ADVERTISING MANAGEMENT

www.eiilmuniversity.ac.in

Subject: ADVERTISING MANAGEMENT

Credit: 4

SYLLABUS

Concepts of Advertising
The Field of Advertising, Introduction, Integrated Marketing Communication, Advertising and its types,
Comparative Advertising, case study, Communication Models in Advertising
Integrated Advertising Program
Analysis of Mission & Market Objective Setting & Determining Target Audience, Understanding
Segmentation, Positioning, Budget Decision, case study on Budgets
Understanding Message Strategy
Message & Copy in Advertising, Headlines in Print & TV Advertising, Visualization & Layout, AD
Appeals, Testimonials & Celebrity Endorsement
Media
Types & Decision Types of Media, Media Selection, Media Planning: New Perspective, Media Decision
Campaign Making
Three Phases of Campaign Creation, Steps of Effective Advertising, Upsetting the applecart in the
scooterette category In Style! Case study, Understanding Campaigns
Advertising
Advertising Stake Holders – Advertising Organization, Evolution & History of advertising Agency, The
working of AD agencies, Organization Structure of Advertising Department, Interface with other
Departments, Functions of Advertising Agency

Suggested Readings:
1. Advertising Management, Dr. Varma & Aggarwal, King Books
2. Principles of Marketing, Kotler & Armstrong, Prentice-Hall of India
3. Advertising: An Introduction Text, S. A. Chunawalla, Himalayan Publishing House
4. Advertising Principles and Practice, Wells Burnett Moriarty, PHI
5. Foundations of Advertising, S.A. Chunawalla, KC Sethia , Himalayan Publishing House

COURSE OVERVIEW
Well what do I say? Advertising, friends, has always fascinated

Next few lessons deals with few of the models that you have to

everybody. Whether it is Hritik Roshan dancing in the commer-

keep in mind while framing the campaign. You should know

cial of Coke or a small boy’s innocence in the Dhara

how to frame your message and understanding as to the

advertisement, they all make us look at ads with a different

process, which is there in the communication process. This is

perspective. In fact I really will not be surprised if you say that

important to know since it should not happen that you make

you would rather watch ads than watch saas-bahu on TV.

this wonderful advertisement but your audience doesn’t read it

Advertising has certainly come of age. There has been new

or understand it. End result wastage of resources.

technology, which is taking the production of ads to greater

Thereafter we talk about the audience. “The consumer is not a

heights. In fact in India the ads have become so qualitative in its

moron, she is your wife”. Well, we teach you to look at the

essence that we are doing very well in the international scene. We

audience as if he were the king. You also need to understand

are winning a lot of awards in the international advertising

that you cannot sell a Mercedes to rickshaw wala, so what do

circuits.

you do? You understand as to who is it that you should sell the

The credit I would like to give to young people like you. There

product to. Also frame your aim of your campaign accordingly.

is so much energy level mixed with creativity that is absolutely

Where after we talk about money. This is a crucial aspect because

oozing out of you all that I am sure you people will take the

the advertisers allocate a lot of money for the advertising honey.

advertising industry to a new dimension all together. Talent is

So you have to good a good advertising honey in order that the

what this field requires. Look, you may say that I do not have

money gets its value for money.

any talent. But you don’t know yourself as yet. As it is I have

Then the lessons equips you all with the creative source house.

always believed in the fact that everybody is creative in some or

It will give you an insight as to how those great ads were made.

the other field. So within advertising you could go in for:

Who made Sachin Tendulkar to speak in a husky voice and who

•

Marketing

•

Creative

•

Production

•

Planning

Then we talk about why you should go in for TV advertising

•

Public Relations

over radio? Or why is the web a modern tool for reaching out

made Aishwarya Rai look all the more beautiful? Creatve
departments with the French beards and long hair do that.

In any case let me very briefly tell you what this subject is all

to the public. So media is what we talk about.

about.

Welcome to the next interesting part where you learn how to

Introductory lessons are all about advertising and its relevance

make the campaign

with respect to marketing. We have the Integrated Marketing

It is imperative that you all know about the HTAs and the

Communication, which talks about integrating all the elements

O&M of the world. We shall explain you what an agency is all

of marketing to the field of advertising. Be it public relations or

about and its role and activities in the framework of advertising

sales promotion, they all have to be integrated to give cohesive-

agencies.

ness to the advertising campaign.

ADVERTISING MANAGEMENT

Where after we talk about some issues like the presence of a
woman in Rupa undergarments for men (that to be she was
actually wearing one!!!). I am sure you all will agree that we need
some regulations and ethics where advertising is concerned.
The last few lessons contains few key questions and case studies
pertaining to campaign making. This will get you closer in
becoming an ad man. This is a unit, which is created to bring
out your creative juices and go on to make award-winning
campaigns. At least RU will bestow upon you some sort of
recognition for your creations.

ADVERTISING MANAGEMENT

CONTENTS
.

Lesson No.

Topic

Page No.

Concepts of Advertising – The Field of Advertising
Lesson 1

Introduction

Lesson 2

Integrated Marketing Communication

Lesson 3

Tutorial

Lesson 4

Advertising and Its Types

Lesson 5

Comparative Advertising

Lesson 6

Tutorial

Lesson 7

Communication models in Advertising

Lesson 8

Tutorial

Integrated Advertising Program Analysis of Mission & Market
Lesson 9

Objective Setting & Determining Target Audience

Lesson 10

Tutorial

Lesson 11

Understanding Segmentation

Lesson 12

Positioning

Lesson 13

Tutorial

Lesson 14

Budget Decision

Lesson 15

Case Study on Budgets

Understanding Message Strategy
Lesson 16

Message & Copy in Advertisements

Lesson 17

Headlines in Print & TV Advertising

Lesson 18

Visualization & Layout

102

Lesson 19

Tutorial

108

Lesson 20

Ad. Appeals

109

ADVERTISING MANAGEMENT

CONTENTS
.

Lesson No.

Topic

Page No.

Lesson 21

Tutorial

118

Lesson 22

Testimonials & Celebrity Endorsement

119

Lesson 23

Tutorial

123

Media Types & Decision
Lesson 24

Media Planning & Decision

124

Lesson 25

Tutorial

140

Campaign Making
Lesson 26

Understanding Campaigns

141

Lesson 27

Case Study & Campaign Making

149

Lesson 28

Tutorial

151

Advertising Stake Holders – Advertising Organization
Lesson 29

Lesson 30

Ad Agencies – A Look

152

Tutorial: Case Study

159

Tutorial

168

Issues in Advertising
Lesson 31

Regulation In Advertising

169

Lesson 32

Advertising Effectiveness

176

Indian Advertising
Lesson 33

Lesson: Indian Advertising

181

Lesson 34

Ethics in Advertising

188

Lesson 35

Children & Women in Advertising

192

Lesson 36

Tutorial

199

Case Study

Lesson 37

Key Questions

200

Lesson 38

Advertising Campaign Exercise

201

Lesson 39

Cases 1 & 2

202

Lesson 40

Cases Study

207

LESSON 1:
INTRODUCTION

•

Within this lesson you will understand the basics of
advertising

•

This lesson will give you an insight about advertising as a
communication process.

I would like to welcome you to the creative side of this world. I
know that creativity is there in all of you and that is exactly what
I plan to extract from you all. So, are we ready to get bowled by
Sachin Tendulkar. That my friend is the beauty of advertising,
expect the unexpected and again be surprised to see that the
unexpected got the results.

reaches out to the maximum number of people. So mass
communication would be the best way to reach out to the
people hence the medium of advertisements to reach out to the
masses. It should be however understood that advertising
itself couldn’t sell the product it merely assists in the selling
process. Advertising also cannot rejuvenate or restore a poor
product it only helps in the selling process through the means
of communication.
Matrimonial advertisements, recruitment advertisements,
tenders, classified advertisements, notice, public announcements
are also examples of advertisements.
Basically you must understand that adverting is an announcement to the public of a product, service or idea through a
medium to which the public has access. The medium may be
print (newspapers, magazines, posters, banners and hoardings),
electronic (radio, television, video, cable, phone, internet) or any
other. An advertisement is usually paid for by an advertiser at
rates fixed or negotiated with the media.
The American Marketing Association, Chicago, defines advertising as “any paid form of non personal presentation of ideas,
goods and services by an identified sponsor.”

Okay, now let us see what advertising is all about.
Advertising is multidimensional. It is a form of mass communication, a powerful marketing tool, a component of the
economic system, a means of financing the mass media, a social
institution, an art form, an instrument of business management, a field of employment and a profession.
In India the advertising business is growing at the rate of 30%
to 35% annually. The total advertising expenditure in India is
about $5 Billion. It is a 1200 crore industry, even when billings
are Rs. 8000 plus crores. It is 90% of India’s GDP.
Today we see our senses bombarded with lots of advertisements. Be it the newspapers, magazines, the television or even
so many hoardings which line up any street or highway, there
are lot of advertisements to be seen. In fact the quantity and the
quality both are increasing day by day. It has become an
important tool at the hands of the marketers to sell their
products. Some advertisements are criticized for being false,
misleading, and deceptive and for concealing information.
Advertisements can also manipulate the consumer to go in for
unnecessary buying spree. So it is important to understand
what advertising is all about.
Now, let us say that a firm has developed a product, which will
satisfy the market demand. So essentially he has to reach out to
the public or to his target market and inform them about his
product. For optimum exposure he has to make sure that he

So a form could be a presentation. It may be sign, a symbol, an
illustration, an ad message in a magazine or newspaper, a
commercial on the radio or on television, a circular dispatched
through the mail or a pamphlet handed out at a street corner; a
sketch or message on a billboard or a poster or a banner on the
Net.
Non-personal would mean that it is not on a person-to-person
basis.
Goods, Services, Ideas for action would mean making a
consumer’s work easy in knowing about the product of the
firm. It could be a television, or a banking service or filing your
tax returns, which the firm or the marketer wants the consumer
to know about. An idea could also be political parties letting the
people know about their party and why they should vote for
their party. Adult education, beware of AIDS, donate your eyes
are but a few examples of ideas.
Paid by an identified sponsor would imply that the sponsor has
control over the form, content and scheduling of the advertisements. The sponsor could be identified by the company name
or the brand of the particular product.
•

“Salesmanship in print”

•

“Advertising as a substitute for the human salesman”

•

“Advertising is the business of creative thinking for
commercial advantage”

The above are few definitions of what advertising is all about.
To Communicate, to Persuade, to Influence and to Lead to
some action is what advertising is all about. Human nature and

ADVERTISING MANAGEMENT

Learning Objectives

UNIT I
CONCEPTS OF ADVERTISING
UNIT – 1
CHAPTER 1
THE FIELD OF ADVERTISING

ADVERTISING MANAGEMENT

advertising are closely related. A man who wears shirt-trouser
instead of dhoti is advertising that he is westernized; a woman
who wears a lipstick wants to advertise that she wants to look
beautiful; a boy who rides a beautiful bike wants to advertise
that he wants to be noticed. So we see that people want to
notice for anything that they do. That is what advertising does.
It pulls people towards the product like the flowers attracts the
bees towards it.

customers that we are looking at. Once we have identified a
group and further identified a few characteristics about them
then we can incorporate those very characteristics in our message
formulation. This would be under the context of Product. That
is the distinctive image you want to associate the brand with.

Within the context of Price, quality plays a major role. When
you think about Mercedes Benz at a price tag of Rs. 70 Lakhs,
there is certainly a difference you perceive when you are given an
automobile with a tag price of Rs. 3 Lakhs.
The Place would mean the interaction between the buyer and
the seller. It is like you advertise your brand of television but
when the buyer goes to the shop he does not get it there. So the
place would mean the distribution channels.
Advertising is a career for many. I am sure you might want to
make it a career. It is getting professionalized. Competition,
growing marketing expenses, product failures, liberalization,
globalization and the emergence of new electronic media has
given an impetus to advertising activity.
You must understand however that advertising is a communication process. You have a certain message and that is ‘Decoded’
by a party (Sender) to be ‘Encoded’ by another (Receiver). We
must understand that the message so encoded should be so
clear that the person should not distort the meaning of it. This
means that what you are trying to say and what the other
person makes out of the message should be the same. You
should not make the other party confused. So it means that the
message should:
1. Gain attention of the receiver.
2. Be understood.
3. Be able to stimulate the receiver and suggest appropriate
method to satisfy their needs.
So the sender must know his receivers or the audience and the
kind of response they are likely to elicit. This response he can
get by maintaining a proper feedback mechanism. The feedback
can also have some “Noise elements”. These could be poor
message planning, busy audience members or careless feedback
of response.
We talk about the 4 P’s of Marketing – Product, Price, Promotion and Place. In a way we can say that the entire process of
Marketing is a Communication process. For example what do
we want to say about a particular product – is it youthful,
young, matured, secured, – that is what is the profile of the
2

Promotion would encompass the method and the medias used
to reach out to the people. Even in rural areas, where there may
not be many televisions in households, but through the local
shows and with the help of ‘Nautakiwalas’ you promote your
product. The local salesman coming to your house to sell
shawls from Kashmir is another example of promoting your
wares.
Advertising as such is related closely to other subjects of
marketing too. Be it Personal Selling, Sales Promotion, Publicity
or even Public Relations, advertising plays a significant role in
reaching out to the selected target audience.

Communication Model
As we have understood that the sender identifies the receiver(s)
and develops a message, the basic of the sender is that the
customer or the target audience should buy the product or the
service. For this we must understand whether a particular
message so created has been effective in reaching out to them.
So what makes an advertisement effective? Below are the key
points on the effectiveness of a message.
1. Attract Attention
2. Secure Interest
3. Build Desire for the product
4. Obtain Action
The above has been formulated as the AIDA Model.
Attention could be the form of the layout of a print advertisement or the way an advertisement is made in the form of
moving pictures, the colors used, the models used and the copy
written, the movements used and the contrasting element used.

Desire would mean the buying motive. When you feel that you
want to posses the particular product or be associated with it.
Action would normally mean the acquisition of the product.
Within the AIDA framework, Attention would refer to the
cognitive stage, both Interest and Desire would relate to the
affective stage and Action would be a behavioral activity.
Within the framework of advertisements the following should
be kept in mind:
•

Understanding the Objective(s) of the advertisement
(MISSION)

•

Defining the Target Audience (MARKET)

•

Understanding the Budget (MONEY)

•

Understanding the Message (MESSAGE)

•

The Media used for putting the advertisement (MEDIA)

•

Seeing whether the advertisement was Effective
(MEASUREMENT)

The above would commonly be termed as the 6 M’s of
Advertising.
The Mission statement would refer to the Aim of your
advertisement. Is to improve sales, is to launch a new product,
it for recall, is it for some short term offers, is it to gain
attention, etc.
The Market analysis would incorporate the type of buyer you
want to sell the product to. For a cosmetic company it is but
natural they would show women and not men in their
advertisement. For Horlicks they would show children having
the product.

allocate Rs. 2 crore for the advertisement of Tide detergent
spread over one year.

ADVERTISING MANAGEMENT

We are bombarded by so many advertisements that there are a
few we see and while a few we don’t. The advertisement, which
arouses interest in us and provokes us to think or feel about a
product, is what an advertiser looks at. It basically means to
catch the eye of the public.

What to say, how to say, who will say it and what type of
appeals to be given in the message is what Message formulation
is all about. Shahrukh Khan being the spokesperson for
Hyundai Santro, the colors used in the car, the movements of
the car and what the person should remember the car as are few
of the elements to be kept in mind.
Star Plus, Zee TV, Star Movies, Times of India, Radio Mirchi,
etc, are few of the choices where you could think of putting
your advertisement. The people watching those medias are very
crucial to the success of your advertisement being seen by your
target audience.
You have spent Rs. 5 crore on your advertisement but do you
think that your sales have improved or do you think the people
have seen the advertisement? Measurement is precisely the way
in which see as to whether your advertisement has been effective
or not.
Advertising has a dark side to it too. The use of women to sell
virtually everything and to have sexual overtures in an advertisement has been a contentious issue. Then showing one
community in a bad light, like if you don’t put fairness cream
then you would not get married have come under the microscope of the ethics committee.
Advertising involves lot of creativity and also marketing
aptitude to be successful in this field. You have to keep your
eyes and ears open for inspirations. After all great advertisements were not made in the think rooms. Shown below is a
diagram of what advertising entails.

Money is the amount of budget constraint that the advertiser
has in allocating the money between different medias and the
expenditure to be incurred. For example, Procter & Gamble may

ADVERTISING MANAGEMENT

This is a very good advertisement but you are not to take the
picture too seriously.

“Quote-Unquote What Few Stalwarts
Have to Say About Advertising.”

Characteristics of a good Advertisement
–The Dual Process

•

“Advertising is the principal reason why the business man
has come to inherit the earth.”
– James Randolph Adams, quoted in John P. Bradley, Leo F.
Daniels & Thomas C. Jones, The International Dictionary of
Thoughts, 1969, Chicago, IL: J. G. Ferguson Publishing Co.,
p. 12.

•

“Advertising is of the very essence of democracy. An election
goes on every minute of the business day across the counters
of hundreds of thousands of stores and shops where the
customers state their preferences and determine which
manufacturer and which product shall be the leader today,
and which shall lead tomorrow.”
– Bruce Barton (1955), chairman of BBDO, quoted in James
B. Simpson, ContemporaryQuotations, 1964, Binghamton,
NY: Vail-Ballou Press, p. 82.

•

“Advertising is the ability to sense, interpret . . . to put the
very heart throbsof a business into type, paper and ink.”
– Leo Burnett, quoted by Joan Kufrin, Leo Burnett: Star
Reacher(1995), Chicago, IL: Leo Burnett Company, Inc., p.
54.

•

“Advertising is what you do when you can’t go see
somebody. That’s all it is.”
– Fairfax Cone (1963), ad agency partner, quoted in James B.
Simpson, Contemporary Quotations, 1964, Binghamton,
NY: Vail-Ballou Press, p. 84.

•

“Advertising is the life of trade.”
– Calvin Coolidge, quoted in John P. Bradley, Leo F. Daniels
& Thomas C. Jones, The International Dictionary of
Thoughts, 1969, Chicago, IL: J. G. Ferguson Publishing Co.,
p. 13.

•

“Advertising – a judicious mixture of flattery and threats.”
– Northrop Frye, quoted in Robert I. Fitzhenry, The
Fitzhenry & Whiteside Book of Quotations, 1993, Canada:
Fitzhenry& Whiteside Limited, p. 18.

•

“The art of publicity is a black art.”
– Learned Hand, American jurist, quoted in Robert I.
Fitzhenry, The Fitzhenry & Whiteside Book of Quotations,
1993, Canada: Fitzhenry& Whiteside Limited, p. 19.

•

“[A]dvertising is a symbol-manipulating occupation.”
– S. I. Hayakawa, Language in Thought and Action (1964),
New York: Harcourt, p. 268.

•

“Advertising is salesmanship mass produced. No one would
bother to use advertising if he could talk to all his prospects
face-to-face. But he can’t.”
– Morris Hite, quoted in Adman: Morris Hite’s Methods for
Winning the Ad Game, 1988, Dallas, TX: E-Heart Press, p.
203.

•

Advertising is “the lubricant for the free-enterprise system.”
– Leo-Arthur Kelmenson (1976), quoted in Michael
McKenna, The Stein & Day Dictionary of Definitive

Need for understanding

Advertising Objectives

Consumer Objectives

Attention / Awareness

Satisfy Curiosity/Memory/Entertainment

Interest

Identify Personal Needs

Knowledge

Gather Relevant Information

Attitude Change

Support Risk Associated With Attitude Change

Behavioral Change/Trial

Enhance Need Reduction

Repurchase/

Reinforce Trial and Need Reduction

Commitment/Reminder

•

“Advertising is selling Twinkies to adults”
– Donald R. Vance

•

“Advertising may be described as the science of arresting the
human intelligence long enough to get money from it.”
– Stephen Butler Leacock, quoted in Michael Jackman,
Crown’s Book of Political Quotations, 1982, New York:
Crown Publishing Inc., p. 1.

•

“Advertising is legalized lying.”
– H.G. Wells, quoted in Michael Jackman, Crown’s Book of
PoliticalQuotations, 1982, New York: Crown Publishing
Inc., p. 2.

•

“Advertising is the greatest art form of the twentieth
century.”
– Marshall McLuhan (1976), Canadian social scientist (quoted
in Robert Andrews, The Routledge Dictionary ofQuotations
1987, p. 5, London: Routledge & Kegan Paul).

“Advertising is the genie which is transforming America into
a place of comfort,luxury and ease for millions.”
– William Allen White, quoted in John P. Bradley, Leo F.
Daniels & Thomas C. Jones, The International Dictionary of
Thoughts, 1969, Chicago, IL: J. G. Ferguson Publishing Co.,
p. 15

•

“Ads are the cave art of the twentieth century.”
– Marshall McLuhan, quoted in Robert I. Fitzhenry, The
Fitzhenry & Whiteside Book of Quotations, 1993, Canada:
Fitzhenry& Whiteside Limited, p. 19.

•

“Advertising is an environmental striptease for a world of
abundance.”
– Marshall McLuhan, introduction to Wilson Bryan Key,
Subliminal Seduction: Ad Media’s Manipulation of a Not So
Innocent America, 1974, New York: Signet (New American
Library), p. vii.

•

“Advertising is the rattling of a stick inside a swill bucket.”
– George Orwell, quoted in Angela Partington, The Oxford
Dictionary of Quotations, 1992, New York: Oxford
University Press, p. 501.

•

Advertising is “[a] ten billion dollar a year misunderstanding
with the public.”
– Chester L. Posey, Senior V.P. & Creative Director, McCann
Erickson

•

“Advertising is, actually, a simple phenomenon in terms of
economics. It is merely a substitute for a personal sales force
– an extension, if you will, of the merchant who cries aloud
his wares.”
– Rosser Reeves, Reality in Advertising (1986), New York:
AlfredA. Knopf, Inc., p. 145.

•

“Advertising is the ‘wonder’ in Wonder Bread.”
– Jef I. Richards (1995), advertising professor, The University
of Texas at Austin.

•

“Advertising is the modern substitute for argument; its
function is to make the worse appear the better.”
– George Santayana

•

“Advertising is the foot on the accelerator, the hand on the
throttle, the spur on theflank that keeps our economy
surging forward.”
– Robert W. Sarnoff, quoted in John P. Bradley, Leo F.
Daniels & Thomas C. Jones, The International Dictionary of
Thoughts, 1969, Chicago, IL: J. G. Ferguson Publishing Co.,
p. 15.

•

“The simplest definition of advertising, and one that will
probably meet the test of critical examination, is that
advertising is selling in print.”
– Daniel Starch, Principles of Advertising, 1923, Chicago, IL:
A.W. Shaw Company, p. 5.

The spirit should be free and creativity of yours should fly
higher and higher in this ad mad world of advertising.

Notes

ADVERTISING MANAGEMENT

Quotations, 1983, New York: Stein & Day Publishing Co., p.
11.

ADVERTISING MANAGEMENT

LESSON 2:
INTEGRATED MARKETING COMMUNICATION
Learning Objectives
•

In this lesson you will be exposed to the relevance of
marketing within the context of advertising

•

You will understand the relevance of the Promotion mix.

•

The exposure to Integrated Marketing Communication is
step forward in understanding advertising.

•

You will be briefly exposed to Branding, since it plays a
dominant role in today’s advertising.

You are to see the power point slides first; this will give you an
idea about the topic.
Within the context of marketing, we see that marketing
communication plays an important role in the dissemination of
information. Marketing communication is a term used in a
broader sense for promotional strategy. So it is more of a
planned promotional communication.
Within this we have the following tools:
•

Advertising: Which is any paid form of non-personal
communication of ideas, products and services by an
identified sponsor.

•

Sales Promotion: Short term direct inducement to encourage
sales of products and services.

•

Publicity: Non-personal stimulation of demand for a
product / service or business organization as a whole by
putting commercially significant news in media to create a
favorable image. The sponsor does not pay it for.

•

Personal selling: For making sales, a salesman interacts orally
with the buyer or buyers in the form of sales presentation.

•

Public Relations: Marketers engage in public Relations to
develop a favorable image of their organizations in the eyes
of the public – public at large, customers, suppliers,
government, media, competitors, shareholders, employees
and the society.

So how does one go about it? Following are the key areas as to
how marketing is an integral part of advertising.
•

Objective setting: What is the objective of your advertising
plan? Look towards your product or service. Also look
towards what is it that you really want to achieve. Is it a new
product or an existing one? Would you like to see more
people buying your product? Do you want to measure the
effectiveness of your advertising campaign? Some of the
objectives could be:
•

Increasing Awareness

•

Increasing Sales

•

Sales promotion offer

•

PR exercise for a negative news about the brand

•

Fighting competitor’s claims

•

Introducing changes in the product offering

•

Understanding the Target Audience: Read the following
brief of a Brand and identify the customer group they are
looking at.

“The beer-drinkers in the country are much younger than the
average beer-drinker elsewhere in the world. This makes them
more likely to carry the brand with them for a lifetime. Also, as
the target audience becomes younger, a light beer like Foster’s
LightIce is expected to attract first-time drinkers, since it is much
milder than any of the other beers in the country. Even if one
accounts for the fact that the strong beer market is growing fast
in India, we expect that at times when consumers of our
product shift to stronger beers, they will restrict themselves to
the Foster’s brand because of the association they have with it
and the positive connotations from the Foster’s name.
A lot of new variants promise to gain prominence, but mainly
in niche urban segments. The sophisticated consumer who
drinks beer for the experience and not to get drunk will lap up
ice beer or light beer. In urban centers, apart from first time
users we are also targeting women, who as ‘the times they are a
changing,’ are entering the market for beer. Essentially, women
shy away from beer consumption because it is associated with
calories, and has traditionally been a buddy drink, associated
with pot-bellied men sitting at bars and shooting darts.
Our product however is light both in colour and body, and
mild in flavour. It is highly carbonated with low bitterness and
no aftertaste. It has fewer calories lower alcohol content. It thus
moves away from the traditional psychographics of the sector
and toward the more up-market, college/office going youth,
male or female, with aspirations, who sees himself as both
physically and mentally fit, has an attitude of self-confidence
and nurtures the belief that ‘he/she can change the world’.”
You would be able to understand the consumer base that the
brand is intending to target at. So we focus on the fact that the
age, income and sex plays an important part but also the
lifestyles and the psychographical profile of the consumer base
which are but an integral aspect in the determination of the
target audience.
So come to think of it, advertising plays an important role in
the overall marketing program. Some of the basic tools by
which marketing program could be made are:
•

Product or services can be developed or refined.

•

A wider distribution coverage could be made.

•

Pricing could be another important decision.

Integrated Marketing Communication is what we must focus
on. So what is IMC?

IMC can be Defined as
A concept of marketing communications planning that
recognizes the added value of a comprehensive plan that
evaluates the strategic roles of a variety of communication

produce). Price cuts, displays, frequent shopper programs and
so on are few of the sales promotions done by the retailers.

IMC, thus, calls for a “big picture” approach to planning
marketing and promotion programs and coordinating the
various communication functions. It requires firms to develop a
total marketing communications strategy that recognizes what
the sum total of a firm’s marketing activities, not just advertising, communicate to its customers. Consumers’ perceptions of
a firm and/or brands are a synthesis of the messages they
receive from various sources. These include media advertisement, price, direct marketing efforts, publicity, and sales
promotions, as well as interactions with salespeople and other
customer-contact employees. In a global economy with
international markets and instantaneous communications, no
aspect of marketing can be studied in a vacuum or in isolation
if one expects to be accurate and relevant. Marketing tools, used
as planned business-building techniques are more likely to
facilitate attainment of organizational goals than current “silo”
approaches.

•

It is a key element in inducing trial or repurchase in many
communication programs in which advertising creates
awareness and favorable attitudes but fails to spur action.
The action comes about due to the limited duration of the
program so the consumer must act quickly. The consumer
may perceive this as a value for money purchase.

•

In many retail outlet the companies are able to make out
through scanners as to which brands are moving fast off the
retail shelves and also try to understand as to which shelf
does not receive much sales so that they could reduce the
hiring or the display of merchandise from the shelf. This is
done in order to be cost effective.

•

In order to keep the brand equity of the brand intact
especially for high involvement products and ‘feeling’
products, the advertising and sales promotion efforts must
complement each other.

Advertising is but a part of this integrated marketing communication. One such tool within IMC is Direct or Database
Marketing. This involves not just direct mail but also
telemarketing & direct response advertising on T.V and radio
and other media, in which ad aims to generate an action
response (eg. Call center number). Direct marketing has two
advantages over mass advertising.

Other action related marketing communications are as under.

•

The ability to target specific individual consumers with an
offer that is tailored to that consumer.

•

The ability to directly measure response.

The goal of direct marketing may not be to generate awareness
or change preference but it generates some action. It could be to
get an order or request for some information, a visit to a dealer
or a store and so on.
So direct marketing encompasses the following:
•

Targeting

•

Customization ability

•

Measurability

This has become a major tool since many advertisers are
combining direct marketing efforts with their regular advertising
efforts. Primarily to retain loyalty of existing customers, to cross
sell new products and services to these existing customers, and
to increase the amount or frequency of usage.
The second important tool within the context of IMC is Sales
Promotion. They are of two types:
•

Consumer promotion (coupons, samplings, premiums,
sweepstakes, low-cost financing deals and rebates)

•

Trade promotions (allowances for featuring the product in
retail advertising, display and merchandising allowances and
the like)

These are used to get the consumer to try or to repurchase the
brand and to get the retail trade to carry and to ‘push’ the brand.
Retails in turn use promotions to clear their inventory of slow
moving, out of season, shelf-unstable products (such as fresh

So how does it play a role with IMC or advertising? There are 3
ways in which it plays a role:

Retail Advertising
The retails in order that the consumer can see the product and
buy it are those that provide the consumer with lots of
information. So listing the size, color and prices of various
shirts in a store make a buyer more action inductive. Appropriate behavioral aspects are used in case of durables and
automobiles. The advertisement used here must create a strong
sense of desire, curiosity and urgency to get the reader or viewer
to make the store visit.

Cooperative Advertising
Here a manufacturer offers retailers an advertising program for
the later to run. The program may include suggested advertising
format, materials to be used to create actual advertisements, and
money to pay a portion of the cost. Certain merchandise
quantity is also suggested for the retailer to stock and perhaps
display. There are 3 types of co-op advertising:
1. Vertical: When the upstream manufacturer or service
provider pays for a downstream retailers ad.
2. Horizontal: When local dealers in a geographic area pool
money for advertising.
3. Ingredient producer co-op: When the producer of an
ingredient pays part of an ad run by the user product.
The intention of this type of communication is to stimulate
short-term sales. The advertising is specific to the product, the
place as to which it can be purchased and the price. To maintain
the brand image and to reinforce the company’s leverage with
the retailers are important long-term considerations. The need
should also be to expand the distribution coverage by allowing
allowances to the retailers.

Reminder, point-of-Purchase and
Specialist Advertising
Reminder ads serve to stimulate immediate purchase and/or
use to counter the inroads of competitors. It is basically
reminding the consumer about its existence. ‘Shelf talkers’ or
7

ADVERTISING MANAGEMENT

disciplines. In other words, the message and approaches of
general advertising, direct response, sales promotion, public
relations, and personal selling efforts are combined to provide
clarity, consistency, and maximum communications impact.

ADVERTISING MANAGEMENT

point of purchase materials placed in stores at or near the place
where the brand is on display. You might have seen sachets of
shampoos hanging right in front of the shop and they hit you
on the face that could be taken as point of purchase material.
Here the product itself acts as the material. Top of the mind
awareness is the basis of the reminder and point of purchase
material. Specialist advertising is useful in circumstances when
certain free products like diaries, pens and calendars bearing the
name of the manufacturer are given to the consumers for
greater brand awareness. Pepsi and Coca Cola often paint the
entire shop with their logo, this is to remind the consumer of
their existence in that area.

Sales Promotions
Sales promotions are different from advertising, in that they do
not involve the use of mass media. Many sales promotions are
designed to encourage the immediate sale of goods, while
others have longer-run goals of keeping customers loyal to the
store, aiding salespeople, or attracting customers into the store.
The term promotion is used to refer to all communication
efforts made on an impersonal basis, including sales promotions, publicity, and advertising.

Personal Selling
Personal selling involves individual, face-to-face communication, in contrast to the impersonal mass communication
involved in advertising. Effective personal selling is quite often,
the most important and effective element in retail communication.

Publicity
Two factors distinguish publicity from advertising – cost and
control. When a newspaper, magazine, TV or radio features a
retailer’s store, personnel, product or events and the retailer does
not have to pay for it, the retailer receives publicity. The retailer
cannot, however, control the time, direction, or content of the
message.

Word-of-mouth
Retailers cannot directly control what customers say to friends
about their stores, services and products. However, they should
be aware of this channel of information because potential
customers often rely on what customers of a store say about it.
Unfair treatment of one customer can create an ever-widening
web, as more people are told about that customer’s experience.
Fortunately, fair treatment and real value are also discussed
among customers, although positive aspects may not have as
much influence as negative ones do. The point is, customers are
going to talk about how they are treated in a store.

Packaging
Proper product packaging protects the product as well as
provides a message that facilitates its sale. Unfortunately, in
most cases, retailers purchase products already packaged and,
therefore, have little control over the communication on the
package. However, the retailer should always consider the image
and message projected by packaging as a part of the total
communication mix. The retailer does ‘package’ many goods
with paper and plastic bags, boxes, and wrapping paper. Such
packaging, carefully designed, can prove to be an effective yet

inexpensive element within the complete communication
programme

Merchandising and in Store Advertising
Of late it has made a lot of inroads in outlets. With Bennetons
with their color scheme in various shelves, Raymond’s with
their window display play a major role in attracting the consumer base. This is so because most decisions about brands are
made when you enter a particular shop. So the use of displays,
signs, and positioning of the particular brand in the store is an
important decision making exercise.

Industrial Marketing
A business-to-business deal, which requires a sales representative to make the sales call, here, the additional information
provided by him with the help of certain pamphlets and
brochures are the key tones for advertising. The telemarketers
can handle the calls made once the pamphlets and brochures are
effective enough for eliciting a response. Often toll free numbers
are provided in the pamphlets and brochures.
Integrated marketing communication with the help of another
tool namely Public Relations, is important to accommodate
complex buying decisions. The key to the success lies in the
effective monitoring of the various tools used in order to avoid
dilution to the plan by any one. One important impact of IMC
is greater consistency to their communication including media
waste. In addition we must answer the following in order that
the marketing communication is successful:
•

What are the target audience and their behavioral pattern?

•

What are the media that the target audience normally comes
in touch with?

•

What behavior or attitudes do we want to affect?

•

What are the communication goals?

•

What is the best marketing program(s)?

•

How should we allocate the budget?

•

Who is responsible for the programs?

•

How will we measure the degree of success of each part?

The answer to the following would indeed give us a fair
amount of idea as which plan could be the most effective.
Another important tool within the marketing communication
is the Customer Relationship Management (CRM). Relationship management is emerging as the core marketing activity for
businesses operating in fiercely competitive environments. On
average, businesses spend six times more to acquire customers
than they do to keep them (Gruen, 1997). Therefore, many
firms are now paying more attention to their relationships with
existing customers to retain them and increase their share of
customer’s purchases.
Worldwide service organizations have been pioneers in
developing customer retention strategies. Banks have relationship managers for select customers, airlines have frequent flyer
programs to reward loyal customers, credit cards offer redeemable bonus points for increased card usage, telecom service
operators provide customized services to their heavy users, and
hotels have personalized services for their regular guests.

•

Individual size bottled water

•

A new ink pen

•

Television

•

An automobile.

•

A perfume or cologne

•

A purse

•

A Banking service.

•

Mobile service

While not an actual part of the IMC Campaign, it is beneficial
to think about how your product relates to the communications model. You can do this by locating a print or television
advertisement for your product and then examine the communications model to the advertisement. What message do you
think the advertising agency intended to encode into the ad.
What types of noises could effect the decoding? What are some
the possible decoding problems that could occur? What other
transmission devices could be used to convey the message that
is in the ad and what type of problems might the transmission
device create?

Direct Marketing
I am sure you all must be fed up with all the Spam mail that
you get. They could range from 30% off on some laser printer
or how to look beautiful in 25 days? Well, all I can say is that
you are the target of direct marketing effort via the net. Let me
discuss some history with you first. I promise it will not be
boring.
Direct marketing has a long history, dating, back to the 15th
century when an Italian printer was using it to sell books,
coinciding almost with the introduction of printing in Europe.
Dr. Johnson in 18 th century summed up the essence of
advertising and direct marketing in his two statements;
“Promise. Much promise is the soul of advertising.” Consumers are interested in knowing what the product can do for them,
rather than what it actually is. Printing and further innovations
has given a boost to direct marketing. It has made the mail
order catalogues economical. Literacy is a great boon for direct
markets. Kennedy’s apt description of advertising as ‘salesmanship in print’s is equally applicable to direct marketing.
Advertising in general and direct marketing in particular must
build an added value into the product beyond its physical
constituents. Brand image, as we shall learn shortly, is an
emotional construct but people still have to rationalize their
choices. Rosser Reeve’s USP is comparative. Our product is
compared to all competitive products. One feature is then
identified which the others do not offer. It is our USP. However, it is difficult to identify a USP for technologically similar
products or for complex services such as American Express.
Many times USP relies upon some trivial point of difference.

i. DM is not Just Posting a Brochure with a Letter
DM is not limited to direct mail, there are other media like direct
response ads, telemarketing etc. Still direct mail is the most
popular method. However, don’t think it means just posting a
brochure with a letter. We have to define the correct market
segment, lay our hands upon the correct database, plan the
direct mail package, give good follow –up and so on.

ii. Envelope is not to be Neglected
An envelope should not be a barrier. It should be friendly with
the receiver.
iii. Mailer and Letter go Together
A personal-touch covering letter accompanying a mailer goes a
long-way in establishing a rapport with the prospect.
iv. Don’t Neglect the Offer
It is the heart of the DM. Think of innovations here. It should
be action-oriented. Time –tested offers are:
• Free trials.
• Inspection without any obligation
• Incentives for early birds
• Discount offer within a limited time period
• Gifts in contests
• Incentive on filling up the coupon.
• Gifts for slogans.
v. Checks the Quality of the Data-base
Verifying the credentials of the data-base company if you
happen to hire it. Just check how the database has been
compiled, and what results it has given in the past.
vi. Retain the Initiative
The sender must retain the initiative right from the beginning
to the end. Being persuasive, innovative, using prepaid
envelopes and follow-up through reminders do this.
vii. Follow-up the Mailers
No matter how persuasive you are, your first mailer might fail
to enthuse the buyer unless given a good follow-up by
reminders. That saves the initial investment from going waste.
viii. DM is Mostly Complementary/Supplementary
DM works on its own for very few products. Mostly, it has a
supplementary/complementary role.

What is Direct Marketing
Drayton Bird, Vice Chairman, O & M Direct world wide,
defines it as “any activity whereby you reach your prospect or
customer (read doctor) directly as an individual – or they
respond to you directly.”
DM is not simply another form of advertising. It’s a way of
marketing. Advertising can initiate a sale but it cannot close it.
DM has the capacity to close the sale and build a dialogue.
DM is like operating a store in print and then managing it.
(Dick Shaver)
DM and sales promotion (SP) offer the twin benefits of
helping the marketing manager establish a cause-and-effect
relationship between her/his actions and results on the
bottom-line, and offering advanced data bases which can be

ADVERTISING MANAGEMENT

An effective Integrated Marketing Communications program
involves pulling together the thoughts and ideas contained in
the Clow and Baack textbook. Your assignment for Chapter
One is to pick a product that you will use throughout the entire
course pack. Possible product choices include:

ADVERTISING MANAGEMENT

exploited to target promotional activity of any kind at an
entirely fine-tuned audience.
At a recent seminar organized by MAA Communication in
Bangalore, the Regional Director of Kobs & Draft Worldwide’s
division K. D Asia Ms. Deborah Coulson spoke on how DM is
different from general advertising. The preconceived notion that
they – advertising and DM are mutually exclusive is not valid.

Relationship Marketing
One –time communications does not build a relationship. We
have to get married to our customers in DM. We have to
monitor purchases of the customers between two sales points.
The amount generated per customer is calculated. Suppose it is
100 Rupees at a profit margin of 25 p.c. We have made Rs 20
per customer. If the DM programme costs Rupees 5 per
mailing, still it is worth.

Qualities of Direct Mailers
1. In terms of overall looks, they must look the best in the
category.
2. Writing is very important, and writing letters in not easy.
Copywriters in direct marketing should write passionately
and then edit carefully.
3. Secretaries should not throw out high impact DM. It is
interesting innovative. It puts across a message in a cutthroat
way.
4. It also reinforces the company’s brand image. Our
advertising, letterheads, DM, and business cards must
project a consistent image.
5. Customers often complain that when they open a DM
package, lot of stuff falls out. This is great news because the
fallen stuff is picked up an is invariably looked at.
6. For certain products, a mere brochure will not build a
relationship. We have to send a personalized letter.
7. Provide a good response device. The order form must be
carefully designed – it is so very difficult to do so. Even a
child should be able to fill it. It should not turn off the
consumers.

Costs
Direct marketing is relevant only when margins in the business
can afford the cost of sustained contact. Cost per thousands is
much higher. First we lose money but every time the losses
come down. The future value and life cycle value are of much
more importance. It is relationship marketing and that is where
profits are.
Increased research costs are paid back in the first year or less than
that by mailing less waste mail.
The attempt should be to curtail monthly mailing by eliminating wasted mail. The cost of computer processing is also
dropping rapidly. It will give a further boost to direct marketing.

Clutter Problem
Imagine several thousands mailings received by Indian doctors.
The clutter is too much.

Direct Response Ads
If the advertising is designed and its specific purpose is to
generate an immediate enquiry or an order, it is called Direct
Response ads.
BE (Breaks –even) analysis of these ads is possible. The
number of responses to get break-even divides all costs. Even 2
percent response rate may be good if you are making money at
half percent.
Conversion is the number of sales divided by the number of
leads. To have a good conversion rate, we should back our DM
by employing a supportive sales force. It can give even a 90
percent conversion rate.
In print media, Direct Response (DR) ad may generate a low
initial response that rises up by the end of the month. Many
look for 50 percent response rate. But people tend to retain the
DR ad for future.
General Advertising
Reaches a mass of buyers
in broad groups, shares
common demographic and
psycho graphic profile.

DM
Sells to individual customers
definable by name, address,
specific purchases behavior.

Selling a product whose
benefits do not include
distribution to the
customer’s door.

Selling a product whose value
added lies in distribution to
customer’s door.
Time of purchase and amount of
purchase in a particular time period
is more important.
Medium itself is the market place.
It gives comprehensive
information to buy the product.
Product is controlled all the way
through delivery.
Enquiry generating advertising or
order generation advertising is DM
(Direct Response ads).

There is a rapid movement towards database marketing where
we are targeting the smallest consumer segment- the individual.
Database marketing goes by different names – relationship
marketing or one-to-one marketing. But it all amounts to keep
an individual customer in focus by collecting mountains of
information about him and using the same to design a
marketing message. There is a shift from mass market (that
vast, undifferentiated body of consumers who received identical
messages for mass –produced products) to market segmentation (dividing consumers into homogenous groups with
common demographic / psycho graphic characteristics) to still
smaller niche marketing, aiming for the smallest consumer
segment of all – the individual.

Direct Marketing
DM is not simply another form of advertising. It is way of
marketing.
Advertising could start a sale but it fails short of closing it. DM
closes a sale, and builds a dialogue. “DM closes a sale, and

In DM, we have to plan the database keeping in mind the target
audience. While constructing a database, voluntary information
from people must be tapped so as to avoid the charge of
intrusion on privacy. It may not always be necessary to mail to a
large database- ensuring a large reach.
In the States, three percentage of GNP is through direct
marketing. Houses, autos and food are not sold by direct
marketing. Though there can be traffic-building programmers,
but DM does not close a sale for these products. When we take
off these three categories, DM accounts for 27 per cent of GNP.
Junking

Direct marketers fear the junk mail that is nothing but ineffective direct mail. The following factors lead to junking.
1. Wrongly targeted direct mail
2. Unattractively produced direct mail
3. Wrongly timed direct mail
4. No impact whatsoever on the receiver
5. No capacity to incite curiosity in the receiver
6. Improperly constructed database.
It is better to be imaginative about the envelope that carries
direct mail by putting a suitable phrase on it as enveloper
opener. It is creative headline or envelope opener alone that
avoids junking at the envelope stage itself. The covering letter is
the next stage at which there is a possibility of junking. It has to
be personalized by addressing a person by name. There should
not be feeling that the receiver is just one number on the
mailing list. The receiver is to be led into the letter without
being aware of it. If we get across to the right person, and get
him past the envelope and right through the covering letter, the
mail is unlikely to be junked. The chances of junking are at
earlier stages and not at later stages.

Direct Marketing
Direct Marketing is an attempt to approach the customers
directly. It is a personal approach to consumers. This direct
approach may be through sales letters and circulars. It may be
through leaflets, folders and brochures. All these are routed
through post and so are called direct mailings. Distributors are
bypassed in direct marketing. For demonstrations, sales people
may call in on the prospects.
In US, there are very large direct marketing agencies, with a high
profile roster of clients, e.g., American Express, AT & T, Bell
Systems, British Airways, British American Tobacco, Burroughs
Wellcome, Dinner’s club, Du Pont, IBM, General Electric,
Newsweek, Philip Morris, P & G. In 1993, the gross spending
the world over the direct mail has increased by 7.2 percent over
1992 to touch $ 27 billion (Rs 89,000) crores). DM thus remains
the world’s most preferred ad medium.
There is a huge opportunity for direct marketing in India. Direct
marketing may exploit new technologies like E-mail, TV etc.

databases at all. They are available for one rupee per name and
address while good databases cost anything between Rs 8 to Rs
75 per name and address. Building up database is a time
consuming process. It takes anything between 3-5 months to
build databases.
It is difficult to say what is the ideal ratio of general advertising
to direct marketing. It varies so much by-product categories.
General advertising is preferred for packaged products; direct
marketing accounting for less than 20 p.c. For satellite TV, cable
TV, selling subscriptions, it is mainly direct marketing
Direct marketing does make sense for small advertisers like a
small company or a departmental store. To make direct
marketing effective we select a 20 p.c. sample of population that
accounts for 80 p.c. of sales.
Direct marketing effect can be easily measured. Many Indian
agencies have opened up direct marketing division. Corporate
Voice Direct has tied up with Kobs and Drafts (K &D).
Direct marketing can make use of personal selling and promotional literature. Mail order advertisements are a form of
marketing. It is cheaper than personal selling. Sears & Roebuck
in America was the pioneer of mail order in the US. In India,
the first company that made a success of mail –order business
was Bull worker. Mail order advertisements have their merits
and demerits. The costs of sales are low since no marketing and
distribution networks are required, and no margins have to be
paid to intermediates. The disadvantages is only one product
can be sold at a time. There are diminishing returns, since every
additional advertisement brings a lower response than the
previous one.
Direct marketing is slowly coming of age. In India today, we get
mail order advertisement ranging for a wide variety of products
from music cassettes to saving schemes to holiday packages.
Even computer software companies like Microsoft has commissioned Contract direct to promote its MS DOS 6.0. It seeks to
reach its target of EDP managers and general users via direct
mail and advertising.
So far, direct marketing outfits in the US believed that an
effective TV commercial for direct marketing should be
approximately 90 seconds long in order to demonstrate brand’s
qualities and to get in a call action, with the telephone number
repeated as often as possible.
However, mainstream agencies deviate from this norm and
create shorter, faster and learner ads. Right now in the US, direct
marketing is mostly used by services, charities and travel but
many new growth areas are fast opening up. Direct marketing
agencies have become more television- literature to keep up.
Direct response TV is coming into mainstream – and clients
cannot ignore its pulling power.

Public Relations
Let me start by saying some are born great, some achieve
greatness, and some hire public relations officers.

Direct Marketing depends upon the database of the market.
The basic challenge in the Indian market is to develop database
management skills. The kind of lists now available is not

ADVERTISING MANAGEMENT

builds a dialogue. “Dm is like opening a shop in print, and
managing it.”(Dick Shaver).

ADVERTISING MANAGEMENT

•

Lobbying: Building and maintaining relations with
legislators and government officials to influence legislation
and regulation.

•

Investor relations: maintaining relationships with
shareholders and others in the financial community.

•

Development: Public relations with donors of members of
nonprofit organizations to gain financial or volunteer
support.

Public Relations
The
The Role
Role of
of
Public
Relations
Public Relations

Evaluates
Evaluates public
public
attitudes
attitudes
Identifies
Identifies issues
issues
of
of public
public concern
concern

Executes
Executes
programs
programs to
to gain
gain
public
public
acceptance
acceptance

Functions of Public Relations
Press
Press Relations
Relations
Product
Product Publicity
Publicity
Corporate
Corporate Communication
Communication
Public
Public Affairs
Affairs
Lobbying
Lobbying
Employee
Employee and
and Investor
Investor Relations
Relations
Crisis
Crisis Management
Management

Public Relations Tools
New
NewProduct
Product Publicity
Publicity

Tools
Tools
Used
Used By
By
PR
PR
Professionals
Professionals

Product
ProductPlacement
Placement
Consumer
ConsumerEducation
Education
Event
Event Sponsorship
Sponsorship
Issue
Issue Sponsorship
Sponsorship

“Public relations involves many functions beyond product
publicity, including public affairs, lobbying, and investor
relations.”
You must remember that, public relations are used to promote
products, people, places, ideas, activities, organizations, and
even nations. Trade associations have used public relations to
rebuild interest in declining commodities such as eggs, apples,
milk, and potatoes.

