MSE-1: 505

Advertising
And
Brand Management
Unit 1:
Introduction to Advertising (20%)
● Definition
● Objectives
● Functions and Classification of Advertising
● The role of advertising in Marketing
● The role of advertising agencies
 Definition
• Advertising is a means of communication with the
users of a product or service. Advertisements are
messages paid for by those who send them and are
intended to inform or influence people who receive
them.
• Advertising is the business of drawing people’s
attention to a good or service. It is a public promotion
of a product, service, cause, or a movement. The
promotion is done through an advertisement (advert or
ad) via the media – TV, Internet, newspapers, radio,
trade journals, movie theaters, or billboards.
• According to William J. Stanton,
"Advertising consists of all the activities
involved in presenting to an audience a non-
personal, sponsor identified, paid-for message
about a product or organization."
• According to American Marketing
Association "advertising is any paid form of
non-personal presentation and promotion of
ideas, goods and services by an identified
sponsor.
 Purpose of Advertising

1. Introduce New Product:

2. Creation of Demand:
3. To Face the Competition:
4. Creation of Goodwill:
5. Communicate with the Customers:
6. Discourage New Entrants:
7. Supporting Salesmen:
 Functions of Advertising
A.To Inform
B.To Persuade
C.To Sell
A. To Inform
1. Advertising simply seeks to provide the public with specific
pieces of information.
2. Manufacturers may use advertising to inform previous
consumers of some deficiency in their product.
3. Introducing a new product, there is a need to inform potential
consumers about the new product.
4. Extend the appeal of an existing product, manufacturers may
attempt to use advertising to suggest new uses for a product.
Sometimes it will be necessary to provide some form of
explanation of how a product works.
For Ex: When Eureka Forbes
Service companies may need to provide information
concerning the range of available services to the consumer.
5. Manufacturer identifies a dissonance between the product
performance and consumer perceptions, it may be necessary to
use advertising to correct false impressions.
B. To Persuade
1. Advertising attempts to persuade consumers to
alter their attitudes towards a particular issue.
Ex: Political parties utilize this form of
advertising.
2. Government departments sometimes use this form
of advertising to bring about a change in attitudes
towards issues of general concern.
Ex: the drink driving or child road safety.
3. In some market sectors, advertising may be used
as a precursor (influence/to lead other) to other
activities.
C. To sell
1. Most advertising seeks to promote the sale of
particular goods or services.
2. In the majority of instances, advertising seeks to
reinforce existing attitudes by explaining how the
product is appropriate to the potential users’ existing
needs or lifestyle.
3. A key role of advertising is to bring about the building
of brand preferences and to encourage brand
switching.
4. Some products have a distinctly seasonal appeal.
Advertising may be used to remind consumers that
the product may be needed in the future and to ensure
that the brand is kept in mind during the off-season.
 Classification of Advertising or Advertisement
1. On the Basis of Geographical Spread-
(i) National Advertising-
• When the advertisement is broadcasted across the country it is called national
advertising. This advertisement is for peoples who are residents in that country because
any company who runs an advertisement of its product, its main responsibility remains
to target our local customers and also increase the sales of our product.
• Ex: Patanjali Ayurvedic Products.

(ii) International Advertising-

• These types of advertisements are broadcasted throughout the world and it is the process
of providing information about persuading the customers and reminding the customers
about the brands which are available at the global level. In the international advertising,
cultural differences are also the barriers of global advertising.
• Ex: Mcdonalds

