications,
newspapers, technical journals, etc. To make print media work
efficiently, there are some do’s and don’ts to be kept in mind:
• Visual image of the ad should be very sharp and prominent
• The ad should be so impressive/ effective that readers get attracted
towards reading it
• The highlight should be on the service or product offered and not the
source by which it is being offered
• Let the ad be simple to be read (with no difficult fonts)
• The picture shown should not be irrelevant with the product.
• The ad should reflect the company’s image.
• The ad should to be in logical sequence if it is of two or more pages.
• Headlines should be catchy and suiting the product image.
• And lastly, at the bottom of the page, the company name, address and
phone number of the respected office should be mentioned clearly
without fail.
Direct Marketing includes:
• Direct Mail - here, the newsletters, data
sheets, and the brochures of the company
are directly mailed to the customers’ postal
address.
• Telephonic Advertising - the advertising is
done by calling up the customers on there
telephones, giving messages on cell phones,
etc.
• Personal selling and Catalogs
• Online Advertising - includes companies
sending e-mails to the customers or other
companies enclosing information about their
products ant services, putting online banners,
providing e-shopping options, etc.
• The advertisers also use other ways for
promoting their products like participating in
trade shows, trade expos, and fairs.
• Thus, the companies can use any or every
type of advertising, the important motto being
increase in sales, producing best quality
products, maintaining good relations with the
customers, and achieving the desired goal.
 Functions of industrial advertising
• Identifying Brands and Products: Products, services and ideas are sold
through businesses that are differentiated by their brand identities. Brand
identity is communicated to the public via advertising. Consumers build
emotional relationships with certain brands with which they become
increasingly familiar through the years, thanks to advertising.
• Providing Information to Consumers (manufacturing industries):
Advertising supplies the necessary information to consumers so that they
know what is available and where to buy it. It broadcasts information on
products, services and ideas sold on the open market through a variety of
media portals. It reveals the special features being sold, what colour and size
the product is and which stores carry it.
• Persuading consumer: this is the major objective of any advertising. It can elaborate
how your product or service is different or better than rivals in the market. Quality or
price and service can be the highlight points in persuasion.
• Generating Product Demand: The demand generated by advertising, public relations,
and sales promotion "pulls" the goods or services through channels of distribution. One
of the powerful functions of advertising is to generate consumer demand for specific
products, services and ideas through ad campaigns that target the audiences that are most
likely to buy them.“
• Building a Customer Base: Consistent quality advertising increases consumer loyalty
for a product, service or idea. Advertising seeks to maintain the current customer base by
reinforcing purchasing behaviour with additional information about the benefits of
brands. The goal of advertising is to build and reinforce relationships with customers,
prospects, retailers and important stakeholders.
 Retail advertising
• Emphasizes the specific retail outlet as the place to buy a specific
range of brand. It can be local store advertising in local newspaper.
Specific offers on brands can be promoted.
• E.g., Shoppers Stop, Big Bazar,
 Retail advertising
• Retail advertising can be divided into local and national advertising. Local merchants who
own a single location in a single market or trade area engage in local retail advertising,
using local media to reach customers living and working near their establishments.
• Retail companies that have expanded their store operations to multiple markets across the
country engage in national retail advertising. These multistore retailers use national or
international media to efficiently communicate with their customers.
• The retail advertiser focuses on bringing customers into the store for their shopping needs,
while the message appeal of brand advertisers attempts to build demand for a specific
brand that may be available at a number of retail outlets.
• Another characteristic that makes retail
advertising unique is immediacy. Unlike
brand advertising Retail advertising is meant
to drive store traffic and increase sales
immediately.
• Products advertised in retail ads are intended
to be purchased that day or within 2-3 days.
• Sales results can be observed within hours
after the advertising hits the media, and
effectiveness can be evaluated within days
rather than the weeks or months that national
brand advertisers must wait.
Media used for retail advertising
Local newspaper- supplement for a particular region
Public transport/ transit
Direct mailer to regular consumers
Email marketing
Notifications/ SMS
TV commercials
Radio ads
catalogues
 Purpose of retail advertising
• To sell the establishment,
• Attract customers to the premises and, in the case of a shop, increase what is known as
‘store traffic’ or ‘footfall’ that is the number of people passing through the shop.
• If they can be encouraged to step inside, they may possibly buy something lured by the
visual merchandising and interior decor, which they would not otherwise be tempted to
buy.
• To sell goods, which are exclusive to the store. Some retail distributors are appointed
dealers for certain makes, e.g., the Ford dealer. Others, such as supermarkets, sell ‘own
label’ or ‘private label’ goods, which manufacturers pack in the name of the retailer.
• E.g., Stop by Shoppers stop, Code by Lifestyle
 Classified advertising
• Classified advertisement is a small message or
advertisement that is placed in newspapers,
magazines or periodicals. These messages are
generally grouped under specific headings,
also called classifications, in a separate section.
• Classified advertisements are comparatively
low-cost ads. Recent times have also seen
classified advertisements on websites, social
media networks such as Facebook as well as
on Smartphones and Tablets.
 History of classified advertisement
• The earliest known form of public notice is in 2000 BC when Ancient
Egyptians carved public notices into steel. This was the earliest recorded
form of outdoor advertising. The Egyptians also made use of papyrus to
make wall posters and sales messages.
• However, the form of classified advertisement which we know today was
first recorded in 1704 when the first newspaper advertisement was placed