The Role and Impact of Public Relations
Public relations as an industry or practice have only been around
since the early 1900s. With the dawn of the Industrial Revolution, young corporations discovered that their growth
depended on gaining the goodwill of the masses. Those that
succeeded prospered. Those that didn’t met a quick demise.
Soon, even individuals – most notably politicians and Hollywood celebrities – were utilizing the wooing techniques of
public-savvy companies. In recent years, the power of the
media has made public relations a major industry.
The primary challenge in creating publicity is to be able to digest
the relevant points being communicated, see them from every
angle, and express them effectively from one group to
another. Effective practice of PR boils down ideas from one
segment of the population and conveys them clearly to others,
forming a common ground of communication for the various
groups who make up our society. Analysis of any successful PR
campaign will reveal clear, concise communication, common
sense in appealing to people’s wants and needs, combined with
a little imagination.

Now let us understand a few definitions. Public Relations can
be defined as:

Once you have thoroughly studied your objective and found a
way to convey it effectively, you will want to explore the many
arenas open to you to spread your message. Whether you are
using television, radio, print, or personal appearances, your
message remains constant, but will probably be delivered as
each of these media dictate.

“ Building good relations with the company’s various publics
by obtaining favorable publicity, building up a good corporate
image, and handling or heading off unfavorable rumors, stories
and events.”

By familiarizing yourself with the basics of public relations, you
will be better prepared to launch en effective campaign, whether
the goal is to increase business, spread goodwill, reflect a
positive image, or further community or charitable efforts.

Public Relation department may perform any or all of the
following functions:

Public relations can have a strong impact on public awareness at
a much lower cost than advertising can. The company does not
pay for the space of time in the media. Rather, it pays for a staff
to develop and circulate information and to manage events. If
the company develops an interesting story, several different
media could pick it up, having the same effect as advertising that
would cost millions of dollars. And it would have more
credibility than advertising.

Internet
InternetWeb
WebSites
Sites

•

Press Relations or press agentry: Creating and placing news
worthy information in the news media to attract attention to
a person, product or service.

•

Product publicity: Publicizing specific products.

•

Public affairs: Building and maintaining national or local
community relations.

Thus, goods public relations can be a powerful brand-building
tool. In fact, two well-known marketing consultants have
concluded that advertising doesn’t build brands, PR does. They
provide the following advice, which points to the potential
power of public relations as a first step in brand building.

Major Public Relations Tools
Public relations professionals use several tools. One of the
major tools is news. PR professionals find of create favorable
news about the company and its products or people. Sometimes news stories occur naturally, and sometimes the PR
person can suggest events or activities that would create news
speeches can also create product and company publicity.
Increasingly, company executives must field questions from the
media or give talks at trade associations or sales meetings, and
these events can either build or hurt the company’s image.
Another common PR tool is special events, ranging from news
conferences, press tours, grand openings, and fireworks displays
to laser shows, hot air balloon releases, multimedia presentations and star-studded spectaculars, and educational programs
designed to reach and interest target publics. Recently, mobile
marketing-traveling promotional tours that bring the brand to
consumers-has emerged as an effective way to build one-to-one
relationships with targeted consumers.
Public relations people also prepare written materials to reach
and influence their target market. These materials include annual
reports, brochures, articles, and company newsletters and
magazines. Audiovisual materials, such as films, slide-andsound programs, and video-and audiocassettes, are being used
increasingly as communication tools. Corporate identity
materials can also help create a corporate identity that the public
immediately recognizes. Logos, stationery, brochures, signs,
business forms, business cards, buildings, uniforms, and
company cars and trucks-all become marketing tools when they
are attractive, distinctive, and memorable. Finally, companies can
improve public goodwill by contributing money and time to
public service activities.

Let us see some Types of Public Relations
Business-Increasing PR. Corporations and small businesses
alike use public relations to grow their businesses. Major
corporations either have a department of in-house public
relations experts or hire outside consultants to deal with the
media and act as the company’s mouthpiece. The small
business owner usually tries tackling it alone or hires a small
agency. The object is to generate as much positive press for the

company or organization as possible. Many companies do
things like making contributions to charities, scholarship funds
and other non-profit organizations to win positive feelings
from the public at large.

Fundraising PR
Many not-for-profit organizations use the media to raise
monies for their efforts. Newsworthy developments – such as
signing glamorous celebrity spokespersons or receiving major
corporate sponsorship – generates attention in the media. In
events like these, everyone benefits … the companies or
celebrities gain the respect of the public, their participation helps
to raise more money or give the cause a higher profile, and the
charity itself has raised the funds necessary to operate.
Enhancing Public Image
Politicians, corporate heads, and celebrities are just a few of the
people that use public relations to earn the respect of the
masses. Such individuals become involved in philanthropic and
other endeavors in an effort to enrich the community. One
classic example was the makeover of Geri Halliwell (a.k.a.
Ginger Spice), orchestrated by PR guru Matthew Freud. The
former Spice Girl transformed herself from a questionable
talent and one-time topless dancer into a UN goodwill ambassador and advocate in the fight against breast cancer.
Corporations also use this tactic to promote themselves in the
public eye, often donating money to such community-enhancing efforts as building a library or improving a public park.
Public Information
Public awareness is essential in any public relations campaign. It
is important to keep the public informed about services you are
offering the community. Even though you are in business to
make money, you are supplying a demand or you wouldn’t still
be in business. You may be offering clean, affordable used cars
to the public, or possibly clothing for the discriminating man.
Whatever it may be, you need to communicate one factor about
your business: what you are contributing to the
community. This will be the undertone to all your public
relations and advertising efforts.

Now let us Discuss a Few Features and
Terms of a Few PR Tools
Press Releases
A press release is a short document, usually one page, aimed at
raising awareness and calling attention to an event or newsworthy happening at your company. Press releases are sent to all
areas of the media: print, radio and television. If it is deemed
newsworthy by the media, it can generate a multitude of public
awareness. Oftentimes, if one source picks up on your release,
it creates a domino effect and others run the story as
well. Corporations who have the means rely on trained public
relations experts to put together well-written, powerful press
releases that are sure to catch the attention of the media. But be
careful: no matter how big or newsworthy the subject of your
press release is, poor writing can scare off the media faster than
Kato Kaelin and Linda Tripp’s new talk show.

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Despite its potential strengths, public relations are often
described as a marketing stepchild because of its limited and
scattered use. The public relations department is usually located
at corporate headquarters. Its staff is so busy dealing with
various publics- stockholders, employees, legislators, city
officials-that public relations programs to support product
marketing objectives may be ignored. Marketing managers and
public relations practitioners do not always talk the same
language. Many public relations practitioners see their job as
simply communicating. In contrast, marketing managers tend
to be much more interested in how advertising and public
relations affects brand building, sales, and profits.

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Press Kits
A press kit, also known as a media kit, is an expansion on your
press release. It is usually a high quality folder containing your
press materials: press releases, brochures, collateral materials,
company biography, news clippings, photographs (if applicable), contact information and any other relevant
materials. These are frequently used to attract new clients. They
are also made available to the media upon request when
someone is seeking more information about your company.
EPKs (or Electronic Press Kits) might also contain videotapes
of relevant information (i.e., commercials, news spots, etc.).

Press Conferences
Holding a press conference is usually only necessary to make a
major announcement. A representative or two from your
company speaks, making the announcement and elucidating
upon it, and the conference is open to question and discussion
with the members of the media. The speaker should be
thoroughly prepared for all possible questions. In general, the
speaker should be someone who is well spoken, charming and
able to address negative matters in a positive fashion. As a
general rule, never hold a press conference if a press release or a
few telephone calls will serve your purpose.

Special Events
These offer a terrific way for any company to get some good
press. Having your company name associated with popular
events is sure to garner positive recognition. For example, say
your company is involved in putting on a pancake breakfast to
raise money for the local humane society. This generosity, caring
and concern is sure to have an effect on how others see your
business from that point forward. Not only that, but also
these events often receives large amounts of media coverage,
especially if there is a politician or local celebrity (i.e., Miss
Cornhusk) appearance.

Presentations
A presentation is akin to a press conference. Depending on your
line of business, you may be asked to speak in front of a group
of your peers, clients, or to a club such as the Kiwanis or Rotary.
The goal is to be general, informative, anecdotal, and use as
many attention-catching devices as possible. Maybe you have a
company video or film you can screen, or possibly some of the
company’s ads. The presentation is basically a broader form of
the press conference, which is usually focused on one event or
announcement. Think of the presentation as a quick summary
of everything you do and offer, and a listing of your accomplishments.
As with the other promotion tools, in considering then and
how to use product public relations, management should set
PR objectives, choose the PR messages and vehicles, implement
the PR plan, and evaluate the results. The firm’s public relations
should be blended smoothly with other promotion activities
within the company’s overall integrated marketing communications effort.
The essence my dear student is to do an out of the box
thinking. PR is all about ‘connecting people’; so the more
divergent your thinking is the better are your chances of
developing a mark for your campaign or organization.

Advertisements or PSAs
Many organizations and corporations put together advertisements not with the aim of selling their product but of
generating goodwill. Take for example the brewing company
advertisements discouraging drinking and driving, or the
tobacco company ads urging youngsters not to smoke. Ads like
these, known as public service announcements (PSAs), are not
made with the goal of increasing sales, although the goodwill
they create can contribute to sales in a roundabout way.
Speeches
When done well, few things can convey your message like a
well-delivered speech. This is easier said than done, since a great
deal of work goes into the process. The speech must be
concise, entertaining and well articulated. Politicians and
corporate heads are constantly called upon to speak
publicly. Because of this, they often hire speechwriters, people
who know how to craft a message effectively to pull emotional
strings. Small business owners may be asked to speak at a
college or high school function, before a group or club, or at any
number of events. But they should not just sit around and
wait to be invited. Take the proactive route and volunteer to
speak!
Public Appearances
Placing a representative from your company at various events
can yield numerous benefits to your business. It is a way of
taking part in the community, showing your interest and
opening up the lines of communication. There are many
places and events at which to make appearances: charity galas
and fundraisers, community symposia, chamber of commerce
conventions and mixers, and many others – the calendar is full
of them. It’s just a matter of having someone present to show
that your company is concerned with what is going on in the
region.

Direct Selling
You all must have heard of Eureka Forbes, I am sure. So what
do they exactly do? They send their representatives to various
households to sell their products. I am sure you all will be able
to give me few more examples.
So what is Direct Selling?
In layman’s terms, Direct Selling is the sale of consumer
products or services through personal contacts, away from fixed
retail locations or shops.

Person-to-person Selling
Company and manufacturers’ representatives (independent
contractors) sell services and products directly to people at
home, office or workplace, on a one-to-one basis.
Party-Plan or Group Presentations
A system by which sales are made to individuals who are part
of a group. The sales person invites a “hostess” to hold a
“party” for eight to ten prospective customers, usually at home,
but it can also be at an office or workplace. The emphasis of the
party is to have an enjoyable time, products are attractively
displayed whilst the independent contractor talks about the
various products and allows the audience to “feel” products
(touch, smell, taste, etc depending on the product being
demonstrated).
Major Advantage
Direct-selling companies do away with wholesalers, retailers and
other middlemen in the supply chain, thereby reducing their
distribution and advertising costs.
Major Challenge
Since there is minimal use of advertising and large dependence
on ‘word of mouth’ publicity, there is a lack of awareness about
the company and its products among the target audience.
Some Facts/ Figures
Worldwide

•

India was the fastest growing market in 2000 in terms of
revenues from direct selling, registering a 54% yoy growth.

•

90% of goods sold by the direct sellers in India are sourced
from goods manufactured within the country.

•

Most of the Direct Selling companies operating in India
today are in the field of cosmetics, personal products,
household products, cookware and healthfood.

•

Amway is the largest player in India with annual sales
exceeding Rs5bn

•

Other major players are Avon Beauty Products (I) Pvt Ltd,
Oriflame India Pvt Ltd, Tupperware India Pvt Ltd, Lotus
Learning Pvt Ltd, LB Publishers and Distributors Pvt Ltd
and DK Family Learning

•

The Indian Direct Selling Association is an association of
companies engaged in the business of direct selling in India.
All major players in India are affiliated to IDSA.

•

Mass-market penetration is now catching up within the Rs
1,800-crore direct selling industry as well, and direct selling
majors such as Amway, Tupperware and Avon now seem to
be following the path charted by FMCG giants such as
Hindustan Lever, Marico, Britannia, Nestle, Dabur, Godrej
and Tata Tea.

Considering the Above Facts, the Following Questions
Come into Picture
•

What are other challenges it would face and what are the
possible solutions?

•

How should the company frame its strategies, to account for
the gaping demographic differences present in the Indian
market?

•

How should a new direct-selling company compete with an
established FMCG major, such as HLL, if it also adopts
direct-selling strategies?

•

The number of direct sellers is growing at 220,000 per week
worldwide.

•

The direct selling industry does estimated sales of US $83
billion annually.

•

Direct Selling is practiced in 165 countries of the world.

•

70% of the sales force involved in Direct selling are women

•

Total direct sales people worldwide rose from 37mn in 1999
people to over 40mn in 2000.

•

What are the strategies that should be followed by a directselling company to create a strong brand name?

•

However worldwide revenues from direct selling shrunk by
2% from US$85mn in 1999 to US$83mn in 2000.

•

What are the new fields into which direct-selling companies
could venture?

•

USA has the highest number of direct sales people at 11mn.
Indonesia is No.2 with 4.2mn sales people

•

In value terms Japan is the largest market with sales through
direct selling estimated at Rs28.4bn in 2000. This business is
done only through 2mn direct sales people.

Direct selling is an ancient art. It basically goes on to understand
the customer and create such a relationship with him that it
transforms into a sale of the product. The beauty you must
understand is in forging a relationship.

•

Sweden was the fastest growing market in terms of addition
to direct sales persons. Number of direct sellers in Sweden
increased from 35000 in 1999 to 90000 in 2000, a 157% yoy
jump.

•

The sales force in Russia shrunk by 25% in 2000. However in
terms of revenues, Russia was among the fastest growing
market in the world with sales from direct selling rising by
42% from US$134mn in 1999 to US$189mn in 2000.

It is like someone comes up to you and becomes very friendly
with you. He offers you a cup of coffee and there you have it, he
has actually sold you the coffee cup and yet you both have coffee
every time he comes knocking on your door.
You must understand that advertising is essentially a pull
strategy. That is, the customer having seen the advertisement is
pulled to the retail outlet. But direct selling is a push activity.
That is, it reaches the customer and seals the deal.

India
•

In India, direct selling is growing at a fast pace. Total sales
through direct selling route in 2002 was Rs.1,723.7 crore.

ADVERTISING MANAGEMENT

Methods of Direct Selling

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Relationship Marketing

Personal Selling

• The process of creating, maintaining and
enhancing strong, value-laden relationships
with customers and other stakeholders.
• Important accounts needs focused and on
going attention

•
•
•
•

A customer centric activity
All about Relationships
Connecting with the right target market
Management of territory & customer
management
• First hand account of the customer

•

“The one essential, driving aim of the agency’s campaign is
not to please and sell you, the public, but to sell the
advertiser and get his initialed okay. The public is a poor alsoran.”
– Samm Sinclair Baker, The Permissible Lie: The Inside Truth
About Advertising, 1968, Cleveland, OH: World Publishing
Company, p. 13.

•

“Let’s say you have $1,000,000 tied up in your little company
and suddenly your advertising isn’t working and sales are
going down. And everything depends on it. Your future
depends on it, your family’s future depends on it, other
people’s families depend on it . . . Now, what do you want
from me? Fine writing? Or do you want to see the
goddamned sales curve stop moving down and start
moving up?”
– Rosser Reeves, quoted in Denis Higgins, The Art of
Writing Advertising: Conversations with Masters of the
Craft (1990), Lincolnwood, IL: NTC Business Books, p. 101.

•

“It is entirely plausible . . . that advertising helps sell goods
even if it never persuades a consumer of anything. So long
as investers, salespeople, and retailers believe advertising
affects consumers, advertising will influence product
availability and this, by itself, shapes consumer choice.
Availability, as marketers sometimes say, equals sales.
Advertising may be an important signal system within the
business world.” “Despite efforts at ‘psychographics’ which,
here and there, have proved useful guides for advertising, the
most consistently used and efficient criteria for describing
consumers are the most psychologically blunt —
demographics …. It is the most consistently employed kind
of data in advertising work.”
– Michael Schudson, Advertising, The Uneasy Persuasion: Its
Dubious Impact on American Society, 1984, New York: Basic
Books, p. 63-64.

Selling Process
• Prospecting and Qualifying: Ah, I think he
needs my product
• Pre-approach: “Know thy customer”
• Approach: The start of a beautiful
relationship
• Presentation: Story on ‘why not my
product?’

Selling Process
• Handling Objections: Clarifications & more
clarifications.
• Closing: Get that man to sign on the dotted
line.
• Follow up: Now we talk about ‘his’
satisfaction

Sales Promotion
Case Study 1
Sales promotions are ideal for temporarily increasing sales of
FMCGs and durables, but can they also be used strategically?
Soft drinks like Pepsi continuously come up with promotions
like, “Mera Number Aayega”. Indeed, some market categories,
such as chocolates, ready-to-eat foods and personal care
16

Creating a brand is a time-consuming process because it
involves organizational commitment and orchestrating the
resources in the right manner and channel for building the
brand’s image in the mind of consumers. In other words,
branding creates predictability. It’s about creating a relationship
with consumers. What the brand does today should help you
anticipate what it will do tomorrow.
Promotion, on the other hand, is a short-term phenomenon.
ACT NOW is the definition of sales promotion; tomorrow
will be too late!
Whether it is price reduction, larger packaging, a tie-in with
another product, a coupon or some other incentive, it is
temporary. Does this mean that you shouldn’t run promotional campaigns? What should happen is this: Promotions
should help build a strong brand.
Building a brand works towards building a strong consumer
base. Think beyond coupons, giveaways and free trials! Sales
promotions can attract a different audience and encourage
people to try a product for the first time. You have the opportunity to influence people’s perceptions of a brand, and then,
through on-going activity, retain those customers.
Marketers must recognise where sales promotions fit into the
marketing mix and what goes beyond the promotion. There
should be a synergy between brands and promotions.
Think strategically. Have the right kind of promotion for your
brand! Think beyond coupons, giveaways, and free trials! At the
same time, keep building your brand using other elements of
the marketing communication mix.
For instance, when Onjus was introduced, sampling along with
consumer interaction was used as a promotional campaign.
(They asked consumers to exchange two oranges for a free pack
of the drink).
Formalise the promotion planning process to include a
rationale for its existence and the timing of each promotion.
Promotions are not tactical tools. Promotions reinforce what
the brand stands for in the consumer’s mind. What the brand
“communicates” should be synchronised with what the
marketer wants consumers to think about the product.
Sales promotion is used not only for products or brands; it can
be extended to technology and service. Samsung launched a
scratch-card promo for its CTVs in June 1999. Thums Up used
the same strategy. What differentiates the promotions is the
industry? One was in the durable sector, which was aimed at
growth. The other was in the FMCG sector, with the aim of
increasing short-term sales.

same time, the brand was built around the promo during the
World cup.
The question still remains: “What makes a winning promotion?” Applying experience from past campaigns? Not
necessarily, but also the fact that the promotion has actually
helped in getting the brand off the ground. Promotions cannot
go on forever, but at the same time they can help in building a
bond between consumers and brands.

Act Now – Is that What Sales Promotion
is All About
Well, dear student I am sure you found the case study rather
stimulating. Now I shall show you in the way of slide presentation as to what is Sales Promotion all about. In addition It
would be nice if you could refer to Marketing Management by
Phillip Kotler. I am sure you would find the chapter on Sales
Promotion very interesting. I want you to think of examples
and write them on the right hand side of the slides.

Definition
• Media & Non media marketing pressure
applied for a predetermined, limited period
of time in order to stimulate trial, increase
consumer demand or improve product
quality.
E.g.: Watch Kal Ho Naa Ho and win a trip to
America.

Focus Areas
• “Public” & not just consumers.
• Action oriented. E.g: “Buy Now”.
• 3 Party involvement:
ü Consumers
ü Sales Representatives
ü The Trade
• Limited Period. E.g. offer closes 1st December

What should an ideal promotion result in? Should the
emphasis be on increasing short-term sales or on building the
brand in the long run? A promo needs to have a short-term
impact synchronised with brand-building efforts. Britannia
successfully managed to increase sales by 20 per cent, and at the

ADVERTISING MANAGEMENT

products, are almost totally driven by sales promotion. Are the
marketers of these products caught in a trap, afraid to get off
the promotional merry-go-round? Can sales promotion actually
be used in a long-term, strategic way to build brands and not
just temporary increments in sales volume?

ADVERTISING MANAGEMENT

Consumer Promotion
Goals Of Sales Promotion
• Increase immediate customer sales.
• Support from marketer’s sales force.
• Gain the support of the trade in
marketing the product.

• Price Deals: E.g. “More for Less”, 50% Off, Buy
One Get One Free offer.
• Coupons: E.g: VLCC coupons for discount.
• Contests: E.g: Answer a simple question and win a
Color TV
• Sweepstakes: E.g: Name is selected for query
form for lucky draw.
• Premiums: E.g: Buy Pepsodent & collect G.I
Joes’; Win a Mercedes Benz, the more you use
your ICICI credit card.
• Sampling: E.g: Consumer sample new products
for free.

Drivers of SP in Marketplace
• Consumer Behavior: Consumers better educated,
low brand loyalty & Selective.
• Pricing: Festivals, major events in sports still draw
a huge crowd. Indians are still price conscious.
• Market Share: Brand switching, the name of the
game.
• Parity Products: Differentiation strategy in a world
of ‘me too’ product.
• Power of the Retailer: The place where it all
happens. Consumers directly in touch with them.

Trade Promotions
Goals
•
•
•
•

Stimulate in store merchandising.
Manipulate the inventory held by a retailer.
Expand product base geographically.
To create a high level of excitement for the
product

Trade Promotion

Types of Promotions
• Consumer Promotion
• Trade Promotion

• Point of Purchase (POP): E.g: Banners,
Danglers & Posters at the retail outlet.
• Dealer/Retailer Kit: All the information
about the product that the retailer should
know.
• Contests & Sweepstakes: Specials offers to
the retailer so that he pushes that brand.
• Trade Shows & Exhibits: E.g: Auto Expo at
Pragati Maidan in Delhi.
• Trade Incentive: The more ‘cut’ is given to
the retailer, the more he pushes your
product.

• 3 broad objectives:
ØStimulate demand by consumers
ØImprove marketing performance of resellers
ØTo supplement and coordinate advertising,
personal selling & public relations
activities.

ADVERTISING MANAGEMENT

Promotion Strategies

Difference Between
Advertising
Sales Promotion
• Creates an Image over
time
• Relies on Emotional
appeals
• Adds Intangible value
to the product / service
• Contributes
Moderately to short
term profitability

• Creates immediate
Action
• Relies on Rational
appeal
• Adds Tangible value
to the product / service
• Contributes Greatly to
short term profitability

Promotion Strategies
•
•
•
•
•

Help in creating & sustaining brand value.
Managing brand image
Cut into brand loyalty of other brands.
Promotion to be more brand focused.
Co-branding, a key tool.

(Custom mouse pad by L&T)
P
R
O
M
O
T
I
O
N
E
F
F
O
R
T

Manufacturer

Advertising and Movement Toward Action
Related behavioral
dimensions

Conative
Reseller

Consumer

Push
Strategy

Realm of motives.
Ads stimulate or direct
desires.

Affective
Realm of emotions.
Ads change attitudes
and feelings

Movement
toward purchase

Purchase

Types of promotions and
advertising at each step

Point of purchase
Retail store ads, Deals
“Last-chance” offers
Price appeals, Testimonials

Conviction
Preference
Liking

Competitive ads
Argumentative copy
“Image” copy
Status, glamour appeals

Cognitive

Knowledge

Realm of thoughts.
Ads provide
information and facts.

Announcements
Descriptive copy
Classified ads
Slogans, jingles, skywriting

Awareness

Teaser campaigns

ADVERTISING MANAGEMENT

Inverted Pyramid of Communications Effects

90% Awareness
e
itiv
gn
Co

70% Knowledge
40% Liking
e
tiv
fec
Af

25% Preference
20% Trial
e
tiv
na
Co

•

5% Use

“The manufacturer who finds himself up the creek is the
short-sighted opportunist who siphons off all his
advertising dollars for short-term promotions.”
– David Ogilvy, Ogilvy on Advertising (1985), New York:
Vintage Books, p. 169.

Introduction to Branding

I bet you must be telling your friends that you wear a Gucci or a
Parx or that you prefer to go to McDonalds than to Nirulas.
What exactly are these names? Why do we distinctly relate to
them? Why do we say that I prefer to wear brand ‘X’? So my
question but naturally is, what is a brand?
Brand is the proprietary visual, emotional, rational, and cultural
image that you associate with a company or a product. When

you think Volvo, you might think safety. When you think Nike,
you might think of Michael Jordan or “Just Do It.” When you
think IBM, you might think “Big Blue.” The fact that you
remember the brand name and have positive associations with
that brand makes your product selection easier and enhances the
value and satisfaction you get from the product. While Brand X
cola or even Pepsi-Cola may win blind taste tests over Coca
Cola, the fact is that more people buy Coke than any other cola
and, most importantly, they enjoy the experience of buying and
drinking Coca Cola.
“A name, term, sign, symbol or design or a combination of
them, intended to identify the goods or services of one seller or
group or sellers and to differentiate them from those of
competitors”.
The fond memories of childhood and refreshment that people
have when they drink Coke is often more important than a little
bit better cola taste. It is this emotional relationship with
brands that make them so powerful. What makes up a brand
identity? Brand identity includes brand names, logos, positioning, brand associations, and brand personality. A good brand
name gives a good first impression and evokes positive
associations with the brand. A positioning statement tells, in
one sentence, what business the company is in, what benefits it
provides and why it is better than the competition. Imagine
you’re in an elevator and you have 30 seconds to answer the
question, “What business are you in?” Brand personality adds
emotion, culture and myth to the brand identity by the use of a
famous spokesperson (Bill Cosby – Jello), a character (the Pink
Panther), an animal (the Merrill Lynch bull) or an image (You’re
in good hands with Allstate). Brand associations are the
attributes that customers think of when they hear or see the
brand name. McDonalds television commercials are a series of
one brand association after another, starting with the yellow
arches in the lower right corner of the screen and following with
associations of Big Mac, Ronald Mcdonald, kids, Happy Meal,
consistent food quality, etc. The first step in creating a brand for
your company or organization is a branding workshop.
Is branding just for large companies? No, our process can be
applied to any business, organization or product. The techniques of branding have been kept secret for many years because
they provided a competitive advantage to those companies that
used them. Our process takes the proven principles of branding
used by companies like P&G, Disney, and Coca Cola and puts
them into a simple, understandable and easy to use process.
Retailers, service businesses, manufacturers and businesses of
all types and sizes can use this process. How do we determine
our brand identity? Brand has been called the most powerful
idea in the commercial world, yet few companies consciously
create a brand identity. Do you want your company’s brand
identity created for you by competitors and unhappy customers? Of course not, my advice to executives is to research their
customers and find the top ranked reasons that customers buy
their products rather than their competitors. Then, pound that
message home in every ad, in every news release, in communications with employees and in every sales call and media interview.
By consistent repetition of the most persuasive selling mes-

Practically this involves managing the tangible and intangible
aspects of the brand. For product brands the tangibles are the
product itself, the packaging, the price, etc. For service brands
(see Service Brands), the tangibles are to do with the customer
experience – the retail environment, interface with salespeople,
overall satisfaction, etc. For product, service and corporate
brands, the intangibles are the same and refer to the emotional
connections derived as a result of experience, identity, communication and people. Intangibles are therefore managed via the
manipulation of identity, communication and people skills.
So you must understand that branding is all about making
individual products distinctive. Branding can add value to a
product and is therefore an intrinsic aspect of product strategy.
Pharmaceutical companies were the first ones to brand their
products. Now the scene is such that even salt and sugar is
branded.
Branding essentially involves the cost where packaging, labeling
and legal protection is concerned. Branding it is opined brings
about loyalty. This is so because people associate with your
product due to some benefits that you might be offering. That
connection which the product has made with the target market
is what branding is all about. In regards to segmentation
brands carry out a specific task of catering to a certain segment,
and the message design is made keeping in mind that segment.
Distributors prefer to handle branded products, which represents a particular quality and preferred by the buyers. Different
brands represent different quality levels. In fact the growth in
advertising is due to the presence of brands. Competitive
advertising has come to age due to the emergence of brands.

Strategic Awareness
The presence of the brand – a process that moves travelers from
being unaware about America’s Byways to recognition to recall
to top of mind to dominance – their only choice.

Perceived Quality
It is the promise of the brand. Travelers equate America’s
Byways with a consistent, quality experience. They trust they are
making the right decision to drive on a NSB or AAR.

Singular Distinction
‘The positioning of the brand. The only choice to
make…without reservation.’
The value of qualities and attributes implied by the brand name
and reflected in choices in a competitive marketplace, i.e. the
ability of a brand to “shift demand” (travelers will choose
America’s Byways over Readers Digest or AAA scenic drives)
While brands exist as objective entities, brand equity resides
only in the minds of consumers and key influencers
Brand equity is measured relative to existing and future
competitors
The level of brand equity varies among segments and can be
positive or negative

Brand Strategy
It is a method to capitalize on the value of the brands to
achieve profitable growth (i.e. positive economic impact on
byway communities). The focus is a long term perspective and
must be closely linked to business strategy

Brand Portfolio

•

Is it necessary to brand the product?

•

Who will be sponsoring the brand?

•

What quality level should go into the making of a brand?

•

Should there be individual brand names, or should there be
a family brand?

Brand architecture involves the management of brand portfolio.
Brand portfolio includes all the types of brand viz. Brands and
sub brands as well as co-brands with other firms. For e.g., the
brand portfolio of Hindustan Lever Ltd. Consisting of 110
brands with 950 of different types of packs, which are operating
under different market context like healthcare, personal care,
beverages, etc. The decision parameters are should one or more
brands be added or deleted? A brand portfolio can be strengthened by the addition of brands keeping in view the portfolio
perspective. Similarly brands can be deleted by identifying the
superfluous brands, which are contributing nothing to the
brand portfolio

•

How about having some product versions in same product
category?

Branding: yes, you need a Brand
First, branding is a key defense against:

•

Is it necessary to reposition the brand?

Commoditization
a situation in which a company’s products and services become
perceived by buyers as being interchangeable with those of
other companies, so buying decisions become driven by price.
With the trend toward instantly and globally searchable
competition across all product and service categories, the pull
toward commoditization is now an elemental force in marketing. The value of branding – intelligent, relevant, branding that
effectively differentiates you from your competition – has never
been higher.
Branding is also a way to leverage success, expand market share,
and fend off competition. Indeed, companies with established
brands often rebrand as a way to penetrate perceived new

So what are the branding decisions that one must take? The
following are few of the decisions that marketers and advertisers must take in order that they can give a new image to a
product in terms of branding.

Brands are a means of differentiating a company’s products and
services from those of its competitors.
There is plenty of evidence to prove that customers will pay a
substantial price premium for a good brand and remain loyal to
that brand. It is important, therefore, to understand what
brands are and why they are important.

Brand Equity
BE = SA + PQ + SD (Brand equity equals strategic awareness
plus perceived quality plus singular distinction)

ADVERTISING MANAGEMENT

sages, customers will think of you and buy from you when they
are deciding on whether to buy from you or your competitor.

ADVERTISING MANAGEMENT

markets or defend core markets. This rebranding is often a
costly mistake.
Branding – or “brand-building” – has become the El Dorado of
corporate marketing departments, advertising agencies, design
firms, and consultants. However, branding goes beyond an
attitude, or a logo, or a slogan, or an advertising campaign.
Branding is a long-term holding in which your marketing
communications are relatively short-term investments. Your
brand is a tangible corporate asset – an end toward which all
your business efforts should work.
No less a forward-thinker than Tom (“Destruction is Cool”)
Peters in The Circle of Innovation says “An obsession with
branding isn’t simply a “marketing department” issue. It’s an
accounts receivable issue. It could be a purchasing issue or could
be an information systems issue. Heaven knows, a human
resources issue. Every decision … every system … should
reflect, visibly, the specific attention to (obsession with). In
other words, brand management is corporate management, in
the deepest, truest, sense of the term. The problem is, companies are turning to branding as a panacea. Equally problematic,
are the self-proclaimed “branding experts” who are happy to sell
you this expensive snake oil. In inexpert hands, branding
becomes a way to obfuscate relative sameness, instead of to
communicate relevant uniqueness.
Let us further understand why does a brand come about in the
presence of a product.

Product & Branding Strategy
What is Product Mix
A product mix also called, as product assortment is the set of
all products & items that a particular seller offers for sale.
A Company’s Product Mix has certain concepts:
• Width: The width of a product mix refers to how many
different product lines the company carries. E.g.: HLL, P&G
• Length: The length of a product mix refers to the total
number of items in the mix.
• Width: The width of a product mix refers to how many
variants are offered of each product in the line.
• Consistency: It refers to how closely relate, the various
product lines are in end use, production requirements,
distribution channels or some other way.
Above 4 product mix dimensions permit the company to
expand its business in four ways:
• It can add new product lines, thus widening its product mix.
• It can lengthen each product line.
• It can add more product variants to each product and deepen
its product mix.
• Finally, a company can pursue more product line consistency
Fine I say, a company has managed to create a product portfolio
and we are expecting the company to do well in the coming year.
All very fine, but there is another gentleman who has come up
with the same product, and then what do you do? Especially
when you really felt that you could have possibly taken the
entire market by storm. The key, my dear friend lies in differentiating your offer. Why do you feel the customer should buy your
22

product and not the other person’s? So, you associate certain
attributes to your product (including all the widths and lengths)
and you touch your customer’s heart. All of a second he feels
that, ‘oh my God, how did he know that I wanted that?’ That
my friend is what positioning is all about. You were able to
reach out to the customer and able to relate to him. God bless
positioning. So, what is positioning after all?
‘Positioning’ is one of the most widely bandied-about (and
least well-defined!) buzzwords in Marketing. We quite often
hear people say ‘positioning’ when they actually mean ‘advertising strategy’ or ‘research concept’. Other times we hear people
refer to ‘brand values‘ when they really mean ‘positioning’.
“The positioning is a strategic statement of what differentiates
your brand competitively in the market– and inside the mind
of the target customer. It’s what gives him/her reasons to buy
you, to be loyal to you, to be an advocate for you. Tangible
(product & service) features form the scaffolding that supports
your positioning and makes it believable – but a truly strong
positioning goes beyond these tangible factors, making
powerful and emotive connections”.
Positioning can have many different ‘starting places’ depending
on the psychology of the market concerned:
•

User imagery & badging: “The precise, stylish brand of office
technology which says you’re really creative in the way you run
your business”

•

Usage occasion: “The wholesome toaster-snack, which
warms, satisfies and comforts when you’ve just come home
after a really hard day“

•

Mood transformation: “The drinks brand which brings out
what’s most cool, adventurous and attractive inside the secret
you”

Brand Positioning
Running a brand is like conducting an orchestra. Positioning is
the heart of competitive strategy. The messages transmitted by
everything from the advertising to phone calls with your
customer care department all need to be kept in harmony and
on brief. Without a clear, single-minded definition of what the
brand is about the messages rapidly become discordant and
confusing. The positioning statement is therefore a focusing
device, which helps brand management to keep everything
sharp and relevant.

Prospecting for Positioning
In marketing the consumer is king – but the idea that consumers alone should dictate brand positioning has always been an
over-simplification! Customer feedback via research is vital – but
to this has to be added analysis of the company and its inherent
capabilities, plus an sharp understanding of the competitors
already in the market – their strengths and weak spots

Positioning Key Points
• It is a strategic, not a tactical, activity

It is aimed at developing a strategic, sustainable competitive
advantage

•

It is concerned with managing perceptions

•

Brand image and reputation are the result of the positioning
process

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•

Notes

ADVERTISING MANAGEMENT

LESSON 3:
TUTORIAL
You are the Brand Manager of Chevrolet Optra. What do you
think the brand stands for?
Mr. Jaiswal comes to the Trade fair and is interested in purchasing the vehicle. How would you integrate the principle and
components of IMC in order to market the brand to him?
Secondly, it comes as grapevine to Mr. Jaiswal that the car has
poor suspensions, how would you use the concept of Public
Relations to counter this rumor doing the damage to your
brand and relationship?

Notes

Objective
•

You will get to understand the different types of
advertisements.

•

You will be able to differentiate the different types of
advertisements

•

Based on the types you will also understand the message
strategy along with the objectives to be followed.

Well, now we are at an interesting part of our course pack. That
is you will understand as to the types of advertisements which
are made which cater to a certain target market. To start off with,
let us take retail advertising for starters,

Retail Marketing

Store retailing is the traditional form of retailing wherein a
customer physically goes to the store to buy goods or services.
Some of the types of store retailing are:

a. Specialty Stores
This would typically specialise in selling one product. It has a
highly targeted market segment that this type of retailing is
trying to attract. . However, some specialty stores also include
allied products targeted at the same marketing segment.

b. Department Stores
A department store is a store where multiple items are stocked
and sold. These stores service all kinds of needs of the
customers such as clothing, shoes, cosmetics, gift items,
luggage, and other household goods.

c. Supermarkets
These are similar to department stores but with a focus on food
and household maintenance products. This is more of a selfservice operation wherein a customer just goes and picks what
he wants.
d. Convenience Stores
The differentiating factors for these types of stores are that they
are open for relatively long hours and mostly on all the days of
the week thus making it accessible to the customer. Typically this
kind of retailing stores would be located in residential areas.
Retail Management is a very important part of the distribution
process. It is the last link in the chain and is the direct interface
of the process with the customer.
What is retailing? Philip Kotler defines retailing as all activities
involved in selling good or services to the final customer for
personal use. In today’s scenario our retailer does not exist in
the brick and mortar form alone. S/he can do it by using the
telephone, by direct mails, by using television in the form of
teleshopping networks, by e-mails, by using the Internet or
absolutely impersonally by using vending machines.
We will broadly cover both the store form of retailing and the
non-store form of retailing.

e. Discount stores
A discount store sells products at a lower price by reducing its
own margins. This type of stores target high volumes to ensure
profitability.
The various non-stores kind of retailing are:
a. Direct Selling
This is a scenario in which a sales person goes from door to
door or from office to office and meets the customer directly to
close a sale. A very good example is that of vacuum cleaners,
wherein a representative goes to the homes of a customer at
their convenience and demonstrates the utility of his products
so that the customer can make a purchase decision based on the
performance of the vacuum cleaner.
b. Direct Marketing
This is a scenario in which instead of directly visiting the
customer, product information is supplied through other
sources. These include sending mails, providing information
over the telephone(also called as Telemarketing) and other
media.
c. Television Shopping
Today, television has become more popular means of selling
products. Various channels have teleshopping programs
through which marketeers demonstrate the usability of the
products. The customer can then order the product through email, Internet or the telephone.

ADVERTISING MANAGEMENT

LESSON 4:
ADVERTISING AND ITS TYPES

ADVERTISING MANAGEMENT

d. Cataloguing
In this a booklet enlisting all the products on offer is sent to the
customer. Based on the information provided, the customer
can then make his buying decision and order it via the telephone, email the Internet.

scenario all has to be taken into consideration. Although
rational appeals are not rejected but essentially there is an
overdose of emotional appeal. Both negative and positive
message is used. There could be major mud slinging too.

e. Net marketing

Within the context of the 4 Ps of marketing we have the
Product. Be it an FMCG product or an industrial good, we need
to understand that advertising plays an important role in
promoting the product. Be it at any stage of the product life
cycle, every product needs to be communicated for varied
reasons to its target customer as to why they ought to go for
that product.

This is the latest trend in marketing. Here the products are
detailed on the website of the retailer and the customer can
order it right way with the help of a few mouse clicks. The other
electronic tool that is used is the email facility. E-Mailers are sent
to prospective customers by providing the details of the
products. This medium is also used to provide information
about new products to existing customers.
In India, retailing has caught up in a big way. Today one finds
the presence of huge retail stores like Crossroads, Shoppers
Stop etc who are doing well. It has a bright future and looks all
set to grow. Currently it is an urban phenomena, present in the
metropolises like Mumbai, Delhi and Bangalore etc. However
this trend is moving into the smaller towns and these present
the market of the future.

Political Advertising
1. Political advertising includes communications supporting or
opposing a candidate for nomination or election to either a
public office or an office of a political party (including county
and precinct chairs).
2. Political advertising includes communications supporting or
opposing an officeholder, a political party, or a measure (a
ballot proposition).

Product Advertising

A product has to be good and should give satisfaction to the
needs of the consumer only then will the advertising objective
can be a success. Even a bad product could be sustained in the
market place with a good advertising, but what matters in the
long run is the ability of the product to seemingly stand out in
the minds of the consumers. If the consumer knows the brand
and the associated benefits attached with the product the
advertising objective can easily be achieved thereby bringing
about an increase in the sales.
Product or brand knowledge coupled with a clear positioning,
derived from a well thought out marketing strategy, is essential
to every successful advertising program. The other elements in
good product advertising are packaging, trademark, and such
other physical and psychic attributes of the product like taste,
color, texture, aroma, style and design. The saleabilty influence
of these product attributes is to be analyzed before incorporating them in the advertising messages delivered through various
advertising media.

Now, Product Advertising is of 3 Types, Namely
Pioneering or Informative Advertising

Here an attempt is made to stimulate the primary demand of
the product category rather than a specific brand. For example
the advertisement Malaysia Tourism, with their picturous TV
commercial and the slogan ‘Malaysia – Truly Asia’ made an
indelible mark where pioneering advertisement was concerned.
Here the product category is introduced first, educative in intent
and it appeals to the consumer’s rational as well as to his
emotional being. At the introductory stage of the PLC this type
of advertising is beneficial. Generating awareness is the main
function of advertising here.

Part B. Where Does It Appear
1. Political advertising includes communications that appear in
pamphlets, circulars, fliers, billboards or other signs, bumper
stickers, or similar forms of written communication.
2. Political advertising includes communications that are
published in newspapers, magazines, or other periodicals in
return for consideration.
3. Political advertising includes communications that are
broadcast by radio or television in return for consideration
The task of political advertising is a formidable one that is it
reaches out to the whole country. The campaign must have over
a dozen advertisements. The mood of the people, the current
26

1. Smaller percentage as compared to consumer advertising.

Here selective demand of a specific product brand is stimulated.
By now the product is established in the market and has reached
the growth in the market and has reached the growth or
maturity stage of the PLC. Very competitive to market forces.
Competitive advertising is again of two types:

2. Elaborate buying process is involved.

•

Direct type, where it seeks to stimulate immediate buying
action.

•

Indirect type, here the benefit of the product is emphasized
in the anticipation of the consumer’s final action of buying.

Retentive or Reminder Oriented
•

•

The product is now having a firm footing in the market
place. Its sales may start to decline at a later point. The buyer
must be reminded about the product to sustain his loyalty.
It is a soft sell approach where the buyer is judged to
continue the usage of the product. The essence here is to
keep the brand name in front of the eye of the viewer. Used
at both the maturity as well as the declining stage.
Now let us try to understand the types of products and
thereby the advertising needs of them.

Products can be Classified as Under
•

Products
•

Industrial Products

•

Consumer Products for direct consumption.
•

Consumer durables

•

Consumer non durables

3. Main objectives of this class is to Inform, get Orders, to
stimulate queries, to empanel the marketer’s name on the
buyer’s panel of sources.
4. Trade journals and lay press are the most sought after media
vehicles.
5. Seeks to build the corporate image.
6. Rational appeal is used here. The copy gives facts and figures.

Service Advertising
I would like to ask you a very simple question. What do you
mean by services? Well, the following essential points about
what constitutes a service are to be remembered.
•

They are activities, benefits or satisfaction offered for sale

•

They are Intangible, Inseparable, Variable and Perishable in
nature.

•

Require strict quality control, supplier credibility and
adaptability.

Specialized services like consulting; being a doctor even an
advertising agency is an example of advertising. They may talk
about congenial environment, quickness and promptness of
service, economy, exclusiveness, and status significance. Hotels
and airlines, when advertising their services, attach greater
importance to service with a smile, courtesy, thoughtfulness and
claim that they offer a home away from home.

In the case of consumer advertising the following points
should be taken into consideration:
1. Most of them are in competitive field and engaged in
advertising.
2. Non-durables are frequently bought.
3. Non-durables are appliances, which serve for a long period
of time.
4. Both rational as well as emotional appeals are used.
5. Use of celebrity endorsement is heavy.
6. Major chunk of advertising business.
Banks also advertise the services that they offer to their clientele,
like the personalized banking, computer banking, or maybe just
the sheer experience of banking being a pleasure.

Whereas the salient points to be remembered in the case of
industrial advertising are:

Services like physical goods also use channels to make their
output available and accessible, e.g., location of particular
hospital to cater to a particular catchment area. Promotion of
services also emphasizes the locational aspect. Retail services,
which are growing at a good rate use promotion as a major
tool. In this respect I want you to think of the advertisement
of ICICI bank who have roped in Amitabh Bachan to be their
brand ambassador.

ADVERTISING MANAGEMENT

Competitive or Persuasive Advertising

ADVERTISING MANAGEMENT

Corporate Advertising

Public Services Advertising
“School Chalen Hum”, “Mille Sur Mera Tumhara”, these
advertisements have become very popular and have seemed to
touch the public. During the Kargil war there were a lot of
advertisements, which focused on the Indian soldiers fighting
on the front. The advertisement was for the Prime Minister’s
Fund for the Kargil war. The print advertisements had won a
lot of awards. This, my dear student is an example of what
public service advertising is all about. The headline for the
advertisement that you see goes some thing like this, : “The
cyclone was terrifying. But, one look at her face was all the
courage I needed”. The body copy reads, Mother India: Cyclone
Victim? Or Saviour?

In this form of advertising an institution presents its own story
to build up an image of itself in the minds of the public. It is
more like a public relations approach advertising. It could talk
about how it is associating with a cause, like the Star TV
Network putting the cause for girl child education in the
forefront. It may emphasize on its contribution to the society
and it could also talk about the mission of the organization.
That way it could show all the products of the organization,
like the Hero Honda’s “Desh Ki Dharkan”, where they show all
the brands of the organization. Sahara by saluting the Indian
cricket captains is associating with cricket. There are number of
corporate advertisements. I want you to think of at least 3
corporate advertisements and discuss them in the classroom.

The institutional advertisement is very subtle in nature and
affects our basic attitudes. It may build upon its history and
may try to build awareness about itself. The ad copy could be
focused at the general public or may be directed towards specific
group like its shareholders. Take the example of the ad of
Hindustan Petroleum here. Now the advertisement talks about
powering India since 25 years. Especially where locomotives are
concerned. Hence focusing on the fact that they power the
Indian Railways.
So it is building a favorable image for itself in the minds of the
public. It is more of telling the public as to how socially
responsible they are. So their overall objectives are in tune with
social issues. So the basis is to create goodwill in the minds of
its internal as well as external customers. So the objectives of
this type of advertising are:
•

To make the company known

•

To make its products / services known.

•

To make its achievements known.

•

To make its values known.

•

To make socio-political / economic / moral statements.

To give an identity to a faceless organization is what institutional advertising does. When designing a corporate ad we must
pay heed to the type of response we want. It purely asks for an
approval and not any action from the target audience.

It was heel unleashed from heaven. Monster winds tore into
fragile houses. Exploding walls of tidal water smashed Orissa
into smithereens. In the eye of this merciless savagery, one
malnourished woman stood welded to the ground. Not for her
sake, but for the terrified five year old who was screaming in her
arms. The little girl wasn’t hers. She was a Hindu girl orphaned
by the super cyclone. But at that moment, religion was the last
thing on her mind It was Nature at its worst, against a Mother
at her best. And sure enough, they survived. The indomitable
spirit of motherhood triumphed.
In a land that give rise to this nameless yet photographically true
mother, there are thousands more with similar courage.
As India’s equal children, this then is the spirit that’ll find us
storming into a future already resilient and resurgent.

Baseline: My Resilient India my
Resurgent Pride
Moving wasn’t it, well that can be the power of a good
advertisement. Please understand that public service advertising
is identified with national cause, even in the promotion of soap
or insurance there could be elements of public service. There
should be a thorough knowledge of the target market,
especially if we are talking about adult education, AIDS,
national calamity relief fund, birth control, etc. So keep the
message short, dramatic and single minded. In fact it would be
nice if you could think of an issue and create an advertisement
on it.

Financial Advertising
It is an advertising activity which is undertaken by companies,
firms, or organization involved in financial markets, such as
Unit Trusts, Assurance, Building Societies, or Banks.