(iii) Local Advertising-

• When the advertisements of a particular product are broadcasted within a local area,
these advertisements must be according to local tastes and preferences.
• Ex: – Advertisements of F.M., Local Newspapers, and so on.
2. On the Basis of Target Audience or Market-
(i) Consumers-
• This advertising is based on promoting products because
it defines the consumer’s personal consumption. In these
advertisements, the company focuses on the daily use of
products which are used by the customers.
• Ex– FMCG Products like shampoo, soaps, and so on.
(ii) Industrial Advertising-
• This advertisement is focused on to promote industrial
products such as raw materials capital items, and
operating supplies. However, the industrial products are
totally focused on the business to business activity.
3. On the Basis of Media-
i. Print Media- is an advertising media that has been running for a long
time. There are two main things are used to complete this
advertisement, first is a newspaper and second is a magazine. This
media includes various channels or things to promote their products
like brochures, yellow papers, fliers, and journals.
ii. Electronic Media- is very popular advertising all over around the
world because this advertisement targets many audiences at once and
is published in every country. It includes televisions and radios, but
television advertising is very costly than radio advertising.
iii. Online Media- is a very popular advertising and we also know it as
internet advertising. This advertisement helps to promote the products
in social media tools. It includes various media like- direct marketing,
email marketing, search engine optimization, and banner advertising.
iv. Mural Advertising- is that advertising which is placed directly on a
wall and another permanent surface. This advertising work as friendly
with their target audience because they placed around them.
4. On the Basis of Purpose-
(i) To inform-
• Main motive of advertising is to give full information about the
product to our target customers. Tell the customer about the
features, uses, and durability of the product so that the customer
buys your product and became the potential buyer also.
(ii) To remind-
• Company repeated their advertisement so that the customers
remember their products and services. Slogans and Jingles are a
great help here because they help to provide a particular singing
slogan and a particular sentence.
(iii) To persuade-
• Advertising is a form of non-personal communication used to
persuade or enhance to take a new action. It also helps to define
the category of customers about suitability of the product.
5. On the Basis of Action-
(i) Immediate Response-
• These kinds of advertisement provide immediate
response in the form of purchase of the product.
For Example– An advertisement for the offer can
result in more sale of a product.
(ii) Indirect Response-
• These kinds of advertisement are work for building
the brand image in the minds of the customers so
that they can purchase the products over a period
of time.
• For Example– An advertisement related to banks,
insurance policy, and so on.
6. Other types of Advertising
i. Covert Advertising- This is a unique way of advertising in which the product or the
message is subtly included in a movie or TV serial. There is no actual ad, just the
mention of the product in the movie.
Ex: Tom Cruise used the Nokia phone in the movie Minority Report.

ii. Surrogate Advertising- Advertising Indirectly- Surrogate Advertising is

prominently seen in cases where advertising a particular product is banned by law.
Advertisements for products like cigarettes or alcohol which are injurious to health
are prohibited by law in several countries and hence these companies have to come up
with several other products that might have the same brand name which indirectly
remind people of the cigarettes or beer bottles of the same brand.

iii. Public Service Advertising- Advertising for social causes- Public Service
Advertising is a technique that makes use of advertising as an effective
communication medium to convey socially relevant message about important matters
and social welfare causes like AIDS, energy conservation, political integrity,
deforestation, illiteracy, poverty and so on.

iv. Celebrity advertising- Using celebrities for advertising involves signing up

celebrities for advertising campaigns, which consists of all sorts of advertising
including, television and print advertisements.
 Role of Advertising in Marketing
1. Information and Persuasion:
2. Introduction of new brand and brand
extensions:
3. Building and maintaining brand loyalty among
consumers:
4. Advertising and pricing decisions:
5. Advertising and distribution:
6. Targeting, segmenting, and positioning:
 Role of Advertising Agency
Meaning
• Many Major companies use an advertising
agency to assist them in developing, preparing
and executing their promotional program. An
Advertising agency is a service organization
that specializes in planning and executing
advertising programs for its client.
• The first Advertising Agency was William
Taylor in 1786 followed by James “Jem”
White in 1800 in London and Reynell & Son
in 1812.
1. Attracts Clients:Advertising agencies aims at
attracting more and more clients i.e. advertisers for
earning revenue. They grab attention of advertisers by
providing them wide range of quick services at cheap
price.
2. Researcher Role: Advertisement agency conducts a
detailed research related to advertiser product for
gathering all required information.
3. Advertising Planning:Advertising planning is a
primary role performed by ads agencies. It involves
making a proper blueprint of whole advertisement
campaign to be performed. This function is performed
after doing research about the client products, its
competitors, target audience, market area etc.
4. Prepares Advertising Budget: Ad agencies prepare an
advertising budget for its advertisers. Preparation of right
budget enables in carrying out all advertisement activities
economically with the best possible use of all resources.
In absence of advertising budget, client funds may get
wasted and incurs heavy losses.
5. Brings Coordination: Advertisement agency brings
coordination in between all people associated with
marketing campaigns such as clients, itself, media, sales
force and distributors.
6. Media Selection: Media selection is a highly specialized
function where decision regarding choosing media for
communicating the content is made. Right media has
more potential for giving best results at lower cost.
7. Creative Role: Creating function involves making a
7.
proper design, layout and illustrations of ads messages. A
team of experts like designers, copywriters and artists
perform this function to make advertisement more
appealing. Agency must use creative and innovate ideas
for creating ads that would increases the sales of products.
8. Non-Advertising Role: These agencies also provide a
wide range of non-advertisement services to their clients.
Advertisement agency assist its client in designing the
product, fixing its price, determining the discount amount,
designing the labels, trade mark, packaging etc.
9. Monitoring Feedback: By monitoring consumer
feedback, a decision on whether to revise the message, the
medium, the target audience or all of them can be made.
Ad agencies are developing to reach the target audience.