in the Boston News-Letter, on the lookout for a buyer for an Oyster Bay,
Long Island, Estate.
Types of classified ads
• 1. Regular Classified advertisement: They are normal text
advertisements and are charged per letter or line or column. They are
typically a column wide, have no graphics, and are typeset by the
publisher of the print media.
• 2. Classified Display Advertisement: These types of advertisement
also include a logo or a visual image and have a border surrounding the
text advertisement. They are typically priced more than the regular
classifieds and are charged on per column centimetre or per square
centimetre basis.
 Types of ads in classified
• 1. Recruitment: Though recruitment advertisements are extremely popular in
display advertising. Advertisements under ‘Situations Vacant” heading are an apt
medium for small and medium-sized businesses to attract job applicants.
• 2. Property: Classified advertisements are one of the most effective
advertisement methods for sale, purchase or rent of houses or other properties by
individual property owners, landlords or even property brokers.
• 3. Obituary: Obituary which allow advertisers to add images of the departed
along with a message. Advertisers also used classified advertisements to place
condolence messages, funeral invitations, and Remembrances.
• 4. Matrimonial: This is one of the most common kinds of classified
advertisements found in India. Here, a text advertisement or a classified display
that consisting of an image of the prospective bride or groom and seeks for a
prospective match.
• 5. Business: A lot of small and medium-sized businesses choose classified
advertisements to advertise. Common kinds of business classified advertisements
are Business Proposals and offer, Sales promotions and ads seeking Business
partners.
• 6. Education: A lot of educational advertisements used by coaching centres, who
have a small budget, and thus prefer to introduce or promote their coaching
classes.
• 7. Personal: This is the last kind of classified advertisement and includes
personal messages such as Birthday wishes, messages about personal
achievements, season’s greetings and others similar messages.
 Corporate advertising
• Corporate advertising, also known as institutional advertising, is advertising by a company or
organization that attempts to create an image, address an issue or communicate with specific
audiences, including a company's own employees, about matters important to the company.
• Corporate advertising helps an organization operate more effectively in the context of its
external environment. Today, total corporate ad expenditures have grown to more than $9
billion annually.
• Corporate advertising can redefine an organization after a name change or after the company
has weathered rough times. Corporate campaigns can also serve highly specific short-term
purposes, such as boosting a company's stock price in anticipation of an initial public offering
or a merger.
• Corporate advertising also provides marketing support for brands, products and services.
Nestle?, for example, uses its corporate name in advertising and on products to provide
marketing support. 
 Corporate advertising
• Promotes the company
not the individual
products. Also used for
financial advertising to
reassure existing
shareholders, launch a
company on the stock
exchange or attract new
investors.
• E.g., P&G ‘Thank you
mom campaign’
 objectives
• It creates a positive image in the so the objectives of this type of advertising are:
• i. To make the company known
• ii. To make its products / services known.
• iii. To make its achievements known.
• iv. To make its values known
• To make socio/political moral and economic statement
• Importance of Corporate Advertising:
• Corporate advertising is done to enhance the brand image of any corporate or company apart from its
products and services. It is also done to repair damages caused by false allegations, bad publicity etc.
and can also be termed as public relations activity. Corporate advertising also helps the company
"brand" to be developed and not just the branding of their products.
Advantages of Corporate Advertising
• Corporate advertising is a powerful tool used by companies to increase business. Some
advantages of corporate advertising are
• 1. Benefit in product sales can be a side effect of corporate advertising but is never the
primary goal.
• 2. The primary goal is to clear a positive image for the company in consumer’s mind.
• 3. Corporate advertising helps build a positive emotional connect of the parent company
with the consumers.
• In India, Hero Honda "Desh ki Dhadkan" ad campaign is an example of corporate
advertising where the company Hero Honda was promoted and not any bikes.
• Nestle’s Maggi also made an ad on being back in the market.
PSA
• Ad agencies, working with non-profit organizations, create public service
advertisements, also known as public service announcements or PSAs, designed to
persuade consumers to engage in behaviours that actively promote healthy
behaviours or good citizenship.
• Media organizations often donate space and time for the distribution of these
messages. A Public Service Announcement, or PSA, looks similar to a television
commercial but is designed to educate the audience about a particular topic instead
of selling some type of product.
• The purpose of these ads is to generate awareness or create a shift in public opinion
about something important such as drug usage, drunk driving, cancer check-ups or
preventing forest fires.
• PSAs got their start before World War II when television and radio
announcers would try to compel viewers and listeners to support the war
effort. Messages like, ''Loose lips sink ships,'' helped to convey the
importance of being supportive of the United States and its military.
• Today, PSAs have a slightly different look although they work by rousing
emotion on topics ranging from texting and driving to the dangers of
smoking. They may appear in most traditional advertising settings,
including television, radio, billboards, print publications and even newer
channels such as online advertising.
 examples
• The Red Cross campaign that asked citizens to join the organization, which was personified in the
ads in a Madonna-like image entitled the “Greatest Mother in the World.”
• This Famous Poster Recruited Men for the Army
 Need of PSA
• The need to mobilize the public to take action for
the good of the community is as old as governance
itself. In other times and places, different
techniques were used—rams’ horns, town criers,
church bells, and even word of mouth.
• In modern times, the mass media provide an
important vehicle for calling on citizens to act in
their best interests and those of society. Many such
messages are delivered as public service
advertisements (PSAs).
 Importance of PSA