Financial Advertising on Satellite Television (ST), It is an
financial advertising which accompanies financial programmes
since the viewers of such programmes form the target audience.
Financial programmes are niche audience directed programmes,
and are not dependent on TRP ratings. The message becomes
focused.
Middle class, upper-income bracket people, views satellite
channels and these are the people who invest. The satellite
channels and financial advertising have the go well with each
other since the viewership fits the target audience of financial
advertising.
The influences are felt in securities buying the financial consultant, brokers, sub-brokers and merchant bankers.
Business-based programmes are watched by this influence.
It reaches NRI’s and with NRI reservation the satellite channel
proves to be an effective medium for financial advertising.
Satellite channels offer special packages for financial advertisers.
JAIN TV claims that 30 per cent of its ads revenue comes from
financial programmes. Besides, certainly some financial advertising requires more than 30-seconds and corporate films lasting
10 minutes are the way out. They may prove expensive as per
tariff card rate, and so special package is offered. JAIN also
offers to make ad films for advertisers.

“The world is smaller than you think”, so goes the advertisement for the British Airways. We are living in a global village
and now we are not just catering to the local environment but
to a total global environment. So let me tell you what is global
advertising.
“It is any paid form of non personal presentation and promotion of Ideas, Goods or Services by an identified global
sponsor of a product to a global customer.”
The objectives are as under:
•

To keep the world wide corporate image

•

To reduce production and creative costs

•

To avoid message confusion in international areas of media
overlap.

Normally we have 3 types of themes to be followed:
1. Universal campaigns if the target market is the same all over
the world
2. I would call this ‘Glocal’, wherein the foreign product is
shown but in the local setting.
3. Thirdly, complete execution is locally adapted, “Thanda
Matlab”….

The advertisement was of Chrysler Brasil. Baseline: There’s only
one, agency: Giovanni Foote Cone & Belding / Sao Paulo.
Globalization of advertisement is to bring about economies of
scale, global coverage and the speed with which the companies
want to influence the market.

The media used for financial advertising is normally the print.
The visuals used are graphics of turnover and financial data.
Appropriate headlines should be framed in order to catch
attention. There are 2 types of advertisements in this context.
One which focuses on the bigger picture and the other on the
nitty gritty of let’s say an issue. Copy is purely on the gains and
financial aspects of the company.

We can also see the adaptation of international campaign. For
example, Camay soap’s international visual was that of a
beautiful woman bathing in the bathroom. Whereas the Indian
adaptation was that of the man walking into the commercial
well after the woman was dressed. This is done in order to
adapt to the local cultural aspects. It should not hurt the
sentiments of the people of a particular nation.

Headline: A Quality Product Always Ensures Sweet
Returns

ADVERTISING MANAGEMENT

Global Advertising

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Please write down a few examples of the above at the right
hand side of the slides.

Major Types of Advertising
Institutional
Institutional
Advertising
Advertising

Designed
Designed to
to enhance
enhance aa company’s
company’s
image
image rather
rather than
than promote
promote aa
particular
particular product.
product.

Product
Product
Advertising
Advertising

Designed
Designed to
to tout
tout the
the benefits
benefits of
of aa
specific
specific good
good or
or service.
service.

Major Types of Advertising
Institutional
Institutional
Advertising
Advertising

Enhance
Enhance
corporation’s
corporation’s identify
Advocacy
Advocacy
advertising
advertising
Pioneering
Pioneering

Product
Product
Advertising
Advertising

Competitive
Competitive
Comparative
Comparative

Product Advertising
Pioneering
Pioneering

Competitive
Competitive

Comparative
Comparative

• Stimulates primary demand for
new product or category

• Influence demand for brand in the
growth phase of the PLC.
• Often uses emotional appeal.
• Compares two or more competing
brands’ product attributes.
• Used if growth is sluggish, or if
competition is strong.

Now I would like you to take 3 different advertisement types
and discuss them very critically in the classroom.

Notes

Objective
•

You will understand the relevance of comparative advertising

•

It will give you an idea as to why it is resorted to?

•

You will understand the issues in the case study taking into
consideration two strong players viz, Pepsi and Coca Cola.

•

The second case study focuses on the negative usage of the
concept.

Comparative advertising, as the name suggests, is advertising
where a party (the advertiser) advertises his goods or services by
comparing them with the goods or services of another party.
Such other party is usually his competitor and is often the
market leader in the particular trade. The comparison is made
with a view towards increasing the sales of the advertiser. This
is typically done by either suggesting that the advertiser’s
product is of the same or a superior quality to that of the
compared product or by denigrating the quality of the compared product.

The more blatant form of comparative advertising refers to the
product by name and this is generally known as comparative
brand advertising. However using or referring to a specific
trademark or brand name does not always do this. Comparative
advertising can, however, also occur without any use of the
trademark at all, for example, a motorcar manufacturer might
compare his product with the “luxury German cars” on the
market. Captain Cook for example when it first launched on the
Indian market used an advertisement that made an overt
reference to Tata Salt by showing a package that looked exactly
like it. As such advertising does not contain any trademarks it is
not relevant to the law of trademarks (it may, however,
constitute a breach of the code of ethics of the ASA (the
Advertising Standards Agency)).
Comparative brand advertising does not have to be limited to
the use of the identical trademark, as imaginative advertisers will
often rely on a play of words.

There is also the possibility that comparative advertising could
constitute infringement where the registered trademark is well
known. A more classic example of comparative advertising
constituting dilution would be “XYZ shoes, the Rolls Royce of
shoes”. Accepting that Rolls Royce is a well-known trademark,
the fact that there is no similarity between shoes and motor
vehicles would not preclude the proprietor of the trademark
Rolls Royce from objecting to the use of its well-known
trademark in this context.
In conclusion, virtually any misuse of a person’s registered
trademark in advertising can constitute trademark infringement
and advertisers are advised to be well aware of this fact.
Although the ASA now has many laws governing advertising
codes, a simple benchmark that has often been held up in a
court of law is that a business would be permitted to use the
name of a competitor and describe the competitor’s products in
an ad, even though the comparison will likely point out the
competing product’s or service’s inferiority, as long as there is no
likelihood that a consumer would believe the advertiser is also
selling the competing product or service and as long as the
statements made are accurate.
In a landmark case where a famous art critic stated that a
particular painting was a forgery and the sale of that painting fell
through, the critic was sued successfully for the painting owner’s
lost profits. It should be noted that for a disparaging remark to
be actionable, it must be both untrue and believed by a
reasonable person. If the statement made was so outlandish as
to be unbelievable, it is unlikely the owner whose product was
disparaged will be able to prove any injury. Thus, if a car
manufacturer claimed its competitor’s vehicle was so poorly
constructed that it literally fell apart within the first week of use,
the likelihood is that this gross exaggeration would not be
believed and, therefore, would not be actionable. Disparaging
of existing products is common in the Indian context especially
in the case of FMCG products where a crowded market forces
manufacturers to use comparative advertising to distinguish
and differentiate their product from others. Ariel used its launch
advertisement to portray a modern “bahu” who preferred a
pinch of Ariel vs. a traditional mother-in-law who preferred the
“older” method of scrubbing with a cake of soap that no
consumer had any difficulty recognizing as Rin.

Is it Really All that Bad
But all this does not mean that comparative advertising is not
without its advantages. What is the case for comparative
advertising?
One of the most effective methods for advertising a product is
to compare it with competitive offerings. Side-by-side or “A-B”
comparisons can provide prospective customers with compelling reasons to buy from the company. They can also help build
credibility for its product. Subconsciously, the prospective

ADVERTISING MANAGEMENT

LESSON 5:
COMPARATIVE ADVERTISING

ADVERTISING MANAGEMENT

customer says: “Who would risk making a direct comparison if
they didn’t have something truly superior?” Johnson and
Johnson found this out the hard way when Proctor and
Gamble introduced Whisper with a direct comparison of the
various features that were new in their product as opposed to
Carefree without once naming Carefree directly.
Comparative advertising is especially effective when the company concentrates on unassailable and meaningful points of
difference. Suppose, for example, a product is fabricated with
heavy gauge steel while a competitor uses aluminum or thinner
gauge steel. If durability and strength are important sales issues,
by all means the company should show the difference and spell
out the benefits. The facts speak for themselves.
Comparison advertising gets tricky when the issues aren’t quite
as matter of fact. For example, if a company displays its
product along side a competitors and claims it to be 35% faster
based on independent laboratory tests, it could be headed for a
false advertising suit under federal law. There have been
hundreds of cases in which the courts have found a claim to be
invalid based on some seemingly minor technicality such as a
flaw in a comparative testing. Intangible cases are harder to
defend as well. Pepsi and Coke bear testimony to many legal
battles – the latest a controversy about a Pepsi spoof on the
current Coke model, Hrithik Roshan. An angry Roshan has
sued by Coke as well as Pepsi!
In one such interesting example, an oven manufacturer tried to
prove its product cooked faster than a competitor’s comparably
priced brand. Independent tests were conducted and the results
confirmed the claim. Yet, the opposing manufacturer won a suit
that included significant damages. Why? Because, a cherry pie
with a lattice type crust was used to test the claimant’s oven
while a solid-crusted cherry pie was used in the competitor’s
oven!

Let us Understand Some Basic Points Regarding
Comparative Advertising
1. Comparative advertising is a form of advertising in which
two or more named or recognizable brands of the same
product class are compared and the comparison is made in
terms of one or more product attributes
2. The comparisons can be implicit (brands implied but not
named), or explicit (brands named); the comparisons can be
verbal or visual; and the claims can be of complete
superiority, of superiority on some attributes but not on
others, or of parity; and the advertised brand can have a
market share smaller than, roughly equal to, or greater than
the comparison brand.
3. Regulations and norms about comparative advertising vary
around the world, however, and such ads are still not
allowed in several countries

Effectiveness of Comparative Ads
Is a comparative advertisement more effective than a
noncomparative one? Much research has focused on this
question, and the evidence on greater effectiveness is often
equivocal. The results seem to vary not only upon the specific
kind of comparative ad used and the brands involved, but also
on the measure of effectiveness used (attention/recall, perceived
32

similarity, or persuasion) and even the specific questionnaire
scales used to measure effectiveness.
The effectiveness of comparative ads sometimes lies not in
raising the preference ratings of the advertised brand, but in
lowering the preference ratings of the comparison brands, or
even in simply increasing the perceived similarity of the
advertised and comparison brands without affecting any
preference measures at all. It is thus important, in copy testing
or tracking the effectiveness of comparative ads; to measure
beliefs and preferences not only toward the advertised brand
but also toward competition, as well as measure perceived
similarities among these brands.
If attention and recall are used as the measures of ad effectiveness, various studies have shown that comparative ads do
usually get more attention and higher recall than non-comparative ads. Pontiac used comparative advertising for its Grand Am
in 1992, comparing it to the Toyota Camry and Honda Accord,
because they found focus groups reacted more strongly to
comparisons with specific competitors than to unnamed
imports. Naveen Donthu found the gain in recall was highest
if the comparisons being made were more “intense” (naming
explicit competitors, making comparisons on specific attributes,
and only making a one-sided claim).

Some Areas of Comparative Advertising
The increased information in comparative ads should be
beneficial to consumers and increase the chances for better
decision making, so it is opined. Many researchers have,
however, found that comparative advertising that names
competitors can lead to greater consumer confusion about
which brand is sponsoring the ad (thus creating awareness and
preference for the compared-to brand), especially if the ad is
being run on TV or radio, where more confusion is likely.
Indeed, the frequent occurrence of such “sponsor
misidentification” is one the major criticisms against “direct”
comparative advertising (where the comparison brand is
explicitly named). It is one reason why many companies prefer
to run indirect comparative ads, in which they do not name
comparison brands directly but imply them by showing
packaging colors or shapes (such as Coke & Pepsi).

Leaders versus Followers
Interestingly, research supports the logic that a direct comparative ad from a small-share market follower is least likely to lead
to higher awareness for the compared-to market leader (because
the market leader already has high awareness), whereas a marketleading high-share brand has the most to lose from a direct
comparative ad (by creating “free” awareness for the comparedto smaller brand). This leads to the conclusion that while
low-share brands ought to use direct comparative ads; market
leaders perhaps ought to use noncomparative or indirectly
comparative ads (those that don’t name competitors).
Smaller-share market follower brands also stand to gain more
from direct comparative ads in another way: such ads have the
effect of getting consumers to put both the advertised and the
comparison brand in the same “consideration set,” by increasing the degree to which they are perceived as similar to each
other. A study found that comparative advertising was much

However while a comparative did bridge the perceived “distance” between the “leader” and the “challenger” brand, it did
not significantly raise the attitude toward the advertised brand.
Many other studies have also failed to find such attitudeenhancing effects. These failures could be due, in part, to the fact
that these studies often failed to measure (and could not
therefore find) possible decreases in consumers’ attitudes
toward the comparison brand. It has also been shown,
however, that comparative ads often fail to sway attitudes and
preferences because, while people may indeed notice them more,
they nonetheless may consider a comparative ad offensive, less
credible and less informative (especially if they happen to like
the brand being shown in a negative light.) The consumers’
liking for a brand does go up due to comparative advertising
but only upto a certain point.

Two-Sided versus One-Sided Comparative
Ads
It is argued that there is more counter arguing if the message is
one-sided instead of two sided. (A message is one-sided if it
presents only positive arguments or attributes and two-sided if
a few qualifications, usually about relatively minor attributes, are
presented.) Two-sided ads are seen as more credible, because
they admit that the advertised brands have some shortcomings.
However, not all two-sided ads beat one-sided ads in credibility:
research has shown that two-sided ads are especially credible
when the attribute on which the weakness is admitted is
a. Relatively unimportant, but not trivial, to consumers;
b. Perceived to be negatively correlated with the attribute on
which superiority is claimed (e.g., “we are more expensive
(weakness), but only because we give you higher quality”);
c. One that would not otherwise be known to consumer’s
prior to purchase, so that the advertiser gains some “brownie
points” for honesty.
Other research has also shown the general superiority of twosided appeals, especially with more educated audiences, and with
those consumers initially opposed to the brand making the
claims, and on attitudes rather than purchase intentions. These
results suggest that comparative ads are more likely to be
persuasive in changing brand attitudes if they are two-sided
rather than one-sided.

Open-Ended versus Close-Ended
Comparisons
Another relevant issue is whether conclusions and arguments
should be spelled out explicitly in a comparative advertisement
or whether the receiver should be left to draw his or her own
conclusions about the superiority of the brand sponsoring the
comparison. It is often advantageous to leave something out
of a message. Leaving something out can stimulate curiosity
and motivation to seek additional information about the brand
and lead to a consumer-generated belief that is relatively more
powerful than a belief created by an explicit statement in the ad.

This would argue for not making explicit claims of the
sponsoring brand’s superiority.
However, there is some risk in assuming that a receiver will
“draw his own conclusions.” Research suggests that conclusions should be stated explicitly when there is a significant
chance that the audience will not be motivated or unable to
draw their own conclusions, or when there are real risks of
having them draw the wrong conclusions. It was found that if
the audience is involved in the message, and if the message is
one where a conclusion can be easily drawn, an open-ended
message (where no explicit conclusion was drawn) led to greater
brand attitudes, intentions, and choice than a close-ended
message (there was no difference for an uninvolved audience).
It was also found that comparative ads gain in relative effectiveness when aimed at more expert consumers and when they
make comparison with specific, well known brands, because the
comparative ad can be interpreted more ambiguously under
these conditions.
Attempt the following case study on the cola war, which had
defined the concept of comparative advertising.

Case Study 1
The proper study of war is the study of history focusing on
why things happened rather than what happened. One way to
test the validity of marketing warfare principles is to look at the
history of an industry and then analyze key competitive moves
in terms of those principles. And what better example than the
cola war that has raged for decades between the Coca-Cola
amnies of Atlanta; and the Pepsi-Cola battalions of Purchase,
New York.

A Fresh Start
Coca-Cola is a 100-year-old soft drink that started out as
anything but soft. Invented by a pharmacist and former
confederate officer, John Styth Pemberton.
It was, first and foremost, a medicine. “A delicious, exhilarating,
refreshing, invigorating beverage in addition to being a cure for
all nervous afflictions, sick headaches, neuralgia, hysteria,
melancholy,” said an early advertisement.
By 1902, with an ad budget of $120,000, Coca-Cola had become
the best-known product in America. Fanned by advertising and
the temperance movement, Coca-Cola grew rapidly. By 1907
some 825 of the 994 counties of the ex-Confederate states had
gone dry. “Great National Temperance Drink,” said the ads. In
1915, a designer from Terre Haute, Indiana, came up with a new
6 ½ ounce bottle that captured the uniqueness of Coca-Cola.
The new bottle design arrived just in time. Imitators were
springing up all over the country. In 1916 alone, the courts
struck down 155 imposters, including Fig Cola, Candy Cola,
Cold Cola, Cay Ola, and Koca Nola. In the twenties, Coca-Cola
had no real competition.
The company’s only problem was to increase the consumption
of soft drinks, which rose slowly from 2.4 gallons per capita in
1919 to 3.3 gallons in 1929. (Compared with more than 40
gallons today.) Coca-Cola advertising tried to stimulate consumption. “Thirst knows no season” (1922) and “The pause
that refreshes” (1929) are the best examples.

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more effective than noncomparative advertising in increasing the
perceived similarity of the challenger and leader brands,
particularly when the leading brand was explicitly named in the
ad.

ADVERTISING MANAGEMENT

Twice as Much for a Nickel, Too
The depression of the thirties helped Coca-Cola’s competition,
especially Pepsi-Cola and Royal Crown, get off the ground. The
key concept was the 12-ounce bottle that would sell for the
same nickel that would buy only 6 ½ ounces of Coca-Cola.
Pepsi-Cola hit on the idea in 1934, but it wasn’t until 1939 (and
the arrival of Waiter Mack) that the idea was brought to life.
It was brilliant strategy executed in a spectacular way. It hit the
mark, especially with the young. In candy and cola, kids went for
quantity rather than quality.
And it was done with a limited advertising budget. In 1939
Coca-Cola spent $15 million on advertising, Pepsi-Cola just
$600,000. Now Coca-Cola was on the spot. They couldn’t
increase the quantity unless they were willing to scrap a billion or
so 6 ½ ounce bottles.
They couldn’t cut the price because of the hundreds of
thousands of nickel soft drink machines on the market. PepsiCola had launched a classic flanking attack at the low end. But it
was more than that.
Pepsi turned a successful flanking move into an offensive attack
against the heart of Coca-Cola’s strength. Offensive principle
No. 2: Find a weakness in the leader’s strength and attack at that
point.
The folks in Atlanta obviously felt that the Coke bottle itself
was their greatest strength. They used it in every ad and even
trademarked it. Raymond Loewy dubbed it “the most perfectly
designed package in use. “ Pepsi-Cola promotion turned that
strength into a weakness.
That perfectly designed GX ounce bottles that fit the hand
couldn’t he scaled up to 12 ounces. Not unless you had the
hand of a 7 foot center for the New York Knicks.
During World War II, Pepsi-Cola passed both Royal Crown
and Dr. Pepper to become No. 2 to Coca-Cola itself.

What Coke could have Done
Defensive principle No. 2: The best defensive strategy is the
courage to attack yourself Coca-Cola should have attacked
themselves with a second brand long before Pepsi did it to
them.
And the ideal time to launch a second brand with a low cost
Pepsi type theme would have been early in the thirties when the
depression was just getting started. (Double Cola, a brand on
the market today, would have been a good name to use.)
Coke started the decade of the fifties 5 to 1 ahead of Pepsi.
As 1960 rolled around, Pepsi had cut that lead in half. How
long could Coca-Cola hold out against the larger size containers!
The moment of truth was the year 1954. Coke’s sales fell 3
percent and Pepsi’s rose 12 percent.
The following year, Coca-Cola launched a bottle blitz kreig: 10,
12, and 26 ounces. As supplies were used up, the 6-½ ounce
Coke trademark slowly disappeared into the history books.
Besides this, there were definite signs of confusion down in
Atlanta with Coke’s advertising theme changing every year as the
company grappled with ways to counteract the Pepsi push.
1956: “Coca-Cola makes good things taste better.” 1957: “Sign

of good taste.” 1958: “The cold, crisp taste of Coke.” 1959: “Be
really refreshed.”

The Pepsi Generation
The larger container was the “one” and the Pepsi generation was
the “two” in Pepsi’s one two punch, which put Coke on the
ropes. Finding weakness in the leader’s strength is the key
offensive principle of a marketing war.
Where is Coca-Cola strong! It was the first cola drink. It had
been on the market much longer than Pepsi. This authenticity
was an obvious strength of Coke, but it had another less
obvious result.
Older people were more likely to drink Coke. Younger people
were more likely to drink Pepsi. Furthermore, the larger size
containers also held youth appeal. What adult could swig down
a 12 ounce bottle the way a teenager could!
The first expression of this concept was 1961’s “Now it’s Pepsi
for those who think young.” By 1964 this idea found wings
with the classic “Come alive, you’re in the Pepsi generation.”
The intent of Pepsi’s new strategy was to reposition the
competition as “out of step, out of touch, and out of date.”
Which it did, but it also had another psychological benefit of
equal value. It took advantage of natural sibling rivalry among
the target audience.
Since more people drank Coca-Cola than Pepsi, older siblings
were also more likely to drink Coke. Pepsi also wisely used
music, a traditional form of teenage rebellion, as a key component in its strategy.
The current Pepsi theme, “The choice of a new generation,” is
another expression of its youth strategy, which is the key point
of attack against the “older” Coca-Cola product. The overall
effect of Pepsi’s efforts was to steadily erode Coke’s leadership.
From 2.5 to 1 in 1960 to 1.15 to 1 in 1985.
Coca-Cola’s Comeback Attempt
Over the years, Coca-Cola had missed the opportunity to block
Pepsi by not introducing a second brand in a larger bottle.
“Twice as much for a nickel, too” would have worked just as
well for a Coke brand as it did for Pepsi.
Coca-Cola sold soft drinks while Pepsi sold Pepsi. “The pause
that refreshes” being a typical example. “Things go better with
Coke” being another. But in 1970 Coca-Cola finally found the
best defensive strategy for a leader.
That is, leadership itself. “It’s the real thing.” By implication,
everything else is an imitation of Coca-Cola. Which, of course,
is exactly what the other colas are. But the real thing didn’t last
long. 1975: “Look up, America.” 1976: “Coke adds life.” 1979:
“Have a Coke and a smile.”
By 1982 Coke had hit bottom in insipidness with the slogan:
“Coke is it.” Even though Coke deep sixed “the real thing”
years ago, they can’t kill the idea. Mention “the real thing” and
most people will say Coca-Cola. Ask them “Who’s it” and see
how many people say “Coke is it.”

The Pepsi Challenge
One other Pepsi strategic move in the mid seventies deserves
comment. Called the “Pepsi challenge,” it involved blind taste
tests between two unnamed colas, In the tests, tasters preferred

Perhaps, because it exploits a weak point in the competitive
product. Since Pepsi is about 9 percent sweeter than Coke, the
first taste favors Pepsi.
But not good strategy, as a second front to the major Pepsi
effort. A No. 2 product can’t afford two campaigns. But then
Coca-Cola did the one thing a leader should never do.
After years of fighting the Pepsi challenge, Coca-Cola suddenly
and publicly changed their formula to match the sweetness of
Pepsi-Cola.
Now the real thing was no longer the real thing anymore. In
one stroke Coca-Cola had undermined their own position. The
issue was not whether to change the formula or not. The issue
was whether or not to announce the change.
To many companies “new, improved” is a marketing way of
life. What makes the Coca-Cola situation different is its “real
thing” position.
In a rapidly changing world, the taste of Coca-Cola was a
constant that reassured consumers that they weren’t getting
older. The loss of the Coke bottle was bad enough. Now the
formula is gone too.
The idea is to use as many of the weapons as are feasible for
your business and affordable to your budget.
My average client uses forty-seven of them. In the true spirit of
guerrilla marketing, many of the weapons require time, energy
and imagination rather than the brute force of a mega budget.
With small businesses starting up at the rate of 800,000 per year
in America, you’re going to need all the weaponry you can
possibly use.
To surpass the stiffest and most sophisticated competition
you’ve ever seen, you’re going to have to know your beans
about such weapons as word of mouth marketing, sales
training, electronic brochures, catalogs, telemarketing scripts and
testimonials.
You’re going to be forced to learn the truth about public
relations, the power of fusion marketing and the way that
neatness is part of marketing.
The need for guerrilla marketing can be seen in the light of three
facts: Because of big business downsizing, decentralization,
relaxation of government regulations, affordable technology,
and a revolution in consciousness, people around the world are
gravitating to small business in record numbers.
Small business failures are also establishing record numbers and
one of the main reasons for the failures is a failure to understand marketing. Guerrilla marketing has been proven in action
to work for small businesses around the world.
It works because it’s simple to understand, easy to implement
and outrageously inexpensive. Guerrilla marketing is needed
because it gives small businesses a delightfully unfair advantage:
certainty in an uncertain world, economy in a high priced world,
and simplicity in a complicated world, marketing awareness in a
clueless world.
You’re going to have to knock yourself out making your
company one that is “easy to do business with” a reputation

that few companies enjoy, but one that is crucial for your
financial survival. Many weapons of guerrilla marketing are
designed to give you that kind of reputation.
Some people think that marketing means advertising. But
guerrillas know that advertising is only one of the one hundred
marketing weapons, and not even the most effective one at that.
I urge you to call for a free list of the one hundred guerrilla
marketing weapons. Then, do as much as you can about as
many as you can. Guerrillas do. That’s why guerrillas succeed.

Case Study 2
The car war is intensifying. Manufacturers and their dealers fight
this time the battle through media campaigns —at times going
beyond limits of corporate values —.
While comparative advertising and playing with words like
“Santro ends Ikon’s Josh” are not new, what has stirred the
hornet’s nest is the series of advertisements released by some
Hyundai Motors northern dealers questioning the future of its
close competitor, Daewoo Motors India Ltd. “Car at your
homes, company on the roads”, screamed the ads released by
Hyundai Motors dealers some time back in some Hindi
publications. With the Korean conglomerate Daewoo in dire
straits back home and in the process of restructuring its
operations, even scouting for partners for its automobile
business, there are no prizes for guessing whom the dealers of
Hyundai Motors are referring to here.
“Such an action is highly deplorable. It didn’t happen in Korea
nor anywhere in the world,” fumes S. G. Awasthi, chairman,
Daewoo Motors. “And the Hyundai Motors’ dealers wouldn’t
have released such ads without the consent of their principal.”
Welcoming healthy competition in the market place, he says, “It
is for the first time in India that the car market is witnessing real
change and competition, and we are positive towards that.” But
others, according to him, don’t seem to share his views; they
resort to unethical media campaigns. “It is unethical on two
counts: the values of Indian corporate systems are thrown out
and in fair competition, no one would woo a buyer by levelling
the charge of a competing company going bankrupt. And
remember, it will boomerang in the long run. Awasthi is not
against comparative advertising per se. As a matter of fact, it
was Daewoo Motors, which introduced the concept in the
Indian automobile industry. His advocacy is that such campaigns should be based on relevant facts and authentic facts.
“One should not hit below the belt, as Hyundai Motors did to
us,” he says.
“The strange thing is that Hyundai Motors, Korea, is said to be
a serious contender for acquiring Daewoo Motors back home.
At this juncture, questioning our future in India makes one
wonder about how serious the Hyundai group is about its bid
for our parent company,” wonders Awasthi. According to him,
Hyundai Motors, in its ads, has been giving out wrong
information about Matiz. “The engine for Matiz was actually
developed at Daewoo’s German technical center in 1997,
contrary to what Hyundai Motors claims: that Matiz’s engine is
of 1980 vintage.” Byung Soh Min, deputy managing director,
communications & services division, adds, “Hyundai Motors is
yet to try out 40 per cent of set crast test and 50 kilometers per
hour (kph) side impact test on its Santro in Europe. Whereas
35

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Pepsi 3 to 2 over Coke, a fact which was trumpeted in television
commercials. Good strategy?

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we have done the above successfully. Similarly, Matiz scores over
Santro in terms of engine power, average fuel efficiency, fuel
flow system…” What such ads clearly show is the car makers’
desperation. A look at the March 2000 sales figures of the small
car segment will explain the intense and interesting competition
that rages in the segment. While Tata’s Indica clocked a sales
figure of 7,270 units during March, Hyundai Motors’ Santro
and Daewoo’s Matiz registered a sales figure of 6,418 and 6,064
units respectively. On the other hand, Maruti Udyog sold 7,510
units of Zen and 4,838 units of Wagon R. Except for Maruti
Udyog’s Zen and Tata’s Indica, all other models are in the 4,0006,000 unit sales band.”In this scenario, our sales graph has been
steadily going up, unlike others whose graph goes up and down
every month,” says Awasthi. Given the market trend that
Maruti is no longer the first choice of the car buyers, the fight
amongst the new manufacturers to gain market share is
understandable

Notes

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LESSON 6:
TUTORIAL
A political party has hired you to advertise them. Please select a
party of your choice and mark their achievements of one year.
Make a print advertisement using all the elements of a print
advertisement to make the advertisement, as to why the people
should vote for them.
Ideally this tutorial should be given 2 days in advance to the
students, so that they could do their research and present their
findings.
Create an advertisement of two brands within the same
product category. The idea is to refute the claims made by the
other. It should all be done in good humor and not too show
the other brand in a demeaning way.

International Advertising
Based on your understanding of the various elements of the
print advertisements, can you scribble on the right hand side of
the pictures as to why you think these advertisements could be
considered great?

Notes

CHAPTER 2
COMMUNICATION IN ADVERTISING

LESSON 7:
COMMUNICATION MODELS IN
ADVERTISING

ADVERTISING MANAGEMENT

Learning Objectives
•

You will understand via this lesson the relevance of
communication.

•

This lesson will expose you to the communication with
respect to the advertising field.

•

Different models will attempt to show you the effectiveness
of each in reaching out to the target market.

Well another chapter and we are moving ahead. You all know
what communication is all about. Is it just about talking? Ok,
tell me the difference between talking and speaking.
The word communication comes from the Latin word communis, meaning common. When we communicate we try to
establish a ‘commonness’ with someone, that is we try to share
information, an idea or an attitude.
Man is a social animal and communication is essentially a social
affair. ‘No man is an island or an entire in himself ’, ‘We cannot
not communicate’ are some of the common sayings in
communication. Communication is what makes human
relationships possible.
Speech, writings, gestures are some of the means of communication, or our means of social interaction. Comm can be in
terms of conventions of dress, mannerism, institutions etc.
In communication there are various schools of thought. The
process of communication has been explained through
different models and theories as per the changing times.
Aristotle was among the first to develop a communication
model. According to Aristotle, in a communication event, there
are three main elements, the speaker, the speech and the
audience. Subsequently, many other experts have developed
other models.
Shannon and Weaver developed a model based on technical
aspect of communication. They introduced the concept of
‘noise’ and the idea that meaning lies in people. Noise could be
the culture, value etc of the society.
The Berlo’s model brought ‘encoder’ ‘decoder’ elements in the
communication process. Further Harold Laswell’s model
emphasised on the effect of communication and the response
of the receiver. In the Wilbur Schramm model, the focus is on
the signal from the two sides of the source and receiver. Further
there are various theories such as the Bull’s eye theory, spiral
theory etc explaining the process of communication.
Communication is no longer viewed as simply a way to reach
out to people. Comm is a field that has been growing in diverse
directions, therefore it is to be studied not only at interpersonal,
organisational levels, but also at various other levels such as the
inter-cultural context.
Therefore to understand communication at any level we study
any event, process or system under four main categoriesContext, Technology, Representation and Social relation. These
38

are the four analytical dimensions of communication. Each of
them is co-determinant. These four dimensions can be studied
as the broad framework of the communication process.
George T. Vardaman, of the College of Business Administration, University of Denver, USA, suggests following a simple
formula in acronym TRIM. In this he suggests definition and
planning the to whom, what, when and where of communications:
•

Target or Mission or purpose of communication.

•

Receiver to whom the message is directed at, based on his
needs

•

Impact or result that is desired.

•

Method of media that must be employed to get the desired
results.

The TRIM formula can give you very effective communications
and presentation control, so that your time and efforts can be
productively channeled and bring you results you want.
Putting ideas together is about organizing and developing your
communication. The way you put together your ideas determines how you will give out the information and how well
your target audiences will receive your message – with what
impact and result. This is vital to the success of business
communications. It is worthwhile to examine methods for
putting ideas into a communicable form. For instance:
1. Structuring ideas for the target group they are for.
2. Building logical sequences.
3. Building psychological sequences.
4. Developing core ideas from the lot.
5. Having proper introductions and conclusions.
However, in any situation success of the communication will
directly depend on the quality of the ideas and their development within the larger objectives.
While communication can be better if you know your objective,
greater effectiveness lies in hitting the right target audience in
conjunction with their predominant communication needs. In
this, there are five receiver types, which need to be understood
and tackled:
1. Apathetic
2. Sophisticated
3. Hostile
4. Credent
5. Critical
You may have the most important message, delivered in the
most creative manner, but if strikes the wrong chord in the
audience the communication will fail. You must overcome
receiver apathy, draw attention and sustain interest.

Social Relations
Social relations comprise of the relationship and role of the
players in the communication process. Communication can be
said to be a process of information handling, including
activities of production, dissemination, reception and storageall within a social system. Social relations deals with how the
changes in the relationship between the players come to bring
about an effect in the information process.

Representation

Some of the techniques used by professional communicators
are:
1. Shock – startle, shake or surprise the audience.
2. Suspense – keeping them guessing.
3. Humor – in language or situation to overcome apathy.
4. Novelty – something new or innovative or creative.
5. Familiarity – keeping audience interest through something
known.
6. An inside story – something to do with behind the scene
activities.
Visual and other devices – in presentation, like demo, audiovisual, case-studies, and anecdotes.
In doing this one must at the same time be careful in selecting
appropriate techniques, avoid talking down to the audience, be
natural and avoid being condescending towards people. Try and
monitor communications.
If it exposes weaknesses it is essential that corrective action be
taken. Monitoring must be dependent on feedback received
from the audience through formal and informal channels.

Representation is the projection of content. It is the image, idea
or message that is conveyed through the communication. The
way a fact is projected is representation. Media by means of
representation can give meaning in a particular manner. Media
representation is one of the means of achieving hegemony,
which is achieving popular consent.
Each one of these factors affects the other, and in turn the
entire communication process. Thus communication can be
described as, ‘The articulation of social relations between
individuals in a society.’
Advertising as a communication tool is an integral part of
marketing. We have already discussed about what communication entails. Now I would like to take you to the understanding
of the process itself.
Essentially it is the transmission of message from the sender to
the receiver. But you must understand that the receiver must
understand the message, else the entire exercise will not be
termed as a communication process. I am now diagrammatically
presenting it to you.
Sender

Feedback

Message

Context
Communication can take place in literally hundreds of different
contexts. Therefore it is important to view communication
from a contextual point of view. Context keeps on changing. It
affects ideas, technology etc.
Media products at one level are products of complex organization, and at still another level they reflect the economic
arrangements of media industries and other institutions. The
work of individual communicator cannot be understood
outside these organizational, industrial and institutional
contexts.

Technology
In today’s world, the very word communication brings to the
mind technical and electronic means of communication, such as
the telephone, television, computer etc. These are the means of
communication through which the entire systems in the world

Channel/Media

Receiver

This is precisely what happens in the case of an advertising
message. The sender could be the media like your TV, radio,
newspaper, etc and the receiver is you. You see the ad on
channel V, well if you saw the ad then the sender was successful
in reaching out to you. Diagrammatically this could be as
follows,

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are functioning, be it trade, business, education and even
keeping in touch with friends and the family members.
Articulation is dependent on the medium involved, or it can be
said communication is dependent on a channel to transmit a
message. Therefore technology largely determines communication.

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Advertiser

Advertisement
Sales Report/Favorable
Response
Media

Target Audience

Elements of Advertising/marketing
Communication
You will now be made to understand the various elements in
the communication process.
Advertiser: It could be an individual or an organization that
wants to communicate to the target audience. It could be about
the communication about its products/services.
Advertisement: It is meant for information. It goes on to make
the target audience be favorably inclined towards its products. It
may ask people to act on the message. Both rational and
emotional appeals could be used to do so.
Media: The channels of communication are the media. They
convey the ad message to the target audience. Newspapers,
magazines, TV, etc are the common or few of the media tools
used. The media have their own strengths and weaknesses.
Target audience: The readers of the print media, or the listeners
of radio or the viewers of TV make the audience. The product
could be for the mass audience or for a targeted audience.
Audience could be both users and nonusers of the product.
Now let us come down to certain models that primarily have
their roots within the context of advertising. The basic principle
you must understand relates to communication principle itself.

AIDA Model
The design and development of advertising follows the AIDA
formula. The effectiveness of advertising depends upon to
what extent the advertising message is received and accepted by
the target audience.
Research has identified that an advertisement to be effective has
to
i. Attract Attention
ii. Secure Interest
iii. Build Desire for the product and finally
iv. Obtain Action.
All advertisements obviously do not succeed on these counts.
This is one solitary reason behind the great divergence between
the number of people exposed to the advertisement and those
who ultimately take the purchase decisions. At this stage,
however, other elements of the marketing mix, especially
distribution become crucial.
Advertisement communicates an idea, a message or a belief. An
advertisement would be effective only if the media audience
accepts that message and is motivated to take the required
40

action. Several models have been developed which have
specifically identified the sequence of events, which must take
place between receipt of the message and desired action.

AIDA Model
A somewhat simplified model based on the identical principle
of sequential stages of consumer action is known as AIDA
model.
Advertising as a communication medium can in most cases
effectively perform the first three functions. In the case of directaction advertising, it also must translate the desire into action,
unaided by any other promotional instruments. In the case of
indirect-action advertising, however, the action can be aided at
the time of purchase by two-way communication between the
intending buyer and the sales staff.
Let us examine the attention, interest, desire and action
components in more detail.
Attention
The layout is the most important factor that directs attention to
an advertisement. Typography and colors used in the layout can
rivet us. The size of the advertisement also compels us to get
attracted to it. Contrast by white space is a good attentiongetter. Movement is a vital element for getting attention.
Movement can be physical or emotional. The position of the
advertisement also adds to its attention value. Celebrities in the
advertisement, dramatization; model selection, illustration all
this contribute to attention.
Interest
Ad seen does not mean ad read. Mostly people see the illustrations and do not read the copy. Here illustrations have to work
hard. They should, together with headlines must provoke
further reading. The selection of the illustrations and its
integration to life are thus very important. Even copy format is
important for interest creation. A humorous copy works some
people on by a scientific copy, and some. Here there is a
dilemma for a copywriter. He has to satisfy maximum number
of people so he has to search for a common denominator of
interest.
Desire
The basic purpose of advertising is to create a desire for the
product or service being advertised. It is a function of appeals
used for the motivation of people. Vivid description or copy
always helps. Buying motives, physiological as well as psychological, make people purchase products. The copy of the
advertisement must kindle these motives. There are certain
barriers here – certain reservations in the mind of customers. We
have to overcome them. We have to convince by giving
evidence, testimonials, endorsements, and facts and figures. On
arousal, people become prone to buy the product.
Action
The logical end of the desire aroused is to buy the product.
1. Products are associated with company.
2. The message is repeated.
3. Certain immediate action appeals are used.

The next two steps in the movement towards purchase are
liking and preference. These have been linked with the affective
sphere, which is the realm of emotions wherein the advertising
changes attitudes and feelings. Advertisements falling in this
category are: competitive advertisements, argumentative
advertisements, advertisements with a strong rational message
and image advertisements with status and glamour appeals.
The final two steps in the movement towards purchase are
conviction and purchase. This is related to behavioral realm of
motives. Here the advertisements stimulate or direct desires.
Advertisements falling in this slot are: POP, retail store advertisements, last chance offers, price reduction appeals,
testimonials, and prize scheme advertisements.
This is called Hierarchy of Effect (HOE) model.
Three models of message design and development: They are 1.
AIDA model, 2. HOE: Hierarchy of Effects model, and 3.
Communication model of Advertising.
Stages

Cognitive

AIDA

HOE

Model

Attention

Awareness

Communication
Model
Exposure

(Thoughts)
Knowledge

These goals may pertain to sales, image, attitude, and awareness.
Some of the goals are:
•

Persuade a prospect to visit a show room and ask for a
demonstration.

•

Build up the morale of the company’s sales force.

•

Facilitate sales by correcting false impression, misinformation
and other obstacles.

•

Announce a special reason for buying now’s (price, discount,
premium and so on).

•

Make the brand identity known and easily recognizable.

•

Provide information or implant attitude regarding benefits
and superior features of brand.

According to DAGMAR approach, the communication task of
the brand is to gain (a) awareness, (b) comprehension, (c)
Conviction, (d) image and (e) action.
Advertising goals should be consistent with these communication tasks. Later performance on these counts and projected
goals is compared. For example, a company setting a goal of 15
per cent increase in sales advertises and achieves this objective.
Its ad then is successful and effective.
It presupposes the understanding of the dynamics of consumer behavior without these goals cannot be set. Besides, a
thorough acquaintance of market environment is called for.
DAGMAR is a planning and control tool. It may guide the
creation of advertising. However, as will as appreciated, the basic
inputs of DAGMAR are not so easily to formulate and may
also inhibit creativity.

Awareness

Reception
Cognitive

Comprehension

Response

Conviction
Affective

Interest

Liking

Attitude

(Feeling)
Preference
Desire

Intention

Image

Conviction

Action
Behavior

Action

Purchase

Behavior

DAGMAR Approach
Dagmar Approach is the task of measuring ad effectiveness will
not be daunting if we clearly spell out the advertising goals.
Russel H. Colley (1961) pioneered an approach known by the
acronym DAGMAR – Defining Advertising Goals for Measured Advertising Results, where to establish an explicit link
between ad goals and ad results, Colley distinguished 52
advertising goals that might be used with respect to a single
advertisement, a year’s campaign for a product or a company’s
entire advertising philosophy.

Lavidge and Steiner propounds the second model. This gives
much importance to the cognitive evaluations. With an increase
in competition and an enhancement in discerning abilities of
potential buyers and users, information would play a greater
role. The persuasive power of advertising could in itself be a
function of the information content. This model takes the
competition in to account. This competition arises between
brands of a product and between substitutive product categories also as perceived by prospects constituting the target
audience. The stage of liking following those of awareness and
knowledge may refer to the advertising, thus emphasizing the
creative aspects. Preference for the product or the brand may be

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There are six steps or movements towards the purchase of a
product or service. The first two, awareness to knowledge, fall in
the cognitive sphere of related behavioral dimension. It deals
with the realm of thoughts. Advertising here provides essential
information and facts. These advertisements are announcements, descriptive slogans, jingles, and sky writing and teaser
campaigns.

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the combined effect of product characteristics and their relevance
to the target audience and of advertising.
Rogers propounded the third model, which is known as
Innovation –Adoption Model. This model has relevance to
new product introductions and particularly useful for adoption
of non-commercial services or practices in developing countries.
The stages of evaluation and trail before adoption (or purchase)
are considered significant in the design of advertising program.
The decision in favor of making an evaluation is likely to be
influenced by information available from various sources
including advertising. Evaluation constitutes a major step
towards the adoption of the product or service.

Marketing Communication
Categories
Categories of
of
Communication
Communication

Interpersonal
Interpersonal
Communication
Communication

Mass
Mass
Communication
Communication

I do hope you have gone over the various models and are trying
to understand the relevance of them in the context of advertising. It is basically how you register an advertisement after seeing
it and the course of action as in the purchase that takes place.

The Communication Process
As Senders

As Receivers

uInform

uDevelop messages

uPersuade

uAdapt messages

uRemind

uSpot new
communication
opportunities

Communication
The process by which we
exchange or share
meanings through a common set
of symbols.

The Sender and Encoding
Sender
Sender

The
The originator
originator of
of the
the message
message in
in the
the
communication
communication process.
process.

Encoding
Encoding

The
The conversion
conversion of
of aa sender’s
sender’s ideas
ideas
and
and thoughts
thoughts into
into aa message,
message, usually
usually
in
in the
the form
form of
of words
words or
or signs.
signs.

NNooiissee

SSeennddeerr

EEnnccooddiinngg
M
Meessssaaggee

M
Meessssaaggee
CChhaannnneell

DDeeccooddiinngg
M
Meessssaaggee

RReecceeiivveerr

M
Meessssaaggee
CChhaannnneell

•

“The truth isn’t the truth until people believe you, and they
can’t believe you if they don’t know what you’re saying, and
they can’t know what you’re saying if they don’t listen to
you, and they won’t listen to you if you’re not interesting,
and you won’t be interesting unless you say things
imaginatively, originally, freshly.”
– William Bernbach, quoted in Bill Bernbach said . . . (1989),
DDB Needham Worldwide.
“It is insight into human nature that is the key to the
communicator’s skill. For whereas the writer is concerned
with what he puts into his writings, the communicator is
concerned with what the reader gets out of it. He therefore
becomes a student of how people read or listen.”
– William Bernbach, quoted in Bill Bernbach said . . . (1989),
DDB Needham Worldwide.

Shannon-Weaver Model
If you have looked through the examples of typical everyday
forms of communication, you will have noticed that some of
the examples refer to less immediate methods of communication than face-to-face interaction, e.g. using the radio,
newspapers or the telephone. In these cases, technology is
introduced.
When, for instance, the telephone is used, you speak, the phone
turns the sound waves into electrical impulses and those
electrical impulses are turned back into sound waves by the
phone at the other end of the line.

Claude Shannon and Warren Weaver Produced a
General Model of Communication

The Shannon-Weaver Model (1947) proposes that all communication must include 6 elements:
•

Source

•

Encoder

•

Message

•

Channel

•

Decoder

•

Receiver

These six elements are shown graphically in the model. As
Shannon was researching in the field of information theory, his
model was initially very technology-oriented. The model was
produced in 1949, a year after Lasswell’s and you will immediately see the similarity to the Lasswell Formula.
The emphasis here is very much on the transmission and
reception of information. ‘Information’ is understood rather
differently from the way you and I would normally use the
term, as well. This model is often referred to as an ‘information
model’ of communication. (But you don’t need to worry about
that if you’re just starting.)
Apart from its obvious technological bias, a drawback from our
point of view is the model’s obvious linearity. It looks at
communication as a one-way process. That is remedied by the
addition of the feedback loop.
A further drawback with this kind of model is that the message
is seen as relatively unproblematic. It’s fine for discussing the
transformation of ‘information’, which might be, say
&Hui9%/? PLM, but, when we try to apply the model to
communication, problems arise with the assumption that
meanings are somehow contained within the message.

Shannon-Weaver: The Source
All human communication has some source (information
source in Shannon’s terminology), some person or group of
persons with a given purpose, a reason for engaging in communication.

Shannon-Weaver: The Encoder
This is now known after them as the Shannon-Weaver Model.
Although they were principally concerned with communication
technology, their model has become one which is frequently
introduced to students of human communication early in their
study. However, despite the fact that it is frequently used early in
the study of human communication, I think it’s worth bearing
in mind that information theory, or statistical communication

When you communicate, you have a particular purpose in
mind:
•

You want to show that you are a friendly person.

•

You want to give them some information

•

You want to get them to do something

•

You want to persuade them of your point of view

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The Communication Process

theory was initially developed to separate noise from information-carrying signals. That involved breaking down an
information system into sub-systems so as to evaluate the
efficiency of various communication channels and codes. You
might ask yourself how viable the transfer of Shannon’s
insights from information theory to human communication is
likely to be. The concepts of information theory and cybernetics
are essentially mathematical and are intended to be applied to
technical problems under clearly defined conditions. After
you’ve read this section, which, I think, is a reasonable attempt
to loosely apply Shannon’s ideas to human communication, ask
yourself whether you feel enlightened.

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and so on. You, as the source, have to express your purpose in
the form of a message. That message has to be formulated in
some kind of code. How do the source’s purposes get translated into a code? This requires an encoder. The communication
encoder is responsible for taking the ideas of the source and
putting them in code, expressing the source’s purpose in the
form of a message. It’s fairly easy to think in terms of source
and encoder when you are talking on the phone (transmitter in
Shannon’s terminology). You are the source of the message and
the ‘phone is the encoder which does the job of turning your
sounds into electrical impulses. The distinction is not quite so
obvious when you think of yourself communicating face-toface.
In person-to-person communication, the encoding process is
performed by the motor skills of the source – vocal mechanisms
(lip and tongue movements, the vocal cords, the lungs, face
muscles etc.), muscles in the hand and so on. Some people’s
encoding systems are not as efficient as others’. So, for example,
a disabled person might not be able to control movement of
their limbs and so find it difficult to encode the intended nonverbal messages or they may communicate unintended
messages. A person who has suffered throat cancer may have
had their vocal cords removed. They can encode their messages
verbally using an artificial aid, but much of the non-verbal
messages most of us send via pitch, intonation, volume and so
on cannot be encoded.
Shannon was not particularly concerned with the communication of meanings. In fact, it is Wilbur Schramm’s model of
1954, which places greater emphasis on the processes of
encoding and decoding. The inclusion of the encoding and
decoding processes is very helpful to us since it draws our
attention to the possibility of a mismatch between the operation of the encoding and decoding devices, which can cause
semantic noise to be set up. With good reason, the source of
the message may wonder whether the picture in the receiver’s
head will bear any resemblance to what’s in his/her own.
Schramm went on to introduce the notion of a ‘field of
experience’, which shows a much greater awareness of the
subtleties involved in human-to-human communication,
drawing our attention to the numerous shared socio-cultural
factors which are necessary for successful communication to take
place.

message transmitted? That’s where all the other factors in the
communication process come into play.

