1.
Introduction to Advertising o Promotes both direct and indirect consumer
actions.
Meaning: Advertising is a paid form of communication
Types of Advertising
intended to inform, persuade, or remind a target audience
about a product, service, or idea. o Product Advertising: Focuses on promoting a
specific product or service.
Definition: Advertising is the process of creating messages
aimed at promoting a product, service, or brand through o Institutional Advertising: Promotes the overall
various media channels. image of an organization rather than a specific
product.
Nature: It is non-personal, involves mass communication,
is usually paid for, and seeks to achieve certain business o Comparative Advertising: Directly compares two
objectives (e.g., brand awareness, sales increase). or more brands in terms of attributes and benefits.
Importance: o Reminder Advertising: Aimed at maintaining
customer interest in a well-established product.
o Helps to create awareness and generate interest.
o Encourages consumer behavior that drives sales o Advocacy Advertising: A form of institutional
and revenue. advertising where a company promotes a social
o Supports market competition and innovation. issue or viewpoint.
o Facilitates brand positioning and image building.
DAGMAR Approach
Scope of Advertising
DAGMAR (Defining Advertising Goals for Measured
o Encompasses a wide range of activities including Advertising Results):
product promotion, public relations, corporate
A structured process for setting advertising objectives
communication, and marketing strategies.
based on a specific goal (usually customer action) and
o Covers various forms such as print, digital, measuring the success of that objective.
broadcast, outdoor, and social media advertising.
Steps in DAGMAR:
o Affects consumer decision-making, product
o Define target audience.
positioning, and market penetration.
o Set clear communication objectives (awareness,
Objectives of Advertising in Marketing Communication
comprehension, conviction, action).
o Informative advertising: Introduces new products
o Develop a framework for measuring success.
or services to the market.
DAGMAR Approach to Setting Advertising Objectives
o Persuasive advertising: Convincing customers to
prefer one brand over another. o Focuses on setting specific, measurable, and time-
bound objectives.
o Reminder advertising: Keeps established brands in
the minds of consumers. o Example: Increasing brand awareness among 20-
30-year-olds in urban areas by 20% in six months.
o Reinforcement advertising: Assures customers
about their purchase decisions. o Encourages breaking down advertising goals into
specific actions that lead to measurable results.
Importance of Advertising in Marketing Communication
Methods for Determining Advertising Budget Allocation
o Supports overall marketing strategies.
o Percentage of Sales Method: Budget based on a
o Builds brand awareness, identity, and loyalty.
fixed percentage of sales.
o Objective and Task Method: Budget determined o Humor Appeal: Uses humor to engage the
based on specific objectives and the cost of audience and make the ad memorable.
achieving them.
o Fear Appeal: Highlights potential dangers or
o Competitive Parity Method: Matching the problems the product can solve.
advertising budget to that of competitors.
o Scarcity Appeal: Creates a sense of urgency by
o Affordability Method: Allocating what the emphasizing limited availability.
company believes it can afford without exceeding
o Lifestyle Appeal: Connects the product with a
financial limitations.
desirable lifestyle or status.
2. Advertising Message and Media o Celebrity Endorsement: Uses a famous personality
Advertising Message: to attract attention and credibility to the ad.
The advertising message is the core idea or information Types of Advertising Media
that an advertisement aims to communicate to its target Traditional Media:
audience. The message is crafted to engage the audience,
create awareness, persuade them to take a specific action o Print Media: Newspapers, magazines, brochures,
(such as buying a product), or influence their perceptions and flyers. Suitable for targeting local or niche
of a brand. audiences.
Components of an Advertising Message o Television: Reaches a wide audience with high
visual and audio impact. Often used for national
o Headline: The main attention-grabbing element of campaigns.
an advertisement, usually bold and impactful.
o Radio: Effective for local or regional audiences,
o Body Copy: The main text providing information especially for time-sensitive promotions.
about the product or service, its features, and
benefits. o Outdoor Advertising: Billboards, transit ads,
posters, and banners placed in high-traffic areas.
o Visuals: Images, graphics, or videos that support
the message and make it more memorable and Digital Media:
engaging. o Online Display Ads: Banner ads on websites.
o Slogans or Taglines: Short, memorable phrases o Social Media: Platforms like Facebook, Instagram,
that reinforce the brand or product positioning. and LinkedIn, where targeted ads can reach specific
o Call to Action (CTA): A directive that encourages demographics.
consumers to take a specific action, like "Buy Now" o Email Marketing: Direct communication with
or "Learn More." customers via promotional emails.
Different Types of Advertising Appeals and Strategies for o Search Engine Marketing (SEM): Paid advertising
Creating Effective Advertising Copy on search engines like Google.
o Rational Appeal: Focuses on logical reasoning, Strengths and Limitations of Each Advertising Medium
product benefits, and factual information.
Print:
o Emotional Appeal: Evokes emotions like
happiness, fear, or nostalgia to connect with the o Strengths: High credibility, detailed messaging,
audience. longevity.
o Limitations: Declining readership, expensive for o Influencer Marketing: Partnering with influencers
wide coverage, no real-time engagement. to promote products to their followers, leveraging
trust and credibility.