• PSAs provide important benefits for both the businesses creating them and the people who hear the
message. They serve to educate the community about important topics like environmental
protection, education, physical and mental health, substance abuse, crime, driving safety and other
issues that people in the neighbourhood might face. At the same time, these ads are created to
make more people aware of the issues. Therefore, they serve as a way to influence the public's
opinion. These ads can be made on air in any form to stimulate the minds of general public.
• On the other hand, businesses get the benefits of free publicity and an improved company
reputation from their PSAs. While the business might not tell people to buy anything from them,
people who see the public broadcast announcement become more aware of the business itself,
might donate to any fundraisers or campaigns, and become supporters themselves. 
Public Service Advertising Examples
• Instead of being boring kinds of ads, make them interested and eye catching, so that they
can lead the minds of the overall society and can bring a change by educating the society.
The area that can be covered under such campaigns include:-
• Voting right
• Quit smoking
• Child abuse
• Donation for hospitals
• Sexual abuse
• Environmental issues
• Go green
• Drive safely
Benefits of PSA
• One of the top benefits of a public broadcast announcement is the low
cost for the organization to reach a potentially large audience.
Whether the ad airs on the TV or radio or is printed, the station or
publication usually donates the airtime or ad space for the PSA,
meaning a business with a small budget does not have to worry about
advertising costs. 
• Another benefit of using a PSA advertisement is that it tends to
be effective for both spreading awareness of the issue and the
company sponsoring the ad.
Examples
Good Morning, all…
National., global and international advertisements