Shannon-Weaver: The Channel
You tap on a membrane suspended above a steadily flowing jet
of water. The air under the membrane causes slight deflections
in the jet of water. A laser is aimed at a receiver. The jet of water
flows through the laser beam, deflecting it from its target. Every
time the movement of the air deflects the water jet, the laser
beam hits its target. The laser receiver is connected to a computer, which takes each ‘hit’ and turns it into a 1 and each miss
and turns it into a 0. The computer sends these etc. etc……
You get the idea: the air waves, the jet of water and so on are all
channels. The words channel and medium are often used
interchangeably, if slightly inaccurately. The choice (a pretty
stupid one above) of the appropriate channel is a vitally
important choice in communication. It’s obvious that you
don’t use the visual channel to communicate with the blind or
the auditory channel with the deaf, but there are subtler
considerations to be taken into account as well. A colleague of
mine was clearly much more responsive to visual communication than I. To elucidate his arguments he would inevitably grab
a pencil and a piece of paper and sketch out complex diagrams
of his arguments. Though they may have helped him to clarify
his ideas, they merely served to confuse me, who would have
preferred a verbal exposition. It’s curious that in the college
where I work many students who are dyslexic or have other
learning difficulties end up studying information technology in
so-called flexible learning centers. Bearing in mind the statement
above that “the choice of the appropriate channel is a vitally
important choice in communication”, it’s less than obvious
how a student who has difficulty reading and writing can have
their needs met by a learning model which boils down in
essence to ‘read this; it will tell you what to write’.

Shannon-Weaver: Physical Noise
Shannon is generally considered to have been primarily concerned with physical (or ‘mechanical’ or ‘engineering’) noise in
the channel, i.e. unexplained variation in a communication
channel or random error in the transmission of information.
Everyday examples of physical noise are:
•

A loud motorbike roaring while you are trying to hold a
conversation.

•

Your little brother standing in front of the TV set

Shannon-Weaver: The Message

•

Mist on the inside of the windscreen

The message of course is what communication is all about.
Whatever is communicated is the message. Denis McQuail
(1975) in his book Communication writes that the simplest way
of regarding human communication is ‘to consider it as the
sending from one person to another of meaningful messages’.

•

Smudges on a printed page

•

Snow on a TV set

The Shannon-Weaver Model, in common with many others
separates the message from other components of the process
of communication. In reality, though, you can only reasonably
examine the message within the context of all the other
interlinked elements. Whenever we are in contact with other
people we and they are involved in sending and receiving
messages. The crucial question for Communication Studies is:
to what extent does the message received correspond to the

It might seem odd to use the word noise in this way, unless
perhaps you’re a hi-fi buff, in which case you’ll be familiar with
looking up the claimed ‘signal-to-noise ratio’ for the various
bits of equipment you buy. In this technical sense, ‘noise’ is not
necessarily audible. Thus a TV technician might speak of a
‘noisy picture’. Generally speaking, in this kind of everyday
communication, we’re fairly good at avoiding physical noise: we
shout when the motorbike goes past; you clout your little
brother; cars have demisters.

Although physical noise and how to avoid it is certainly a major
concern of scholars of communication, the Shannon and
Weaver model turns out to be particularly suggestive in the
study of human communication because of its introduction of
a decoding device and an encoding device. The possibility of a
mismatch between the two devices raises a number of interesting questions. In technological communication: I give you a PC
disk and you stick it into a Mac – the Mac can’t decode it; I give
you an American NTSC video tape and you stick it into a
European PAL video recorder – the recorder won’t decode it.
Transfer this notion of a mismatch between the encoding and
decoding devices to the study of human communication and
you’re looking at what is normally referred to as semantic noise.
That concept then leads us on to the study of social class,
cultural background, experience, attitudes, beliefs and a whole
range of other factors, which can introduce noise into communication.

Shannon-Weaver: Semantic Noise
Semantic noise is not as easy to deal with as physical noise. It
might not be an exaggeration to say that the very essence of the
study of human communication is to find ways of avoiding
semantic noise. Semantic noise is difficult to define. It may be
related to people’s knowledge level, their communication skills,
their experience, their prejudices and so on.
Examples of semantic noise would include:

Distraction
You are physically very attracted to the person who is talking to
you. As a result, your attention is directed to their deep blue
eyes rather than what they are saying. There is no physical noise
which prevents the message from reaching you. You hear it, but
you don’t decode it. Equally, your attention could be distracted
by the other person’s peculiar tics and so on. Or think of when
you watched the TV news: the reporter was standing outside
No.10 Downing Street, but behind him the policeman outside
the door was picking his nose. As soon as the report’s over you
realize you haven’t a clue what it was about.
Differences in the Use of the Code
The other person is waffling on in Aramaic about fishes and
loaves. You don’t understand. There is nothing which physically prevents the elements of the message from reaching you,
you simply can’t understand it.
Emphasising the Wrong Part of the Message
Maybe you can think of an advertising campaign which has
been so successful with some new style or gimmick that

everyone is talking about it. However, no one has actually
noticed what product is being advertised.

Attitude Towards the Sender
You’re talking to someone a lot older than you. On the basis of
their age, you make a lot of assumptions about the kind of
code appropriate to them – and the conversation goes wrong
because they were the wrong assumptions.

Attitude Towards the Message
I may have a very positive attitude to the Aramaic-speaking
bearded chap in the flowing robes. But, despite that, I’d be
unlikely to find him very persuasive even if he were talking to
me in English about his fishes and his loaves. He believes in
transcendent beings and I don’t.

Shannon-Weaver: The Decoder
Just as a source needs an encoder to translate her purposes into
a message, so the receiver needs a decoder to retranslate. If you
take a look at our discussion of the receiver, you’ll see that we
considered how, for example, a blind person would not have
the equipment to receive whatever non-verbal messages you
send in the visual channel.
The notion of a decoder reminds us that it is quite possible for
a person to have all the equipment required to receive the
messages you send (all five senses, any necessary technology and
so on) and yet be unable to decode your messages.
An obvious example would be:
You can see it. You probably guess that it’s a language, maybe
even that it’s Arabic. You probably don’t understand it, though.
In fact, it is Arabic and it does mean (but nothing very interesting). You cannot decode my message, encoded to you in that
short sentence, by you. You have the appropriate receiving
equipment, but no decoder. You don’t understand the code.

Shannon-Weaver: The Receiver
For communication to occur, there must be somebody at the
other end of the channel. This person or persons can be called
the receiver. To put it in Shannon’s terms, information transmitters and receivers must be similar systems. If they are not,
communication cannot occur. (Actually Shannon used the term
destination, reserving the term receiver for what we have called
decoder. However, I think the terminology I have been using is
more common in the broader understanding of ‘communication theory’ as distinct from Shannon’s information theory.)

Shannon-Weaver: Feedback
Feedback is a vital part of communication. When we are talking
to someone over the phone, if they don’t give us the occasional
‘mmmm’, ‘aaah’, ‘yes, I see’ and so on, it can be very disconcerting. . This lack of feedback explains why most of us don’t like
ansaphones. In face-to-face communication, we get feedback in
the visual channel as well – head nods, smiles, frowns, changes
in posture and orientation, gaze and so on. Advertisers need
feedback, which they get in the form of market research from
institutions. How else would they know if their ads are on the
right track? Broadcasters need feedback, which they get from
agency ratings. Politicians need feedback, which they get from
public opinion polls and so on.

ADVERTISING MANAGEMENT

However, it is possible for a message to be distorted by channel
overload. Channel overload is not due to any noise source, but
rather to the channel capacity being exceeded. You may come
across that at a party where you are holding a conversation
amidst lots of others going on around you or, perhaps, in a
Communication lesson where everyone has split into small
groups for discussion or simulations. Shannon and Weaver
were primarily involved with the investigation of technological
communication. Their model is perhaps more accurately referred
to as a model of information theory (rather than communication theory). Consequently, their main concern was with the
kind of physical (or mechanical) noise discussed above.

ADVERTISING MANAGEMENT

Perhaps one of the main reasons for the model’s popularity
amongst communication theorists in the ‘humanities’ has been
that it provides them with a ready-made jargon that ordinary
mortals are not likely to be familiar with, as well as conferring
on the subject a kind of pseudo-scientific respectability.

Notes

ADVERTISING MANAGEMENT

LESSON 8:
TUTORIAL
Critically examine the Shannon Weaver model and explain the
entire model in not more that 150 words.
Communication is all about reaching out to the public with
your message being understood. In our age of a viewer getting
the option of choosing between 50 channels, how do you
ensure that communication via advertising can effectively reach
the target market?
Take a product / brand of your choice and explain the concept
of the AIDA model.
The faculty concerned could change the tutorial. I leave it up to
the discretion of the faculty.

Notes

UNIT II
INTEGRATED ADVERTISING PROGRAM
LESSON 9:
UNIT – 2
CHAPTER 3
OBJECTIVE SETTING & DETERMINING
ANALYSIS OF MISSION & MARKET
TARGET AUDIENCE

ADVERTISING MANAGEMENT

Learning Objectives
•

You will understand via this lesson the goal and objective of
an advertising campaign.

•

This lesson will expose you to the different types of
objectives.

•

Understand as to how to go about formulating the
objectives.

•

In understanding that objectives are closely linked to the
communication process.

•

Understanding the bases for Targeting.

users, generating more sales leads, increasing brand awareness,
increasing repeat purchases and supporting the personal selling
efforts. Some of the broad advertising goals are explained as per
the following:

Launch of New Products and Services
In a saturated market, the introduction of new products and
brands can give the seller a tremendous opportunity for
increasing his sales. In the case of innovative products (totally
new to the market) such as Laptop Computers, a great deal of
advertising has to be done over an extended period of time to
make people aware of “What the product is” and What it does”
and “How the customers would find it useful”. In addition,
the advertisement also carries information about the availability
of
the product and facilities for demonstration/trial etc. Similarly
new brands of existing product categories are also promoted
quite aggressively. Two recent examples are the launching of
“Pepsi Blue” soft drinks during the world cup and launch of
“Mountain Dew” in subsequent period.

Expansion of the Market to Include the
New Users

Well, friend, now we come to an important topic that is the
objective setting where advertising is concerned. Essentially it
deals with what our basic aim is all about. What do we really
want to achieve in our advertising plan. So let me start the
lesson.
Advertising is a method of communication with a specified
objective. The Objectives of advertising as explained before are
grouped as sales objectives (measured in terms of increase in
sales, increase in market share and return on investment) and
communication objectives. The communication objectives of
advertising can be grouped in to the following
•

Building awareness (informing): The first task of any
advertising is to make the audience appreciate that the
product or service exists and to explain exactly what it is

•

Creating favorable attitudes (persuasion). The next stage and
the one that preoccupies most advertisers, is to crate the
favorable attitude to the brand which will eventually lead the
consumers to switch their purchasing pattern

•

Maintenance of loyalty (reinforcement) One of the tasks
which is often forgotten is that of maintaining loyalty of
existing customers who will almost always represent the
main source of future sales

There are general objectives of advertising that covers goals like
encouraging increased consumption of a product by current

Advertising can be used to tap a new segment of the market,
hitherto left unexplored. For example TV and Video Camera
manufacturers who have been concentrating on domestic users
and professionals can direct their advertising to the government
institutions and large organization for closed circuit TV
networks, security systems and educational purposes. Another
way of expanding the consumer base is to promote new uses
of the product. For example, Johnson’s baby oil and baby
cream were originally targeted to mothers. The same products
have now been directed towards the adult market for their
personal use. Similarly, Milkmaid was originally promoted as a
substitute for milk. It is now being advertised as an ingredient
for making sweet dishes and also as a sandwich spread for
children.

Announcement of a Product
Modification
For such advertising, generally, the terms “new”, “improved”,
“Excel” etc. is used as prefixes to the brand name. For example,
“Surf Excel” gives the impression of an advanced detergent
powder, although there may be no tangible difference between
the earlier brand and the new one. Sometimes the customer as a
modified product e.g. “a new refill pack for might perceive a
minor packaging change Nescafe”

Announcement of a Special Offer
Because of competition, slack season, declining sales, etc,
advertising is used to make a special offer. For example, Colgate
Dental Cream campaign about 20% extra was to increase
volumes through a sales promotion campaign. Hotels offer
special rates during off- season. Similarly many products like

Defining Advertising Objective you must proceed from:

To Announce Location of Stockiest and
Dealers

b. The Competition.

To support dealers, to encourage selling of stocks and to urge
action on the part of readers, space may be taken to list the
names and addresses of stockiest and dealers.

To Educate Customers
Advertisement of this type is “informative” rather than
persuasive”. This technique can be used to show new users for a
well-established product. It can also be used to educate the
people about an improved product e.g. Pearl Pad odor free jars
and bottles. Sometimes societal advertising is used to educate
people on the usefulness or harmful effects of certain products.
For example, Campaigns against unsafe sex and AIDs are
sponsored by government and voluntary agencies. Similarly,
advertisements discourage the consumption of liquor and
drugs.

Reminder Campaigns
This type of advertising is useful for products, which have a
high rate of repeat purchase, or those products, which are
bought frequently e.g. blades, cigarettes, soft drinks, etc. The
advertisement is aimed at remaining the customer to ask for the
same brand again. The campaign of “Dil Maange More” during
television breaks of cricket matches is to have a top of mind
recall.

To Sought Dealer Cooperation and
Motivation
A successful retail trader depends upon quick turnover so that
his capital can be reused as many times as possible. Dealer
support is critical, particularly for those who have limited shelf
space for a wide variety of products. Advertisers send “display”
material to dealers for their shops, apart from helping the
retailer with local advertising.

To Create Brand Preference
This type of advertising does two things: (I) it creates a brand
image or personality (ii) It tells the target audience why Brand X
is better than Brand Y. In this type of advertisement, the
product or brand acquires a ‘personality’ associated with the
user, which gives the brand a distinctive ‘image’. The second
type of advertising also known as ‘comparative advertising’,
takes the form of comparison between two brands and proves
why one brand is superior.

Few Other Objectives
Advertising also helps to boost the morale of sales people in
the company. It pleases sales people to see large advertisements
of their company and its products, and they often boast about
it. Other uses of advertising could include recruiting staff and
attracting investors through “Public Issue” advertisements
announcing the allotment of shares etc.
You must understand that an Advertising Objective is a
Communication Objective

a. The Product and its virtues.
c. The segment of the Market aimed at all of which should be
set down in the marketing objective.

Step I: Define the Audience
Issues like Social class, Income, Occupation, Values and
ambitions, Attitudes to Product.
Step II: Define the Stage of the Communication Task
What is the Specific Communication task? Communication is a
process of acting on the mind of your audience. “We must
create a state of mind conducive to purchase”.
Step III: Define Consumer Preference or Resistance
What do consumers like about Brand? What do they dislike?
This is where you need research into consumer attitudes.
Step IV: Define the Product Promise or Claim
1. It must be meaningful and of value to consumer
2. It must be a distinctive – unique claim.
3. It must concentrate on this unique claim or the Unique
Selling Proposition (USP).
“Advertising is the art of getting a Unique Selling Proposition
into the heads of the most people at the lowest cost”
Step V: Define the Brand Image
What will be the brand’s ‘Personality?’ i.e. What character or
association does it evoke?
After you have answered the above questions it is then that we
are moving ahead where the setting of objectives are concerned.
The important thing to understand about setting advertising
objectives is that most advertisers do not set sensible ones. But
then these same advertisers are not sure if their advertising is
paying off either. If you ask them how their campaign is going,
you get answers like, “All of our people like it very much” or
“It’s a bit early to tell, but we think it’s going to be very
successful”.
The truth is that if you are spending Rs 10 lakhs or Rs 10
crores, you ought to be able to tell with a much greater degree
of accuracy what it is doing for you, or you shouldn’t be
spending it. To do this, you need parameters that can be
measured, such as increasing advertising objectives with specific
goals, share of mind or brand awareness.
Advertising campaigns are in one sense like military campaigns.
In a military campaign, you set an objective like “Capture the
Kargil back” or “March through McMohan Line”. Then you
know when the campaign is over and whether you have won or
lost. Successful advertising campaigns have the same kind of
criteria. They start with objectives, so you can tell how the
campaign is going and whether you are winning or losing. So,
perfect campaigns insist on an attainable objective as a prerequisite.

“An Advertising goal is a specific communication task, to be
accomplished among a defined audience to a given degree in a
given period of time”.

ADVERTISING MANAGEMENT

room heaters, fans, air-conditioners, etc, offer off-seasons
discounts to promote sales.

ADVERTISING MANAGEMENT

Advertising Objectives Are a Strategy Decision

Now let us take objectives a degree higher. Let us incorporate
the elements of planning within this lesson. This will take you
to easily understand the subsequent chapters and lessons.

Position
Position Brands
Brands

Strategic Planning: Making
Intelligent Decisions

Introduce
Introduce New
New Products
Products
Obtain
Obtain Outlets
Outlets
Ongoing
Ongoing Contact
Contact

Advertising
Objectives
Should be
Specific

Support
Support Sales
Sales Force
Force
Get
Get Immediate
Immediate Action
Action
Maintain
Maintain Relationships
Relationships

• Strategic planning is the process of determining
objectives (what you want to accomplish), deciding on
strategies (how to accomplish objectives), and
implementing the tactics (which make the plan come to
life).
• An objective is a goal or task to be accomplished – the
destination.
• A strategy is the means by which the goal is
accomplished – the route to the destination.
• Possible tactics could be: a demonstration, a
testimonial, or an emotional or funny story.

Advertising
Objectives

The Business Planning Process

Objectives Determine the Kinds of Advertising
Advertising
Advertising
Objectives
Objectives

• Business Mission Statement
– supports the corporate mission and includes the broad goals
and policies of the business unit.

Product
Product
Advertising
Advertising

Institutional
Institutional
Advertising
Advertising
Pioneering
Pioneering
Advertising
Advertising

Competitive
Competitive
Advertising
Advertising

The Business Planning
Process
• External Environment

Reminder
Reminder
Advertising
Advertising

– opportunities: area for the company to develop an advantage
over its competition.
– threat: trend or development in the business environment that
will erode business unless the company takes purposeful
marketing action.

• Internal Environment
Direct
Direct

Indirect
Indirect

Comparative
Comparative

– Strength and weaknesses: could revolve around financial
conditions, personnel issues, or technical expertise.

The Advertising Plan

• The entire procedure is called a SWOTs Analysis.
• Next step is to develop specific objectives and goals for
the planning period.
• Follow this with outlines of specific strategies that
relate to each goal.
• Next, work out specific supporting programs (tactics)
for carrying out strategies formulated.
• Implement the plans, then evaluate the results and
make any needed adjustments.

An Advertising Plan Matches the Right
Audience to the Right Message and Presents
It in the Right Medium to Reach That
Audience & Has Three Elements.

Steps in the Marketing Plan

ADVERTISING MANAGEMENT

The Business Planning Process

Targeting the Audience: Whom are you trying to
reach?
Message Strategy: What do you say to them?
Media Strategy: When & where will you reach them?

My dear student, it was important to give these slides here at
this point of time, since this is a strategic junction. With the
help of these you will be able to relate to the preceding chapters
and will be able to understand the relevance of the subsequent
chapters and their linkage.
I want you to discuss at least 10 objectives of brands in the
context of advertising and marketing. You could take 2 such
brands and make a presentation about the reason why it chose
that objective at that point of time.

Determining Target Audience
Let us say that I want to market a brand of jeans. The price of
the jeans is Rs. 1000/ and I would like college-going people to
wear that jeans. In addition I see a person to be confident and
knows what he / she wants out of life. Tell me can I look at
you to be my target audience? Of course I can. So does that
mean you are to be my target audience for the pair of jean?
You must understand that we are not merely manufacturing
and selling, rather, we are manufacturing what the needs of the
people are about. For every product there is a specific people,
which are to be kept in mind while marketing the product.

Steps in the Marketing Plan
Marketing
MarketingObjectives
Objectives

Select
SelectObjectives
ObjectivesSuch
Suchas
asDesires
Desiresfor
foraaPercentage
Percentage
of
ofMarket
MarketShare,
Share,Unit
UnitSales,
Sales,Store
StoreTraffic
Trafficor
orProfit.
Profit.

Marketing
MarketingProblems
Problemsand
andOpportunities
Opportunities

Review
ReviewInformation
Informationto
toDetermine
DetermineProblems
Problemsand
andOpportunities.
Opportunities.

Selecting
SelectingTarget
TargetMarkets
Markets

Company
CompanySelects
SelectsMarket
MarketSegments
Segmentsthat
thatCan
CanBest
Bestbe
beServed
Served
From
FromaaCompetitive
CompetitivePoint
Pointof
ofView.
View.

Marketing
MarketingStrategies
Strategies

Key
KeyStrategic
StrategicDecisions
Decisionsthat
thatWill
WillGive
Givethe
theProduct
Productor
orFirm
Firm
aaCompetitive
CompetitiveAdvantage
Advantagein
inthe
theMarketplace.
Marketplace.

Executing
ExecutingPlans
Plans

Implementing
ImplementingaaMarketing
MarketingPlan
PlanRequires
RequiresaaNumber
Numberof
ofDecisions.
Decisions.

Evaluating
EvaluatingPlans
Plans

Compare
CompareActual
ActualPerformance
Performancewith
withPlanned
PlannedPerformance.
Performance.

In order to tailor your marketing and advertising strategies to
appeal to the tastes and interests of your market, you must first
identify your customer. In order to do this, you it is necessary to
conduct thorough research of the consumer marketplace. Keep
in mind, the more information you have about your target
market, the better able you will be to develop a successful
marketing plan.
A market profile typically uses primary and secondary sources to
answer key questions about a potential market. A profile is a
picture or an outline. Information that makes up the social
profiles of the people in your target market is called demographic information, and includes:
•

Age, usually given in a range (20-35 years)

•

Sex

•

Marriage/partner status

•

Location of household

•

Family size and description
51

ADVERTISING MANAGEMENT

•

Income, especially disposable income (money available to
spend)

•

Education level, usually to last level completed

•

Occupation

•

Interests, purchasing profile (what are consumers known to
want?)

•

Cultural, ethnic, racial background

A clothing manufacturer may consider a number of possible
target markets—toddlers, athletes, grandparents (for grandchildren), teenagers, and tourists. A general profile of each of these
possible markets will reveal which ones are more realistic, pose
less risk, and which are more likely to show a profit. A test
market survey of the most likely market groups, or those who
buy for them, such as parents for babies and toddlers, can help
you separate real target markets from unlikely possibilities.

Halley suggests a benefit sought as a useful base for identifying
a target audience. It cuts across all other bases. The example of
toothpaste users illustrates this. Toothpaste market has four
identifiable segments, e.g.,
•

Tooth decay prevention

•

Brightness of the teeth.

•

One with flavor.

•

Mouth freshness.

Targeting, you must understand, makes the marketing mix all
the more effective within the context of integrated advertising
program. The product matches the consumer profile. The
promotional program remains in tune to the consumers’
willingness to receive, assimilate and react positively to the
communication. It is recognition of the fact that the market is
not a single cohesive unit but it is rather seething in its very
essence. It being desperate, pulsating, antagonistic, infinitely
varied sea of differing human beings – here everyone being
distinct from the others as fingerprints; everyone of them living
in certain circumstances and in countless ways from those in
which everyone of them is living.
In a country like India where unity is in diversity, identifying
target audience for a product is a formidable task. To optimize
targeting, the potential of the target market, its needs, its
effective demand and accessibility needs must be considered.
A marketing communication starts with a clear target audience
in mind. The audience critically influences the communicator’s
decision on:

So basically we sub divide the market on the basis of geography,
demographic, socio-economic, psychographic bases and the
market conditions. The most common descriptions of the
target audience are in terms of geographic, demographic and
socioeconomic terms. If we take into consideration a simple
product like a cycle, within this a normal cycle may be target at
the rural community, whereas a sports cycle would focus more
on young urban kids.
Insurance, you would ideally think would be for the older
generation, but you have to start working now. So what do you
think is the target audience for that product? Yes, they are, I
mean the companies, focusing on the younger generation.
Basically people in the age group of 30 to 45 years are the
focused target group. Also the profiles of these people is that
of senior executive, upwardly mobile and are concerned about
their family about their future.
What do you think about the following advertisement? What
do you think the age of the man is?

•

What is to be said?

•

How it is to be said?

•

When it is to be said?

•

Where it is to be said?

•

Who is to say it?

Suppose you were to advertise a product like Burgers. How
would you integrate the above questions in your attempt to go
on to identify the target market?
The communication objectives emerge from the analysis of the
target market. In fact I would say that they sometimes could
have an irreversible role to play in advertising. You should
remember that no matter which stage of the campaign you
might be in, looking at the objectives and subsequently the
target market is an important means to be in touch with where
your campaign is heading.
The quantitative research of consumers socio-economic and
demographic conditions, user-status, use frequency, etc, along
with the qualitative research of image analysis of the object in
consumer’s perception goes a long way in setting communication objectives. Image I need to tell you is a set of beliefs, ideas
and impressions that a person holds of an object. It is a
precondition for any communication planning. The familiarity
of the target audience is first measured against the following
scale:
•

Never heard of

•

Just heard

•

Know a little

Know fairly well

•

Know very well

If most of the respondents tick the first two options, the
communication objective would be to build awareness. Those
who are familiar are tested for their attitudes towards the
product:
•

Very unfavorable

•

Somewhat unfavorable

•

Neutral

•

Somewhat favorable

•

Very favorable

Negative attitudes must be overcome before undertaking
further promotion. Hence we could in addition say that,
analyzing the image of a product in the mind of the consumer
is a crucial step to bring about differentiation in the market
place. This differentiation would help us in understanding the
relevant target audience to be targeted at. For example in the case
of Freedom bike from LML, we are looking at not only the bike
loving community or an age group which is 18 +, but importantly we are targeting at the people who want their spirits to be
free. The independent person is basically what we are looking at.
Similarly the fair and lovely advertisement for example, previously and to an extent till date they were looking at targeting the
girls who would get married if they use the fair & lovely fairness
cream. Of course the advertisement came under much flak
because it hurt the sentiments of the women who were of a
darker complexion. As a result the next advertisement focused
on the confident young woman who becomes a TV commentator despite all odds. So the point my dear student is that we
have to understand the complete profile of the consumer
before we can actually go on to make the target audience
analysis.
Now I want you all to analyze the target market for the
following brands:
•

Whirlpool Washing Machine

•

Titan Watches

•

Reliance Mobile Service

•

Airtel Mobile Service

•

Bagpiper

In the subsequent lessons we would understand the concept of
segmentation. But you must not confuse the two. Segmentation is a broader palying field where the consumer profiles are
concerned. You could say that it is the prelude to targeting. The
marketing man carries out several other tasks besides segmentation In order to focus on his target market. Essentially he carries
out a thorough evaluation of the various segments and selects
those segments that are most appropriate to him. This
segments should be relevant, accisible, sizeable and very
importantly profitable.
The evaluation of the different segments has to be actually
based on these criteria and only on the basis of such an
evaluation should the target segments be selected. The marketing man or the advertiser must understand the assessment of
the sales potential and profit potential from these segments.

You must realize that if the message that you formulate and
the money that you spend on the campaign does not connect
with the right people where sales growth is concerned then I am
afraid we are not going in the right direction.
I addition we must also analyze whether it would be profitable
to select the entire market. We can also look at certain segments,
which may have consumers who are not too satisfied with the
current offering by the competitors. It could also be possible
that you target a few segments separately and design your
objectives accordingly. Even your message strategy will have to
change. But you must understand your company’s resources
and accordingly choose a target market. You might find all
segments attractive but you have certain constraints to work
along with.
Let us take the example of soaps in India to understand the
issue here.

Consists of 2 Segments
•

Preference for premium soaps

•

Preference for popular soaps

Size Wise
1. Popular segment bigger than premium category.
2. Premium segment just 15% of the total soap market in
terms of tonnage.
3. Large volume of business in Popular segment.
4. However value is higher in the premium segment. The size
also being considerable.
Future Position
1. High growth sectors are in mind by the business firms.
2. Popular segment is growing at the rate of 10% per annum,
whereas the premium segments at 30 % per annum.
Profitability
1. Price range for premium segment is placed at between Rs.
10/ to Rs. 50/.
2. Price range for the popular segment at less than Rs. 10/.

ADVERTISING MANAGEMENT

•

ADVERTISING MANAGEMENT

3. Although volume selling in the popular segment would
bring about sales, and the profitability factor would be low.
4. Whereas the profitability factor is high where the premium
segment is concerned.
5. Launching a brand is competitive and especially when the
competition is growing by the day.
6. Expensive media like TV would have to be used to get in
touch with the target group.
7. Selling and marketing costs to be taken into consideration.

Accessible
1. The various market shares of the brands of the competitor
would determine this. If the market share were on the rise
per annum then it would mean that the market is accessible.
Resources & Objectives to be matched:
1. Position of the firm in terms of competency and relative
experience would determine this.
2. Firm to look at areas like internal culture, marketing styles
and strong organization along with a strong hold where
resources are concerned.
Please understand that this is a very strategic decision, which a
firm has to undertake in order that the right customer group is
reached.
Now let me come to another fascinating part whereby we can
further focus on our target market. Namely:
• Undifferentiated strategy
• Differentiated strategy
• Concentrated strategy
It will look very easy to you with the following diagrams.
Firm’s IMC
&
Objectives

The differentiated strategy on the other hand comes about
when the firm decides to target several market segments and
designs separate offers for each. For example you could have a
company manufacturing cars keeping in mind let us say 3 things
as purse, purpose and personality. In fact I would urge you to
kindly look at the brands that Maruti has in its portfolio and
you will realize the above point.
Thirdly coming down to concentrated marketing; it is a strategy,
which comes into play when a form goes after a large share of
one or a few sub markets. This is especially true when the firm’s
resources are limited in nature. So instead of going after a small
share of a large market it rather goes for a large share of a small
market or a few markets or if I could say niche markets. This is
especially true for smaller firms trying to make a mark in the
market. For example, in the case of Tiger biscuits, you mus
realize that they introduced the Re.2/ pack purely because they
could cater to the rural segment. The chai biscuit, so the
Britannia people called it, had different segments having the
biscuits.
So dear student let me now come to the gist of a good target
market:
•

Measurable: Inclusive of size, purchasing power and profiles
of the segment can be measured.

•

Accessible: Effectively reached and served.

•

Substantial: Large or profitable enough to serve.

•

Differentiable: Conceptually distinguishable and respond
differently to different marketing mix elements and
programs.

•

Actionable: Effective programs can be designed for attracting
and serving the segments.

Market

The issue in target market is not who is targeted but rather how
and what for. So you must understand the profile of the
people and their needs in order to reach out to them.

A. Undifferentiated Target Market
IMC 1

Segment 1

IMC 2

Segment 2

IMC 3

one offer. This is commonly referred to as mass marketing. You
are reaching out to one and all, irrespective of any segmentation
differences.

Please read the following article, which came out in the Financial
Express. This will give you a clear picture on targeting.
“Quote-Unquote what few stalwarts have to say about Targeting.”
•

“There is no such thing as a Mass Mind. The Mass Audience
is made up of individuals, and good advertising is written
always from one person to another. When it is aimed at
millions it rarely moves anyone.”
– Fairfax Cone, of Foote Cone & Belding, quoted in John
O’Toole, The Trouble with Advertising . . . 1981, New York:
Chelsea House, p. 48.

•

“There is no such thing as national advertising. All
advertising is local and personal. It’s one man or woman
reading one newspaper in the kitchen or watching TV in the
den.”
– Morris Hite, quoted in Adman: Morris Hite’s Methods for
Winning the Ad Game, 1988, Dallas, TX: E-Heart Press, p.
204.

Segment 3

B. Differentiated Target Market
Segment 1

Firm’s IMC

Segment 2

Segment 3

C. Concentrated Target Market
In the case of undifferentiated strategy a firm decides to ignore
market segment differences and go after the whole market with
54

ADVERTISING MANAGEMENT

LESSON 10:
TUTORIAL
Explain, what would be the Advertising objectives that you
would set for the following situations:
•

Brand of health drink only for the urban market and that
too be concentrated in the metro cities.

•

Brand of apparels that is wrongly perceived as a low purchase
item.

•

Your brand of cold drink has been negatively targeted in
your competitor’s advertisements.

•

You have tied up with a bank that will provide the loan for
the purchase of your brand of automobile.

•

Festival season means marketing opportunity for your brand
of fast food. You want to make it a family affair and give
some add on’s to your customers, but for a limited period
of time.

Identify the audience profile for the following products:
•

A 5 star hotel.

•

555 washing detergent.

•

Deodorant for men.

•

Home theater system

•

Monetary aid for cancer patients

•

Sachets of tea.

Select 5 Print advertisements and understand the profile of the
customer at which the product or the service is aimed for.

Notes

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LESSON 11:
UNDERSTANDING SEGMENTATION
Learning Objectives
•

You will understand via this lesson the need for
segmentation

•

The segregation on the basis of the target market.

•

Understand the bases of segmentation.

•

Demographic & Psychographic Segmentation.

Markets comprise of heterogeneous segments of consumers.
Market segmentation refers to process of identifying a group of
buyers with similar buying desires and requirements. The
marketeer with a distinct marketing mix targets each segment.
Companies, whether they are big or small experience a similar
challenge. In such a confused situation, ‘Segmentation’ comes
in handy! Segmentation is defined as the process of dividing a
market into distinct sub-sets of consumers with common
needs or characteristics and selecting one or more segments to
target.
Segmentation is the first step in a marketing strategy. Once
marketers divide the market into various groups, they can then
select their ‘targeted segments’ and design products that suit
their requirements. For instance, companies like BPL have
resorted to market segmentation as a strategy to beat its
competitors. Its products like: BPL Loewe (digital designer
televisions for the premium-end of the market); Matrix
Flatscreen TV (for technology lovers); Studioline (who are
performance seekers); and Prima (for the lower-end of the
market) are a case in point. Each of them has been designed to
cater to the requirement of a particular segment.

Basis of Segmentation
The first step in developing a segmentation strategy is to
identify the basis on which the market segmentation is done.
There are eight categories of customer characteristics that form
the basis for segmentation. The categories are:
Did you notice the coupon on the above advertisement? Make
sure you keep that in mind. Well, now we shall proceed to
segmentation. A market is defined as individuals, organizations
with purchasing power, and desire/ willingness to purchase.
Markets can be categorized based on the buyers as follows:
Producers market trade in raw material, equipment, supplies,
machines etc.
Reseller market trade in finished goods, services from producers
Consumer market : refers to market where end consumer buys
the products for personal or household use. Consumer market
can be bifurcated into durables and non-durables markets. The
non-durable products are also known as fast moving consumer
goods.
The principal means of classification are:
a. By geographical spread, such as national, regional and local
b. By target group, such as consumer advertising, industrial
advertising or trade advertising
c. By type of impact such as
i. Primary demand or selective demand advertising,
ii. Direct or indirect action advertising, and
iii. Institutional advertising.

1.Geographic Segmentation
The market is divided according to the location. The classification is based on the assumption that people living in the same
area share similar habits and wants. However, there’s a difference
in the purchasing patterns of the consumer living in urban,
semi-urban, and rural areas. For instance, as an Electrolux
dealer, having a showroom in Hyderabad, you can advertise
your company in and around Hyderabad via local newspapers,
TV, radio, and other magazines.
On the basis of geographical spread, advertising can be classified
as (a) national, (b) local and (c) global.
a. National Advertising

Some manufacturers may think that their target is the entire
country. They select media with a countrywide base. Generally
large, established firms belong to this category. Among them
are Hindustan Lever, Brooke Bond, Larsen & Toubro, Escorts,
Associated Cement Companies and the like.
b. Local Advertising

Small firms may like to restrict their business to State or regional
level. Some firms first localize their marketing efforts and once
success has been achieved, they spread out to wider horizons. A
classic example ‘is Nirma washing powder, which initially was
sold in Gujarat and subsequently entered the other markets.

Sometimes large firms may also go in for local advertising, e.g.,
when they undertake pretest of a product, especially consumer
product in selected areas before embarking promotional
campaign on a national level.
c. Global Advertising

Multinational firms treat the world as their market. Firms like
National, IBM or Sony or Ford advertise globally, e.g., in
periodicals like Times, Reader’s Digest.
However, with the increase in the popularity of the television
and satellite communications, marketers strongly believe that
the geographic segmentation can be replaced by a single global
marketing strategy.

2. Demographic segmentation
The segmentation is based on characteristics like age, sex, marital
status, income, occupation, and education. It’s the most
accessible and cost-effective way to identify your target market.
3. Psychological/Psycographic Segmentation
Psychological characteristics refer to the inner qualities of a
person. For instance, consumers are divided on the basis of
their needs and motivations, personality, perceptions, learning,
level of involvement, and attitudes.
As an executive dealer you can provide a questionnaire to the
people residing in the area with questions like: Do you like
book reading or not? How often you go out for movies and
picnics? What channels do you prefer watching etc. Depending
on these questions you can segment the consumers and offer
products that matches their lifestyle.
4. Sociocultural Segmentation
This is another basis for segmentation. Markets are divided
depending on factors like family life cycle, social class, cultural
values, and cross-cultural affiliations. Culturally distinct
segments offer excellent growth avenues for marketers.
However, care should be taken while advertising the products.
For instance, if you are selling the Whirlpool refrigerator with
the ‘instant cool’ feature, sell it as a means of convenience for a
workingwomen family. However, the same should appeal as a
‘status symbol’ for the upper class.

5. Use-Related Segmentation
It’s the most popular method of segmentation. Consumers are
divided into different categories depending on the product,
service, or brand usage characteristics like the rate of usage
(consumers are divided depending on the number of times
they use a product); Awareness status (Consumers are divided
based on their knowledge level of a product. For instance, if a
consumer instantly recalls all the features and models available/
yet to be launched in the market, his awareness level is high);
and brand loyalty.

6. Usage-Situation Segmentation
This classification is based on the products/ services that the
consumer uses depending on the situation. For instance, if you
buy red roses to your wife on her birthday, you fall under one
category.
7. Benefit-segmentation
The market is divided into segments depending on the benefits
of the products. This sort of segmentation is used to communicate the product features to consumers. For instance, Bausch
and Lomb advertises its disposable lenses as a form of
convenience.
8. Hybrid Segmentation
Instead of sticking to one particular segmentation style,
marketers combine one or two segmentation variables and
arrive at another segmentation. This style is referred to as
Hybrid segmentation.
Coming back to the Target advertising on the other hand is:
Segmentation on the basis of target groups aimed at, advertising can be classified as –
a. Consumer Advertising,
b. Industrial Advertising,
c. Trade Advertising,
d. Professional Advertising.

a. Consumer Advertising
A very substantial portion of total advertising is directed
towards the consumers who purchase them either for their own
use or for their household. The main point to be remembered
here is that buyers of consumer items are generally very large
and are widely distributed over a large geographical area, which
enhances the importance of advertising as a marketing tool.
Looking into at random any general print media, such as
newspapers, magazines etc, can see such advertising. These
advertisements are intended to promote sale of the advertised
products appealing directly to the buyers/consumers. Such
advertising is called consumer advertising.
b. Industrial Advertising
Industrial advertising on the other hand refers to those
advertisements, which are issued by the manufacturers/
distributors to the buyers of industrial products. This category
would include machinery and equipment, industrial intermediates, parts and components, etc. Because of the unique
characteristics of industrial buying decision process, the
importance of industrial advertising is comparatively lower than
that of consumer advertising.
c. Trade Advertising
Advertisements, which are directed by the manufacturers to its
distribution channel members, such as wholesalers or retailers,
are called trade advertising. The objective of such advertising is
to promote sales by motivating the distribution channel
members to stock or to attract new retail outlets.
d. Professional Advertising
There are certain products for which the consumers themselves
are not responsible for the buying choice. The classic examples
are pharmaceuticals where doctors make decision while the

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Retail stores also undertake local advertising the area to be
covered would generally be a city or a town and media would be
selected t principally relates to that area. In recent years, several
magazines have appeared which focus on a particular city and are
of direct relevance to its inhabitants like the Bombay and
Iskl11d.

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consumers are the patients. Almost similar situation exist in the
field of construction where architects, civil engineers and
contractors are the decision makers. Firms operating in such
market segments, therefore, have to direct their advertising to
these decision makers, who are professional people. Such
advertising is called professional advertising.
With increasing competition, players try out to carve separate
niche, which leads to greater segmentation of the market. As
each brand needs significant investment for launch as well to
sustain equities, the plethora of brands become unmanageable.
The process of restructuring and cost engineering results in
consolidation and phasing out of weaker brands and thereby
reducing the market segmentation.

Levels of Segmentation
Mass
Marketing
Segment
Lo

Marketing
N iche
Marketing
M icro
Marketing
Hi

Segmentation as a tool is effective in understanding the
consumer and the market associated with your brand. Only a
proper understanding of it will give you an understanding as to
how to make your advertising campaign.

Segment marketing
S e g m entation
• It is the dividing of a m arket into distinct
groups of buyers on the basis of needs,
c h a r a c t e r i s t i c s , o r b e h a v i o r w h o m ig h t
require separate products or m arketing
m ix e s .

• Isolating broad segments that make up a
market and adapting to match the needs of
one or more segments

Segmentation
• Identify bases for segmenting the market
• Develop segment profiles

Niche Marketing
• Focusing on sub-segments or niches with
distinctive traits that may seek a special
combination of benefits.

• The practice of tailoring products and
marketing programs to suit the tastes of
specific individuals and locations – includes
local marketing and individual marketing

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M icro Marketing

Types of Segmentation
• Geographical: India, Delhi, Lajpat Nagar
• Demographic: 24 Yrs old Married woman
working and earning 15K P.M, is an MBA
• Psychographic: Upper class, golfing, CEO.
• Behavioral: Rohit is a Regular shopper,
believes in Quality, Brand loyal and likes to
wear those brands which exudes Positivity.

Local marketing
• Tailoring brands and promotions to the need
and wants of local customer groups – cities,
neighborhoods, and even specific stores.

Individual M arketing
• Tailoring products and marketing programs
to the needs and preferences of individual
customers – also labeled one -to-one
marketing, customized marketing and
markets –o f-one marketing.

Demographic Segmentation.

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It is the division of the market into groups based on certain
demographical variables such as:
a. Age
b. Gender
c. Income
d. Geographic location
e. Usage
f. Occupation
g. Education
h. Generation
i. Family size
The basis of this type of segmentation is:
1. That the groups of buyers are not being served well
presently by competition, and are therefore likely to try the
brand advertised (eg. Life Insurance advertisements focusing
on the young salaried class instead of stereotyped older
generation)
2. That the buyers are large enough, or growing in size (eg.
Advertisements for women office wear)
3. They are most likely to respond positively to the benefits
offered by the brand advertised (eg. Advertising luxury to the
existing high-end brands of car owners).
Let us take the above demographic variables one by one:

Age
A very basic but useful a priori demographic segmenting
variable is age. People often seek different features or benefits
depending upon their age (and, relatedly, their family life-cycle
stage). Consequently, people in different age groups often differ
in which brands they prefer within a product category, and it is
sometimes possible to target particular brands at particular age
groups. Researchers have found that a person’s “cognitive age”
is a much better predictor of purchase patterns than “actual”
(chronological) age. For instance, a forty-year-old man may still
feel as if he was in his thirties, in terms of interests and
activities. Therefore, it is useful to learn as much as possible
about prospective target segments.

What kinds of products and services will your target age group
want to buy, what kinds of features will they seek, what kinds
of advertising appeals and personalities will they be most
responsive to?
The answers to the above will give you a fair amount of insight
into the designing of your offering to the particular age group.
For example, the advertisements for cosmetics will invariably
show a young woman even if it aims at marketing at all the age
group. ‘I am a complan girl”, is an advertisement focused at the
young teens & adolescents, where as an advertisement about
liquor is about a matured age group.
So segments of different age groups often need different
advertising approaches, both in terms of message and execution. Some advertisers argue that today’s teenagers, used to
rapidly edited music videos, also need ads with such quick-cut,
“jazzy” shots’ to have any hope of appearing “cool”. Both
young children (under age five), and elderly (over sixty-five)
consumers have special needs in the way information is
communicated to them, because of differences in the way they
process information compared to other consumers.

Gender
Much research suggests that men and women process information from ads differ-ently. For instance, it has been shown that
women process more detailed informa-tion than do men,
possibly because they are more attuned to paying attention to
external cues than men are (they are but generalizations!). The
woman manager who headed Nike’s marketing campaigns to
grow its women’s’ markets agrees, and claims that women are:
1. More discerning buyers than men, and
2. That they research many products and weigh several factors
before they buy.
3. Women unlike men-find ads using celebrity endorsements to
be unpersuasive because they don’t like being preached at.
4. Women are responsive instead to ads that portray women as
powerful, capable people who hate being told they can’t do
things simply because they are women.

Income
Another useful a priori demographic variable is income. Not
surprisingly, higher income households tend to be less pricesensitive, placing a higher value on buy-ing higher-quality
merchandise. Because of the growth in dual-income households, there has been a dramatic growth in the proportion of
total spending in the econ-omy coming from such households,
implying that the market for high-end prod-ucts and services
should increase substantially.
It is seen that low-income people prefer beedis for smoking.
Middle-income buyers smoke Wills Filter, and high-income
buyers like 555 cigarettes.
Even sometimes the choice of celebrity endorser is considered
while targeting at a certain income category. Amitab Bachchan
for Parker Pen and not Govinda.

Geographic Location
The questions you should be asking yourselves are:

Geographic location can often provide the basis for an effective a
priori segmenta-tion strategy. A firm with modest resources can
dominate, if it so chooses, a small geographic area. Its distribu-

In recent years, it has become increasingly possible to learn
something about a company’s target consumers simply by
knowing the postal zip code in which they live. Census-based
demographic data on households has been analyzed by various
companies to yield “average profiles” for house-holds in
different segments, or groups, of zip codes. In fact the cities
and towns in India have been classified on certain basis. So a
classification of Delhi might be classified as be-longing to the
same cluster as the classification of Mumbai, because they are
very similar to each in terms of their scores on these variables.
An advertiser can examine these scores of each classification
cluster and iden-tify which ones are most likely to respond to an
advertising or direct marketing effort.

an IIT coaching institute. Whereas the graduates and the
postgraduates would grasp the ads which would offer them a
job or a professional course. This type of advertising is
especially there in recruitment advertisements.

Generation
Pepsi with its ads on ‘Gen X’, were able to understand the
relevance of generation advertising. Be it the baby boomers of
the 60s and the high energy level Generation Y, the brands and
the companies’ focus on certain generations for marketing their
products. Each set of generations has their own values, beliefs
and attitudes and focusing on these variables the brands could
be positioned towards them.

Family Size
Following are certain classifications and the type of products
that they are likely to purchase:
•

Young & single: Personal consumption items,
entertainment, bikes, clothing and love to go on a vacation.

•

Newly married couples: Households durables like furniture,
TVs, refrigerators, etc.

•

Young married with child: Toys, medicines, tonics, baby
food, formula milk, etc.

•

Older married with children: Food products, music,
educational services and wide variety of other products.

•

Older married with dependant children: Rational purchases
more on replacement buying.

•

Older married with no children: Self-education, saving
schemes, hobbies, luxury appliances, magazines, health
products, etc.

•

Old single retired: Economic lifestyle, healthcare and other
services and have budget constraints.

•

Young married with child dual income: Convenience goods
like washing machines, microwave ovens, costly garments for
the kid along with games. Expenditure on instant food and
crèches, etc.

•

Single parent families: Buying physical, psychological and
financial securities, like insurance, alarms, boarding school
expenses.

•

Divorced: Money saving products, rental housing, childcare,
time saving appliances, etc.

•

Older people married or single: Cash poor and health
conscious. They need security and recreation.

•

Middle age: Children’s lesson on dance and music, dental
care, furniture, autos, houses, dining out, etc.

•

Middle aged with no children: Luxuries, travels, gift
products, etc.

Usage
A natural and powerful a priori segmentation variable is
product-class usage. Who are the heavy users of the product or
service? In many product categories, the heavy users (who are
usually 20 to 30 percent of the users) account for almost 70 to
80 percent of the volume consumed: this is sometimes called
the “80:20” rule. It is obviously extremely valuable for a brand
to have most of its users from the heavy-user category, for that
should lead to disproportionately higher share of units sold.
One segmentation scheme might thus involve heavy users, light
users, and nonusers. This particular segmentation scheme is
likely to be useful wherever the focus is on building up the
market. Each person is classified according to usage, and a
program is developed to increase the usage level. The segments
defined by usage usually require quite different marketing
programs. So a program tailored to one of these segments can
generate a substantially greater response than would a marketing
program common to all segments. Of course, designing and
implementing several marketing programs is costlier than
developing one, but the resulting market response will often be
significant enough to make it worthwhile.
A somewhat different aspect of usage segmentation is the
possibility that consumers may seek different benefits from the
same product (e.g., soft drinks) de-pending on the nature of
the usage-occasion (e.g., social use versus food-enhance-ment).
Different ad campaigns to address these different occasionbased segments are therefore also possible.