Television:
o Native Advertising: Creating ads that blend
o Strengths: Wide reach, high engagement due to
seamlessly with the content on websites or social
visual and audio elements.
media platforms.
o Limitations: Expensive, limited targeting, fleeting
o Programmatic Advertising: The use of AI and data
messages.
analytics to automatically purchase digital ads in
Radio: real-time.
o Strengths: Cost-effective, local reach, and 3. Advertising Effectiveness
repetitive.
Communication and Sales Effects of Advertising
o Limitations: No visual impact, short-lived.
o Communication Objectives: Increasing brand
Digital (Online/Social Media): awareness, informing consumers, and changing
o Strengths: Precise targeting, measurable, cost- consumer attitudes.
effective, and interactive. o Sales Objectives: Driving purchase decisions and
o Limitations: Ad clutter, privacy concerns, and increasing sales volume or market share.
requires constant updates. o Impact: Advertising must strike a balance between
Factors Influencing the Selection of Advertising Media communicating brand values and contributing
directly to sales.
o Target Audience: Demographics, psychographics,
geographic location, and behavior. Methods for Measuring Advertising Effectiveness
o Budget: The financial constraints of the advertising • Pre-testing Techniques: Conducted before
campaign. launching a campaign to gauge its effectiveness:
o Message Content: The complexity of the message o Focus Groups: Discussions with target
might dictate the use of certain media (e.g., audience members.
detailed messages in print, emotional messages on o Storyboards: Presenting preliminary visuals
TV). to gather feedback.
o Media Reach: How many people a specific medium o Test Markets: Running the ad in limited
can reach within the target market. areas to observe results.
o Timing: The time frame for the campaign— • Post-testing Techniques: Measuring effectiveness
seasonal promotions might require specific media. after the campaign:
o Objectives: Whether the campaign focuses on o Sales Analysis: Direct measurement of how
awareness, consideration, or conversion. sales changed post-campaign.
New Trends in Advertising o Recall Tests: Measuring how well
o Social Media Advertising: Targeting specific consumers remember the ad.
demographics through platforms like Instagram, o Brand Tracking: Monitoring brand metrics
Facebook, and TikTok using paid advertisements. (awareness, preference) over time.
Ethical Aspects of Advertising in India o Introduce new products or services.
o Misleading Ads: False claims, exaggerated o Attract new customers and retain existing ones.
benefits, or failing to disclose important
o Combat competition and generate interest during
information.
product launch phases.
o Cultural Sensitivity: Avoiding content that might
Benefits of Sales Promotion
be offensive to certain groups or cultures.
o Immediate boost in sales.
o Stereotyping: Avoiding harmful gender, race, or
community stereotypes in advertising. o Helps clear excess inventory.
o Environmental Claims: Ethical advertising should o Enhances customer engagement through
be careful when making claims about sustainability interactive promotions like contests or samples.
or eco-friendliness.
Tools of Sales Promotion
Role and Functions of the Advertising Standards Council
o Premiums: Gifts provided with purchase, e.g., "buy
of India (ASCI)
one, get one free" offers.
o Regulating Content: ASCI ensures advertisements
o Coupons: Discount vouchers that encourage
in India are truthful, non-offensive, and do not
repeat purchases.
promote harmful products.
o Sampling: Offering free product samples to let
o Complaint Redressal: Consumers or organizations
consumers try before they buy.
can lodge complaints if an ad is considered
unethical or misleading. o Refunds/Rebates: Returning part of the purchase
price upon proof of purchase.
o Guidelines: ASCI sets guidelines for advertising,
particularly regarding sensitive issues like children, o Contests and Sweepstakes: Engaging consumers
safety, and health. by offering prizes.
4. Sales Promotion o Point-of-Purchase Displays: In-store displays
designed to attract attention and spur impulse
Sales promotion refers to short-term incentives or purchases.
activities designed to encourage the purchase or sale of a
product or service. Strategies for Using Sales Promotion to Drive Sales and
Customer Engagement
Nature and Importance of Sales Promotion
o Limited-Time Offers: Creating urgency through
Sales promotion involves short-term incentives to time-sensitive promotions.
encourage the purchase of a product or service.
o Loyalty Programs: Encouraging repeat purchases
Role in Marketing Mix: Sales promotion complements by offering points or rewards for continued
advertising and personal selling by providing incentives engagement.
that encourage consumers to act quickly.
o Cross-Promotions: Partnering with other brands to
Types: It can target either consumers (consumer offer joint promotions that benefit both.
promotions) or businesses (trade promotions).
Trade Promotion Tools
Objectives of Sales Promotion
o Conventions: Hosting or participating in trade
o Increase short-term sales. shows or conventions to showcase products to
businesses or industry partners.
o Trade Allowances: Discounts or allowances
provided to retailers to encourage stocking or
promoting the product.
o Cooperative Advertising: Sharing advertising costs
between manufacturers and retailers.
o Sales Contests: Encouraging sales teams to
compete for bonuses or prizes based on
performance.