• Geographically speaking national advertising’s

range is extended to the territorial limits of the
country.
• The advertiser use the national media to inform
the consumer about the product.
• The advertiser use the national, local or regional
language, but prefers the national language.
• It can be available in everywhere in country and
easily purchased it.
• Advertising done by a company on a nationwide basis or in most regions of the
country and targeted to the ultimate consumer market is known as national
advertising.
• The companies that sponsor these ads are generally referred to as national
advertisers.
• Most of the advertisements for well-known brands that we see on TV or in other
major media are examples of national advertising.
• It informs or reminds consumers of the brand and its features, benefits, advantages
and uses or reinforces its images.
• However, in Indian context due to cultural and linguistic variation, different versions
of advertisements are released by the advertisers.
• Example of National Advertiser are: Amul, Parle, Ghadi detergent, Nirma, Wheel,
Tata, Reliance- Jio
 Global advertising
• The use of advertising appeals, messages, art, copy, photographs, stories, and
video and film segments on a global scale.
• The emergence of global brands—that is, of brands that are available in many
or even most parts of the world— makes it necessary for advertising to
operate globally. Global advertising campaigns share many features with
advertising in more restricted markets, but they also occasion some unique
issues and solutions.
• Global advertising is an approach where the same general message is applied
in all countries. International advertising is a strategy where you tailor your
ad messages to each country.
 Global advertising advantage
• Global advertising embraces standardized strategies in which advertising content
is the same worldwide under the premise that the entire world is a single entity.
• A primary benefit of a global approach is cost savings, which is especially
important for smaller global companies. Since you don't have to redesign and
redevelop your advertising concepts for different regions and cultures, you save.
• Consistency is another pro of global ads. By delivering your same message in the
same manner in each country, you reinforce your main brand and product
messages. This helps improve word of mouth as well, since people in different
parts of the world can share in their understanding of your brand.
 Global advertising disadvantages
• Global advertising limits your ability to distinguish different product uses in different
countries. It also doesn't work well if your brand messages wouldn't impact or work with a
particular audience.
•  It can be difficult to determine if there is an available market. Social acceptance also
varies, which global advertising doesn't account for.
• There may be different laws and standards which need to be met. It increases the
visibility of your brand.
• Lower marketing and advertising costs as a result of reductions in planning and control.
• Lower advertising production costs.
• Abilities to exploit good ideas on a worldwide basis and introduce products quickly into
various world markets.
• A consistent international brand and/or company image. Simplification of coordination and
control of marketing and promotional programs.
• E.g., Coca-Cola ads. Share-a-coke campaign was implemented worldwide.
Levi’s propagates American values.
• British Airways ads.
 International advertising
• International Advertising, generally speaking, is the promotion of goods,
services, companies and ideas, usually in more than one country
performed by an identified sponsor. Marketers see advertising as part of an
overall promotional strategy.
• Other components of the promotional mix include publicity, public
relations, personal selling, and sales promotion. Advertising is a
convincing communication attempt to change or reinforce ones’ prior
attitude that is predictable of future behaviour.
• It can be viewed as a communication process that takes place in
multiple cultures that differ in terms of values, communication styles,
and consumption patterns. It is also a business activity involving
advertisers and the advertising agencies that create ads and buy media
in different countries.
•  International advertising is also a major force that both reflects social
values and propagates certain values worldwide.
• E.g., Cadbury's ads in India. Tata, FabIndia, Oppo, Vivo etc.
• International advertising involves recognizing that people all over the
world have different needs. Companies like Gillette, Coca-Cola, and
Cadbury Schweppes have brands that are recognized across the globe. 
• Organizations must accept that differences in values, customs, languages
and currencies will mean that some products will only suit certain countries
and that as well as there being global markets
• e.g. Gillette razors, and for Coca-Cola drinks, there are important regional
differences for example advertising in China and India need to focus on
local languages.
BARRIERS OF INTERNATIONAL ADVERTISING
• CULTURE: Culture is a problematic issue for many advertisers since it is
often difficult to understand. One may violate the cultural norms of another
country without being informed of this, and people from different cultures may
feel uncomfortable in each other’s presence without knowing exactly why.
• It is a well known fact that the culture of a country influences the customer
preferences. Customers are quite sensitive about cultural aspects depicted in
advertisements.
• Advertising themes, incorporating social acceptance, mutual dependence,
respect for elders, harmony with nature, use of seasons, innovation and
novelty, distinctive use of celebrities.
 Example
• Procter and Gamble showed an animated stork delivering Pampers diapers
in its ad campaigns in the US. The same ad copy was used in Japan, only
the language was changed. However, this ad did not worked in Japan.
• The subsequent market research revealed that, unlike the western folklore,
storks, according to the Japanese folklore, are not expected to deliver
babies. On the contrary, Japanese people believe that it is the giant peaches
that float on a river that bring babies to the deserving parents. Subsequently,
Procter & Gamble changed the theme of the ad campaign to “expert mom”,
a nurse who is also a mother theme.
 LANGUAGE
• Translation from one language to another language is crucial in international advertising.
The literal translation may fail to convey the desired message across the countries due to
cultural factors. For instance the word ‘yes’ means in low context ‘I agree’ in USA and
Europe and in Japan it means I am listening to what are you saying, in Thailand it means
Ok.
• Pepsi used the German translation of the slogan ‘come alive with Pepsi’ in its ad campaign
in West Germany. However, the slogan when translated in German actually meant ‘come
out of the grave with Pepsi’ and failed to generate any market response from the
customers.
• General Motors translated its slogan ‘Body by Fisher’ to ‘Corps by Fisher’ in Belgium that
offended many Belgium customers.
GOVERNMENT REGULATIONS
• The regulatory framework of a country influences the advertisement
strategy in international market. The government regulations in the
following country relate to following issues:
• Advertisement in foreign language.
• Use of sensuality
• Comparative advertising referring to the competing product from rival firms
• Use of children as models
• Advertisement related to alcohol and tobacco
• Advertisement related to health and pharmaceuticals
Some of the various regulations in various countries are:
• In Malaysia the Ministry of Information advertising code states that women should not be a
principal object of an advertisement and should not be used to attract sales unless the
advertisement product is relevant to women.
• The Ministry of Information in Saudi Arabia prohibits any advertisement depicting unveiled
woman.
• Use of foreign words and expression when French equivalents can be used are prohibited in
France.
• Norway prohibits any advertising that portrays men or women in an offensive manner or
implies any derogatory judgment of either sex.
• Most Arab countries prohibit explicit depiction of sensuality.
• Portuguese law prohibits sex discrimination or the subordination or objectification of women
in advertising.
 MEDIA LIMITATION
• Media may diminish the role of advertising in the promotional program
and may force the marketers to emphasis the other elements of
promotional mix.
• A marketer’s creativity is certainly challenged when a television
commercial in Japan is limited to 10 showing a year with no two
exposures closer than 10 days.
• In some African countries advertisers run boats up and down the rivers
playing popular music and broadcasting commercial into the bush as they
travel.
 INTERNATIONAL ADVERTISING HELPS
IN:
• Remind customers and prospects about the benefits of your product or
service
• Establish and maintain your distinct identity
• Enhance your reputation
• Encourage existing customers to buy more of what you sell
• Attract new customers and replace lost ones
• Slowly build sales to boost your bottom line
• Promote business to customers, investors
 CSR: Corporate Social Responsibility