Occupation
We have the professionals who are MBAs, CA, etc; we have the
Technical, the Government servants, businessman, farmers, and
housewives, unemployed, the list seems to go on. Of late there
are insurance firms who are targeting at the housewives and
even at the unemployed to sell their policies.

This is one of the segmentation variables to be considered
while understanding the target audience. The other one equally
important is the Psychological segmentation, which we shall
study in the next lesson.

Education
The different academic qualification would mean how people
are receptive to the content of the advertisement. The school
going kids would be able to grasp any advertisement given by

ADVERTISING MANAGEMENT

tion within the limited area can be Internet. Local me-dia such
as newspapers or spot television can be employed, and it is
possible to buy space in regional editions of major national
magazines. In fact Coca Cola with the inclusion of different
Indian cultures in their advertisements with Amir Khan is a
wonderful example of “think globally and act locally”.

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Bases of Demographic
Segmentation
•
•
•
•
•
•

Age: 18yrs – 24yrs.
Gender: Male / Female
Family Size: Young, single
Family Life Cycle: 1-2
Income: Less than 1,20,000 P.A
Occupation: Manager

provide a very rich and meaningful pic-ture of a person. It can
indicate whether the person is interested in outdoor sports,
shopping, culture, or reading. It can include information
concerning attitudes and personality traits. Lifestyle also can be
used to define a segment empirically; this is often called
psychographic (as opposed to demographic) segmentation.
Lifestyle is particularly useful as a segmentation variable in
categories where the user’s self-image is important, such as
fragrance. As an example of lifestyle segmentation in fragrances,
Revlon’s Charlie cosmetic line was targeted at a lifestyle segment
profiled as follows:
•

Is irreverent and unpretentious.

•

Doesn’t mind being a little outrageous or flamboyant.

•

Breaks all the rules.

•

Has her integrity based on her own standards.

•

Can be tough; believes rules are secondary.

•

IS a pacesetter, not a follower.

•

IS very relaxed about sex.

•

Is bored with typical fragrance advertising.

•

Mixes Gucci and blue jeans; insists on individual taste,
individual judgment.

•

Has a sense of self and sense of commitment.

Cont…
•
•
•
•
•

Education: MBA
Religion: Hindu
Race: Asian
Generation: Generation X
Nationality: Indian

Psychographic Segmentation

Various typologies of consumers exist that use personalities,
values, lifestyles, and attitudes as variables, among them VALS
and the more recent VALS 2, values and lifestyles typologies.
In its first version, VALS fo-cused on the distinction between
inner-directed consumers, driven by their convic-tions, passions,
and need for self-expression, and outer-directed consumers,
driven by their responses to signals from other people. Using
this distinction, it grouped people into nine categories (called
Survivors, Sustainers, Belongers, Emulators, Achievers, I-AmMe, Experiential, Societally Conscious, and Integrateds).
VALS 2 uses the additional classifying dimension of the
“resources” people have (educa-tion, income, etc.) to create eight
categories (called Fulfilleds, Believers, Achiev-ers, Strivers,
Experiencers, Makers, Strugglers, and Actualizers).

So why VALS
Today, most marketers in India use segmentation models based
on Demographics, Geo-demographics, SEC data & Benefits
and usage. However, these models are still inadequate in their
description & analysis of a person since they generate only
isolated fragments.
This is where Values And Lifestyles segmentation plays such a
pivotal role. Because lifestyle characteristics and values provide a
rich view of the market and a more lifelike portrait of the
consumer, they meet the demands of management practice for
increasingly sophisticated and actionable marketing information.
The basic premise here is therefore – the more you know and
understand about your customer the more effectively you can
communicate and market to him.

Values And Lifestyles
A person’s pattern of interests, opinions, and activities combine
to represent his or her lifestyle. Knowledge of lifestyle can

A Value refers to a single belief that transcends any particular
object, in contrast to an attitude, which refers to beliefs
regarding a specific object or situation. Values are more stable

•

To gain insight into why the target group acts the way it
does.

•

To improve and introduce products that speaks to
customers’ values.

•

To target the marketing and advertising campaigns more
effectively and accurately.

•

To position products more accurately in the marketplace.

A lifestyle is a distinctive mode of living in its aggregate and
broadest sense. They deal with everyday behaviorally oriented
facets of people as well as their feelings, attitudes, interests &
opinions. It embodies the patterns that develop and emerge
from the dynamics of living in a society.

Instrumental Values are everyday ideal modes of behavior. For
example values like Ambition, Cheerful, Honest, Imaginative,
Logical and Polite are Instrumental Values.

Value and Lifestyle segmentation unlike traditional segmentation begins with people instead of products and classifies them
into different types, each characterized by a unique style of living
– it then determines how marketing factors fit into their lives.
This perspective provides a three-dimensional view of the target
consumer.

The Inception and Evolution of VALS

The ‘Rokeach Value System (RVS)’ is a universally accepted and
reliable tool to test value systems of people. The RVS classifies
values into Instrumental and Terminal Values.

Terminal Values are ideal end states of existence that an
individual aspires to have. Comfortable Life , Equality, Family
Security, National Security, Pleasure and Wisdom are Terminal
Values.
We must however understand that this type of segmentation
either singly or in combination with demographic segmentation
divides the buyers on the basis of:
•

Social class: For example: Lower class, Middle class and
Upper class.

•

Lifestyle and/or personality traits.

Lifestyle segmentation is all about the mode of living of the
buyers. Products often sold by this approach are cars, women’s
clothing, cigarettes, alcoholic beverages, cosmetics and furniture.
You could have two types of spots where automobile marketing is concerned.
•

Small family car emphasizing safety, compactness and
economy.

•

Sport minded individuals who love maneuverability.

One such approach to measure the segment is through AIO
inventories, which is Activities, Interest and Opinions.
You have the following categories under the heads:
•

Activities: Work, liking, hobbies, recreation, entertainment,
shopping

•

Interest: Job, home, food, media, community.

•

Opinions: Culture, social issues, politics, education.

By combining the demographic variables along with AIO we
could get an example of a lipstick user as:
VALS is a relatively new concept, pioneered by SRI International, a Management Consulting firm in California that
conducted a nationwide survey of the US consumers based on
values and lifestyles first in 1979. This model was later modified
in 1989 and renamed VALS-II, which segmented the American
consumers into 8 consumer profiles.
Some of the uses to which Values and Lifestyles segmentation
has been put are:
•

To identify whom to target and find niche markets much
more easily.

•

To locate where concentrations of your target group lives.

‘Someone younger, better educated, working woman who is
appearance conscious, cosmopolitan and future oriented.’
Media selection and advertising content could easily be framed.
In addition we can identify likely uses of related products that is
the products, which are consistent with this lifestyle.

Personality
Marketers have identified personality variables to segment the
market. Motor-cycle buyers can be identified as ‘independent,
impulsive, macho, ready to change, confident people.’ ‘Charms
cigarettes are smoked by young people who love the spirit of
freedom.’ Lipsticks are for ‘young, out-going, beauty-conscious
women.’ Other products, which cater to personality traits, are
liquor and insurance. The marketers try to adjust the brand’s
63

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and occupy a more central position in a person’s cognitive
system. Values are determinants of attitudes and behavior and
provide a stable and inner oriented understanding of consumers. Values within a system refer to a wide array of individual
beliefs, hopes, desires, aspirations, prejudices etc. Values provide
potentially powerful explanations of human behavior as they
serve as standards or criteria of conduct. These tend to be
limited in number & are remarkably consistent over time. The
value construct can therefore be used to segment the population
into homogenous groups of individuals who share a common
value system.

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personality to the personality, traits of buyers for whom it is
meant. Consumers of different brands are subjected personal
preference tests to measure their different needs, and the
differences in personality traits are recorded.

Whether it is demographic study in the previous lesson or
behavioral and psychographic analysis in this lesson, we must
learn to integrate in order to understand our buyer all the more
clearly.
Benefit
Sought

Demographic
Characteristic

Behavioral
Characteristic

Psychographic
Characteristic

Favored
Brand

Low
Price
Decay
Prevention
Brightness
of teeth

Males,

Heavy users

Babool

Big
Families
Teenagers
Youngsters

Heavy users

Price-conscious
Independent
Traditional
Health-conscious
Outgoing
Fun loving
Active
Self-involvement

Good Flavor

Children

Mint lovers

Mouthwash

Youngsters
Teenagers
Children
Between 2’/2
To 7’12 years

Want intimacy
and togetherness
Loves to taste

Self-involvement

Families

Multiple benefits

Value for Money

Gentler
Toothpaste

Personality characteristics, especially the self-image that ideally
should correspond to the brand-image, are the basis of
advertising appeals made to certain types of personality. Other
personality characteristics used are changeability, adaptability,
thriftiness, prestige consciousness, self-confidence, masculinity,
conservativeness and sentimentalism.
Since it is difficult to reach targets on the basis of traits like
sociability, self-reliance or assertiveness, the classifications based
on slots as given above become useful.

Fresh Breath
Whiter Teeth
Germi Check

Attitudes and Benefits
Attitudes, preferences, and many related psychological constructs such as moti-vations, perceptions, beliefs, product
benefits, and so on, can also be used to seg-ment markets
through the second empirical segmentation approach. Consumers differ in the “need” for which they buy the same product, so
the fact that buyers will tend to place different degrees of
importance on the benefits obtained from that type of product
leads logically to the fact that they represent different seg-ments.
The idea of segmenting on the basis of important attributes
has been termed benefit segmentation by Russell Haley. For
example, lowest price, durability, use on special occasions. In the
case of toothpaste we could use elements like flavor, price,
product appearance, brightness of teeth and decay prevention.
Considering the different advertising approaches that will be
appropriate for each segment sees the value of benefit segmentation for advertising. The following chart will give you a good
understanding of the subject matter.

Fun
Dependent on
mother for good
habits

B a s e s o f P s y c h o g r a p h ic
S e g m e n ta t i o n
• Social Class: U p p e r – M iddle C lass
• L ifestyle: A chiever
• Personality: A m b itious

We shall include a few other segmentation techniques, which to
an extent could be a part of psychographic understanding of
the buyers. The need is to understand segmentation from all
angles rather than understanding it from a single point of view.

Behavioral Segmentation
In behavioral segmentation, buyers are divided into groups on
the basis of benefits sought from the product, user-status,
usage-rate, loyalty-status, attitude and readiness to use state.
With in this let us understand the study of Attitudes.

Smokers

Notes

Pepsodent
Colgate
Promise
Colgate
Close-up
Gel
Just for Kids

Aquafresh

Learning Objectives
•

The key idea is how you should make a mark for yourself in
the mind of the consumer.

•

This lesson will tell you the different ways of going about it.

•

Understand the strategic way of going about it.

•

There is an appendix which tells you the view of two
Positioning ‘Gurus’.

A brand’s-position is the set of associations the consumer has
with the brand. These may cover physical attributes, or lifestyle,
or use occasion, or user image, or stores that carry it.
A brand’s position develops over years, through advertising and
publicity and word of mouth and usage experience, and can be
sharp or dif-fuse, depending on the consistency of that brand’s
advertising over the years.
A brand’s position in a consumer’s mind is a relative concept, in
that it refers to a comparative assessment by the consumer of
how this brand is similar to or different from the other brands
that compete with it. Think of every consumer as having a
mental map of the product category. The location of your
brand in that map, relative to that of your competitors, is your
position, and the locations of all the brands in that map are
determined by the associations that the’ consumer makes with
each brand. If all this sounds rather abstract, several examples
are pro-vided here which should clarify the concept.
A positioning strategy is vital to provide focus to the development of an ad-vertising campaign. The strategy can be conceived
and implemented in a variety of ways that derive from the
attributes, competition, specific applications, the types of
consumers involved, or the characteristics of the product class.
Each repre-sents a different approach to developing a positioning strategy, even though all of them have the ultimate objective
of either developing or reinforcing a particular image for the
brand in the mind of the audience.

Just as segmentation involves the decision to aim at a certain
group of customers but not others, our next concept-positioning-involves a decision to stress only certain aspects of our
brand, and not others.
The key idea in positioning strategy is that the consumer must
have a clear idea of what your brand stands for in the product
category, and that a brand cannot be sharply and distinctly
positioned if it tries to be everything to everyone.

Seven approaches to positioning strategy will be presented:
1. Using product characteristics or customer benefits,
2. The price-quality approach,
3. The use or applications approach,
4. The product-user approach,
5. The product-class approach,
6. The cultural symbol approach, and

Such positioning is achieved mostly through a brand’s marketing communications, although its distribution, pricing,
packaging, and actual product features also can play major roles.

7. The competitor approach.

It is often said that posi-tioning is not what you do to the
product, but what you do to the consumer’s mind, through
various communications. Many products in the over-thecounter drug market, for instance, have identical formulas but
are promoted for different- symp-toms, by using different
names, packaging, product forms, and advertising?

Probably the most-used positioning strategy is to associate an
object with a prod-uct characteristic or customer benefit.
Imported automobiles illustrate the variety of product
characteristics that can be employed and their power in image
creation. Honda and Toyota have emphasized economy and
reliability and have become the leaders in the number of units
sold. Sometimes a new product can be positioned with respect
to a product char-acteristic that competitors have ignored.
Sometimes a product will attempt to position itself along two
or more prod-uct characteristics simultaneously. Sometimes
different models of a product may be positioned towards
different segments by highlighting different attributes.

The strategic objective must be to have segmentation and
positioning strategies that fit together: a brand must be
positioned in a way that is maximally effective in at-tracting the
desired target segment

Using Product Characteristics or
Customer Benefits

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LESSON 12
POSITIONING

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It is always tempting to try to position along several product
characteristics, as it is frustrating to have some good product
characteristics that are not commu-nicated. However, advertising
objectives that involve too many product character-istics can be
most difficult to implement. The result can often be a fuzzy,
confused image, which usually hurts a brand.
Myers and Shocker have made a distinction between physical
characteris-tics, pseudophysical characteristics, and benefits, all of
which can be used in po-sitioning. Physical characteristics are the
most objective and can be measured on some physical scale such
as temperature, color intensity, sweetness, thickness, distance,
dollars, acidity, saltiness, strength of fragrance, weight, and so
on.
Pseudophysical characteristics, in contrast, reflect physical
properties that are not easily measured. Examples are spiciness,
smoky taste, tartness, type of fra-grance (smells like a . . .),
greasiness, creaminess, and shininess. Benefits refer to advantages that promote the well being of the consumer or user.

Positioning by Price and Quality
The price-quality product characteristic is so useful and pervasive
that it is appropriate to consider it separately. In many product
categories, there exist brands that deliberately attempt to offer
more in terms of service, features, or perfor-mance. Manufacturers of such brands charge more, partly to cover higher costs
and partly to help communicate the fact that they are of higher
quality. Conversely, in the same product class there are usually
other brands that appeal on the basis of price, although they
might also try to be perceived as having comparable or at least
adequate quality. In many product categories, the price-quality
issue is so im-portant that it needs to be considered in any
positioning decision.

position for the brand, a position that deliberately attempts to
expand the brand’s market.

Positioning by Product User
Another positioning approach is to associate a product with a
user or a class of users. Michael Jordan, for example, was used
by Nike. Many cosmetic companies have used a model or personality to position their product. The expectation is that the
model or personality will influence the product’s image by
reflecting the characteristics and image of the model or personality com-municated as a product user.

Positioning by Product Class
Some products need to make critical positioning decisions that
involve product-class associations. For example, Maxim freezedried coffee, the first one in the market, needed to position
itself with respect to regular and instant coffee. Some margarines position them with respect to butter. Dried milk makers
came out with instant breakfast positioned as a breakfast
substitute and a virtually identical product po-sitioned as a
dietary meal substitute. The toilet soap Dove positioned itself
apart from the soap category as a cleansing cream product, for
women with dry skin.
The soft drink 7-Up was for a long time positioned as a
beverage that had a “fresh clean taste” that was “thirst quenching.” However, research uncovered the fact that most people did
not regard 7-Up as a soft drink but rather as a mixer bev-erage;
therefore, the brand tended to attract only light soft-drink users.
The posi-tioning strategy was then developed to position7-Up
as a “mainline” soft drink, as a logical alternative to the “colas”
but with a better taste. The successful “Uncola” campaign was
the result.

Positioning by Cultural Symbols
Many advertisers use deeply entrenched cultural symbols to
differentiate their brand from competitors. The essential task is
to identify something that is very meaningful to people that
other competitors are not using and associate the brand with
that symbol.

Positioning by Competitor

It is usually very difficult to compete successfully using both
quality and price. There is always the risk that the quality
message will blunt the basic “low-price” position or that people
will infer that if the prices are low, the quality must be low, too.

Positioning by Use or Application
Another way to communicate an image is to associate the
product with a use, or application. Products can, of course, have
multiple positioning strategies, although in-creasing the
number involves obvious difficulties and risks. Often a
positioning-by use strategy represents a second or third

In most positioning strategies, an explicit or implicit frame of
reference is one or more competitors. In some cases the
reference competitor(s) can be the dominant aspect of the
positioning strategy. It is useful to consider positioning with
respect to a competitor for two reasons. First, the competitor
may have a firm, well-crystallized image developed over many
years. The competitor’s image can be used as a bridge to help
communicate another image referenced to it. If someone wants
to know where a particular address is, it is easier to say it is next
to the Bank of America building than to describe the various
streets to take to get there. Second, sometimes it is not important how good customers think you are; it is just important
that they believe you are better than (or perhaps as good as) a
given competitor.
Perhaps the most famous positioning strategy of this type was
the Avis “We’re number two, we try harder” campaign. The
message was that the Hertz company was so big that they did
not need to work hard. The strategy was to po-sition Avis with
Hertz as major car-rental options, and therefore to position

Positioning with respect to a competitor can be an excellent way
to create a position with respect to a product characteristic,
“especially price and quality. Positioning with respect to a
competitor can be accomplished by compara-tive advertising,
advertising in which a competitor is explicitly named and compared on one or more product characteristics.
So how should you go about formulating your positioning
plan? There are essentially 2 ways of going about it.
a. Market Positioning.
b. Psychological Positioning

Market Positioning
It is a three-step process:
i. Identify market opportunities.
ii. Segment the market and select the right segment.
iii. Devise a competitive strategy.
The whole idea is to meet market requirements better than the
competitors can.

1. Explore the Market
Ask which are the areas where the company has distinctive
advantage over the competition. Study the sales potential of the
new market and its growth rate. Do financial calculations like to
produce, profits, pricing etc. Understand market dynamics and
channels of distribution.
Put the key factors that may contribute to success on paper.
2. Segmentation and Targeting
Markets can be segmented on different bases, e.g., users,
products. Further segmentation be on the basis of end-use.
The marketer targets his product to a particular segment. While
doing so, competitor’s positions are kept in mind, by drawing a
product space map (PSM).
3. Competitive Strategy
Identify the competitor’s weaknesses and your company’s
strengths. Emphasize your strengths to differentiate your offer.
The company identifies the most important differences to
develop strategy.
Consider factors like:
i. Market share
ii. Profitability
iii. Product range
iv. Corporate profile
v. Financial strength
vi. Cost position
vii.Product differentiation
viii.Quality of management, technology, distribution
ix. Reputation.
Find out the gaps between you and your competitors against
the above-listed factors. It will give you an offer that distinguishes you – a benefit bundle or value package consisting of
price, distribution and service mix.

These days many products are technologically so similar to each
other and distinctions are not possible. The other possibilities
to distinguish the offer are so many – warranties, after-salesservice, installment offers, price-offs, discounts, strong
distribution, responsiveness etc.

Psychological Positioning
Basically, psychological positioning is a communication exercise
that follows AIDA: Attention, Interest, Desire and Action
model. It is derived from market positioning and tells who the
company is, what the product does, and what to expect from
the purchase.
The brand name, the look and the packaging must complement
the psychological positioning. Consumer behavior is driven
more by feelings than rationale, and even the most aptly
positioned brand might fail if it does not strike the right chord.
Brand ultimately has to build a relationship with the customer.
Benefits and benefit gaps are easy to identify through research.
Feelings are more difficult to get to. Coffee, for instance, is
about intimacy, romance and togetherness. Titan is a gift of
appreciation. Lakme and Vareli touch a streak of narcissism in a
woman. Brand positioning is thus not just occupying a slot in
the mind of the consumers. It is about ruling the heart also.
Another interesting area worth understanding is Perceptual
Mapping for Positioning
Perceptual Space Map (PSM) shows the perceived relative
positions of products along different dimensions. To do this,
the attributes or dimensions of a product are identified by
qualitative research like depth interviews. The consumers are
then asked to rank each brand along each of the dimensions
identified. Statistical techniques are used to reduce a very large
number of dimensions to a few significant dimensions.
To illustrate, price and the degree of automation have been
identified as the significant dimensions of the washing
machines’ market. The perceptual map showing existing brands
along these dimensions is given below.
Degree of Automation
High Automation
Sumeet
Videocon Automatic
Taffy
Low Price

Videocon 200NT
High Price

Bajaj
Low Automation

Consider the Following
1. Videocon semi-automatic is moderately priced washing
machine, and so is Taffy by Rallies. The closer brands on
PSM are competing with each other.

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Avis away from National, which at the time was a close third to
Avis.

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2. Video con automatic fills a market niche by being high on
automation and moderate on price.
3. Bajaj is not competing with Videocon and Sumeet since it is
low-priced non-automatic Manual model.
4. The low price, high automation niche is still vacant, and
offers distinct possibilities. PSM is used to cluster brands
into competing groups to define market segments.
5. When more dimensions are used, a technique called multiple
dimensional scaling (MDS) is used. The computer software
is now available.
This concept is a wonderful tool to understand where your
brand lies in comparison to other brands in the same category.
You could understand their positioning and the positioning of
the leader. That would be the benchmark for you to know how
consumer perceive that brand.

Advertising and Positioning
Research has shown that there is a very real limit to how much a
mind set can handle, According to George A. Miller, Harvard
psychologist; the average person can rarely name more than
seven brands. This is where positioning comes in. Advertising
has to establish the brand in a commanding position in the
mind-sets if consumers.
The image and appeals must be related to the way consumers
possibly think about a brand and thus position it in their
minds. In order to develop a clear position, the communicator
must somehow put together all aspects of product, consumer,
trade, competition and communication situation in a distinctive
way for that brand. Good positions are difficult to maintain,
and a company must be prepared to defend its position
sometimes at great cost.
The competitors relate their brand to a brand that is in’ a
dominating position. Positioning doesn’t require a head-on
collision with the leading competing brand. This is quite risky.
It is better to maneuver around the leader’s position.
Sacrifice is the essence of positioning: For effective positioning,
a brand has to stand for one quality or benefit in the mind of
consumers, instead of being all things to all people. This
involves sacrifice of opportunity to different market segments.
Positioning in the consumer’s mind is the end product of the
process of filtering information about:
•

The product attributes,

•

The packaging,

•

The pricing, and the image of the product created by
advertising.

This may be different from the product’s functional or physical
attributes. This subtle distinction is increasingly important in a
competitive market place where thousands of advertisements
fight for the attention of the consumer.
In the 50s there used to be hard sell, with a focus on product
features and customer benefits. The USP became a popular
concept, thanks to Ted Bates Ad Agency in 40s. Rosser Reeves
later popularized it. The Unique Selling Proposition is a unique
or specific consumer benefit offered by a brand. It is an integral
part of the brand’s position.
But brand position, however, goes beyond that. It is a fusion
of product class, target consumer, brand proposition and
distance from competing brands.
In the 60s attention was diverted to image. Reputation or image
was more important than specific product features. As Ogilvy
aptly puts it, “Every advertisement is a long term investment in
the image of a brand.” The result was creative advertising.
In the 70s, as we have already seen, the positioning era dawned.
Rosser Reeves discusses this in Reality in Advertising (1960).
Positioning is really, to quote Prof. Sen Gupta, a crusade against
the slothful marketing philosophy of offering me-too products.
In each of these steps one can employ marketing research
techniques to pro-vide needed information. Sometimes the
marketing research approach provides a, conceptualization that
can be helpful even if the research is not conducted.

Positioning research starts with the study of the market to
identify the factors, which are most important to various users
of the product category. Here we have to ignore all assumptions
about product category. How is this done?
First, investigate what consumers do with the products. It
reflects their perceptions or understanding of various categories
and brands. To illustrate for positioning a cream, ask what
people use on their bodies. How various brands are used?
When are they used? Last but not the least, the purposes for
which the brands are used.
Secondly, attitudinal information should be developed according to the purposes for which the brand is to be used and not
just for any two brands. If one brand is used for relaxation and
one for refreshment, it is pointless to compare them.
Thirdly, it is important to ask why a product or brand is not
being used.
Fourthly, when there are existing brands, it is important to
identify where they are placed in the consumer’s mind. Early in
the product development, it is important to uncover new
psychological dimensions. The emphasis then moves to
physical attractiveness – how perceptions are related to physical
features and why physical features have to be offered to match
the psychological positioning.
Lastly, positioning is creative. It is helped by complete information. It is not necessary to carry out always attitudinal and
quantitative research all the time. Good strategists do fact
gathering research to come up with fairly decent estimates of
market perceptions on relevant attributes, and location of
various brands along these attributes. Once these are identified,
alternative-positioning strategies could be considered.

Positioning Summed Up
Positioning is amenable to the following definition:
1. The position of a brand is the perception it brings about in
the mind of the target consumer.
2. This perception reflects the essence of the brand in terms of
its functional benefits in the judgement of that consumer.
3. It is relative to the perception held by a consumer of
competing brands. The competing brands can be denoted as
points or positions in perceptual space of the consumer and
together to make up a product class.

Appendix to Positioning
Positioning
As Popularized by Al Ries and Jack Trout
In their 1981 book, Positioning: The Battle for your Mind, Al
Ries and Jack Trout describe how positioning is used as a
communication tool to reach target customers in a crowded
marketplace. Regular use of the term dates back to 1972 when
the same authors published a series of articles in Advertising
Age called “The Positioning Era.” Not long thereafter, Madison
Avenue advertising executives began to develop positioning
slogans for their clients and positioning became a key aspect of
marketing communications.

Positioning: The Battle for your Mind has become a classic in
the field of marketing. The following is a summary of the key
points made by Ries and Trout in their book.

Information Overload
Ries and Trout explain that while positioning begins with a
product, the concept really is about positioning that product in
the mind of the customer. This approach is needed because
consumers are bombarded with a continuous stream of
advertising, with advertisers spending several hundred dollars
annually per consumer in the U.S. The consumer’s mind reacts
to this high volume of advertising by accepting only what is
consistent with prior knowledge or experience.
It is quite difficult to change a consumer’s impression once it is
formed. Consumers cope with information overload by
oversimplifying and are likely to shut out anything inconsistent
with their knowledge and experience. In an over-communicated
environment, the advertiser should present a simplified
message and make that message consistent with what the
consumer already believes by focusing on the perceptions of the
consumer rather than on the reality of the product.

Getting Into the Mind of the Consumer
The easiest way of getting into someone’s mind is to be first. It
is very easy to remember who is first, and much more difficult
to remember who is second. Even if the second entrant offers a
better product, the first mover has a large advantage that can
make up for other shortcomings.
However, all is not lost for products that are not the first. By
being the first to claim a unique position in the mind the
consumer, a firm effectively can cut through the noise level of
other products. For example, Miller Lite was not the first light
beer, but it was the first to be positioned as a light beer,
complete with a name to support that position. Similarly,
Lowenbrau was the most popular German beer sold in
America, but Beck’s Beer successfully carved a unique position
using the advertising,
“You’ve tasted the German beer that’s the most popular in
America. Now taste the German beer that’s the most popular in
Germany.”
Consumers rank brands in their minds. If a brand is not
number one, then to be successful it somehow must relate
itself to the number one brand. A campaign that pretends that
the market leader does not exist is likely to fail. Avis tried
unsuccessfully for years to win customers, pretending that the
number one Hertz did not exist. Finally, it began using the line,
“Avis in only No. 2 in rent-a-cars, so why go with us? We try
harder.”
After launching the campaign, Avis quickly became profitable.
Whether Avis actually tried harder was not particularly relevant
to their success. Rather, consumers finally were able to relate
Avis to Hertz, which was number one in their minds.
Another example is that of the soft-drink 7-Up, which was No.
3 behind Coke and Pepsi. By relating itself to Coke and Pepsi as
the “Uncola”, 7-Up was able to establish itself in the mind of
the consumer as a desirable alternative to the standard colas.

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Research for Positioning

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When there is a clear market leader in the mind of the consumer, it can be nearly impossible to displace the leader,
especially in the short-term. On the other hand, a firm usually
can find a way to position itself in relation to the market leader
so that it can increase its market share. It usually is a mistake,
however, to challenge the leader head-on and try to displace it.

Positioning of a Leader

of changing Name 1 to an expanded Name 1 – Name 2, and
later to just Name 2.

Positioning of a Follower
Second-place companies often are late because they have chosen
to spend valuable time improving their product before
launching it. According to Ries and Trout, it is better to be first
and establish leadership.

Historically, the top three brands in a product category occupy
market share in a ratio of 4:2:1. That is, the number one brand
has twice the market share of number two, which has twice the
market share of number three. Ries and Trout argue that the
success of a brand is not due to the high level of marketing
acumen of the company itself, but rather, it is due to the fact
that the company was first in the product category. They use the
case of Xerox to make this point. Xerox was the first plainpaper copier and was able to sustain its leadership position.
However, time after time the company failed in other product
categories in which it was not first.

If a product is not going to be first, it then must find an
unoccupied position in which it can be first. At a time when
larger cars were popular, Volkswagen introduced the Beetle with
the slogan “Think small.” Volkswagen was not the first small
car, but they were the first to claim that position in the mind of
the consumer.

Similarly, IBM failed when it tried to compete with Xerox in the
copier market, and Coca-Cola failed in its effort to use Mr. Pibb
to take on Dr. Pepper. These examples support the point that
the success of a brand usually is due to its being first in the
market rather than the marketing abilities of the company. The
power of the company comes from the power of its brand, not
the other way around.
With this point in mind, there are certain things that a market
leader should do to maintain the leadership position. First, Ries
and Trout emphasize what it should not do, and that is boast
about being number one. If a firm does so, then customers will
think that the firm is insecure in its position if it must reinforce
it by saying so.
If a firm was the first to introduce a product, then the advertising campaign should reinforce this fact. Coca-Cola’s “the real
thing” does just that, and implies that other colas are just
imitations.
Another strategy that a leader can follow to maintain its
position is the multibrand strategy. This strategy is to introduce
multiple brands rather than changing existing ones that hold
leadership positions. It often is easier and cheaper to introduce a
new brand rather than change the positioning of an existing
brand. Ries and Trout call this strategy a single-position strategy
because each brand occupies a single, unchanging position in the
mind of the consumer.
Finally, change is inevitable and a leader must be willing to
embrace change rather than resist it. When new technology
opens the possibility of a new market that may threaten the
existing one, a successful firm should consider entering the new
market so that it will have the first-mover advantage in it. For
example, in the past century the New York Central Railroad lost
its leadership as air travel became possible. The company might
have been able to maintain its leadership position had it used
its resources to form an airline division.
Sometimes it is necessary to adopt a broader name in order to
adapt to change. For example, Haloid changed its name to
Haloid Xerox and later to simply Xerox. This is a typical pattern

Other positions that firms successfully have claimed include:
•

age (Geritol)

•

high price (Mobil 1 synthetic engine lubricant)

•

gender (Virginia Slims)

•

time of day (Nyquil night-time cold remedy)

•

place of distribution (L’eggs in supermarkets)

•

quantity (Schaefer – “the one beer to have when you’re having
more than one.”)

It most likely is a mistake to build a brand by trying to appeal to
everyone. There are too many brands that already have claimed a
position and have become entrenched leaders in their positions.
A product that seeks to be everything to everyone will end up
being nothing to everyone.

Repositioning the Competition
Sometimes there are no unique positions to carve out. In such
cases, Ries and Trout suggest repositioning a competitor by
convincing consumers to view the competitor in a different way.
Tylenol successfully repositioned aspirin by running advertisements explaining the negative side effects of aspirin.
Consumers tend to perceive the origin of a product by its name
rather than reading the label to find out where it really is made.
Such was the case with vodka when most vodka brands sold in
the U.S. were made in the U.S. but had Russian names.
Stolichnaya Russian vodka successfully repositioned its Russiansounding competitors by exposing the fact that they all actually
were made in the U.S., and that Stolichnaya was made in
Leningrad, Russia.
When Pringle’s new-fangled potato chips were introduced, they
quickly gained market share. However, Wise potato chips
successfully repositioned Pringle’s in the mind of consumers by
listing some of Pringle’s non-natural ingredients that sounded
like harsh chemicals, even though they were not. Wise potato
chips of course, contained only “Potatoes. Vegetable oil. Salt.”
As a resulting of this advertising, Pringle’s quickly lost market
share, with consumers complaining that Pringle’s tasted like
cardboard, most likely as a consequence of their thinking about
all those unnatural ingredients. Ries and Trout argue that is
usually is a lost cause to try to bring a brand back into favor
once it has gained a bad image, and that in such situations it is
better to introduce an entirely new brand.

The Power of a Name
A brand’s name is perhaps the most important factor affecting
perceptions of it. In the past, before there was a wide range of
brands available, a company could name a product just about
anything. These days, however, it is necessary to have a memorable name that conjures up images that help to position the
product.
Ries and Trout favor descriptive names rather than coined ones
like Kodak or Xerox. Names like DieHard for a battery, Head &
Shoulders for a shampoo, Close-Up for a toothpaste, People
for a gossip magazine. While it is more difficult to protect a
generic name under trademark law, Ries and Trout believe that
in the long run it is worth the effort and risk. In their opinion,
coined names may be appropriate for new products in which a
company is first to market with a sought-after product, in which
case the name is not so important.
Margarine is a name that does not very well position the
product it is describing. The problem is that it sounds artificial
and hides the true origin of the product. Ries and Trout
propose that “soy butter” would have been a much better name
for positioning the product as an alternative to the more
common type of butter that is made from milk. While some
people might see soy in a negative light, a promotional
campaign could be developed to emphasize a sort of “pride of
origin” for soy butter.
Another everyday is example is that of corn syrup, which is
viewed by consumers as an inferior alternative to sugar. To
improve the perceptions of corn syrup, one supplier began
calling it “corn sugar”, positioning it as an alternative to cane
sugar or beet sugar.
Ries and Trout propose that selecting the right name is
important for positioning just about anything, not just
products. For example, the Clean Air Act has a name that is
difficult to oppose, as do “fair trade” laws. Even a person’s
name impacts his or her success in life. One study showed that
on average, schoolteachers grade essays written by children with
names like David and Michael a full letter grade higher than
those written by children with names like Hubert and Elmer.
Eastern Airlines was an example of a company limited by its
name. Air travel passengers always viewed it as a regional airline
that served the eastern U.S., even though it served a much wider
area, including the west coast. Airlines such as American and
United did not have such a perception problem. (Eastern
Airlines ceased operations in 1991.)
Another problem that some companies face is confusion with
another company that has a similar name. Consumers frequently confused the tire manufacturer B.F. Goodrich with
Goodyear. The Goodyear blimp had made Goodyear tires wellknown, and Goodyear frequently received credit by consumers
for tire products that B.F. Goodrich has pioneered. (B.F.
Goodrich eventually sold its tire business to Uniroyal.)

Other companies have changed their names to something more
general, and as a result create confusion with other similarsounding companies. Take for instance The Continental Group,
Inc. and The Continental Corporation. Few people confidently
can say which makes cans and which sells insurance.

The No-Name Trap
People tend use abbreviations when they have fewer syllables
than the original term. GE is often used instead of General
Electric. IBM instead of International Business Machines. In
order to make their company names more general and easier to
say, many corporations have changed their legal names to a
series of two or three letters. Ries and Trout argue that such
changes usually are unwise.
Companies having a broad recognition may be able to use the
abbreviated names and consumers will make the translation in
their minds. When they hear “GM”, they think “General
Motors”. However, lesser known companies tend to lose their
identity when they use such abbreviations. Most people don’t
know the types of business in which companies named USM or
AMP are engaged.
The same applies to people’s names as well. While some
famous people are known by their initials (such as FDR and
JFK), it is only after they become famous that they begin using
their initials. Ries and Trout advise managers who aspire for
name recognition to use an actual name rather then first and
middle initials. The reason that initials do not lead to recognition is that the human mind works by sounds, not by
spellings.
Most companies began selling a single product, and the name
of the company usually reflected that product. As the successful
firms grew in to conglomerates, their original names became
limiting. Ries and Trout advise companies seeking more general
names to select a shorter name made of words, not individual
letters. For example, for Trans World Airlines, they favored
truncating it simply to Trans World instead removing all words
and using the letters TWA.

The Free-Ride Trap
A company introducing a new product often is tempted to use
the brand name of an existing product, avoiding the need to
build the brand from scratch. For example, Alka-Seltzer named
a new product Alka-Seltzer Plus. Ries and Trout do not favor
this strategy since the original name already in positioned in the
consumer’s mind. In fact, consumers viewed Alka-Seltzer Plus
simply as a better Alka-Seltzer, and the sales of Alka-Seltzer
Plus came at the expense of Alka-Seltzer, not from the market
share of the competition.
Some firms have built a wide range of products on a single
brand name. Others, such as Procter & Gamble have selected
new names for each new product, carefully positioning the
product in a different part of the consumer’s mind. Ries and
Trout maintain that a single brand name cannot hold multiple
positions; either the new product will not be successful or the
original product bearing the name will lose its leadership
position.
Nonetheless, some companies do not want their new products
to be anonymous with an unrecognized name. However, Ries

ADVERTISING MANAGEMENT

Repositioning a competitor is different from comparative
advertising. Comparative advertising seeks to convince the
consumer that one brand is simply better than another.
Consumers are not likely to be receptive to such a tactic.

ADVERTISING MANAGEMENT

and Trout propose that anonymity is not so bad; in fact, it is a
resource. When the product eventually catches the attention of
the media, it will have the advantage of being seen without any
previous bias, and if a firm prepares for this event well, once
under the spotlight the carefully designed positioning can be
communicated exactly as intended. This moment of fame is a
one-shot event and once it has passed, the product will not
have a second chance to be fresh and new.

The Line Extension Trap
Line extensions are tempting for companies as a way to leverage
an existing popular brand. However, if the brand name has
become near generic so that consumers consider the name and
the product to be one and the same, Ries and Trout generally
do not believe that a line extension is a good idea.
Consider the case of Life Savers candy. To consumers, the brand
name is synonymous with the hard round candy that has a hole
in the middle. Nonetheless, the company introduced a Life
Savers chewing gum. This use of the Life Savers name was not
consistent with the consumer’s view of it, and the Life Savers
chewing gum brand failed. The company later introduced the
first brand of soft bubble gum and gave it a new name: Bubble
Yum. This product was very successful because it not only had a
name different from the hard candy, it also had the the advantage of being the first soft bubble gum.
Ries and Trout cite many examples of failures due to line
extensions. The consistent pattern in these cases is that either
the new product does not succeed, or the original successful
product loses market share as a result of its position being
weakened by a diluted brand name.

When Line Extensions Can Work
Despite the disadvantages of line extensions, there are some
cases in which it is not economically feasible to create a new
brand and in which a line extension might work. Some of the
cases provided by Ries and Trout include:
Low volume product – if the sales volume is not expected to be
high.
Crowded market – if there is no unique position that the
product can occupy.
Small ad budget – without strong advertising support, it might
make sense to use the house name.
Commodity product – an undifferentiated commodity product
has less need of its own name than does a breakthrough
product.
Distribution by sales reps – products distributed through reps
may not need a separate brand name. Those sold on store
shelves benefit more from their own name.
Positioning Has Broad Applications
The concept of positioning applies to products in the broadest
sense. Services, tourist destinations, countries, and even careers
can benefit from a well-developed positioning strategy that
focuses on a niche that is unoccupied in the mind of the
consumer or decision-maker.

Notes

ADVERTISING MANAGEMENT

LESSON 13:
TUTORIAL
Learning Objectives
•

You will understand via this lesson the goal and objective of
an advertising campaign.

•

This lesson will expose you to the different types of
objectives.

•

Understand as to how to go about formulating the
objectives.

•

In understanding that objectives are closely linked to the
communication process.

Find out the profile both demographic and psychographic of
people for the following products / Service:
•

Golf club

•

Parker Pen

•

Rediff.com

•

ICICI Bank

•

Navratan Hair oil

•

McDonalds

•

Omega Watches

•

Lux Soaps

•

Lakme Moisturizer

•

Adidas Shoes

•

Horlicks

•

Babool Toothpaste

•

Tata Indica

•

TVS Scooty

•

Gold Council of India

Ideally you should have seen the advertisements on television
and are able to understand the profile that the company is
looking at. In addition you could get in touch with the
representatives of these companies and find out more about
the brand.
How would you go on to make the positioning of a brand that
is in the product category of breakfast food, like cornflakes?
You could assume the marketing variables.

Notes

LESSON 14:
BUDGET DECISION

ADVERTISING MANAGEMENT

Learning Objectives
•

You will understand via this lesson the different ways of
setting the advertising budget.

•

The case study focuses on the need of advertising budget in
times of economy downturn.

CHAPTER 4
ADVERTISING BUDGET

or steadying the share, decision can bemade to have a bigger
or smaller budget than competition. Instead of reacting to
competitor advertising results, firms can be proactive in their
approach by planning their own goals of marketing and then
the advertising budget will emerge.
4. Historical Method: In this method last year’s advertising
budget is adopted for the year with a view that practically no
change has taken place in the market and market growth is
slow, which does not justify any addition to the budget. Last
year’s budget could be multiplied by a factor to cover media
rate increase.
5. Affordability Method: Some firms believe that advertising is
tactical and not strategic and hence does not need much
attention. These kinds of firms follow a method of
affordability and spend what is left after managing the details
of the official expenses involved in paying to the factors of
production.

There are various methods of deciding on advertising budget.
This decision will be largely influenced by the objective that we
set for the campaign. For example if there is a new product
launch then the advertising campaign will have to be high where
as for launching a repeat campaign one would like to spend less.
The most commonly used advertising budgeting method
include
1. Percentage of Sales Volume: The percentage is worked out
on the basis of a firm’s historical budget, industry norms or
on the basis of the prevailing market conditions. If the
market has started an upward trend then one percent extra
amount will be put for advertising budget. Following this
method without considering market conditions may create
problem. If the firm’s market share is in a downward trend
then the firm may decide to increase the advertising budget.
If the product is in the disinvestments stage, then
disinvestment may be an option. In such a case only
marginal advertising budget is sufficient to clear the stock. If
the firm realizes that at the decline stage the competitors are
moving out then the firm can decide to take the leadership
position through aggressive advertising.
2. Unit of Sale Method: Consumer durable firms make use of
this method as a variant on sales percentage. While it mostly
works out same as a sales percentage, here the firm puts an
amount of advertising expenses on the unit as add on.
3. Competitive Parity Method: the firm must carefully study
Competitive information regarding their sales, distribution
pattern and advertising. It will provide the correlation
between the competitive sales and advertising effort.
Depending on the firm’s strategy of increasing market share
74

6. Total Group Budget: In case of multi location and multi
product line firms , a total amount id decided as advertising
and each strategic business unit receives a share according to
their needs. This method helps the group to segregate some
amount for corporate group advertising for building he
image of the organization.
7. Percentage of Anticipated Turnover: This method is useful
in dynamic markets and budget can be fixed on the
estimated demand pattern than the current year sales.
8. Elasticity Method: This method takes in to account the
seasonality of business and the periodicity in the purchase
cycle of consumers in to consideration. This method takes in
to consideration the demand and supply situation and is
more used in industrial products.
9. Operational Modeling: Market research gives advertising
expenses, market response and sales per advertising figures
and the modeling is done to explain the budget.
10. Composite Method: This method takes in to consideration
several factors in formulating the advertising budget which
include indices like firm’s past sales, future sales projection,
production capacity, market environment, sales problems,
efficiency level of sales personnel, seasonality of the market,
regional considerations, changing media scenario and
changing media impact on the target market segment, market
trends and results of advertising and marketing.
11.Objective and Task Method: Marketing people follow this
method more often as this is a scientific method where the
advertising goals are explicitly stated and the cost to achieve
the target is also spelt out. Taking each activity like increasing
geographic sales area, increasing market awareness by a certain
percentage over the figure obtained from the brand tracking
study, they add up the amounts needed for each activity. We
can illustrate the process as below:

2. Determine the percentage of the market that should be
reached by advertising: The advertiser hopes to reach 80%
(40 million prospects) with the advertising budget.
3. Determine the percentage of aware prospects that should
be persuaded to try the brand: The advertiser would be
pleased if 25 per cent of aware prospects (10 million)
tried the brand. This is because it estimates that 40% of
all triers or 4 million people would become loyal users.
This is called the Market Goal.
4. Determine the number of advertising impressions per 1
per cent of trial rate: the advertiser estimates that 40
advertising impressions (exposures) for every 1 per cent
population would bring about a 25% trail rate.
5. Determine the number of Gross Rating Points that
would have to be purchased: A Gross rating Point is one
exposure to 1 per cent of the target population. Because
the company wants to achieve 40 exposures to 80% of
the population, it will want to buy 3,200 gross rating
points
6. Determine the necessary advertising budget on the basis
of average cost of buying a gross rating point. To expose
1 per cent of the target population to one impressions
costs an average of Rs. 3277/. Therefore, 3,200 gross
rating point s would cost Rs. 10,486,400 in the
introductory year.

Case Study
Imagine this: You are flying at 30,000 feet. The captain announces that a huge storm is approaching. He then informs you
that he is running low on fuel. If he lowers the speed to
conserve fuel, the storm may overpower the plane and take it
off its course. He may then not have enough fuel to find his
way back to reach the destination. If he increases speed to surge
through the clouds, he runs the risk of exhausting his fuel
faster. Now he gives you the option of lowering the speed to
conserve fuel or to go full throttle to surge through the clouds.

What would you Choose
Supporting a brand through an economic downturn is much
like a plane caught in a storm with low fuel. Of course, one has
the option of conserving the juice. However, after the saving,
whether the brand will be able to recover from the effects of a
nosedive or not is a million-dollar question. Nobody has seen
the future, but we have the option of looking back. Time and
again, advertising professionals have tried to prove that
advertising in times of recession has helped brands in the long
run. The Harvard Business Review covered 200 US companies
during the recession of 1923-25. During the period of postrecession recovery, companies that spent more money on
marketing expenses achieved higher sales. This study was not
accepted by most because it did not record the profit indicators.
In 1999, PIMS (Profit Impact of Marketing Strategy) conducted
a special analysis of 183 UK-based companies in periods of
recession and recovery. Of that lot, 110 cut ad spends, 53 chose
to maintain at the same level and 20 increased expenditure.

During the period of recession, the ones that spent more made
the least profits. However, during the period of recovery, the
scroungers saw their profit grow by 0.8 per cent, whereas the
spenders saw a hefty 4.3 per cent points growth. This more
than made up for the lower profits during the period of
recession. As for market share, the cost-cutters saw 0.6 per cent
point growth as against a hefty 1.7 per cent appreciation for the
spenders, during the recovery period.
The study most conclusively proved that the good costs that
one should focus on during recession are:
•

Marketing communication l Product quality enhancement

•

New product development Whereas the bad costs that
should be curbed during recession are:
•

Manufacturing overheads

•

Administrative overheads

•

Fixed capital

Working Capital
If these are effectively cut, there should be enough money to
spend on the good costs. Such examples supporting advertising
spends during recession are quite common in the annals of
marketing history. Closer home, there are enough examples
from countries that faced the Asian meltdown. Here, brands
that spent maintained their leadership position and, in some
cases, surged ahead of the competition.
Some recent analyses during our current phase of economic
slowdown throw up interesting facts in support of advertising.
In the sub-popular soap category, Breeze has upped its Gross
Rating Points (GRP) by 47 per cent over the year 2000 to achieve
a 20 per cent value growth in sales. As against that, Lux has
maintained its GRPs to see some decline in sales value.
Similarly, in the category of hair dyes, Godrej—the market
leader—has grown by more than 20 per cent in value by
increasing GRPs by a comparative amount. These are some
indicators that hard times have not dampened the desire to
look good and feel good. As a matter of fact, there is an
indication that despite recession, businesses such as mortgage,
insurance, snack foods, home furnishings and house wares, to
name a few, continue to do well. Perhaps, investing, feeling safe
and feeling good are the more basic needs during a phase when
people are generally feeling depressed?
While on one hand periods of economic slowdown are a good
time for established players because consumers don’t want to
take chances, it’s also true that during such uncertain times there
is a tendency to trade-down. Therefore, recession is also a great
opportunity for challenger brands that spend heavily to
communicate brand values that lead to a churn. One such
example in recent times is Akai TV from Baron. At a point
when the color TV business was growing annually at the rate of
eight per cent (value) and the total advertising outlay for all
brands put together was Rs 830 million, Akai came up with a
proposition for upgrading from black-and-white TVs on one
hand and moving from 21″ to 29″ TVs on the other; all this at
never-before, attractive prices. Akai achieved some dramatic
results in terms of market shares with an aggressive advertising
budget that supported a hefty 16 per cent share-of-voice (SOV).
Akai reached a 13 per cent market share in less than two years.
75

ADVERTISING MANAGEMENT

1. Establish the Market Share goal: lets say the company
estimates 50 million potential users and sets a target of
attracting 8 percent of the market i.e. four million users.