• “The continuing commitment by business to behave ethically and contribute to

sustainable economic development while improving the quality of life of the workforce
and their families as well as of the local community and society.”- WBCSD (World
Business Council for
Sustainable Development)
Corporate social responsibility is a gesture of showing the company’s concern &
commitment towards society’s sustainability & development. CSR is the ethical
behaviour of a company towards society.
 Basic Constituents of CSR

Contribute Improvement Towards

towards a of social Business
sustainable environment
economic
& Society
development
 The true motivations behind corporate social
responsibility are

• To gain a competitive advantage

• To attract socially conscious consumers
• To align with a CEO’s desires
• To bolster business and marketing strategies
• To attract talent
• To increase employee retention
Responsibility towards Society
• Carrying on business with moral& ethical standards.
• Prevention of environmental pollution.
• Minimizing ecological imbalance.
• Contributing towards the development of social health, education
• Making use of appropriate technology.
• Overall development of locality.
CSR By Amul
Nature of CSR
• CSR is normative in nature.
• CSR is a relative concept.
• CSR may be started as a proactive or reactive.
• All firms do not follow the same patterns of CSR.
• Legal & socially responsible.
• Legal but socially irresponsible.
• Illegal but socially responsible.
• Illegal & socially irresponsible.
Results of CSR
• The actual business results of CSR are mixed, according to a study published
by Cambridge, 66% of consumers globally say they prefer to buy from
companies that have made an effort to “give back to society,” according to
a Nielsen study.
• A company’s social responsibility initiatives are visible through their
marketing efforts, and most companies that launch CSR programs combine
those initiatives with ad campaigns. E.g. Shiksha By P&G.
Truth in Advertising
• Truthfulness is the first requirement for any • It improves the public image.
socially responsible advertising. • Can generate more profit.
• To reduce the social cost. • To provide moral justification.
• To enhance the performance of employees.
• It satisfies the stakeholders.
• It a type of investment. • Helps to avoid government regulations &
• It leads to industrial peace. control.
• Enhance the health by non polluting measures.
Examples
• IBM UK - Reinventing Education Partnership programme Interactions and sharing of knowledge through
a web-based technology - the “Learning Village” software. Culture of openness and sharing of good
practice
• AVON - a partnership with Breakthrough Breast Cancer, and its Breast Cancer Crusade has raised over
10 million pounds since its launch 12 years ago
• TOI’s Teach India India campaign, campaign for contribution towards educating the poor
 Arguments against CSR
• Corporate should have some moral & social obligations to undertake for the
welfare of the society. Corporate should return a part of wealth.

• Proper use of resources, capability & competence.

• The expenditure on CSR is a sort of investment.

• Company can avoid many legal complications.

• Corporate should return a part of wealth.
• CSR is to induce them to steal away the shareholders money.
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