ADVERTISING MANAGEMENT

What really happened as a result of this brave and defiant move
from Baron was that the color TV market saw a growth of 18
per cent and, in the following year, the category grew three-folds.

“Quote-Unquote what few stalwarts have to say about Commission.”
•

“Experience has taught me that advertisers get the best
results when they pay their agency a flat fee. . . . It is
unrealistic to expect your agency to be impartial when its
vested interest lies wholly in the direction of increasing your
commissionable advertising.”
– David Ogilvy, Confessions of an Advertising Man, 1971,
New York: Ballantine Books, p. 71.

•

“Make sure that your agency makes a profit. Your account
competes with all the other accounts in your agency. If it is
unprofitable, it is unlikely that the management of the
agency will assign their best men to work on it. And sooner
or later they will cast about for a profitable account to replace
yours.”
– David Ogilvy, Confessions of an Advertising Man, 1971,
New York: Ballantine Books, p. 71.

The Advertising Budget
Historical
HistoricalMethod
Method

•Common
•Commonbudgeting
budgetingmethod.
method.
•May
•Maybe
bebased
basedon
onlast
lastyear’s
year’swith
with
aapercentage
percentageincrease.
increase.
•Nothing
•Nothingto
todo
dowith
withadvertising
advertising
objectives.
objectives.

Task-Objective
Task-ObjectiveMethod:
Method:
Bottom-Up
Bottom-Up

•Most
•Mostcommon
commonmethod.
method.
•Looks
•Looksatatobjectives
objectivesset
setfor
foreach
each
activity,
activity,and
anddetermines
determinesthe
thecost
cost
of
ofaccomplishing
accomplishingeach
eachobjective.
objective.

Percentage-of-Sales
Percentage-of-Sales
Method
Method

•Compares
•Comparestotal
totalsales
saleswith
withthe
the
total
totaladvertising
advertising(or
(ormarketing
marketing
communication)
budget
communication) budgetduring
duringaa
previous
previoustime
timeperiod
periodto
tocompute
computeaa
percentage.
percentage.

The Advertising Budget
Competitive
Competitive Methods
Methods

•Relates
•Relatesthe
theamount
amountinvested
investedinin
advertising
advertisingto
tothe
theproduct’s
product’sshare
share
of
ofmarket.
market.
•Must
•Mustunderstand
understandshare-of-mind.
share-of-mind.

All
AllYou
YouCan
CanAfford
Afford
Method
Method

•Allocates
•Allocateswhatever
whateveris
isleft
leftover
overto
to
advertising.
advertising.
•Companies
•Companieswho
whouse
usethis
thisdon’t
don’t
value
advertising
very
much.
value advertising very much.

Budgeting Decisions
Budgeting decisions involve determining how much
money will be spent on advertising and promotion
each year and how the monies will be allocated

Two major decisions
• Establishing the size of the budget
• Allocating the budget

Notes

Learning Objectives
•

The case study will give you a critical understanding of the
various budgeting methods in advertising.

How Much to Spend on Advertising
By Joel Dean
The determination of advertising expenditures can be accomplished, at least theoretically, through the use of marginal
analysis. The difficulty is, of course, that advertising costs have
no necessary relationship to output.
The author of this article concludes that most methods which
are used to determine the size of the advertising budget have
no economic basis and the despite its limitations economic
analysis can be helpful in reaching better decisions about
advertising expenditures.
Every important enterprise in the country wrestles unhappily
with the problem of how much to spend on advertising.
Despite the vast amount of money involved in this decision,
most executives have to play by ear. Few firms have a valid
theoretical or research basis for deciding whether the advertising
appropriation should be $100,000 or $200,000 a year. The
purpose of this article is to appraise the principal methods that
are now used for making this decision.
As a background for this appraisal we shall examine briefly the
contribution of economic theory, specifically in the form of
marginal analysis.
Author’s Note
A number of people were kind enough to read this manuscript
and suggest improvements: Stephen Taylor and Philip Brooks
of Joel Dean Associates; Professors James Bonbright, Carl
Shoup, and Howard Nixon of Columbia University; Ralph
Cordiner and Robert Peare of the General Electric Company;
and A.L.Nickerson of the Socony-Vacuum Oil Company.
Source
From Harvard Business Review, vol.29, January-February, 1951,
pp.65-74. Joel Dean: Professor of Business Economics,
Columbia University.
Unavoidably, therefore, much of the discussion is in the no
men’s land between the abstract analysis of the economic
theorist and the largely intuitive performance of the practitioner.
The fact is that there is no sure or easy way to determine how
much to spend on advertising, and the various methods widely
used for that purpose have serious weaknesses, which show up
against a background of economic analysis.

Contribution of Economic Theory
Economic analysis of the role of advertising (and other pure
selling costs) in the competitive adjustment of the enterprise
has developed concepts that can be made useful in planning and
controlling advertising outlays.

Economical analysis is a basic economic approach to all business
problems, including the determination of the total advertising
outlay, and it is, at least logically, superior to other methods. It
says that advertising expenditure for each product should be
pushed to the point where the additional outlay equals the
profit from the added sales caused by the outlay. The resulting
total is the advertising budget that will maximize advertising
profits in the short run.
To implement this approach, a comparison is needed of what
would happen with and without the advertising outlay in
question. This knowledge of the marginal effect of advertising
is extremely difficult to obtain. If the effect can be estimated
with tolerable reliability, however, the marginal approach
provides a rational solution, not only for the total budget but
also for its allocation among years in the business cycle and
among products, areas, and media.
Nature of Advertising Costs. The distinctive nature of
advertising costs makes the analytical problem of determining
the most profitable advertising outlay much more complex
than an analysis using only production costs. Production costs
(and physical distribution costs that behave like them) are
functionally related to output (or sales) and can therefore be
budgeted and controlled by such relationships. Advertising
costs, in contrast, have no necessary functional relationship to
output; they are a cause, not a result of sales.
Advertising, like pricing and product innovation, is a device for
manipulating the firm’s sales volume. Price affects the volume
obtainable under specified demand conditions, while advertising and product improvement alter these conditions by
changing the public attitude toward the product and thus shift
the whole relation of sales to price. Hence profitability depends
on the most advantageous combination of price, product
improvement, advertising outlay, and other selling activities.
Since the practical problem is often to get the right combination
of advertising and other marketing activities, the problem of
the advertising budget is not alone, “How much should the
total selling effort be?” as economists have usually conceived it.
It is also, “What part of the selling job should be done by
impersonal, mass selling, as opposed to personal selling?”
These various influences are, of course, interactive. The price
changed, for example, may affect eh responsiveness of volume
to additional advertising expenditures; changes in the product
are almost certain to do so; and the price that will make the
most money may be different when advertising is stepped up
or when the product is improved.
For economic analysis, this is a problem of solving several
simultaneous equations, an intellectually intriguing pastime that
rarely makes sense or profits for businessmen. But the problem
can easily be cut down to manageable proportions by restricting
analysis to the short run, say one year, and by making some

ADVERTISING MANAGEMENT

LESSON 15:
CASE STUDY ON BUDGETS

ADVERTISING MANAGEMENT

assumptions about prices and costs. We shall proceed to
develop this kind of analysis.
Simplified Marginal Approach. Advertising cost is assumed to
include only pure selling costs, physical distribution costs being
included in production costs. Incremental production costs (i.e.,
the added costs of producing an additional unit of the
product) are assumed to remain the same, 20 cents a unit, over
the practical range of sales. The price of the product is also
assumed to remain constant over this range. (Hence the average
revenue and marginal revenue of economic theory are equal and
constant.) Under these circumstances the incremental profit
from an added sale is 50 cents a unit. Incremental advertising
cost (i.e., the additional advertising outlay that will be required
to sell an additional unit of output) is drawn as a curve, which
first declines, then is constant, and then rises at an accelerating
rate.
The rising phase of the advertising cost curve represents the
important part of our problem since, if advertising is to be
done at all, it should be expanded until diminishing returns set
in.
The upward trend in the curve reflects primarily the tapping of
successively poorer prospects as the advertising effort is
intensified. Presumably the most susceptible prospects are
picked off first, and progressively stiffer resistance is encountered from layers of prospects who are more skeptical, more
stodgy about their present spending patterns, or more attached
to rival sellers. The rise may also be caused by progressive
exhaustion of the most vulnerable geographic areas or the most
efficient advertising media. Promotional channels that are ideally
adopted to scale market of the firm are used first. (Actually, for
firms with expansible markets, the advertising cost curve may
have several minimum points corresponding to most efficient
use of different media appropriate for different-size markets,
e.g., newspapers, billboards, magazines, radio)
From the diagram it is clear that advertising should be pushed
to the point where the advertising cost curve interacts the price
line. Sales should not be expanded to a level where it costs more
than 50 cents in advertising to get another sale, since that sale
would bring only 50 cents of profit over incremental production costs. In general, advertising outlays should be increased in
every market and medium up to the point where the additional
cost of getting more business just equal the incremental profits
from that business.
Considering the totals that appear in an income statement,
rather than thinking in terms of increments, may clarify the
results of our interpretation. The total production cost of a
given output in represented on the diagram by the area under
the incremental production cost curve up to that output.
Similarly, the total sales revenue, is shown by the area under the
price line, and the total advertising cost by the area under the
curve of advertising cost. The area between the price line and
the advertising cost curve is the total net profit left after
advertising expenses and is clearly largest when output is at the
point where marginal advertising cost is 50 cents a unit.
The assumptions underlying this simplified exposition are fairly
realistic. A passive price policy is common enough, at least for
short-run adjustments like these under study here. Hence a
78

constant price (i.e., a price that is not changed as a result of
charges in advertising outlays) is a moderately good approximation to reality. As to the cost assumption, empirical findings for
industries whose production is mechanized indicate that
incremental production costs are usually constant over the range
of output that is significant for determining advertising policy
in the short run. Finally, there is much theory and some
empirical evidence to support the shape of the advertising cost
function drawn here. Abstracting from fluctuations in business
conditions and consumer incomes in a necessary simplification
which sharpens the incremental character of the measurement
problem, viz., to find the added sales with advertising, as
against sales without it.
Limitations. The main hitch in the marginal approach is the
difficulty of estimating incremental advertising cost. The
relationship of advertising to sales is more intricate than shortrun marginal analysis indicates; for example, the important and
difficult problem of rivals’ reactions is left out. Under most
circumstances the difficulties of predicting response large,
gauging the quality of advertising, and allowing for the
reservoir effect of past advertising frustrate efforts to isolate the
impact upon sales of additional advertising outlays.
Even when the advertising cost curve can be estimated with
some reliability, the validity of the cut-off criterion proposed by
marginal analysis comes into question, because much advertising is an investment rather than an expense. The objectives of
advertising are often dominantly long range, such as eternal life
for the firm and a place in the sun. For example, advertising
may be designed to step up volumes to the point where savings
of large-scale production and research are more than a match for
any new entrants, or advertising may be focused on achieving
product acceptance that will permit some price premium over
less familiar brands. Long-range goals such as these are difficult
to tie down to a concept of incremental profits that provides a
definitive cut-off for advertising.
Despite these limitations inherent in static economic analysis,
the marginal approach to determination of outlay make a
conceptual contribution of practical importance. Except for
long-run investment advertising, it provides in concept a simple
and definitive test of how much to spend and when to stop.
As such it is useful as a guide in thinking about advertising
appropriations and in determining what to shoot for in
estimates – in short, in guiding empirical measurement. The
fact that it manipulates esoteric functional relationships and
assumes that the businessman has knowledge when he does
not have it may restrict its immediate usefulness. But these very
restrictions may broaden its future usefulness by raising the
kind of questions that empirical research should try to answer.
Practical applications in Direct Mail. Perhaps the most promising area for applying the marginal approach quantitatively is
direct mail advertising. Here the distorting conditions that make
it hard to find the marginal cost of advertising are often at a
minimum. Keyed responses make it possible to trace a large
part of the results directly to a specific advertisement. Quality of
copy can be held constant (or manipulated independently) by
sending the identical copy to large numbers of prospects. The
cumulative effects of advertising are usually less troublesome,

These conditions make it possible to establish a ladder of
susceptibility by sampling measurements of marginal advertising cost, and to set up a stop-loss signal based on incremental
profit. An outline of the way a publisher might determine the
amount to spend on direct mail advertising in promoting a
specific book will illustrate how the incremental approach can be
applied quantitatively. In this sort of advertising,the procedure
can be sketched by the following steps:
1. Marshal the candidates for direct mailing in the form of
mailing lists. These lists will vary in “quality”, i.e.,
appropriateness for the particular book.
2. Array the lists in a guessed ladder of susceptibility to direct
mail advertising.
3. Starting at the top of the ladder and working down, test each
list by sending the promotional literature to an efficient
sample of the list.
4. Estimate the probable marginal advertising cost of each list
by computing the ratio of (a) the added advertising cost of
the mailings to (b) the sales obtained from the sample
mailing s (e.g., for List A, 50 cents a copy).
5. Estimate the incremental profit per copy. Roughly, it is the
spread between price and incremental printing costs (e.g.,
$1.00 a copy).
6. Rearrange the sample lists in a new ladder in respect to the
estimated marginal cost of advertising. Starting at the top,
make full mailings to each list down to the rung where
incremental profit just fails to cover estimated marginal
advertising cost (e.g., stop at List M, where a marginal
advertising cost of $1.00 a copy was indicated by the sample.

Alternative Methods
Having reviewed a theoretical foundation of selling cost analysis
as applied to advertising, we turn now to the methods that are
actually used to determine advertising outlays. Our central
concern is with the philosophy underlying outlays. Our central
concern is with the philosophy underlying the methods rather
than with the mechanics of administrative controls. We shall
use “budget” and “appropriation” interchangeable, though a
distinction might be made between the long-range expenditure
plan (budget) and the outlay authorized for a given year
(appropriation). The words “expenditure” and “outlay” will,
unless otherwise qualified, apply to future plans and will refer to
the budget.
As for the marginal approach reviewed in the preceding section,
its impeccable logic provides a criterion for appraising the
methods described in this section, even though its problems of
application are at times insurmountable.
Several alternative approaches to the problem of planning total
advertising expenditures will be examined: 1. a fixed percentage
of sales; 2. all you can afford; 3. whatever amount promises a
better than specified return on investment; 4. the amount

needed to attain advertising objectives; and 5. the amount
needed to match competitors’ advertising.
Percentage-of-sales Approach. Determination of the advertising
budget as a percentage of past or expected sales is a method
that was dominating in the past and is still widely used. A
survey of budgeting practices of industrial users in 1939 made
by the national Industrial Advertising Association and reported
in the Sales management Handbook1
1

J. C. Aspley, Editor (Fifth Edition, Chicago, The Dartnell
Corporation,1974) showed that 48% of the 383 respondent
companies used some variant of the percentage-of-sales
method. Neil H. Borden, in The Economic Effects on
Advertising,2

2 (Chicago, Richard D. Irwin, Inc. 1942), Chapter 25
points out that of 215 companies advertising consumers’
goods in 1935, 54% stated that their appropriations were a
predetermined percentage of sales, either of the past year or
of the year of the budget.
The method has several variants: it can use either a fixed
percentage of a percentage that varies with condition; it can be
based either on historical or on projected sales; and it can be
stated either in dollars or in physical volume
This general approach to the problem is hard to support
analytically. The purpose of advertising is to increase demand
for the company’s products above what it would otherwise be.
A stable or declining demand is not evidence that advertising is
ineffective, for without it sales might have been even lower. It
must be remembered that advertising is a cause, not a result, of
sales. The amount to be spent in shifting the demand schedule
should depend on how much the shift is worth. The volume
of sales the company already has tells nothing about the cost or
the worth of getting more.
It would appear even less rational to base the budget on the
volume of sales that the company expects to get. Sales will be
the result in part of the level of national income and the
accumulated effects of past advertising, not only of the
advertising that is currently being decided on. To the extent, that
sales are determined by forces other than current advertising, the
criterion of expected sales is irrelevant. To the extent that they
are determined by future advertising, the criterion is based on
circular reasoning.
How, then, can the widespread use of this method be explained? To some extent it may be due to top management’s
desire for the certainty and the illusion of control that comes
from relating this essentially discretionary element of expense in
a systematic way to revenue. There is an element of safety in
limiting advertising outlays in this manner, since expenditures
are timed to come when the company has the gross revenue to
afford them and when their tax effect may be favorable. But this
element of safety could be better found, as in the marginal
approach, by making advertising a function of expected profit,
which normally fluctuates cyclically more violently than expected
sales. If this method rests upon the belief that the added sales
per dollar of advertising are higher when national income is
high, it would be more logical to make advertising outlay vary
directly with national income.

ADVERTISING MANAGEMENT

and response lag is short enough so that cyclical changes do not
cause important distortions. Finally, and perhaps most
important, sectors or strata of prospects can be walled off and
tapped separately.

ADVERTISING MANAGEMENT

Another possible explanation for the popularity of this
method stems from competitive relationships. If all, or most,
members of an industry used this method and employed the
same percentage of sales, competitors’ advertising outlays
would be roughly proportional to their market shares. This
condition would have a restraining effect on competitive warfare
in advertising, and would ease ulcers in peace-loving firms.
Much advertising is essentially defensive anyhow.
Thus, although the percentage-of-sales approach appears on its
surface to have no logical justification, it has features that make
it attractive: It provides a formula answer with an illusion of
control; it permits the cyclical timing of outlay to fluctuate
roughly with ability to pay; and it may tend toward competitive
stabilization. But inertia and the lack of a more logical and
equally definitive standard are probably the most important
explanations for the popularity of this essentially mechanistic
method.
All-you-can-afford Approach. An approach to the determination of the advertising budget, which is probably more widely
used than most executives would admit is for a company to
spend on advertising all that it can afford. In practice, this
amount is sometimes a predetermined share of the profits,
though sometimes it is gauged by the amount of liquid
resources and borrowable funds. The result of this policy is that
advertising is often the first expenditure to go because it does
not involve long forward commitments and does not disrupt
the organization so much as other major curtailments, and
because long-term results are less tangible than the results of
other kinds of outlay.
At first blush this method seems to make no sense at all, yet on
further analysis it appears that the effects of advertising outlays
upon profits and liquidity are important considerations in
setting outer limits for advertising. These limits may prove to
be beyond the range of profitable advertising outlays (e.g., for a
producer of power plant apparatus), but they are often well
within it. In any event, these limits ought to be staked out.
Normally a time lag occurs between advertising outlay and sales
results. Even if the advertising outlays bring highly profitable
results ultimately, financial embarrassment may develop if
short-term cash and credit limits are ignored – especially if the
time lag of response is long. The limit of what a company can
afford ought to be set ultimately by the availability of outside
funds. The firm’s resources in this sense set a real limit on
advertising outlay. However, the mere existence of a limit is no
reason for shooting at it. It may be far above the amount of
advertising that is profitable.
The effect of advertising outlay upon the company’s earnings
statement is also a valid factor in timing. Even though an added
thousand dollars of advertising brings a smaller increment of
sales and profits at a profits peak, it may be justified because the
government pays 45% or more of the outlay, and because a
lower earnings figure is often more respectable at such times.
Corporate income taxes favor concentration of advertising at
cyclical peaks and penalize attempts to accumulate advertising
reserves to be spent in depressions. One reason is that future
tax rates are quite likely to be higher in prosperity than in
depression, and the carry-back and carry-forward provisions of
80

the law are probably inadequate to remove this tax incentive for
bunching of expenditure. Moreover, Section 102 discourages
retention of earnings for future depression advertising. The vast
amount of money spent during the Second World War in
advertising unavailable civilian products showed the widespread
acceptance of the philosophy of relating advertising outlays to
profits, with a weather eye on their tax effects3
3 See Jerome D. Scott, “Advertising When Buying is Restricted,”
Harvard Business Review, Vol. XXI, No.4 (Summer 1943), pp.
443 – 454.
Union negotiations and public opinion also frequently make it
embarrassing to show high profits in prospecrity; hence timing
advertising outlays to manipulate reported earnings makes
sense as a modification of a strictly marginal approach. Considered purely as a capital investment in distant-future benefits,
It may be desirable from the viewpoint of capital budgeting to
limit advertising outlay of an earnings plow-back nature to
some fixed proportion of current earnings. Over the cycle this
method would lead to advertising outlays that fluctuate
violently, for a company’s profit cycle normally has much greater
amplitude than its sales cycle. It might lead to unprofitable
curtailment in hard times.
Used uncritically, the all-you-can-afford approach is unsatisfactory, largely because there is no relation between liquidity and
the richness of advertising opportunities. If another $1,000 of
advertising will bring in $2,000 of added profits, is hard to say
that it cannot be afforded. A management that limits advertising to liquid funds or to percentages of profits is probably
overspending at some times and foregoing money-making
opportunities at others.
The all-you-can-afford method, however, is helpful in some
ways in determining the advertising appropriation. (1) It
produces a fairly defensible cyclical timing of that part of
advertising outlay that has cumulative, long-run effects. (2)
when marginal effectiveness of advertising can be guessed, it
budgets well for firms operating effectiveness of advertising can
be guessed, it budgets well for firms operating short of the
point where incremental advertising costs and profits are equal.
(3) When nothing can be known about the effects of advertising, it sets a reasonable limit on the gamble. Actually, everything
above a respectable return on capital might be spent on
advertising, since excess earnings could be considered to have
low utility to management compared with the possible
contribution of continuous advertisng toward eternal life for
the firm.
Return-on-investment Approach. Advertising has two effects:
(1) It increases sales today. (2) It builds goodwill to increase
sales tomorrow. The first involves primarily problems of
selecting the optimum output rate for maximizing short-run
profits. The second involves selection of the pattern for
investment of capital funds that will produce the best scale of
production and maximum long-run profits. Thus, another
approach is to treat advertising primarily as a capital investment
rather than as a current expense. Determination of the amount
of advertising then becomes a problem of capital expenditure
budgeting Advertising investment must compete for funds

Although each piece of advertising affects both immediate sales
and the long-run goodwill structure, the relative importance of
the two effects can vary widely. At one end of the spectrum is
institutional advertising, with a long time lag and untraceable
effects – e. g., using radio programs featuring symphony
concerts. This is almost pure capital investment. At the other
end is advertising of special sales events by retail establishments. Such advertising usually has only a small element of
capital investment. Metrical separation of these two components is probably impossible. Interaction makes the problem
even more complex since the level of the reservoir of cumulative goodwill modifies the efficiency of advertising directed at
immediate sales. The only possibility, and that a slim one, is to
use multiple correlation analysis4
4 See Sydney Hollander, Jr., “A Rationale for Advertising
Expenditures,” Harvard Business Review, Vol.XXVII, No.1,
(January 1949), p 79.
The timing of advertising over the years resulting from a
return-on-investment approach differs unpredictably among
companies. The pattern depends on the philosophy of
budgeting and on the prospective profitability of capital
expenditures that vie with advertising for funds. Only if the
prospective return on institutional advertising has sharp cyclical
fluctuations will anything but an accidental cyclical pattern evolve
from this criterion alone. This may be unimportant in some
cases, where the lag in response is long and diffused. But
dimming memories and the incursions of rivals usually
dissipate the goodwill built by advertising through evaporation
or run-off. This is particularly dangerous when costs of reentering lost markets are high. Hence a part of the advertising
investment problem is to find what rate of current expenditure
is required to offset this deterioration and to maintain the level
of this goodwill reservoir. Thus concept analogous to plant
replacement operates in estimating return on advertising
investment.
The chief deficiency of the return-on-investment approach is
the difficulty of even guessing at the rate of return on advertising investments. Problems of distinguishing investment
advertising from outlays for immediate effect; problems of
estimating the evaporation of the cumulative effects of
advertising; and, most important, problems of measuring the
effect of advertising accumulation on long-run sales volume
and on the possibility of eventual price premiums all conspire
to make the return on advertising investments highly conjectural.
These measurement difficulties rule out this approach as a sole
criterion for budgeting investment-type advertising, but they do
not invalidate the investment approach itself. For other kinds
of investment, e.g., research laboratories and department store
escalators, it is equally impossible to estimate the return
precisely. Yet few would, for this reason, kick out such items
from the capital expenditure budget. Institutional and cumulative advertising should be analyzed in the intellectual setting of
the capital budget, viz., long-range strategic and profit objectives, competition of alternative investments for limited

company funds, and balancing of risks against prospective
return on investment in rationing capital. This kind of investment perspective should be an integral part of an intelligent
approach to the advertising budget.
Objective-and-task Approach. The Second World War brought
to prominence the objective-and-task method of determining
the advertising appropriation. On the basis of a postwar survey,
Printers’ Ink of December 28, 1946, concluded what this was
the most widely used method. The popularity of this approach
during the war apparently came partly from the need to justify
advertising expenditures as business expenses (for purposes of
taxes and contracts) during a period when a low percentage of
civilian goods sales would support only trivial outlays.
Under this approach the advertising budget is the amount
estimated to be required to attain predetermined objectives. The
orthodox procedure involves an impeccable and highly salable
sequence of steps: (1) define the objectives; and (3) determine
the cost of accomplishing these tasks.5
5 For a complete and thoughtful treatment of this approach,
see A. H. Haase, The Advertising Appropriation (New York:
Harper and Brothers,1931)
The cost so determined is the advertising appropriation.
An “ objective,” as used in this procedure, is properly stated as a
change: the difference between results with the advertising and
results without it. The objective usually applies to the coming
year’s sales, although it may refer to invasion of a specific market
or the establishment of distribution outlets. In this respect the
actual advance that this method represents over the percentageof-sales criterion may easily be overestimated. In general practice
the sales-volume objective is based on the preceding year’s
volume. Expected changes in business conditions, competitors’
actions, and so forth, are then considered as a basis for deriving
the current year’s outlay from the preceding year’s outlay.
Some companies fall back on intermediate objectives such as
establishing brand familiarity or preferences, promoting
applications of the product, or simply broadcasting the sales
message. Many such “objectives” simply list the roles of
advertising in the broader merchandising scheme without
referring to specific sales effects. For example, a recent study for
the Association of National Advertisers reports the advertising
goals of the Armstrong Cork Company as keeping the
company’s name before customers and attracting the attention
of those who are not buying now by: (a) providing salesmen an
access to prospects, (b) making prospects easier to sell to, (c)
publicizing the Armstrong name, and (d) carrying the sales
message beyond the range of personal coverage.6
6 Paul H. Nystrom, Editor, Marketing Handbook (New York,
The Ronald Press Company, 1948), p.1235
Nobody can quarrel with thinking through goals of advertising
as completely as possible, since it contributes to better copy and
media policy. But this kind of analysis of “objectives” contributes nothing to determining the size of the advertising
appropriation. For that purpose objectives must be expressed
so that they are measurable and costable, e.g., a 10% increase in
sales next year over what they would have been without this
advertising.

ADVERTISING MANAGEMENT

with other kinds of internal investment on the basis of
prospective rate of return.

ADVERTISING MANAGEMENT

In its bald form, the objective-and-task approach begs the
question. The important problem is to measure the value of
objectives and to determine whether they are worth the
probable cost of attaining them. In other words, what intensity
of demand (i.e., what position and shape of demand schedule)
is an economically sound objective? The objective and-task
method method assumes that the candle is always worth the
cost. In many cases the high marginal productivity of advertising (up to the limit of the money available) bails out the
advertiser, but his good fortune does not make his basic
thinking any clearer.
After valuing and costing legitimate objectives, the next and
vital step is either to cut back or to expand plans in the light of
these prospective costs. In this form – since the objectives are
reshaped and really determined by the cost of attaining them,
rather than vice versa – the approach has the virtue of sharpening issues and directing research and planning into relevant
channels.
When an objective has been defined so that the task can be
stated in terms of costs, the problem is in a form that is
appropriate for analysis either by the marginal approach or the
investment approach. Objectives in terms of near-future sales
volume can be expressed as the marginal advertising cost
function in Exhibit I, while specific long-run objectives can be
viewed as investments to be built into the capital budget on a
rate-of-return basis. For instance, if the objective is to get mass
volume for a new product at a premium price, the task of
advertising is to establish and maintain the corresponding
brand preference; the budgeting problem is to determine the
relation between the necessary initial and continuing outlays and
the resulting level of price-Premium, and to compare the
premium profits with the required investment in advertising.
To sum up, the objective-and-task approach, using a straightforward sequence of attack that is good for any business problem,
tends to beg the question when it is not carried the whole way.
The economic problem is to determine what objectives are
worth the cost of attaining them. This cost can sometimes be
predicted, but the value of attaining objectives can rarely be
measured. This general method can, however, be extended into
highly promising experimental and marginal approaches.
Through such approaches objectives can be reformed in the
light of costs. Economic tasks can thus be adapted to the
peculiar goals and situations of individual companies and nicely
integrated with other elements in the company’s marketing
plan. But the objective-and-task method is a budgeting method
only because it is called one; what it actually does is frame
problems for solution.
Competitive-parity Approach. The essence of the competitiveparity approach is to base in some systematic way the company’s
advertising outlay on the outlays of other members of the
industry. Specifically, the company’s percentage of total competitive advertising might be made equal to its share of the market.
(A variant, which is quite different conceptually, is to spend as
much as necessary to retain a desired market share).
This method of budgeting is widely used, and it finds some
support in the writing of practitioners. The defensive nature of
a large proportion of advertising outlay, designed to check the
82

inroads of troublemakers, may account for the method’s
popularity. For example, in the antitrust case against the big
three tobacco companies, the explanation advanced by American
and by Liggett & Myers for following the lead of Reynolds in a
1931 price advance was that the revenue was needed to match
Reynolds’s increased advertising.7
7 American Tobacco Company v. United States, 328 U.S. 805
(1946)
The approach appears at first to have slim warrant in principle.
What competitors spend on advertising does not tell a firm
how much it can spend to make added benefits just equal the
added costs. The size of this optimum outlay is affected by
rivals’ advertising, since competitors’ advertising influences the
productivity (incremental cost) of the firm’s advertising. But it
cannot be determined by merely matching competitors’
appropriation. Hence what rivals choose to spend does not in
itself provide any valid measure of what the firm’s advertising
budget should be.
The parity approach is sometimes defended on the grounds
that the advertising percentages of competitors represent the
combined wisdom of the industry. This argument assumes
that rivals know what they are doing and that their goals are the
same as the firm’s. Actually, since great differences normally exist
among competitors in the ratio of advertising to sales, the
industry average is often relatively meaningless. Consider, for
example, this breakdown of an industry average that appeared
in Printers’ Ink of February 8, 1947: out of seven companies
one devoted 9% of sales to advertising; one devoted 3%; three
devoted 2% and two devoted 1%.
No correlation appeared between outlay and size of firm in this
breakdown. Further analysis revealed that the smallest firm,
which was one of the heaviest advertisers, was bent on a
program of aggressive expansion; one of the concerns that
spent 2% manufactured only a restricted line and had no
ambition to grow; the largest concern was well established and
was making a very satisfactory showing with an expenditure of
only 3%. This case illustrates the limitations of an industry
average as a tool for determining outlay, in that companies differ
in objectives, brand maturity, and marketing methods. It also
suggests the advantages of knowing rivals’ objectives and
competitive situations as well as their advertising outlays.
Another difficulty is that, to the extent that this rationale is valid
the future and not the past advertising outlays of rivals should
constitute the standard. Usually these outlays cannot be
determined soon enough or with enough accuracy to be useful
in planning appropriations.
Advocates of parity advertising claim that it safeguards against
advertising wars that can be started when other methods are
used to determine outlay. Parity advertising may thus play a role
analogous to that of price leadership in preventing price wars.
But degenerative retaliation in advertising is much less likely
relation to output, being a cause rather than a result of sales.
In many situations an economically logical approach becomes a
bit mystical, because the relevant considerations for deciding
how much to advertise are not measurable and visceral guesses
have to take their place. Under these circumstances rival meth-

ADVERTISING MANAGEMENT

ods have an attractively solid appearance because their criteria,
though not strictly relevant, are nevertheless tangible.
Viewed against the logical background of marginal analysis,
most of the methods that are actually used to decide on the
advertising appropriation seem to have no economic foundation. The fixed-percentage-of-sales methods gets the cart before
the horse; advertising outlays should cause sales, not be
determined by them. The all-you-can-afford method reflects a
blind faith in advertising, which, though occasionally rewarding,
is nevertheless a confession of ignorance. The objective-andtask approach, though it sounds plausible, stumbles before it
starts over the obstacle of not determining whether the
objective sought is economically worth attaining. The competitive-parity method represents a narrow goal not usually tailored
to the company’s full needs. And the investment approach,
while conceptually sound in recognizing the time dimension of
advertising and its rivalry with alternative capital expenditures, is
hard to nail down with empirical data.
The difficult problem in applying economic analysis to advertising is to find the empirical equivalents of the theoretical curves.
The deep uncertainty surrounding the productivity of advertising is perhaps the origin of such methods as percentage-of-sales
and objective-and-task. But whatever rationale these methods
may one have had, their basic weakness is that they hide rather
than highlight the economic issues in the advertising problem.
Despite its limitations, economic analysis can be helpful in
reaching a better decision on the amount of advertising by
focusing attention on the relevant (even though unmeasurable)
relationships as opposed to the irrelevant (but measurable)
ones. Though the complete theoretical solution of the advertising problem is too complex for practical use, manageable
approximations may sometimes be feasible. Quite a few things
unmeasurable ten or twenty years ago are susceptible to such
approximation in 1951.

Notes

UNIT – 3
LESSON 16:UNDERSTANDING MESSAGE STRATEGY
UNIT – 3
MESSAGE & COPY IN
ADVERTISEMENTS

ADVERTISING MANAGEMENT

Learning Objectives
•

You will understand via this lesson the different ways of
reaching out to your target audience via the message route.

•

You will understand the various elements that make up the
copy of an advertisement.

The answer to these questions is given by marketing research
and by the advertiser and his agency. The creativity of the agency
matters most here.
Thus there are tonics in the market, for the aged and for the
persons recovering from illness. There is a set of tonics for
children and expectant mothers. There are haematinic tonics of
iron for anaemic individuals. Incremin, a pleasantly flavored
tonic containing Lysine – a growth factor from Lederle has been
promoted as ‘ a tonic for growing –up children’ to stimulate
their growth in terms of height. The visual of a giraffe eating
leaves off a tall tree, emphasing its tall neck re-enforces the
concept of growth. Incremin found a strong vacant position
and just sat on it- the tonic for growing children.
Walter Mendez, the Creative Director of Clarion made a
landmark campaign of Maggie 2- minutes Noodle a positioned
as any time snack, good to eat and fast, to cook aimed at
children to begin with.

Marketing, Design and Marketing
Objectives
As we have seen, the message is an idea. Along with perhaps
other relevant information – attitudes, image etc. meant for the
intended target.
So at last you might say we have come to the creative part of the
ad campaign. The print ad appears in the media. The broadcast
ad goes on air. Prior to that, we have to decide what we have to
say, and then how do we say that. The ‘what’ part is the design
of the message, and the ‘how’ part is the development of the
message, and includes its execution as well.

Message Design and Positioning
Our advertising message consists of the idea together with
other relevant information. The idea spots the uniqueness of
the product to win a place in the consumer mind. It is easier
said than done. Message design identifies the consumer’s
perceptions about the products. The following question gives a
good insight.
1. What is the nature of the product: its generic category.
2. For whom it is meant: the segment.
3. What are the special characteristics of the product? How is
the consumer going to be benefited?
4. Who are the competitors? What is their promise?
5. Is the product different from the other available products?
How? Is it a technological breakthrough?
6. On which occasions will the product be used? How often?
7. What would you like your consumer to perceive this brand
as? What position would it take?

The audience sets the agenda of marketing objectives. The
objectives tend to vary with audience. When we communicate
with consumers, the objectives could be:
1. Passing on information
2. Create brand awareness
3. Incite them to act, i.e., to purchase the product
4. Confirm the legitimacy of their choice after the purchase is
made.
The objectives when we communicate with the trade could be:
1. To induce them to stock the product
2. To push the product on- the-counter
3. To provide strategic shelf-space to the product.
The objectives when we communicate with manufactures could
be:
1. To make them buy our raw material
2. To convince them about rational product benefits
3. To convince them about cost aspects.
The messages are designed keeping the marketing objectives in
mind. The consumer profile in terms of their education,
interests, experience also has a bearing on message design. The
consumers must understand the message.

Gap between Copywriter and His
Audience
The vast majority of our products are not sold to people with a
high standard of education and an up-market background.

Appeals
In order to attract the attention and create interest of the target
audience, markers make use of several appeals – appeal to the
basic needs, social needs and psychological needs of the
audience. At the end the ads provoke the consumer to act- to
buy the product. The discussion on different kinds of appeals
has been postponed to a subsequent chapter.

Advertising Message Structure
Advertising communication effectiveness not only depends on
the message content, though it is no doubt an important
component, but on its structure as well. The important aspects
of message structure are: Drawing conclusions, repetition, one
–versus- two-sided arguments, and the order of presentation.
We shall discuss them in detail one by one.

(i) Drawing Conclusion
The question often raised is whether definite conclusions
should be drawn for the audience in the ad for quick under-

The following points are to be kept in mind while communicating with the audience:
1. Instead of building a wall around the product, the message
should create a bridge to the target audience by being
persuasive.
2. Arouse the audience, and give it a reason for listening to you.
3. Make use of question to involve the audience.
4. Use familiar words and build up points of interest.
5. Use specific and concrete words.
6. Repeat key points.
7. Convince the audience by sticking to facts.
8. Empathize with your audience.
9. Use rhyme and rhythm, for instance when Waterbury’s
compound is advertised they say ‘when vitality is low,
Waterbury’s brings back the glow.’
10.Make use of Zeigarnik effect, i.e., leave the message
incomplete, where the audience is provoked to complete and
close it by pondering over it.
11.Ask the audience to draw conclusions.
12.Let them know the implications of these conclusions.

Message Presentation
Messages are to be structured keeping the objective of the
communication and the audience in view. Messages are represented either centrally or peripherally. A central message takes a
direct route to persuasion. It is a well – documented ad. It
compares advantages and disadvantages of a product. This
central presentation provokes active cognitive information
processing. Voltas refrigerators incorporating rational appeals is
an example. These ads are consistent with the self- image of the
respondents.
Peripheral presentation provides pleasant association, scenic
background, and favorable inferences about the product.
These are distinct, rational and emotional appeal ads. The
rational ads appeal to logic, give straightforward facts and
figures. The emotional appeal ads make use emotional and
symbolic clues, e.g., an ad for a fire extinguisher. It is seen
however that most ads are a bend of rational and emotional
message. This has been discussed again in detail in the subsequent lessons on appeals.

standing or should they be left to them. In many instances, it is
best to let the receivers of the promotion message draw their
own conclusions. Such consumers feel that the message which
draws a conclusion is over-aggressive and an attempt at
forcefully influencing their choice. Moreover, since conclusion
drawing at best assists in an easy comprehension of facts and
not in the process of attitudinal change, it will not affect very
much the persuasive quality of ads that aim at a change in
attitude. When the issuer involved is simple and the audience.
It does not add anything extra to the persuasive quality of the
advertisement. Moreover, if the communicator is perceived to
be unworthy, the receiver may resent the attempt on his part to
draw a conclusion for him and influence his choice. When the
issue is highly personal, the audience may resent the
communicator’s interference in drawing a conclusion. A typical
example of this is the recent ad campaign sponsored by the
PoultryFarm Association in Gujarat, promoting the use of eggs
among vegetarians. Eggs from the poultry farms were given a
new name the “Veggs” and recommended for consumption in
that segment of society which is fully vegetarian. Since this
touches a highly personal issue concerning religious attitudes,
the ad was resented, and much criticism was published against it
in the Reader’s Opinion column in popular dailies. Thus, even
though promoters sought the sale of the product in a new
segment by drawing specific conclusions, these were not
accepted, but rather resented. However, conclusion drawing is
favored where the product is a complex or specialized one. The
Farex baby food ad, starting with a sensational headline: “ Your
baby is born with a 3- month gift of iron. After 3 months, milk
alone cannot give him the iron he needs.” The ad closes with
the conclusion: “Doctors recommend Farex. Baby’s ideal solid
food for rapid all- round growth.” A long body copy goes on
to explain that Farex is ideal baby solid food.

ADVERTISING MANAGEMENT

Quinn in Secrets of Successful Copywriting says: “these
products are sold to people with few pretensions to higher
education and who wouldn’t recognize a literary allusion it leapt
up and announced itself. Where the copywriter is literate, they
have little or no interest in syntax or grammar; where he is
imaginative, they are earthy; where he is enthusiastic, they are
different. This is the great schism. It is the happy few copywriters who can adroitly leap over this gap.”

ADVERTISING MANAGEMENT

ii. Repetition
Repeating an ad message is often beneficial, for it develops a
continuity of impression in the minds of the target audience,
and may increase the predisposition to think and act favorably
towards the products advertised. Everything else being equal, a
repeated message increases awareness and knowledge on the
part of the prospect. Audience retention improves with
repetition, and falls off quickly when repetition is abandoned.
The relationship of repetition and advertising effectiveness has
been dealt with in detail in the chapter on “Advertising Effectiveness.”
iii. One –versus- two-sided Communication
This raises the question whether the advertiser should only
praise the product or should also mention some of its
shortcomings. The most common approach in sales and
advertising is a one-sided approach. However, on deep analysis,
it is found that one-sided messages tend to work best with the
audiences that are initially favourably predisposed to the claims
made in the ad message. Two- sided arguments go well when
audiences have an unfavorable opinion about the
communicator’s position. Also, a two- sided message tends to
be more effective with educated audiences capable of sound
reasoning, particularly when they are exposed to counter
propaganda. A two-sided communication produces the greatest
attitude change when people are opposed to the point of view
presented. Also, a two-sided communication is effective in
maintaining the belief level against a counter-attack by competitors. However, it is the single-side communication that is
commonly used, for it is difficult for the advertiser to refer to
the product’s shortcoming and still effectively persuade
prospects to buy it.
iv. Comparative Advertising (CA)
Here a product is directly or indirectly compared with a competitive product to show the advertised product to advantage. This
trend has been seen more and more in some recent campaigns,
especially when new brands in parallel categories are springing
up at a rapid rate. Most prominent among these have been the
Pepsi, Salvon, Captain Cook Salt and Pepsodent and Colgate
campaigns. The recent Rin-and-a-look-alike-Ariel campaign is
also a pointer. Pepsi was branded by Thums Up as gulabjamun-like or as a drink kept out in the rain. When coke took
over Thums Up, Pepsi retaliated by calling it Thoke. There are
hits and counter hits in this game. Captain Cook, the freeflowing salt has been compared to Tata salt that is moist
enough to stick. In fact, Captain Cook has translated its
technological superiority into product superiority. Whisper
sanitary napkins have also been introduced on comparative
grounds of absorbance. The ultimate aim here is to create brand
distinction. While doing so, the competitive product should
not denigrate. Besides, there is no end to competitive advertising. In car marketing, we see Hyundai Santro campaign directly
never compare itself to No. 2. Instead, compare ads are usually a
tool for a smaller brand trying to build business. Continued
warfare in ads gets boring for consumers. ASCI, specifies that
comparative advertising (CA) – direct and implied – is permissible if the aspects of products compared are clear; comparisons
do not confer artificial advantages on the advertiser; it is factual,

substantial; the consumer is unlikely to be misled; there is no
unfair denigration of the competing product. In the USA the
Federal Trade Commission encourages truthful non-deceptive
CA. In UK, CA is permissible if it is objective, relevant, and
verifiable.
Negative Advertising

“Studies conducted by O & M found that commercials which
name competing brands are less believable and more confusing
than commercials which don’t. There is a tendency for viewers
to come away with the impression that the brand which you
disparage is the hero of your commercial.” – David Ogilvy, in
Ogilvy on Advertising.
Unless there is a definitive plus it is not advisable to disparage
the other brand. Even definitive plus is no guarantee that the
disparaged brand will not be taken as the hero of the commercial.

v. Order of Presentation
Whether to put the strongest argument first or last in the
advertiser’s presentation is equally important. Sometimes this is
considered a part of copywriting strategy. In a one-sided
argument, it is advisable to present the strongest point first, for
it will result in better attention and interest. This is done with
the objective of achieving the primary effect. However, when an
audience necessarily required a two-sided communication, it is
better, at least initially, to start with the other side’s argument
and slowly disarm the audience which is opposed to the
communicator’s position, and the to conclude the message with
the strongest argument.

Copy of Ads in Print
The most Important Copy Element is the Headline
Idea
If the headline idea fails to attract the prospect to the message
and the product, the remaining parts of the ad are wasted. The
ad copy may be a word-message, or it may have pictures with a
short message or a slogan. The words and pictures should be
complementary to each other. However, since pictures get better
attention than the words in the headline above or below the
picture, we invariably have ads in print with picture, sketches,
illustrations and visual symbols. Moreover, a dramatic or
provocative picture or photograph can effectively create an
emotional or tragic scene, and thus become a good grabber of
the prospects’ attention. Many copywriters use both pictures
and words to put across their creative ideas.

Last, but not the least, it may be mentioned here that the
closing idea in an ad copy is as important as closing the sale in
personal selling. Since an ad is a one-way communication, it
should be closed with enough information and motivation for
the buyer to act. There are varying types of closing an idea “call
to action,” “buy now,” “visit today our dealer/ stockist,”
“announcement of festival discount,” “send enquiries immediately to,” etc.

Long Copy versus Short Copy

A perfectly worded headline can create the required excitement, a
sensational” scene most appealing to prospects. Headlines may
be in many forms – they may be questions, news flashes, and
statements from celebrities, warnings and appeals. There is no
right or wrong length or form for an effective headline. Each
headline must relate clearly and specifically to the intended
audience and to the rest of the advertisement, highlighting the
product features and its USP.

After the Headline Come the Sub-heads
If the headline has already rightly suggested the product’s value
to the consumers, the job of the sub-head is easier. Sub-heads
should further carry the idea of theme and should help readers
to have more knowledge of the product and services, for they
(subheads) generally expand or amplify the headline idea. One
of the ads of F AREX, a baby food item, has its headline:
“Your baby is born with a 3-months’ gift of iron.” The
supportive sub-heads say; “After 3 months, milk alone cannot
give him the iron he needs. Give him Farex enriched with iron.”
The headline has highlighted the problem of necessarily giving
iron to the baby 3 months after its birth; and the sub-head
suggests that the product, Farex, which is enriched with iron, is
the right solution of the problem. Several such examples may
be given of the headline and its supportive subheads.
After the Sub-head Comes the Body Copy
It stimulates liking and preference for a product; it systematically
develops the benefits and promise offered by the product,
explains, logically and rationally, product attributes, features and
product values, and gives convincing arguments in favor of, and
evidence in support of, the claims made about the superiority
of the advertised product. In the body copy, both emotional
and rational reasons are put forward to persuade consumers to
buy a particular brand. Facts and figures about the product, its
test results, testimonials, guarantees of satisfactory performance, and a reference list of customer patronizing the product
all these are given in the body copy, depending upon the nature
of the product, the market and competition. Emotional
appeals are generally useful when advertising “convenience or
style goods” rather than consumer durables. A rational appeal is
appropriate for industrial goods. Due care should be exercised

A long copy looks impressive, and more details can be presented in it to the reader. But readers may not often like, or have
the time to read, the lengthy body copy of an ad unless the
headline is so attractive and persuasive that they automatically
begin to read it. Abram Games advocates ‘maximum meaning,
minimum words.’ A short copy may not be fully communicative at times. Therefore, it is incorrect to say that either the short
or the long copy enables us to make the right approach in an ad.
It should come sentence by sentence to fulfill the promise made
in the headline.
The length of the body copy should be just enough for you to
say all that has been promised in the headline. Nothing more
and nothing less. Sometimes you communicate better by
writing short copy instead of being verbose. Our body copy
should contain the required reasoning to convince the customers to spend their money on our product. The appeals may be
both objective and emotional. We should always be able to
make the right emotional appeal.
.
Copywriting for newspaper ads is different from copywriting
for magazine ads because the newspaper has a different editorial
environment. Moreover, it is mainly filled with news, facts,
information and local gossip, and is hardly read for entertainment. It is primarily a source of news and information. It is not
read the way your favorite magazine is read. The copy of a
newspaper ad is generally short; it has a high impact headline,
which mostly concentrates on one strong selling idea.
Newspaper ads are generally placed in. a particular place in the
classified columns, on the sports page, the investment page, etc.
The copy of such ads has to be different from that of magazine
ads even for the same product; you have to tie up your copy
with the current news event. For example, when Asiad ’82 was
held, first newspaper ads had copy based on this great sports
event. Again, when the first satellite was launched, many
companies released newspaper ads mentioning their association
with such a great national event by Way of supplying their’
products and services to make it a success. When a national or
international exhibition is held, companies do participate by
exhibiting their products, and to synchronize with the inauguration of this great extent, companies release newspaper ads
saying: “Meet us at CHEMTECH ’82, Pavilion No.4, Hall-2.”
Many examples can be given to drive home the point that the
copy of a newspaper ad has to be different from that of the
magazine ad even for the same product, the same unique selling
proposition (USP) and even the same appeal – objective or
emotional.
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while handling emotional appeals; if over done, there is the
possibility that the entire credibility of the ad message would be
lost.

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Now let us discuss the different types of copy. Below are giver
the different types of copy; you must visualize an advertisement
as you go along.

•

Comparative copy here two brands are compared either in
good light or in a way to belittle the other. The cola war can
be an excellent example of this type.

•

Scientific copy (Technical specifications are specified. E.g. High
involvement goods or durable goods or industrial goods.)

•

Advertorial is a newspaper or magazine feature that appears
to be edited but is really an ad.

•

Descriptive copy: In a non-technical manner, the product
attributes are described. The copy uses direct active sentences.
There are short and pithy sentences. It looks very
commonplace announcement.

•

Narrative copy: Here a fictional story is narrated. The benefits
of the product emerge from the story. Maybe, the narrative is
humorous. Or else, it has strong appeal. It should make an
imprint on our memory.

Intentional copy comes about when advertisers copy
elements from rival creatives in the same product category in
order to create dissonance with a view to secure competitive
foothold, e.g. Liril Vs Cinthol ads both emphasizing lime
freshness.

•

Disruptive copy comes about when there is a disruption in
the way of thinking or conventional thinking.

•

Colloquial copy: Here informal conversational language is
used to convey the message. It could even become a
dialogue. In many TV advertisements, we find the colloquial
copy.

•

Humorous copy: Humor has been heavily used in
advertising-especially in TV commercials. It is just as heavily
suspect. But effective humor makes the advertisement
noticeable.

•

Topical copy comes about when a copy is integrated to a
recent happening or event. Especially during the world cup
days, you had ads like – ‘Britannia Khao, World Cup Jao’.

•

Endorsement copy here a product is endorsed by an opinion
leader who has a large following. I shall be discussing this at
length in a later lecture.

•

Questioning Copy: In this copy, several questions are put
forward not to seek answers but to emphasize a certain
attribute.

•

Prestige Copy The product is not directly advertised. Only a
distinguished and favorable atmosphere is created for the
sale of the product. The copy is used to build an image.

•

“Reason Why” Copy It is known as an explanatory copy
where the reasons for a purchase are explained. Each reason
illustrates a particular attribute, and its benefit to the
consumer. One attribute may be chosen and repeated for
several times, each time an occasion is given to justify it.

Creative Plan and Copy Strategy
• Creative platform is a document that outlines
the message strategy decisions for an individual
ad.
• Creative platforms combine the basic
advertising decisions – problems, objectives,
and target markets – with the critical elements
of the sales message strategy – main idea and
details about how the idea will be executed.

Creative Plan and Copy Strategy
Message
Message Strategies
Strategies

Generic
Generic
Strategy
Strategy

Creative
Creative
Strategy
Strategy

Information
Information
Strategy
Strategy

Lessons in Copy
•

Wordless Advertisements: There are at times billboards with
only an inscription like Amul. Otherwise they are totally
wordless. Wordless advertising is an example of non-verbal
communication (NVC) and are pictorially.

Crafting
Anything that is relevant and readable is read – whether short or
long. Body-copy needs as much attention as the headline.
Targeting

Advertising: Conversations with Masters of the Craft (1990),
Lincolnwood, IL: NTC Business Books, p. 48.
•

Long Vs. Short Copy
Copies are addressed to a right target audience. Most good
copies are designed as if they were meant for a single prospect.
Write to the Point
Who likes a lingering copy? It is not advisable to beat around
the bush. We have to get to the point.
Copy Style
Copywriting is a versatile art. A copy can be written in the style
of a personal talk, a story or a novel. In fact, asking an aspiring
copywriter to convert a photograph using different copy styles is
a good test.

– Aldous Huxley (1923), British author, quoted in Robert
Andrews, The Columbia Dictionary of Quotations, 1993,
New York, NY: Columbia University Press, p. 18.
•

Personal Presentation
A copywriter has to go and sell his work to the client rather than
relying on anyone else. Be Proud of the Ad
Any creation of yours deserves your best. Red Smith expects a
copywriter to sit at the typewriter till little drops of blood
appear on his forehead.
(Adapted from Arun Kolhatkar’s Tips to Rahill Dacunha)
“Quote-Unquote what few stalwarts have to say about
copywriting.”
• “I have learned that any fool can write a bad ad, but that it
takes a real genius to keep his hands off a good one.”
– Leo Burnett, quoted in 100 LEO’s, Chicago, IL: Leo
Burnett Company, p. 53.
• “I have always believed that writing advertisements is the
second most profitable form of writing. The first, of course,
is ransom notes . . . .”
– Philip Dusenberry, quoted in Eric Clark, The Want Makers:
Inside the World of Advertising, 1988, New York: Penguin
Books, p. 56.
• “I think central to good writing of advertising, or anything
else, is a person who has developed an understanding of
people, an insight into them, a sympathy toward them. I
think that that develops more sharply when the writer has
not had an easy adjustment to living. So that they have
themselves felt the need for understanding, the need for
sympathy, and can therefore see that need in other people.”
– George Gribbin, quoted in Denis Higgins, The Art of
Writing Advertising: Conversations with Masters of the
Craft (1990), Lincolnwood, IL: NTC Business Books, p. 51.
• “A writer should be joyous, an optimist . . . Anything that
implies rejection of life is wrong for a writer.” – George
Gribbin, quoted in Denis Higgins, The Art of Writing

“The trouble with us in America isn’t that the poetry of life
has turned to prose, but that it has turned to advertising
copy.”
– Louis Kronenberger (1954), quoted in Rhodas Thomas
Tripp, The International Thesaurus of Quotations, 1970,
New York, NY: Thomas Y. Crowell Company, p. 18.

Ego to be Sidelined
A great campaign, which is not our creation, should not be
killed for that reason. A campaign should be consistent with the
brand personality.

“I have discovered the most exciting, the most arduous
literary form of all, the most difficult to master, the most
pregnant in curious possibilities. I mean the advertisement . .
. . It is far easier to write ten passably effective Sonnets, good
enough to take in the not too inquiring critic, than one
effective advertisement that will take in a few thousand of
the uncritical buying public.”

•

“Many people – and I think I am one of them – are more
productive when they’ve had a little to drink. I find if I drink
two or three brandies, I’m far better able to write.”
– David Ogilvy, quoted in Denis Higgins, The Art of Writing
Advertising: Conversations with Masters of the Craft (1990),
Lincolnwood, IL: NTC Business Books, p. 70.

•

“You must make the product interesting, not just make the
ad different. And that’s what too many of the copywriters in
the U.S. today don’t yet understand.”
Rosser Reeves, quoted in Denis Higgins, The Art of Writing
Advertising: Conversations with Masters of the Craft (1990),
Lincolnwood, IL: NTC Business Books, p. 125.

•

“No, I don’t think a 68-year-old copywriter . . . can write with
the kids. That he’s as creative. That he’s as fresh. But he may
be a better surgeon. His ad may not be quite as fresh and
glowing as the Madison Ave. fraternity would like to see it
be, and yet he might write an ad that will produce five times
the sales. And that’s the name of the game, isn’t it?”
– Rosser Reeves, quoted in Denis Higgins, The Art of
Writing Advertising: Conversations with Masters of the
Craft (1990), Lincolnwood, IL: NTC Business Books, p. 111

•

“The mystery of writing advertisements consists mainly in
saying in a few plain words exactly what it is desired to say,
precisely as it would be written in a letter or told to an
acquaintance.”
– George P. Rowell, quoted in Advertiser’s Gazette, (July
1870), vol. 4, p. 175

Case Study on Copy
“Thanda matlab Coca Cola,” resounds in the background even
after Aamir Khan ropes out a bottle of Coke for the three city
gals who come to him asking for “Thanda”. But who are the
people behind such creative advertisements and how are they
made? Who directs these ads and writes dialogues for them? If
these questions plague your mind, then here’s some information that will help you understand this creative field better.
The people behind such ads are called copywriters, who belong
to the creative department of advertising agencies. Knowledge
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Words in the copy need crafting like a diamond so that they
sparkle. Perhaps this means writing and re-writing a number of
times. While doing so, we must remember that spontaneity is
at stake. The litmus test is to sleep over the copy overnight, and
see whether the same copy is worth retaining.

ADVERTISING MANAGEMENT

of the different departments of an advertising agency will be
helpful in understanding the nature of work of a copywriter.
An advertising agency is divided into the following departments: Creative, Client Servicing, Account Planning, Media
Planning, Direct Marketing and PR. The copywriters belong to
the creative department of an agency.
Writers work on the conceptualization of ideas for different
brands. This process begins with the client sending in his/her
requirements (called a ‘brief ’ in ad terminology) stating if it is
for the print medium or television or radio. Product specifications that are necessary for making the ad and a profile of the
target audience is also sent along with it other than the deadline
for submission. The ads are normally made for the launch of a
product/ store, reminder of an existing product in a new way
to the target audience; pack promos, product promotions etc. A
writer’s role begins at this stage, where he thinks of ways and
means to communicate this message to the target audience,
who are the consumers of the product. Thereafter, it completely
depends on the ability of the writer to ideate and visualize his
thoughts and express it on paper.
Copywriters have to work in tandem with several people in an
agency to get an ad released. Firstly the writer presents the ideas
to the client to get the idea approved in order to begin the
process of making the ad. Secondly he works with the art
director if it is a press ad. Together they decide the images and
visuals and the font and typography for the copy text of the ad.
In the case of a TV commercial, the writer calls the shots in
directing the ad. This involves choosing the location and sets of
the ad, working with photographers and renowned directors,
actors/ actresses and models. The making of a TV commercial
involves huge ad expenditures for the client. Writers work
together with directors and producers on the ad budget.
Copywriting provides an array of opportunities in the field of
media. One can even switch to filmmaking from writing copies
for ads.
In case of radio advertisements, writers make scripts for the ad,
choose the voice of the person for the ad, and work with the
recording people in the studio on the sound effects and final
radio spot. This involves a lot of editing until the final spot is
ready for release on air.
What are the areas that a copywriter can enter and name any 2
qualities required of him. Write a copy of 100 words promoting
a Resort in a hill station of your choice and give suitable ‘punch
line” to the resort called – ‘Country resort”.

Notes

Learning Objectives
•

You will understand via this lesson the importance of
headlines in a copy.

•

You will also understand the different types of headlines
that you could possibly make.

•

You will understand the elements of TV advertising also the
production method in making a TV commercial

Headline is the most crucial part of advertising. Basically, it is
used to arrest attention and to create interest. It should go
beyond being catchy or sloganising. It has, really, speaking a lot
to contribute to the style and mood of an advertisement.
Headlines many times do target the advertisement to a select
audience. They are inviting enough to motivate the reader to
read the advertisement copy further. Perhaps this they are able
to do by being benefit-oriented. Headline is not to be taken too
literally. It mostly occurs as the caption, but can occur anywhere
in the body of the advertisement copy, even at the end. In a
nutshell, self-interest is the key to successful headlines. We
would like to know what benefits the product could offer to us,
or what solution the company has got for our problems. Many
headlines do the positioning work – they highlight a product
benefit that is most important. Many headlines are musical,
whereas many are curious. Some headlines are newsy.
Quinn stresses the importance of the copywriter finding more
interesting ways of presenting basically uninteresting propositions. Every headline, he cautions, should be the best you have
ever written because you are only as good as your last advertisement copy.

Basics of Writing Headlines
1. They should Suggest a Quick and Easy Way Out
It has the capacity to satisfy some need or want. Let me
illustrate. You have heard about Taj Mahal Tea Bags (Dip, Dip,

Dip). It has the capacity to quench the thirst. So the advertisement headline says: THIRSTTEA DIP.
Similarly, Hawkins pressure cookers’, recent headline ‘You and
Your Hawkins – the safest, fastest, way to tasty food, makes you
realize immediately what it can do for you. No wonder they all
want it.

2. Self-interest is Created in Every Headline
Warner’s Waterbury Compound promises that, “When vitality
is low, Waterbury’s Compound brings back the glow.’
Anne French Hair Remover – The gentle way to cream hair away
makes us so comfortable. We can say now goodbye to razor
nicks and cuts.
3. News is Included in the Headline
We are always on the look out for new products, new ways to
use an old product, or new improvements in an old product.
The most powerful words in a headline are NEW and FREE.
There are occasions to use FREE, but a few can use NEW.
The following list of words gives news value to the advertising.
• Announcing.
• Surprise.
• Now.
• It’s here. Just arrived. Amazing. Sensational.
• Revolutionary.
• Last chance.
4. The Headline should Always Target the
Advertisement Towards your Prospective Customers
Thus Johnson’s baby powder headlines do have the word
MOTHERS for whom it is meant. Never use a word that will
exclude some prospects.
5. Many More People Read the Headlines
All of them may not read the rest of the copy. So it makes
good sense to use the brand name of the product in the
headline.
So the Cerelac advertisements headline reads ‘Give your baby
the Cerelac advantage from the first solid feed.’

6. Headlines can be made by Imaginatively Coined
Words (Coinages)
The best example is Lacto Calamine’s headline “Skinnocence.”
How wonderful! It is one word headline. But it promises an
innocent, blemish free skin. It is so striking too.
Now let us take a simple product like an egg. You want to
suggest that it is so exciting to take it. How will you be able to
coin a new word, using the two? Yes, you will call it
eggcitement. Thus, economics of eggs will be eggnomics and
extraordinary qualities of eggs will be called eggstraordinary. So
now you have eggsperienced it. So eggstatic… and so on and so
forth.
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LESSON 17:
HEADLINES IN PRINT & TV ADVERTISING

ADVERTISING MANAGEMENT

7. We have to Include the Selling Promise in the
Headline
Maybe, it makes the headline a little longer. But it sells if
properly constructed.
See the 10 words advertisement headline of Fern Instobleach:
Every woman can be faster if only she knows how!
Here is another example where Bonny Mix porridge is described:
Bonny Mix

‘The new instant porridge with the goodness of cereals, fruits
and nuts.’

8. Headlines Sometimes Arouse Our Curiosity
They lure us to read further.
Aura American Diamond Jewellery headline questions you,
“Can you keep a secret?” Here artificial diamond jewellery
resembling the genuine ones is offered. So the copy goes on,
“Ssh it’s happened.”
Can you think on similar lines and create some curious headline
again for the same product artificial diamonds? Here is a
specimen:
‘’Yes, I buy diamonds every week (this what a woman says) and
so can you.”
So not even the daughter of super-rich Khaggoshi or
Madhvani’s Mumtaz can buy diamonds every week. Naturally, it
is a very curious headline. But further reading directs you to
Legend – the shop where American diamonds are sold.
However, curiosity by itself is not enough. It has only the
pulling power. The further reading should convince us about
the usefulness of product.
Chivas Regal is curiously advertised like this: ‘The Best things in
the world aren’t free. Just duty free’. Since it is available at dutyfree shops at the airport.
9. Some Headlines Play Games
Here puns are used. Literary allusions are used. There may be
other obscure things. These are called tricky headlines.
10. Though to be Practiced with Caution, Negatives
are used in headlines these days as a ‘No cholesterol oil’ etc.

11. Do not use Blind Headlines Where on its Own
Headline is Meaningless
unless the copy that follows is read. Most people do not read
the copy.
So, we must understand what are the basics of headlines. I have
given below in bullet form.
• You must break the ice
• You have to be concise
• ü Headlines can’t drift along. They are crisp. They are specific.
• Headlines should be provocative
• Relevant
Below you will see a few examples of print advertising. You
should see the formulation of headlines very carefully.

Headline

All your life you have worked hard for your money. Now, we’ll
make sure your money works hard for you.
Subhead

Safety Liquidity Tax benefits Life insurance
Body Copy

Your years of hard work have today yielded rich dividends
either in the form of provident fund, gratuity or even VRS
money. What’s important now is to make sure this money is
invested in the best possible manner. So as to give you a secure
future in terms of regular returns and comprehensive protection. Presenting ICICI Pru ReAssure which combines the best
of insurance and investment, with the following benefits:
Liquidity

Assured regular and steady annual returns. Tax benefits: Upto
Rs. 60,000 u/s 88. Survival benefits are also tax free. Life cover:
Upto 110% of premium paid. Safety: Reassure offers complete
safety of your principal amount an guaranteed survival benefits
in a volatile market scenario. So, you can now relax and let your
money work hard for you.
Baseline

We cover you. At every step in life.
Agency

Lowe Lintas

So unconventional, so cool, so black – is what really makes the
new, black Compaq Presario 3650AP stand out in a crowd. Its
black, elegant styling complements its bold attitude. Now you
can download MP3 files, play games or edit photos at a neverbefore speed with the power of Intel Pentium 4 Processor. The
center of your digital world. Go on, check it out for yourself at
the nearest Compaq Store and pace up your moves with this
stunner.
Baseline

brought to your by hp
Agency

FCB Ulka
Note that in the case of high involvement products like the PC
and Insurance, there is more emphasis on the copy.
Different forms of headlines are given below as bullet points,
you must think of a suitable example as you go along.
Headline
Subhead

The mail was something one received either at home or work.
Or not at all. Until Sabeer Bhatia made the whole wide world an
address.
Body Copy

ABN AMRO introduces Smart Gold. India’s first genuinely
smart, chip-enabled Credit Card.
Baseline

Look beyond.
Agency

Contract

a. Direct Promise Headline
Pond’s Special Baby Powder headline promises you ‘to take
good care of your baby.’ Such advertisements indicate the
benefits of the product or service in a direct manner.
b. News Headline
It may include new promises, product improvements, price
reductions, premium offers etc. Parle’s Monaco was again made
available in a big pack. So the headline announces ‘The Big
Monaco pack is back.’
c. Curiosity or Provocative Headline
Sweetex, a non-sugar sweetener uses this technique very efficiently in its recent advertisement. The headline is a startling
statement, followed by a question:
There’s a rich, gooey chocolate cake hidden in the picture. Can
you spot it?
This headline is so curious that we see what is it all about. There
is only a cup of tea.
There is no chocolate. We feel compelled to discover what is
hidden in the copy.
The copy begins by saying: It (chocolate cake) is tucked away in
the cup of tea. Or more precisely, in the sugar. If you drink five
to six cups of tea or coffee a day, each with 2 teaspoons of
sugar, you are consuming about 2200 calories a week of sugar
alone. Which is equivalent of half a kilo of rich chocolate cake.
d. Selective Headline
This headline holds a specific promise for a special group.
Childcare products are for mothers. The headline identifies this
group. ‘The natural choice for mothers who care … Childcare.’

Headline

Black stands out
Subhead

e. Humorous Headlines
Though practiced with caution, sometimes it really works
wonders. Humor, however, is a suspect element in advertising.
In fact, people do not buy from clowns. But it is also true that
humor makes the advertisement noticeable. But it should not
be the.-man-slips on-banana-peel type humor.

The new black Compaq Presario 3650AP with Intel Pentium 4
Processor that powers your digital world.

ADVERTISING MANAGEMENT

Body Copy

ADVERTISING MANAGEMENT

f. Command Headline
It also promises a benefit. It is advisory in character. VIP’s
Feelings cotton panties have the commanding headline: Say
Hello with Feelings. It is a great new You. You will appreciate
that it is a command but with a promise.
g. Situation Headline
It is based on a peculiar situation like an impending war, flood,
earthquake, epidemic etc.
h. Label Headline
Some products like a TV set can be headlined as a label. Here
there is a strong need for the product and so no other appeal is
called for.
i. Challenging Headlines
Mostly a provocative question, its mental compulsive.
j. Negative Headlines
Not very much forward, but are used occasionally to direct to
the right product. The Afternoon Dispatch Headline is negative.
‘Don’t Waste Your Money Advertising in the Afternoon
‘Dispatch. Advertise in the Afternoon’s Woman’s Extra Every
Thursday.’
This is a suitable medium for home-use or woman-oriented
products.
k. Affirmative Headline
The message is not very assertive. But it is not denied either. We
thus say about Complan: ‘Growing Children Need Complan.’
i.Headlines
could be poetic, prosaic, matter of fact or musical.
m. News
People are interested by news. Words like new, introducing,
announcing, now, at last, etc. indicate something newsworthy.
(“Now program your VCR by simply speaking to the revolutionary VCR VOICE programmer”)
n. Testimonial
Nothing is more convincing than a customer endorsement.
(“This diet program worked for me. It can work for you, too!”)
o. Question
When related to a benefit or the reader’s concerns, the question
headline is a powerful attention grabber. (“How do I know
which mutual fund is right for me?”)
Nine good headlines and why they were so profitable
1. They Laughed When I Sat Down at the Piano . . .
But When I Started to Play!
The granddaddy of great advertising headlines; often imitated
but rarely equaled. Is there anyone among us who has never
longed for or relished an opportunity — when people doubt
our ability — to prove them wrong? Plus, people love to root
for the underdog, as the main character of this ad so obviously
does. This is an action-oriented headline that promises an
uplifting story, and we’re compelled to read further. Also worth
remembering: The before-and-after angle can be effective in
many headlines.

2. A Little Mistake that Cost A Farmer $3,000 a Year
A highly successful ad that ran in a number of farm magazines.
An excellent idea of how sometimes the negative idea of
offsetting, reducing or eliminating the risk of loss is even more
attractive to the reader than the prospect of gain. A fellow
copywriter and good friend likes to illustrate this point with the
following analogy: Imagine it’s 3:00 in the morning and your
best friend comes banging on your front door. “Bill, Bill, wake
up! I know how we can both make an extra $500 apiece today
— guaranteed!” Chances are, this would be a severe test of your
friendship. On the other hand, let’s say that same friend came
banging on your door at 3:00 in the morning, except this time
he’s saying, “Bill, Bill, wake up! Somebody’s in your driveway
stealing the hubcaps off your car!” You wouldn’t mind that
interruption at all, would you? In fact, you’d be grateful you had
such a thoughtful friend. That’s because human nature is such
that people will fight much harder to avoid losing something
they already own than to gain something of greater value they
do not own. Another key factor in this ad’s success is the
attraction of the specific. Note that it wasn’t just a mistake; it
was a little mistake. What farmer could pass up reading the copy
under such a headline? What farmer wouldn’t be compelled to
find out: “What was the little mistake? Am I making it? If I am
making it, how much could it be costing me?”
3. How to Win Friends and Influence People
Yes, the title of the book was also the headline for the ad that
sold a million books via mail order in less than three years
during the latter part of the Great Depression. The key to this
ad’s success is its strong basic appeal. Who doesn’t want to
know how to win friends and influence people? The key words
are “how to.” Without these two words, the ad lacks power,
punch and, most importantly, the promise of a benefit. Certain
words and phrases are inherently involving and attention
grabbing and can be used effectively in just about any headline.
Such words and phrases include: How To, How, Here’s Why,
Which, Who Else, Where, When, What These, This, Which of
These For better advertising results, look for a way to use these
and other effective words in your headlines.
4. “I’m impressed — Shell’s Caprinus R Oil 40 keeps
my EMD’s in better condition than any Other Oil
I’ve used in 20 years.”
“They say” advertising copy has substantially greater impact
than “we say” advertising. That’s why the above testimonial
quote makes a highly effective headline for this business-tobusiness advertising effort. Above the headline is a four-color
photo of the man who provided the quote. He’s standing in
the engine room, and he’s identified as A. E. “Bud” Dacus,
chief engineer for the company. The first two paragraphs of the
ad’s body copy continue in the same vein as the testimonial
headline. Do you think we have some believability and credibility working here? You bet we do! Testimonial headlines can
help your ads generate a high response, particularly when they
come from recognized experts in well-known companies. So be
sure you stay close to your customers and regularly spend time
reading the mail they send you. You just might find an excellent
headline, a natural and highly believable spokesperson and the
basis for a very profitable ad campaign.

6. “Do you make these Mistakes in English?”
This is a direct challenge made provocative and effective with the
inclusion of one vital word: “these.” “What are these particular
mistakes? Do I make them?” Notice also its promise to provide
the reader with helpful information.
7. “Do you do any of these Ten Embarrassing
Things?”
This question is similar to number six as it preys on our
insecurities and makes us wonder, “Which ten are they? Do I
do any of them?” The bottom line is, “I better read and find
out.”
8. “How Much is “Worker Tension” Costing your
Company?”
This one uses a similar approach to number seven, this time
from a business-to-business perspective. Notice the quotation
marks around the words “worker tension.” Don’t they add a
certain element of intrigue?
9. “Six Types of Investors — Which Group are You
In?”
And finally, this headline appeals to our innate curiosity about
us. These last five headlines all have similar characteristics. And
one factor that comes through loud and clear is that they are all
written from one primary viewpoint: “The point of you.” Each
of them, in fact, contains some version of the word “you.”
Even though millions of words have already been written
about the point of you, let me remind you again to always keep
your prospects and customers at the front and center of all
advertising you do.
In the case of electronic media the rules are the same but you
must incorporate certain other ideas as well. I am giving you
certain tips on how to go about TV commercials.
1. Always stick to one selling idea: Being a fast-paced medium
that has to convey message in a matter of a few seconds, we
should restrict to one major selling idea. Diffused
communication does not get across the viewers. The novel
USP or the big idea produces a lasting impact. Most ads are
overcrowded with one-product attributes. Even with 40
seconds, there is room for only one central idea.
2. Whenever possible, show the product in use:
Demonstration of the product is one key advantage of TV
and whenever possible product should be shown in use.
Stubborn stain on clothes and demonstration of Ariel’s
effectiveness is an example.

3. Use more visuals and fewer words: TV commercial is
essentially a picture story. It should use minimum copy.
4. Show the package: Either at the beginning or the middle
or preferably at the end, the product and its package must be
shown.
5. Avoid visual clichés: If viewers can anticipate the visual
images of the commercial, the impact of the commercial
would be lesser. Visuals should be uncommon and unique.
Stereotyped visuals lack effect.
6. Close-ups: Product close-ups for sensory-stimulation are
used for ice-creams, chocolate bars etc.
7. Opening with a surprise: Since only a few seconds are
available, we should arrest the attention of viewers by
introducing the first frame with an element of surprise. The
‘inevitable surprise’ evokes more than a desired response in
the target audience; and has been linked to creativity by I van
Arthur and Gopi Kukde.
8. Jingles: Jingles have great value for India’s audiences who like
lyrics and melody. They are useful to create brand awareness,
and have a high re-call value.
9. Make actors talk: The cast in the commercial should do most
of the talking. VO should be reserved for some comments
at the end.
10.Supers: Brand name/product benefit can be super-imposed
on screen to reinforce the oral message.
11.Identify the Brand: It is advisable to identify the advertised
brand in the first 10 seconds. Later, the brand name be
repeated.
12.Use emotional approach: The emotional magic works
wonderfully. Remember the magic reel of Rath Vanaspati
commercial. Parents coo over a little baby in a crib. The
camera pulls back. We see a boy watching first with envy and
then sadness (sibling rivalry). The sullen boy goes up and
sits at the bottom of the stairs. He feels left out and hurt.
He is angry too. But mum has caught on. She cooks a little
treat in Rath vanaspati, and takes it across to him. Slowly he
smiles, he is loved after all. It is a gripping emotional story
line. It is credible. It gives a sense of involvement. Such films
cannot be short-duration (say 20 or 15 seconds) since these
cannot lend themselves to emotional treatment.
The commercial must be given a deep psychological appeal.
Here we communicate to reach the deeper recesses of human
mind. The consumers then identify themselves with the
brand. For instance, Woodward’s Gripe Water and Vicks
Vapo Rub commercials are good examples.
13.Use metaphors: They have a long life as ideas in advertising
communications. They lend themselves to easy execution
and can be used in sustained manner. For instance, AI’s
Maharaja, Liril girl Priety Zinta under the waterfall, Lalitaji in
Surf, Amul girl in butter ads is examples of metaphors.
14.Repeat the idea: The same idea is repeated in different forms,
though the idea remains constant. Lux – a beauty soap is
endorsed by different stars. Limca is a thirst drink in different
ways.

ADVERTISING MANAGEMENT

5. “If you were given $4,000,000 to Spend — Isn’t
this the kind of Health Club you’d Build?”
Interrogative headlines like this help entice readers into the copy,
and there are many ways they can be put to effective use. This
headline is a self-incriminating and highly adaptable technique
to have readers help specify what they would value most in such
a product. The copy follows through along these lines: Surely
you would put this feature into it. You would be sure that it
brought you this advantage — and so on. The payoff to the ad
is: “We’ve already done it all for you.” Below are more interrogative headlines:

ADVERTISING MANAGEMENT

Forms of TV Commercials
Animals
They are fertile analogies. You must have noticed a Tiger in the
Maruti Zen ad. The majestic lion stalling the Videocon ad
(Bring Home the Leader) must have become a producer’s
nightmare.
Use a Film Genre
The commercial can be produced on the lines of a movie. It can
mimic an action-movie or a spy-thriller or a bank-robbery or a
song-and-dance sequence. Many Indian commercials are based
on film-based conventions. Some may go even a step further,
and use the actual footage of a well known movie. Pan Parag’s
Dhoom Macha De, Rang Jama De compresses a thriller into
sixty-seconds.
Music and Song
Mostly, life-style advertising of soft drinks adopts this format.
It is also popularly used for personal care products.
Commercial’s music itself may become hit with the masses.
Jingles are used to sing product virtues. Video fast and loose
cutting, special effects, random colors, animation, stock footage,
graphics, computer-generated images – all these make music and
song commercials memorable. However, it is always the music
that over-rides the visuals, rather than visuals having an underscore of music.
Vignettes
The main selling message is woven around a series of bask
situations which are shown in rapid fire succession. The effect
may be humorous. M-Seal commercial shows vignettes that
show the effects of leaks. Alternatively, a variety of potential
customers can be shown for a product.
Endorsement/Testimonials
Here a celebrity or an actual user endorses a product. It is a
refreshing approach. When the actual user is an ordinary person,
the copy should be convincing, e.g., Lalitaji recommends Surf.
The choice of the endorser depends upon the product. Lux is a
very famous example of this type of commercial. The message
of clear complexion and beauty care sounds credible when Rani
Mukherjee recommends it. So far the Lux campaign has used
300 stars all over India, and currently signs up 40 stars a year for
this ‘product personality synchronization.

Use Anachronism
Akbar the Great can be shown eating a fast food or Noorjahan
using premium soap. Humorous situation can be created.
Judicious use of historical or fictional figures delivers the effect
of endorsement without paying to a live figure.
Colloquial Copy
Here informal conversational language is used to convey the
message. It could even become a dialogue. Amul chocolates
commercials titled ‘a gift for someone you love’ follow a
colloquial pattern. The woman says: “I am too old for miniskirts, too young to be grandma.” “But the man says: ‘I think
you’re just right for Amul chocolates.”
Demonstration Videocon Washing Machine commercial is the
best example of a demonstration. The mummy in the commercial, switches on the machine after putting clothes and detergent
in it. It washes, rinses and dries too, in just a few minutes. And
you are ready for the show.
Humorous Commercials
Claude Hopkins said, “Spending money is serious business,
and people do not buy from clowns.” Since then, humor has
not been much favored. Yet for noticeability, some commercials
do adopt this format. By and large humor is the man-slips-onbanana-peel variety. Maachar hoon main, Louis mera naam….
Could make it into this category.
Slice of Life
It is a short play-like situation. The dialogue/characters pose a
consumer problem. The product offers the solution. Cough
and cold remedies may be advertised this way. Reynolds Ballpoint pen commercial is a slick slice of life creation. It
establishes the ballpoint pen as a communicator rather than
merely a writing instrument.
Real Life Situations in Slice of Life Scenes
The Dove soap campaign also uses the same technique.
Whisper napkins use the same technique, but a model Renuka
Shahane is used. However, she talks like an ordinary woman,
quite naturally. However, non-models make the ads more
credible. Cadbury invited viewers to send in real moments of
their lives. Real ads with non-models build credibility and
identification. These ads are difficult to execute and are expensive to produce. Several non-models are tried to get the right
one. Besides, we can get several right films, or not even a single
one. It is risky. Besides each does not lend itself to real life
advertising. This form of ad, rules out armchair copywriting in
an agency. Here the agency comes to the scene of action. What is
more important is not just looking real but sounding honest.
The transparency leads to sales.
Dramatization
Dramatization is an effective way of pinpointing a problem,
putting it forward dramatically to the audience, and finally
solving it with the help of the product that is advertised.
Mostly a specific feature of the product is highlighted to get
attention. Kitply is fire-resistant, and to prove it the Kitply
showroom is set on fire.

Production of TV Commercial
The Ad film is highly effective in creating an impression or
image, in building an argument or in developing a story that can
be used to lead to subtle shifts in audience perceptions. Ad
films can take a whole multitude of possible forms, borrowing
from or extending a range of familiar, acceptable programme
styles – anything from cartoon animation to news report to
dramatization. Ad films are not normally effective in delivering
a complex, detailed mass of data or argument except to an
already-expert audience. Viewers do not easily absorb complex
material. Only overall impressions and perspectives and a few
highlights are likely to be retained. Sometimes it is obvious that
a film will be helpful, and what it should contain. Often,
though, the communications objective can be clear while the
form and content of the film are open to a number of possible
approaches or interpretations. In these circumstances it may be
helpful to keep an open mind on the particular form the film
should take. Suggestions from prospective producers may be
illuminatingly varied, and may offer opportunities for creating
memorable, effective Ad films of a type quite unlike any first
thoughts on how it might be done. The following steps
broadly cover the production steps involved in a medium sized
production.
Developing a Production Schedule
Drawing up a tentative schedule is ideally the right way to
approach the production. Generally, broadcast or distribution
deadlines will dictate the production schedule (the written
timetable listing the time allotted for each production step).
Not planning things out carefully might cause you to miss a
critical deadline, which might render the production worthless.
Selecting Key Production Personnel
At about this point remaining above-the-line production
personnel are brought on board. In addition to the producer
and writer, the above-the-line personnel include the production
manager and director; and, in general, the key creative team
members. And, of course, below-the-line personnel, who are
generally assigned later, include the technical staff.
Deciding on Locations
Next, if the production isn’t done in the studio, deciding on
key locations is the next step. In a major production a location
scout or location manager should be hired to find and coordinate the use of the locations suggested by the script. Although
it might be much easier to shoot in a TV studio, the authenticity of “real” locations, lends itself in the creation of dramatic
productions. Cities that encourage TV and film production
have film commissions that supply photos and videotapes of
interesting shooting locations in their area. These commissions
are located in most major cities and they will provide information on usage fees and the people who need to be contacted. It’s
often necessary to make some changes in the on-location

settings. Rooms may have to be repainted or redecorated, signs
changed, etc.

Deciding On Talent, Wardrobe and Sets
Depending upon the type of production, auditions may take
place at this point as part of the casting process (selecting the
people for the various roles). Once decisions are made, contracts
can be negotiated and signed. Once the talent or actors are
decided on, the selection of wardrobes can start. After a set
designer is hired, he or she will review the script, possibly do
some research, and then discuss initial ideas with the director.
Once there is agreement, sketches of the sets can be made for
final approval before actual construction starts. Rehearsals, from
initial table readings to the final dress rehearsal, can then be
scheduled. Even though sets may not be finished at this point,
the talent can start reading through the script with the director
to establish pace, emphasis and basic blocking (positioning of
sets, furniture, cameras, actors, etc.). Once the sets are finished,
final blocking and dress rehearsals can get underway.
Deciding on the Remaining Production Personnel
At this point arrangements can be made on key technical
personnel, equipment and facilities. This includes the rental of
equipment and production facilities. Transportation, catering
(food and refreshment trucks) and on-location accommodations (for overnight stays) must also be arranged. If unions are
involved, their contracts will cover job descriptions and specific
crew responsibilities. Working hours, including graduated pay
increases for overtime hours, will also be spelled out. In
addition, unions often set minimum standards for transportation, and the quality of meals and accommodations.
Obtaining Permits, Insurance and Clearances
In major cities and in many foreign countries it’s not possible to
just go to the location of your choice, setting up a tripod, and
start taping. Necessary access permits, licenses, security bonds
and insurance policies must be arranged. Spot news and short
documentary segments often do not require permits. Many
semipublic interior locations, such as shopping malls, also
require filming permits. Depending on the nature of the
production, liability insurance and security bonds may be
necessary in case an accident is directly or indirectly attributed to
the production. In some locations the controlling agency will
limit exterior production to certain areas and to specific hours.
If there’s a street scene and traffic will be affected, it will be
necessary to arrange for special police. Included in this category
are a wide variety of clearances. They range from permission to
use prerecorded music to reserving satellite time. If clearance
cannot be obtained, alternatives must be quickly explored.
Selecting Video Inserts, Still Photos and Graphics
As things progress program inserts can be selected. During this
phase arrangements can be made for shooting and acquiring
VTR or film inserts, still photos and graphics. If possible,
existing stock footage is secured (generally for a fee) from film
or tape libraries located around the country. Initial decisions on
music are made at this point. Copyright clearances and royalties
must be worked out for music and visual inserts. (These things
will be discussed in more detail later.)

ADVERTISING MANAGEMENT

Animation
Who does not enjoy the watching of cartoons of Tom, chasing
Jerry all over the house? A flurry of action and movement
characterizes these cartoons. Walt Disney is one of the best
animators the world has ever known. His creation, the Mickey
Mouse, is the best-known cartoon character.

ADVERTISING MANAGEMENT

Rehearsals and Shooting
Depending on the type of production, rehearsal may take place
either minutes or days before the actual shooting. Productions
shot live-on-tape (without stopping except for major problems) should be rehearsed before taping starts. This includes
early walk-through rehearsals, camera rehearsals and one or
more dress rehearsals. Productions shot single-camera, filmstyle are taped one scene at a time. Rehearsals generally take place
right before each scene is taped.
The Editing Phase
After shooting is completed the producer, director, and
videotape editor review the tapes and editing decisions are
made. For major productions this has traditionally been done
in two phases. First, there is off-line editing, using copies of the
original tapes. Editing a time-coded copy of the original footage
typically makes off-line editing decisions. Using this edited tape
and an EDL (edit decision list) as a guide, the production then
moves to on-line editing where much more sophisticated (and
expensive) equipment is used to create the edited master, the
final edited version of the tape. During this final editing phase
all necessary sound sweetening (enhancing), color balancing, and
special effects are added. As high-quality nonlinear, digital
editing becomes more widely used, the need for an off-line
editing phase may be eliminated, or at least made optional.
Postproduction Follow-Up
Although most of the production crew will be finished once
production wraps (finishes), there is still much in the way of
follow-up work to be done. Final bills have to be paid, financial
statements totaled, and the success or failure of the production
determined.

Few Memorable TVC (International)
Storyboard
Ray-Ban Sunglasses
At the beginning of the commercial, a twenty-something
looking guy leaves his house just before dawn. We see his
friends all sitting on steps, waiting for the sunrise and putting
on Ray-Ban Sunglasses. The guy finally joins his friends and he
starts looking for his sunglasses, but he can’t find them. The
sun comes up and the guy vaporizes. One friend says “Somebody forget his Ray-Ban Sunglasses?” then he laughs and we
find out they’re all vampires.
Nike Air Jordan
The first 3 Air Jordans ever made. This first one was made in
1985. Michael Jordan is shown, bouncing a basketball, then the
camera slowly goes down to his body until it stops to his feet,
which was worn by the most controversial Black/Red Jordans
that was banned in 1985. When the camera showed the shoes, 2
censored plates were on each foot and the announcer said,
“Banned”. This next one was made in 1986. Michael is on a
playground playing basketball with nobody but himself and
did a sweet crossover and did the everfamous Jumpman dunk,
spreading his legs like he was doing the split, then dunked the
ball. Then the “Air Jordan” symbol was shown, but it was the
Winged Basketball design in red and is not the Jumpman. This
last one was also in 1986. Michael’s yet again in the playground,
just standing there. The stewardess says, “Welcome aboard to

Flight 23. Please buckle your seatbelt, stay remaining in your
seats and estinguish any smoking items.” Michael then turns
around and winks at you with a smile, the camera goes to his
feet, there are engine sounds from the airplane. Then Jordan
starts running. As he runs, smoke are coming out of his shoes,
then shows the Winged Basketball sign while the announcer
says, Basketball. By Nike.”

TVC Storyboard – Raymond

The cheerful and happy face of a little girl keeps appearing and
disappearing before the camera.

The mystery is solved when we find her father playing with her
by rocking her on his feet.

Continuing with their play, she enjoys a walk around the room,
standing on his feet.

Devising new games the father and daughter now run around
the house, trying to catch each other.

Huging her father’s leg the little angel feels the soft fabric against
her cheek. Super: ‘Feels like heaven.’

Comfortable in her position, our young friend falls asleep.
Super: ‘Feels like Raymond.’

Sitting by a seashore, a fisherman grills some fishes while a
sketch of a microwave frames the fishes. Jingle: “Door gagan ki
chaanv mein.”

Next the microwave sketch captures delicious pav bhaji being
cooked in a roadside dhaba. Jingle: “Kuch aisa soche.”

The chef of a fancy restaurant gives the final touches to his
preparation and once again the sketch catches it.Jingle: “Bas
sochne ki der hai.”

Seeing the child fast asleep, ’dad’ now settles down to read.
MVO: “Raymond, the complete man.”
The above will give you an idea as to what goes on where TV
commercial making is concerned. Another example is that of
LG Healthwave.

Drawing up freshly cooked chicken from the tandoor an old
man hangs it up and the chicken is also caught by the microwave sketch. Jingle: “Kuch aisa sochein.”

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Tired with all the running around, he finally flops onto the
couch.

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•

Easily remembered

•

Repeat the brand name

•

Friendly phrases

The characteristics of a good slogan are as follows:

An old lady bakes a cake and places it amongst the rest of her
goodies in her bakery. Jingle: “Kya rangeen hai subah.”

A boy approches a popcorn vendor in a fair to buy some
popcorn.

In the next shot a boy takes out fresly made popcorn from his
microwave. Jingle: “Jo bhi chahe ho jaye…

…bas soch ke dekhe.” MVO: “LG Microwave. Bas soch ke
dekhe.” Super: ‘Bas soch ke dekhe.’

Slogans
Slogans are catchy sentences or phrase that is easy to remember.
Copywriters continuously for the sake of establishing it use it.
It creates an impact of repetition. Gives an identity to the
company or to the product.
It is part of the copy and is an effective and a concise manner of
telling an idea. A slogan is necessary because they are:
•
•

•

Should be simple and straight forward

•

Carries some pleasing sales idea

•

Conveys more in a compact form

•

Good slogan finishes the job in 7-8 words

•

So many ideas give rise to one good slogan

Few Award Winning Ad Slogans of the
Last Millennium, which have Created
Differentiation in the Minds of the
Consumers
Year

Brand

1998

Apple
Macintosh

100

Think different.

Agency
Chiat/Day

1994 Tango

You know when you’ve been
HHCL
Tango’d.

1990’s Tata Sierra

It is not owned.
It’s possessed.

1990’s Esteem

Move Ahead in Luxury.

Lintas

1990’s Adidas

Forever sport.

???

1990’s NIIT

If you are not ahead, you’re
out.

Contract

O&M

1989

Carling
Black Label

1988

The Mail on A newspaper, not a
Sunday
snoozepaper.

Lowe
HowardSpink

1988

Nike

Wieden &
Kennedy

1987

The
It is. Are you?
Independent

Saatchi &
Saatchi

1986

Castlemaine Australians wouldn’t give a
XXXX
XXXX for anything else.

Saatchi &
Saatchi

1985

Cadbury’s
Are you a Cadbury’s Fruit &
Fruit & Nut Nut case?

Young &
Rubicam

1984

Toshiba

Hello Tosh, gotta Toshiba?

Gold
Greenlees
Trott

1983

British
Airways

The world’s favourite airline.

Saatchi &
Saatchi

1981

Stella Artois Reassuringly expensive.

1980’s Raymond

I bet he drinks Carling Black
WCRS
Label.

Just do it.

Lowe
HowardSpink

The Complete Man.

???

Hand-built by robots.

Collett
Dickenson
Pearce &
Partners

1979

Fiat Strada

1976

Plop, plop*, fizz, fizz, oh
what a relief it is. * In the
Alka Seltzer
UK, this became Plink,
plink, fizz, fizz,

Direct
Short

Slogan

Jack
Tinker &
Partners

Brand

Slogan

1975

American
Express

1970’s

Birla Mutual
The name inspires trust
Fund

Don’t leave home without it.

Agency
Ogilvy &
Mather
???

Heineken

Collett
Heineken refreshes the parts Dickenson
Pearce &
other beers cannot reach.
Partners

1973

Pepsi Cola

Lipsmackin’ thirstquenchin’
acetastin’ motivatin’
goodbuzzin’ cooltalkin’
highwalkin’ fastlivin’
evergivin’ coolfizzin’ Pepsi.

1973

Seven Up -The Uncola.
7 Up

1972

Perdue

1974

Boase
Massimi
Pollitt
J Walter

Scali,
It takes a tough man to make
McCabe &
a tender chicken.
Sloves

Year

Brand

Slogan

Agency

1940s Lux

Beauty Soap of Film Stars

???

Egg
1957 Marketing
Board

Go to work on an egg.

Mather &
Crowther

1956 Timex

It takes a licking and keeps
on ticking.

???

1950s

De Beers
A diamond is forever.
Consolidated

J Walter
Thompson

Kellogg’s
1932 Rice
Krispies

Snap! Crackle! Pop!

J Walter
Thompson

1930s Guinness

My goodness, my Guinness!

SH
Benson

1970’s

The Taj
Group

India’s First, Asia’s Finest

???

1968

Cadbury’s
Milk Tray

And all because the lady
loves Milk Tray.

Leo
Burnett

1930s

1967

Heinz Baked
Beanz meanz Heinz.
Beans

Young &
Rubicam

1930s MG

Safety fast.

???

1967

Levy’s Rye
Bread

You don’t have to be Jewish
to love Levy’s.

Doyle
Dane
Bernbach

1929 Coca Cola

The pause that refreshes.

???

1929 Guinness

Guinness is good for you.

Does she or doesn’t she?

Foote
Cone &
Belding

SH
Benson

Put a tiger in your tank.

McCannErickson

1920s Packard

Austin
Ask the man who owns one. Bement,
Inc.

1964

Clairol

1964

Esso

1962

Volkswagen Think small.

Doyle
Dane
Bernbach

1962

Avis Rent A
We try harder.
Car

Doyle
Dane
Bernbach

1962

Crest

Look, Ma, no cavities!

Benton &
Bowles

1960s Hamlet

Happiness is a cigar called
Hamlet.

Collett
Dickenson
Pearce &
Partners

1960s Mars

A Mars a day helps you
work, rest and play.

D’Arcy
Masius
Benton &
Bowles

1960s Amul

The taste of India.

???

1960s Utica Club

Doyle
We drink all we can. The rest
Dane
we sell.
Bernbach

Haig Scotch Don’t be vague. Ask for
Whisky
Haig.

Lord &
Thomas

1915

Maxwell
House

Good to the last drop.

???

IBM

I think, therefore IBM.

Ogilvy &
Mather

Kit-Kat

Have a break. Have a KitKat.

J Walter
Thompson

M&Ms

M&Ms melt in your mouth,
not in your hand.

???

101

ADVERTISING MANAGEMENT

Year

ADVERTISING MANAGEMENT

LESSON 18:
VISUALIZATION & LAYOUT
Learning Objectives

3. Price

•

You will understand via this lesson the importance
visualization.

4. Package

•

You will also understand the layout strategy and the
elements involved in it.

6. Border

5. Seal of approval
7. Quality marks etc.
At the commencement of his work he becomes intimate with
the copy. Really’ speaking, the visualisation process is shared by
the copywriter and the creative director of visualization. They
decide:

In developing an ad, the most important activity is visualization. It is a process, which starts the design of the
advertisement and results into the development of a finished
ad layout in print.
When we talk of visualization, we talk about the art in advertising. In terms of print ad, it is the process of designing the ad.
The ultimate outcome of the process of visualization is the
layout.
A visualiser decides about the inclusion of different elements at
the beginning of his work. His questions are:
•

Whether my advertisement will have headline?

•

Whether there will be a sub-headline?

•

Whether there would be a body copy? Whether to have
illustration or a photograph?

•

Whether to include slogan? Etc.

At the second step, he foresees how all these elements will be
appearing in the copy. The basic elements with which a visualizer works are:
1. Headline, sub-heads
2. The body copy
3. The illustration
4. Logo signature
There may be elements like:
1. Slogans
2. Coupon
102

•

Whether the product should be featured?

•

Whether people should be featured; what they would be
doing; will there be a background? Which type?

•

Should photos be used?

•

Or line illustrations and sketches?

•

How large the headline should be?

•

What components should make the final copy: the product?

•

The address and the name of the company? The picture?

Once he becomes clear about the components or elements he
will include, he foresees their relevance to each other, to one
another. How they would be placed in the copy? How the final
product (advertisement copy) will look like?
Essentially it is a mental process of creating mental images of a
well balanced whole made up of different elements. On paper,
he makes ‘thumbnails’ which are rough sketches of the various
alternatives. This paper work is the starting point of the process
of layout.
Visualizer operates under certain constraints: the space available,
the type of paper on advertisement will be printed, whether it is
black and white or color advertisement, the p technology
employed etc.

Transformation from Visualisation to
Layout
Once a visualiser exercises himself mentally and puts his pencil
to paper, the shape of layout begins to emerge. It is very
difficult to say where the process of visualisation ends and
where the shape of layout begins. It is a smooth transition
however, and we are moving from abstract ideas to concrete
shapes. Each element is assigned a weight, depending upon its
overall significance. Look any ad in print and see the basic
percentage of space allotted to the headline, body copy and the
visual, e.g., 30 p.c. for the headline, 50 p.c. for the visual and 20
p.c. for the copy. Each element is positioned. There is visual
evidence on paper. The various possibilities are drawn separately- we call them thumbnail sketches or first roughs. They
indicate the elements and their positions. Many thumbnails
when made, give us an idea which one or more will best suit us,
so that they can be made into larger sizes called roughs or

Comprehensives or comps are more finished form of roughs.
The body copy is pasted. Headline lettering is done carefully.
Photos and illustrations (actuals) are used.
Comprehensive comes very close to final artwork, which gives a
finished advertisement complete with printer’s instructions
from which the plates, the stereos or electrotypes are made. I
In copy comping, first greeking is done in which copy is pasted
into position. Secondly, there is copyfitting in which typed copy
is converted into typography.
For idea visualisations for radio and TV, we have to create first a
script with a series of TV screens (frames) that can accommodate thumbnail visuals, which vary from rough stick figures to
photographs and comprehensive drawings suitable for client’s
approval. This topic is further elaborated in the chapter on
copywriting.

Visualization and Creativity
In the visualization process, we require a flow of ideas – those
ideas are obtained from many sources and using many techniques. We can pin down the problem and develop the
advertisement copy accordingly. We can have a good database or
briefing before visualization. There -can be some brain waves
from the copywriter. We can employ Osborn’s Brainstorming
technique. We do meditation from analysis and synthesis of
ideas.
The steps in the visualization process are those involved in any
creative process.

Creative Process in Visualization
The following are the five principal stages in creative process:
i. Saturation: The manager becomes very intimate with the
problem and its environment.
ii. Deliberation: A perfect knowledge of the environment and
attendant data is essential for creativity.
iii. Incubation: The subconscious activity precedes a fresh
approach. The creative mind forms a pattern of the problem
by combining the scattered data. Then the conscious mind
shou1d be switched off from the problem and the
subconscious mind is allowed to take over. The conscious
mind is the seat of logic and the subconscious mind directs
itself to problems, which are of interest to the conscious
mind. When the conscious mind is relaxed the subconscious
mind works to give some of the best ideas.
iv. Illumination: Here an idea actually flashes across the mind of
the decision-maker. Very often this happens while sitting in a
cafeteria, driving a vehicle, strolling in a leisurely fashion or in
some such state of relaxation.
v. Accommodation: The original idea is modified, reframed or
polished and made to practical use.
Creative process demands free exchange of ideas, application of
imagination to problems, group understanding and lack of
conditioned thinking.

Creative persons are gifted or can be trained. They have ideational fluency, high I.Q., open mindedness, uninhibited
personality with a sensitivity and flexibility. He sets problems
for himself and seeks their solutions. He is independent in
thought and action.
Walter Mendes, Creative Director, Clarion says: “I visualise an
advertisement first before I write it. The test of all good
advertising is that you should be able to see the end product.”
Once the final copies are made, a presentation is made before
the client. These presentations should be structured, keeping
the objective of the communication and the audience in view.
We shall present a brief discussion of the sizes and shapes here.
The copy writing forms the material of a subsequent chapter.
The rest of the elements have been discussed in the chapters of
layout. These elements should contribute to the basic objective
of the communication.

Size and Shape
Different ad sizes in the print media are possible, the budget
being the major constraint. Within the given size~ we get
allotted certain space which can take many steps, each shape
being a device of non-verbal communication. A square shape
shows a staid or static image. It also shows a formal image.
Against this, a rectangular with longer side placed vertically
shows dynamism, and with longer side placed horizontally,
shows tranquility. The shape should be consistent with the
message.
Let us consider how lines are interpreted. Horizontal lines show
stability and a state of restfulness, Vertical lines show speed,
growth and movement. Several vertical lines act as barriers, and
to some extent express strength and power.
Combined together, vertical and horizontal lines express a state
of equilibrium and a sense of satisfaction.
Diagonal lines are thought to be challenging, and denote
utmost speed. Diagonals also direct our eye movement.
Curves show elegance and beauty. Triangles have a combination
of both dynamic and static and can also communicate caution
against danger. Circles are likened to planets. They show
continuity, eternity and peace. What they enclose command our
attention immediately. There is a movement around the
circumference.

Visual Thinking
As children, we took the first opportunity to express our
internal illusions with the help of ‘pencils and crayons. In
kindergarten classes, children love to feel the shapes and see the
things in order to learn. Kids invent their own shapes on paper
or in clay. The thought process in childhood is based on
perception. As we grow older, we put inhibitions on our
freedom of visual perception. The child in us who started
scribbling at the slightest suggestion disappears.
What is visual thinking? It is a language whose effectiveness
depends upon its flexibility and willingness to experiment.
Winters and Milton suggest vizthink method as the first step in
visual thinking. Vizthinking is essentially idea visualization. The
copy should be conducive to vizthinking. There should be
collaboration between the copywriter and the art director.

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visuals. These are made in actual ad sizes. All elements here are
scribbled. As copy matter, only rough lines are put. Roughs are
forerunners of comprehensiveCl.1i Roughs give an exact idea
about the proportions and placement of elements.

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Copywriters need not be artists, but they can think visually.
They can do a little drawing, sketching, doodling or thumb
nailing.

2. Use an illustration of a product in a setting, e.g., Mont Blanc
pens are shown on a dial or a sofa-set is shown in a living
room.

In other words, we are recording mind’s perceptions by doing
so.

3. Use an illustration of a -product in use, e.g., a woman in is
using cellular phone a restaurant to talk to her beloved.
Similarly, model Anupama Verma uses Braun Silk Epil to get
silky smooth legs.

The central selling message and the copy appeal governs
visualization. Marketing research also provides the basis for
visualization.
The ad should try to connect the idea with a proper visual. A
single idea can be visually expressed in a number of ways. For
example, an embrace, can express love by a look, by caressing or
by a kiss. We also have to choose between a description and a
visual. Should a tandoori chicken dipped in butter be described
in words? Can we instead give a picture – either an illustration or
a photograph of the chicken? The answers are not simple. But
we can evoke greater response by combining a picture with
carefully crafted copy. In isolation, both the picture and the
words are not so effective. We should always try to express an.
idea in pictures in a number of ways. Later, the product is taken
into account. The target audience is considered. Mother’s love
for a baby is shown by a picture of mummy gently applying
Johnson’s Baby Oil on the tender skin of the baby. The
visualizer must have enough background information to
visualize properly. The ultimate aim is to evoke response from
the target audience.
The left side of the human brain is seat of reasoning and verbal
skills. It is responsible for processing the information step-bystep. The right side of the human brain provides with
intuition. It processes the information simultaneously. While
we dream, the right hemisphere of the brain works over-time,
suppressing the left. Instinctive products, which are brought on
a whim or a fancy like a perfume, would be steeped into sensual
appeals to the right hemisphere. A complex product like
computer must be sold on the basis of reasoning that appeals
to the left hemisphere of the brain. In emotional ads, the artist
carries the larger burden of the appeal, with less emphasis on
words. In rational ads, the copywriters are allowed full play of
words, while the artist just gives definite and distinct pictures,
may be outlines. It is, however, important not to overemphasize the separation of the functions of either side. Music
appeals to both the hemispheres..

Use of Similies and Metaphors
Thought process is transformed by figures of speech like
similies and metaphors into more articulate information. These
tools help us to organize our complex’ thoughts into a definite
message. Abstraction becomes clearer. Similies are comparisons
with the use of words of comparison, e.g., ‘You are as brave as
a lion.’ Metaphors are comparisons, which drop the comparative
words, e.g., ‘You are a lion.’ Similies and metaphors are used to
‘fit an idea.’ In idea visualization, they are a part of word-picture
association.

Visualization Tips
1. Use an illustration of a product alone, either a line drawing
or a photograph against simple background, e.g., Bentex
watch is shown alone with the headline ‘when was the last
time you made a woman’s hand tremble?’

104

4. Use an illustration of the benefit resulting from the use of
the product, e.g., a woman’s hair with a bounce and shine
with the implication that this is due to the use of a
shampoo with a conditioner.
5. Use an illustration of the loss or disadvantage from not
using the advertised product, e.g., Cease Fire, a fire
extinguisher’s ad. A devastating fire shatters the woman’s
happy home, of course in her fantasy.
6. Dramatize the headline. This is a strong visualization. In a
well-conceived dramatization it is difficult to say whether the
concept of the headline came first or the concept of
illustration, e.g., BPL’s TEIO Large Screen TV ad has the
head-line ‘Live Thunder dramatized as a TV set with four
wheels attached giving a look of a sports-car.
7. Dramatize the evidence, e.g., Whisper sanitary napkins
absorb ink on them, and yet give dry feel.
8. Dramatize a detail. The illustration may emphasize a small
area of the product or may enlarge a detail, e.g., Raymond’s
trousers magnify special stitches at the pockets.
9. Use a comparison, e.g., Luxol Silk Paint of Berger is
compared with a flowing satin saree of a woman.
10.Use contrast, e.g., before and after pictures as in a Bullworker
ad – first a skiny chap who later becomes a muscular he-man.
11.Use cartoons. Cartoons are used in print ads as well as in TV
commercials. Recently Rasna TV commercial used animation
of a dinosaur.
12.Use trade-characters like Gattu for Asian Paints, tiger for
Goodlass Paints, MRF man for MRF tyres and Maharaja for
Air India.
13.Use charts and diagrams while making rational appeals in
scientific copy. In consumer goods advertising, along with
these, a less technical picture should also be used as a
warmer.
14.Use cross-section diagram, e.g., inside of a car
15.Use symbolism, e.g., Merril Lynch uses a bull to show their
bullish investment sentiment.
16.Use abstraction, e.g., Wool-mark to show pure quality of
wool.
17.Use continuity strip. A series of photographs set like a
filmstrip are used.
18.Use mood-setting illustration. Here the product is
romanticized. It may be set against a romantic landscape.
Cosmetics use this approach.
19.Use a product illustration in its package.
20.Use illustration of components or raw materials of a
product, e.g., Cadbury milk chocolate that combines cocoa
and milk.

USP makes the consumer identify the brand with a particular
benefit. Brand stimulates an association of the benefit. But this
very association is the benefit. Marlboro gave a cowboy image
via USP. It is a focused identity, a narrow identity. The company
was the first to do it. Perhaps, brand image gives a rather diffuse
identity, open textured identity. It established itself via the
rational and logical appeal way.

•

Caption: Used to describe the sub-title. It tells the story
quickly, clearly and decisively. Sometimes difficult to locate.
But it is an important part of the layout.

•

Coupon: This is a part of the advertisement that enables a
consumer to get in touch with the advertiser. The name and
postal address is an integral part of any coupon. The offer or
the request must follow in close heal. The obligation of the
customer is given by their signature space. No hard and fast
rule is there regarding the position of the coupon in the
layout. Although in most of the advertisements it normally
lies at the end. Both rectangular and triangular ones are in
popular use. It is normally on the right hand side keeping in
mind that most people are right handed.

•

Decoration: Greater interest for the applicability of
decoration is in the fact that it should supplement or
emphasize the message of the advertisement as a whole.
Heavy or light would be at the discretion of the layout
person.

•

Mascot: It is also known as the ‘Trade Character’ or ‘Trade
Figure’. It may be defined as an illustration of either real or
an imaginary figure or personality introduced into the
advertisement to personalize the sales message or the name
of the product or service. Maharaja of the Air India is a
suitable example.

•

Logo or Name Plate: This is the signature of the
advertisement. The inclusion of the company’s name and
address is not always important hence the logo or a specially
designed image of the brand or the company can replace
that. The popular logos of Tata, Mercedes Benz, Toyota, Star
TV network, etc are a good example. The logo goes on to
make the Corporate Identity i.e. what does the company or
the brand stands for?

You should remember that the competitors can copy the USP,
hence the key lies in the differentiating the offer.
So I ask you what is this USP?

According to Rosser Reeves, a USP is:
• The creation of a distinct Brand position in the mind
• The product differentiator becomes the Brand differentiator
• Each ad must make a proposition to the customer. The
benefit to the consumer should be said in the message.
Dove soap, for example, contains ¼ moisturizer. Hence the
benefit offered is that the skin will not dry up.
• The competitors should not have made that promise or
proposition.
Since we have discussed copy, visualization, headline and
message, I need to tell you as to how we should integrate the
above in the advertisement. This is done through layout. Which
is basically arranging the various elements of an advertisement
to give it an essence. The following are the ingredients of a
good layout.
• Background: Could have picture, tiles, blocks, and graphics
but should not overshadow the foreground.
• Border: Is the frame of the advertisement. Could be,
• Heavy
• Light
• Obvious
• Unobtrusive
• Plain
• Fanciful
• Useful
• Useless
The practice you must know is the elimination of border in
today’s context. Except when you have to present a key
point, or a sales pitch then it could be used.
• Heading: This is the title of the ad. Should be short, but
could be four, five or even six decked. Words in the heading
should be short and verbs should be used to attract
attention.
• Illustration: It is the dominating picture in the ad. It could
be the product itself or a model. Large pictures are preferred
than small ones but it is not a hard and fast rule. Small
pictures are to make the copy comfortable. The main picture
tries to position the picture. It can attract the right target
audience by showing the right picture. People showing the
product could be a better picture than the product itself. The
illustration should show the benefit offered by the product.

A Corporate Identity is Important Because
• Gives an image to the company and the brand in question.
• Gives a sense of pride to the employees.
• Attracts the talented people to the company.
• Positive influence on the ‘publics’ of the company.
• Audiences think of the company as per the desired image.
• Reduces the cost of communication by standardizing the
system.
Few Examples of Logos are as Below
• Wipro: Sunflower with five colors of rainbow. Wipro name
is beneath it, followed by a phrase, ‘Applying Thought.’
• Tata: It is solidity. The image is that of the letter ‘T’ and
seems to engulfing the entire world.
• Coca Cola: It is the complete name with a wave like image.
Care free white surf across the bottle with red background.
• The logo of University is something you should tell
me what it stands for.
A logo is the image your business portrays. It sets the potential
clients position and interpretation of your company. With that
in mind, look around you right now, and count how many
logos you see. Look at your computer screen, mouse, radio,
bath towels, T-shirt, shoes, clothing tags, even your toothbrush
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ADVERTISING MANAGEMENT

USP or Unique Selling Proposition

ADVERTISING MANAGEMENT

and hairbrush. Every distinct image reminds you of a product
or service. Next time your driving home from work, or are in a
bus, notice how our world is painted with logos and images of
existing entities which remind us of their products or services.
Distinct Identity The good logos are the ones you remember
because they’ve made an impression. They stand out in a crowd
infested with products, such as a supermarket, where there can
be up to 40,000 different logos and packages. The impact of a
logo can be so powerful, it often means the difference between
the success of your business or that of your competitor. Small
Business Challenge Small businesses today face the ultimate
challenge to create a long lasting solid first impression. Key
issues in establishing corporate identity for a starting or small
business rest in establishing goals, business plans and image.
But most tend to sway away or forget that the first realization
of your business is brought upon by the company logo. This
important consideration in creating a corporate identity will
enable the small business birth an existence in its field of choice
and will show others that the company cares about its image.

You should Remember What the Logo does for the
Company
• The difference and distinction aid recognition.
• Ownership logically follows.
• There is pride in ownership.
• Corporate signature reinforces the pride of the company.
• It represents the personality of the company and its
products.
The other issues in the layout that you must look upon are:
• Price: Price is seldom the dominating feature in a layout,
except when a discount or sale is mentioned. It is more or
less associated with the cheapness of the product when a
price is shown in the advertisement. The consumer should
look at other features in the layout that will make it desirable
for him to look at the price naturally and would not associate
negatively with it. The usage of price should be as minimal
as possible.
• Product: It refers to the representation of the product for
sale. It could be featured in isolation, thrown up against
heavy or futuristic background or by decoration. A number
of photographs could be so put so as to form a well laid out
composition. But it is advised to show it in practice.
• Slogan: As described earlier it is a ‘Tabloid’ sales argument. It
is especially important in outdoor advertising. Its importance
is in relation to the advertiser’s message.
• Space: It goes on to describe the entire space that the
advertiser has bought for sale. Whether it is half a page or it
is 30-second spot on television.
• Sub-heading: It is a secondary heading. It may be employed
to either supplement and support the heading or to ‘pick
out’ the various selling points contained in the text. 2
guidelines should be followed for the inclusion of subheading. Firstly, to use them sparingly and secondly, to use
them to pick out the selling points in the text only when the
text is too ‘heavy’ to invite attention otherwise.

106

•

Text: The copy or the reading matter is termed as text. It
should not be too wide neither should it be too narrow. The
consumer should be able to read the copy with ease. Lower
case letters are better that capitals, expanded letters better
than condensed and roman letters better read than italic.
Spacing is very critical.

•

Trademark: It is the word or design by which the commodity
is defined. A registered trademark should always be included
in the layout. It may form the background or be embodied
in the border; it may dominate the heading or the nameplate.

You must understand that a particular balance must be brought
out in the layout so that there is a flow in the sequence of the
various elements of the layout.
So in a nutshell let me say that you must focus on the following
4 aspects of a layout:
1. Heading
2. Illustration
3. Copy
4. Logo
It is advised that you all look at ads in a different light from
now on.

Please note the layout of the above ad, especially the beautiful
integration of the foreground and background (umbrella & the
4 elements of nature). The logo, the headline, the illustration
and the copy are a good example of how the 4 elements of
layout are used.

Layout in a Nutshell
You could of course change it according to the aesthetics that
you may seem good.

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Headline

Illustration

Copywriting
Logo

Notes

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LESSON 19:
TUTORIAL
You are to write a copy for 2 advertisements. The brands could
be of your choice and you have to write 50 words for each
brand. Show as to which type of copy you are writing and how
do you justify as to why the consumer would buy the product
after reading your copy.
You are to take 2 advertisements from a newspaper and identify
the layout elements used. Thereafter in an A4 size sheet paper
cut & paste a new layout of the 2 advertisements.
Create a slogan for the following products:
•

“Zapata Jeans”

•

“Trendy Watch”

•

“Rox Chocolates”

•

“Zoom Camera”

•

“Fuma Shoes”

•

“LPB Television”

•

“Chuang Chinese Restaurant”

Create a TV commercial for a Life Insurance Company focusing
on ‘Slice of Life’ & ‘Testimonials’. Please enact it in front of the
class. Not more than 5 people in a group.
Create 3 different types of headlines for the same product. The
product is Tomato Ketchup.
You are given a few pictures, based on them create headlines
and assume which industry you would like to associate the
picture with.

108

You are to visualize a TV commercial & a print commercial for a
product aimed at children. The product could be of your choice.
Identify all the elements that you would keep while visualizing.
The faculty could change the tutorial if he / she so desires.

Notes

Learning Objectives
•

You will understand via this lesson the importance appeals
in the formulation of advertisements.

•

You will also understand the different buying motives of
the consumer.

provide some guidelines to the marketer for developing
advertising appeals The most popular and widely accepted need
scheme is the one given by A.H. Maslow. Maslow’s basic
human need structure states five levels hierarchically. They are:
i. Physiological Needs or Creature Comforts (Hunger, Thirst,
Sex, etc.): These are biological need such as food, water, sleep,
and so on, and are the most potent of all human needs.
These are therefore placed at the first level of the hierarchy.
ii. Safety Needs (Security, Protection, etc.): These are based on
the needs for physical safety and security, and stress such
things as preference of the familiar to the unfamiliar and for
the known to the unknown.
iii. Love Needs (Affection, Belongingness, etc.): These needs are
at least partially fulfilled by marriage parenthood and
belonging to organizations, such as the Rotary, Lions and
others.

Advertising has become expensive, time-consuming and an
important marketing activity. Firms have a great stake in the
success of their advertising campaigns, for their growth and, at
times, even their survival, depend on it. A vast amount of
time, money and energy go into the creative work of developing
advertising appeals to influence the buying behavior of
consumers. Through various appeals, advertising influence,
rationally or emotionally, the prospects’ purchase decisions. For
this purpose, they take the help of varying product features or
attributes in their ad appeals, or seek to influence consumer
perception of, and. changes in consumer attitude to, the
advertised product or brand. Ad appeals may be productoriented or consumer-oriented. Since there are a large number
of such ad appeals, it would be difficult to discuss them all. It
would, therefore, be helpful to devise a framework for classifying advertising appeals.

Human Needs as Basis for Appeals
The basic concepts in marketing tell us that PI: is all about
satisfying consumer wants and needs. Product and services are
offered by the marketer to satisfy one need or the other. Most
of the time needs are well known; but sometimes it is the
marketer who creates consumer demand. This is what we call
creative marketing. Ultimately, all advertising appeals are created
for the purpose of activating human needs and wants, and
showing how the advertised brand can satisfy those needs and
wants. The advertiser has to determine the needs at which the
advertising message should be directed. Though it looks
simple, it is, in fact, very difficult to arrive at the right human
needs or wants, which would be the basis for ad appeals.
Psychologists themselves do not seem to agree upon what
constitutes a set of basic human needs. However, there are
some generally accepted standard list of need structure, which

iv. Esteem Needs (Self-Respect, Prestige, Social Approval,
Achievement, etc.): As love needs become’ least partially
satisfied, the need for such things as prestige, self-respect,
esteem and status emerge. The desire for achievement,
independence and self-confidence are also part of these
needs.
v. Self Actualization Needs (Self-Fulfillment, Self-Experience,
etc.): The desire for self-fulfillment, or becoming everything
one is capable of becoming is the essence of these needs.
Included in them are aesthetic satisfaction,’ acquiring
knowledge, and so on.
Maslow states that each “higher” need dominates the organism
as the lower ones become satisfied or nearly (sufficiently)
satisfied. A person who has basically satisfied his physiological
and safety needs will become concerned about the satisfaction
of progressively higher level needs (love, esteem, self-actualization). One of these five stages is always prepotent, even though
the needs at other stages are still influential; that is, some needs
from all the five stages may operate on an individual at the time
that one stage is dominant. An important point to remember is
that a consumer does have to satisfy one class of needs
completely before progressing to other classes.
Taking a closer look at the human needs, we find that physiological needs are the most basic of the five basic needs
structure of Maslow. The need for food and water is so
essential that, without its satisfaction, life would cease to exist.
An individual is first concerned about the satisfaction of his
food, water, sleep, and other biological needs. In a society where
basic physiological needs are not fulfilled, advertisers of food
and related products have to depict them as a better way of
satisfying the hunger needs. In contrast to this, where most
people in a society have this need satisfied, the advertiser should
depict the food item as one, which can help to satisfy a higherlevel need, i.e., love or esteem, for example. Once the

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LESSON 20
AD. APPEALS

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physiological needs have been largely satisfied, every human
being is concerned with the next level of his needs, i.e., safety
needs. When these two basic needs have been largely satisfied,
he is free from constant fear for his safety, health and security.
Advertising of food products for the satisfaction of the needs
of hunger is hardly necessary. However, advertising: for
economical housing societies, life insurance policies, cheaper but
nutritious food, healthy drinking water and promotion of
sanitary living conditions – these would still be relevant to our
society.
Next to the safety needs come love needs. Every individual,
whose first two levels of needs, have been fairly satisfied, will
seek to love and would like to be loved by others. Love, here, is
not to be construed as synonymous with the physiological
sense. Sex involves both physiological and psychological
gratification. Sex is often used in advertising, as a means of
satisfying both physiological and love needs. Advertisers have
made an extensive use of sex appeals in their advertising.
However, these appeals are aimed at the satisfaction of the love
need (affection).
Esteem needs are of two types: one, those which are related to
how a person sees himself reflected in his personal achievement
and self-confidence; and, second, those which are related to
how, he believes, others see him. How others see him is
reflected in the attention and recognition he receives from others
as well as his reputation and prestige among other people.
Suiting ads of Vimal, Dinesh and Digjam aim at increasing the
self-confidence of the user. The jewellery ads of Tribhovandas
in Mumbai stress the prestige you can enjoy by using such
expensive jewellery. Advertising of any product, which can
increase the self-confidence, and self-worth of those who use it
makes this appeal – the satisfaction of the self-esteem need.
Many ads use the prestige appeal, which the user of such
advertised products will enjoy.
Maslow’s hierarchy of the need structure is the most widely
accepted list of basic needs, a detailed knowledge of which is
necessary for any advertiser. However, others have also given
their own classification. Combs and Snygg are of the opinion
that there is only one basic need – the need for maintaining or
enhancing one’s self-concept. Berelson and Stenier have given a
list of primary and secondary human needs. The primary needs
are physiological ones based on the biological functioning of
every human being. The secondary needs, according to them, are
those which are acquired or learnt, and are not necessary for the
basic biological functioning of an individual.

The Primary needs Include
i. Supply Motives: Hunger and thirst.
ii. Avoidance Motives: Avoidance of pain, fear, harm and other
negative consequences.
iii. Species-maintaining Motives: Reproduction, mating and
nutritive motives.

The Secondary needs Include
i. Acquired or Learned: It is believed that secondary needs are
learned because of the satisfaction of primary needs. One

110

learns that one can better satisfy one’s hunger-and-thirst need
by acquiring property and other possessions;
ii. Recognition needs;
iii. Affiliation needs.

The following Conclusions May now be Drawn
i. Unsatisfied needs are motivators of behavior and satisfied
needs are not.
ii. Much of human behavior is motivated by subconscious and
unconscious needs. These are needs we do not or cannot
consciously admit to ourselves. For example, in one of the
ads of “Sir Shirts,” it was said: “This is the MAN SIR is
made for.” A handsome man, together with his lovely girl, is
shown in the picture. Man has an unsatisfied (and
unconscious) need for exhibiting himself as a “he” man to
his sweetheart. Wearing a Sir Shirt is presumably a symbolic
way of satisfying this unconscious need.
iii. Generally, several needs operate simultaneously to cause a
given behavior response; but only some needs are more
important in behavior than others. These “key” needs
should be identified and appealed to, directly and indirectly in
the advertising message.

Buying Motives
We have already seen that needs motivate us. The various
buying motives are given here by way of illustration. Essentially,
the advertisers appeal to some of these motives or needs in
their ad message.
Different kinds of motives encourage people to certain goals.
All of man’s actions are guided by his cognition, i.e., his
apprehension, his awareness and his anticipation. When we ask
a question: Why do people buy? We are in reality asking the
question of motivation of buying. Motivation is thus concerned with the why of human behavior. Motives arouse and
maintain activity and determine the general direction of
behavior of an individual. In essence motives or needs are the
mainsprings of action. Need or motive is something in an
individual that prompts him to action. The following are the
important buying motives:

Unconscious Motivation
Freud invited our attention to the unconscious motivation.
People are not really aware of everything they want, that they
will often have tastes, ‘biases or attitudes which strongly
influence their buying behavior. But they really cannot account
for it.
Power Motive
Power is a very strong motivator. We buy many things so that
we can exercise power over others.
Competence Motives
We have a desire to have job mastery and professional advancement. So a doctor buys many types of equipment according to
competence motive.
Affiliation Motive
Man is a sociable creature. We seek the company of others to
gain some impersonal reward. The desire to be with other
people for its own pleasure is also known. In many life-style

Security Needs
Investments decisions, medicines, insurance policies etc. are sold
on die basis of this need. Hosieries, woolens, umbrellas,
rainwear etc. also get purchased against this need. This need is
operative both at the conscious and unconscious levels. Fear is
used as negative appeal to emphasize this motive.
Social Needs or Motives
Needs for belongingness is one powerful motive. We’ want to
be a. part of national mainstream. So we wish to buy packaged
tours to Singapore, Europe, Nepal, Kashmir and other
destinations. We want to be members of Diner’s Card or BOB
Card or Cancard. We want membership of Dynasty Cultural
Club or Rotary Club or Lions Club.
Esteem Needs or Motives
These are the motives of distinction, achievement, status and
independence. Pride and vanity motives also fall in this category.
These are important buying motives. Automobiles are sometimes bought because they’ give us social status. All premium
products are sold against these motives.
Physiological Needs or Motives
Some of our motives are to survive – we buy food products
because of this. We buy houses and flats also to survive. W~
buy textiles for protection and survival. These are all primary
motives ~f buying.
Comfort and Convenience
Different kinds of furniture, interior decor, footwear, woolens
etc., we buy for our comfort. Similarly, calculators and computers make it convenient for us to do our accounts, billings and all
such other functions. Kitchen gadgets like grinder-mixers,
fridges, cooking ranges etc. are bought against these motives.
Envy
As Shakespeare has put it: ‘Envy, thy name is woman.’ Women
envy the gorgeous dress others wear, the cosmetics others use,
the complexion the next-door-neighbor has, and the ornaments the cousins have bought. Men also do not lag behind.
Onida Color T.V. is ‘the neighbor’s envy, but the owner’s pride.’
Wardrobes, cosmetics, fashion wear, designer dresses are all sold
against this motivation.
Fashion
Fashion over a period of time changes – in dress, in eating, in
design, in make-up, in appearance etc. Certain things are
considered to be in fashion and in style. Readymade garments,
salwar kurta, trendy tops and tee shirts are all sold on fashion
grounds.
Novelty
Newness itself is a strong buying motive. We now have
adopted Odopik washing powder in place of earth or clay,
Sanifresh toilet cleaner, Odonil air-fresheners – all on the basis
of newness. After a time, newness wears off and we search for
something else. We formerly applied Odomos as mosquito
repellent on the body, but now we say goodknight to the
mosquitoes by using “Goodknight Heater.”

Sex and Romance
As it is, sex is a primary need, like the hunger and thirst. Most
of the personal care products, toiletries, textiles, cigarettes etc.
are sold on this basis. Romance is a matter of feeling, a very
exotic feeling. Romance could be in imagination also. Tourist
destinations, honeymoon packages, jewellery etc. are sold on
this basis. Of course, sex and romance are inter-related.
Greed
This motive makes us save and economize. We also like to avail
of discount sales, free gifts, price offs, premiums, coupons etc.
because of this motive.
Curiosity
This is also a good buying motive. We are interested to know
about the known and the unknown things. Books, games,
quizes, new tourists destinations, dictionaries, encyclopedias,
self-learning packages. etc. are sold on this basis.
The above list is only illustrative, and not exhaustive.
A motive is a state of tension. It activates action towards a goal
and sustains it till the goal is reached. Motivation can be
conscious or unconscious. Motives make the behavior of the
individual goal directed. Of course, the means to achieve the
goal may be different, e.g., you may achieve distinction by being
a Star athlete like Shiny Wilson or an ace gynecologist like Dr.
Shirodkar.
Motives are inside the individual – a mental state. Buying
motives indicate our buying intentions. Maslow has classified
human needs (the manifestation of motives) into five categories, as we have already seen.
Appeals and Buying Motives: Both these are closely related
concepts. Appeals are cues or provide stimulus. Appeals are
made because there are buying motives leading to action.
Appeals are developed thus on the basis of buying motives.
“Lower-priced Nirma has the price appeal, but it incorporates
economy motive. Tonics give us energy but they incorporate
health appeal. Tribhovandas Bhimji Zaveri gives exquisite
jewellery. This beauty appeals to the buying motive of pride or
possession.

Appeals and Advertising Message
We have mentioned that the advertising message should appeal,
directly or indirectly, to those key needs, which influence
behavior response. Without going into communication
theories and models, we shall deal with the message content, its
structure and the format to be employed for the formulation of
an appropriate message.
The message content refers to what the advertiser has to say to
the target audience that will produce the desired response. It
may be an appeal, a time, an idea or a unique selling proposition. In fact, the message content ultimately formulates some
kind of benefit, motive or reason why the audience should
respond to, or do, something.
The message content refers to what the advertiser has to say to
the target audience that will produce the desired response. It
may be an appeal, a time, an idea or a unique selling proposition. In fact, the message content ultimately formulates some
kind of benefit, motive or reason why the audience should
respond to, or do, something.
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advertising of products like cigarettes and soft drinks, we make
use of affiliation motive.

ADVERTISING MANAGEMENT

which are normally, considered rational under ordinary circumstances:
i. High Quality : People buy television, stereophonic music
systems, furniture, refrigerators, electric gadgets; kitchenware
and a host of consumer durables for their high quality. Many
consumer goods, too, are bought for their quality, such as
clothing, beverages, food items, etc., and not merely because
of their taste or fashion, or style.
ii. Low Price : Many people buy low-priced locally made air
conditioners for their homes because they believe that these
products will show a product performance similar to, or
slightly inferior to, that of nationally reputed brands at
higher price. Whether this is true or not, a person, as long he
believes this to be true, thinks his reason will be accepted as a
“good” one by his social group. In this case, he is exhibiting
a rational motive.
iii. Long Life, as of a car tyre that will give 30,000 kms, before its
utility has been exhausted.
iv. Performance, as of a ballpoint pen that won’t release
excessive ink or skip under any circumstances.
v. Ease of use, as of a screwdriver with a magnetized tip which
clings to the metal head of the screw, or a timer in the
kitchen mixer which switches off automatically after a predetermined time period.
vi. Re-sale Value, as of a two-wheeler scooter. “Bajaj” has a
better re-sale value than any other make.

Types of Appeals

vii.Economy, in the operating expenses of some brands of
refrigerator is greater because they consume less electricity.
Many two-wheeler vehicles claim a better mileage per litre
consumption of fuel than similar other vehicles.
We should, however, point out that some of the best ads are
totally irrational. Porsche car ads listed such irrational benefits.
Volkswagen built itself on the proposition it’s ugly but it
works. Nine per cent of the human psyche is irrational. But,
what is irrational can be made to seem rational. Gary Goldsmith
is not content with just a rational benefit but expects the benefit
offered to be such, which a rational person can understand.

Appeals are broadly classified as rational, emotional and moral
appeals. Rational appeals are those directed at the thinking
process of the audience. They involve some sort of a deliberate
reasoning process, which a person believes would be acceptable
to other members of his social group. They attempt to show
that the product would yield the expected functional benefit.
Rationality has come to be equated with substance. A rational
ad becomes believable and effective. Although there may be
some disagreement regarding which motives are rational and
which are emotional, the following are some buying motives,

112

Industrial buyers are most responsive to rational appeals. They
make purchase decisions in line with the technical specification
of the product, product quality, etc. Most industrial buyers are
knowledgeable about the product class, trained to recognize
value and are responsible to others about their choice. Often,
industrial buying decisions are made after a thorough comparison of various offers and after evaluating the various benefits
of different makes. Consumer durables of high value ‘are also
often bought on the basis of rational appeals. People are ready
and willing to give rational motives if asked why they have
made a particular [purchase. Those who buy Playboy or
Debonair are likely to say they buy them for the articles. Even
when decisions are made on emotional grounds, people like to
rationalize their decision~ to show that they are based on
sound rational grounds. Strong emotional propositions need
rational underpinnings. Most of us want others to regard us as
rational human beings. That is why we like to give socially
acceptable reasons for our buying decisions. We feel that rational

Emotional appeals are those appeals,
which are not preceded by careful analysis
of the pros and cons of making a buying.
Emotions are those mental agitations or
excited states of feeling which prompt us
to make a purchase. Emotional motives
may be below the level of consciousness,
and may not be recognized by a person; or
even if he is fully aware that such a motive
is operating, he is unwilling to admit it to
others because he feels that it would be
unacceptable as a “proper” reason for
buying among his associates and colleagues.
Emotional appeals are designed to stir up
some negative or positive emotions that
will motivate product interest or purchase.
Different emotional appeals, which are
particularly important from the advertising
point of view, are listed below. Following
several motivation research studies, it has
been found that negative emotional
appeals are more effective than positive
ones. We shall also, therefore, name the
negative appeals first.

Emotional Appeals: Response Categories

Dimension of response to emotional
appeal
Feelings of an up-beat mood evoked by
music, Humor and other such ad elements
Feelings of quiet and relaxed pleasantness
used in cosmetic commercials bringing out
sensuousness
Feelings of heart-warming and tenderness

Illustration
‘Celebrate with Asian Paints Home Coming’ Campaign!
‘Lakme – she’s a woman to me’ campaign.
Cadbury’s ‘Mother-son’ commercial.

Feelings of motivational, appetite desire to
Food ads.
buy or consume the advertised
brand/category
Apart from the above four categories, the emotional roles the products play in Indian context also
affect the response
Role category
of the product

Details

Normal part of the scene
Necessary to set the stage on which
important things in life occur
associated with emotion- laden events
like marriage

Background

Product necessary for interaction to
occur

Mediator to interactions

All brands have rational and emotional
credentials. Levi’s is youthful, rebellious
and sexy. But it offers rational benefits like
strength too. One has to balance between
rational and emotional arguments.
Singapore Airlines presents the Singapore
girl, an emotional icon. But it also
emphasizes in-flight service that other
airlines talk about, which is a rational
proposition.
Negative Emotional Appeals: An
advertiser may try to induce a particular
Expression of Self
behavioral change by emphasizing either
positive or negative appeals, or a combination of both. For example, an advertising
campaign to get the target audience to buy
Products themselves
fire insurance may stress the positive
become
aspect -low cost relative to other investobjects of emotion
ment, the services the insurance company
provides, early settlement of claims, and
so on; or it may stress the negative aspect
of not getting insurance – the danger of losing one’s possessions or the ravages of fire. Positive appeals use the strategy of
“reducing” a person’s anxiety about “buying and using” a
product, while negative appeals use the strategy of “increasing”
a person’s anxiety about “not using” a product or service. In
general, a positive appeal stresses the positive gains to a person
from complying with the persuasive message; the negative
appeal stresses his loss if he fails to comply.

Example
Room furnishings, accessories,
most appliances storwel
cupboard
of Godrej.

Cameras
Souvenirs of events which
enable
reconstruction of these events
(VII
luggage campaign Kal bhi, Aaj
bh
Kal bhi).
Restaurant scene of Titan
watch ad. Husband gifts the
watch to his
wife. The symbol of warmth is
the
watch. The interactive has
heightened. Background music
plays an important part

–

High product involvement object
becomes a substitute for human
relations.

Clothes, apparel and accessory
categories.
Remiders of self-esteem.
Raymond’s ‘complete man’
campaign.
Sharmila Tagore and Pataudi
in
Gwalior suitings campaign.
‘Hamara Bajaj’ campaign.

Precautions While using the Emotional Route
1. The advertising should have relevance. If the product needs
attribute-based rational advertising, emotional appeals
should be avoided.
2. There should be a natural flow of feelings.
3. Execution should not be exaggerated. The level of
emotionality should not exceed that experienced by the
consumer.

We give here the different dimensions of emotional appeals.
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motives will raise our status in the eyes of our associates and
colleagues.

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4. There is a difference between a consumer’s emotions
associated with the product / brand and a consumer’s
emotional reaction to the ad copy itself. Preferably, these two
should be compatible.

Fear Appeals
The fear appeal is most important among emotional appeals,
and also the most effective. It is said that the message’s
effectiveness increases with the level of fear it generates. The use
of fear appeal in getting people to start doing things they
should is very common. Many ad messages of toothpaste
employ this appeal. They present the fear of tooth decay or
unhealthy gums or bad breath, and then suggest the use of a
specific brand of toothpaste to get rid of such fears. A recent ad
of “Promise” shows a boy weeping because of severe toothache, and then suggests the use of “Promise” to avoid a
recurrence of toothache.
A fear appeal of this kind is used in a wide variety of product
categories. When products are designed to protect an individual
from some loss of health (medical or life insurance), the fear
appeal of the type illustrated above can be effectively employed.
Then there are products designed to protect an individual from
loss of property (automobile or home), which successfully
employ fear appeals to induce a particular buying behavior.
Fear appeals are at times used in ad messages in connection with
getting people to stop doing the things they shouldn’t do. The
advertisements relating to prohibition, prevention of losses
and conservation of energy fall in this category. The warning on
the cigarette packet that smoking is injurious to health is a
typical example, even though this is a statutory warning and
advertisers themselves would not like to include it is the ad on
their own.
Then there are many products that are, directly or indirectly,
involved in the avoidance of a fearful situation. A large number
of advertisements employ the fear appeal in their ad messages
of products, which relate to more subtle social and psychological motivations, such as loss of status, friendship, job, position,
and so forth. Personal-care products (soaps, cosmetics, deodorants, shave lotions, mouthwash, etc.) fall in this category. Fear is
the higher level of tension; but anxiety has been used to
promote the sale of a large number of instant foods, other
food products and home appliances. Think of ads wherein the
housewife’s anxieties are fully exploited to get the message
across to the target audience.
The more carefully fear is built, the greater is the tension
resulting in a greater drive from within to reduce the tension.
Research studies have proved that extremely great fear appeals
ate less effective than moderate ones in motivating people to
adopt the product and eliminate fear. However, very weak fear
appeals are not effective either in evoking the desired response.
Therefore, a selection of the appropriate fear level is important;
it should be strong enough to heighten the drive of the people
to buy a particular product. But if an excessively strong fear is
pictured, it is possible that people would exhibit a defensive
behavior, and tries to avoid the ad, and may not be prepared to
accept the threat. They may even take the view that the solution
recommended in the ad may be inadequate to deal with so great
a fear. However, some researchers have found cases where
114

strong fear appeals have worked beautifully. They feel that
buyers have different tolerances for fear and that therefore,
different levels of the fear message should be set for the various
segments of the audience. However, the underlying concept
that every message should promise to relieve, in a believable
way, the fear it arouses should be the ultimate guide in the
selection of the levels of fear appeals. A general principle of
“not too much and not too little” is most relevant in the
selection of appropriate fear appeals.
CARE (an American conducted a methodical study in rural
north India (mainly UP) ad agency) to discover which of the
two appeals – positive or negative-would work better in getting
a nutritive food accepted. The positive appeal was love of
children and the negative one was fear of the consequences of
malnutrition. The “love” campaign featured a proud mother
rearing her thriving child on the prescribed food. The “fear”
approach created a frightening devil (rakshas), symbolizing the
disease and misfortune arising from wrong food habits. These
campaigns were run for a full year in two different areas. The
evaluation of these campaigns clearly showed that the fear
appeal created a great deal more awareness of the value of the
nutritive food. The negative proposition aroused immediate
reaction because of the fact that an unpleasant bang is more
likely to make one sit up than the melodious strains of
soothing music. Some authors and experts in the field of
advertising, however, may disagree with this view. But fear
appeals are seldom composed entirely of negatives. The
warnings generally pave the way for positive advice and exhortation, and in this form the negative appeals appear to be just as
effective on the average as positive appeals.
Take, for example, the recent advertisement of Khaitan Kitchen
fans employing a negative appeal. The headline states: “Are you
cooking or being cooked?” It goes on: “Every housewife knows
how miserable she feels when she cooks. It makes her irritable
and saps her energy. Khaitan presents a simple, efficient and
inexpensive answer. ‘The Khaitan Fresh Air Fan.’ It drives out
smoke, smells and heat, and brings in fresh air. Not only that;
thanks to the continuous inflow of fresh air, the chances of
dampness are eliminated. And this prevents cockroaches and
other insects from breeding in your kitchen.”
The headline and the initial part of the body of the copy
effectively create fear; but the latter part of the copy presents the
solution and the positive appeal of the product. Such is the
most common form of the advertising message – first building
up fear and then offering a solution with other positive appeals
of the product advertised. On the level of fear, Aaker and Myer,
in their book, Advertising Management, rightly state that fear or
anxiety has two kinds of possible effects on message reception
and yielding. As a stimulus, its effect tends to be negative; and
as a drive, it tends to be positive. Furthermore, too little anxiety
tends to provide an insufficient drive, and too much anxiety
tends to make the stimulus aspect predominant. The net result
of these two factors is to make the relationship between anxiety
level and message effectiveness non-monotonic, with maximum effectiveness occurring at the intermediate levels of
anxiety.

In the closing sentence, the ad appeals by saying: “Give your
family the Loving Care of Dettol Soap.” Mother’s love for the
baby has been appealed to in ad of Johnson’s baby soap. It
says: “Gentle as a kiss on your baby’s tender skin.” It further,
goes on to say: ‘’Johnson’s Baby Soap. Because Johnson &
Johnson care for your baby almost as I much as you do.” Is this
positive appeal not effective, when the advertiser shows as
much care for a child as its mother does?

Fear Appeal and Market Segmentation
We have just now stated that, in some cases, big doses of fear
are recommended, whereas, in others, the use of low levels of
fear is the logical strategy. We have also given examples of an ad
about dental health, where the degree of associated fear is high,
and an ad about smoking and cancer, where the level of fear is
low. Furthermore, apart from the differences in product
categories, the age and personality differences in the target
audience vary the effectiveness of each level of fear appeal. That
is why it has been recommended that both the market segment
and product category groupings should be taken into consideration before designing appropriate fear appeals.
Let us take an in-depth look at the use of fear appeals and their
relationship with the market segment, for this will provide a
valuable insight to advertisers. It is important to note that
although people generally prefer positive arguments, a fear
appeal can make an advertisement stand out from others. For
individuals whose aroused fear or anxiety about the product is
low, and those who would not normally search for information
about the product, the fear appeal can be particularly effective if
these individuals have been previously exposed to positive
arguments.
It has been found that it is better to put fear first in the order
of presentation, to threaten someone close to the prospect
rather than the prospect himself. While advertising a helmet for
scooter-riders, the fear of injury to the head is the most
appealing to the wife and to someone close to the rider. The
rider himself may not accept the idea promptly because of selfesteem and of ego consciousness. The appeal of intense fear
might be best for people who tend to be of low-anxiety and
high self-esteem people, who exhibit a copying behavior, and
who find the product to be of low relevance. There are many
who have a low vulnerability to fear and anxiety. For example,
life insurance companies find that fear appeals work beautifully
with those who feel that they do not need coverage for their
lives. Fear appeals are appropriate for breaking into new market
segments. In fact, the susceptibility to fear appeals is one more
approach to the market segmentation process. A careful analysis
of those potential fear appeals, designed to arouse emotion in a
group or audience, should be made a part of advertising
strategy, wherein all ads addressed to this audience will incorporate such fear appeals. Thus, if appropriate fear appeals are
defined, they become a useful tool in market segmentation.

Advertisers have also successfully used messages communicating the joy and thrill (all, those soft drink, ads) associated with
using the product. A humorous message attracts more
attention and creates more liking and belief in the source,
though it reduces comprehension. David Ogilvy, a well-known
personality in the advertising profession, believes that humour
has been over-used: “People are amused by clowns – they don’t
buy from them…So many people in advertising are compulsive
entertainers who seek applause rather than sales.”

Positive Emotional Appeals
Positive appeals highlight product benefits and attributes
capable of influencing consumer behavior. They are love,
humor, pride, prestige and joy. Most baby food products have a
mother’s love appeal. Love for family is perfectly employed in an
ad of Dettol soap that has been called “The Love & Care Soap.”

Other positive emotional appeals involving price, prestige or
exclusiveness are often used in ads of suitings. Advertisements
of suitings by Raymonds, Digjam, Dinesh etc., employ
emotional motives, “Suitings for the Connoisseur,” a Digjam
ad campaign, is an example of appealing to those individuals
who are experts in matters of taste and choice of clothing.
Other emotional motives are illustrated in the following list:
i. Desire to be different, as illustrated by people who build an
ultra modem home in an area of traditional homes.
ii. Desire to confirm, as in the case of teenage boy and girls
who want to be “in jeans” because all their friends wear
jeans.
iii. Desire to attract the opposite sex, as shown by a teenage girl
who buys a new cosmetic in order to make her skin more
beautiful.
iv. Desire for prestige, as shown by a person who buys the
most expensive automobile (Mercedes, Toyota, etc.) he can
afford in order to impress his friends.
In making purchases, many combine both rational and
emotional motives. In fact, a blend of buying motives usually
is the basis of a purchase: An engineer may take up a management course at any of the prestigious schools because he feels it
will make him look important in the eyes of his associates and
help him in securing a better job in the industry and business.
A woman may want to buy a new home in posh locality
because it will improve her family’s social status and because it is
within walking distance of a good school for her children.
Moral appeals are those appeals to the audience that appeal to
their sense of right and wrong. These are often used in
messages to arouse a favorable response to social causes, such as
prohibition, adult literacy, social forestry, anti-smuggling and
hoarding, consumer protection, equal rights for women, social
responsibility projects of corporations, rural development,
siding weaker sections of society, employment generation, and
so on. There are messages that appeal for generous donations
for flood victims and for famine relief operations – these are
often based on moral appeal. Many commercial advertisements
are criticized on moral grounds. The most controversial ad
campaigns are by multinational companies marketing baby food

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And, lastly, so far as appeals to fear are concerned, this approach
is useful for products that are of little interest to consumers
when rational appeals are employed. Even in cases where the
product fulfils a generally recognized need, fear appeals are
effective. Take the case of life insurance. Fear appeals are still
required to sell policies. However, fear appeals fail in the case of
the cancer hazard of cigarette smoking, which is often rejected
by most smokers.

ADVERTISING MANAGEMENT

products. Many WHO experts are critical of these corporations
that promote bottle-feeding against breast-feeding.

sensuous. For Calvin Klein, sex has always been a favorite
selling point.

Sex Appeals in Advertising
Sex appeal is being increasingly used in Indian advertising to
overcome the culture in the print as well as broadcast media and
to grab attention. Sex appeals in contraceptive ads have become
explicit, and are more visual than verbal. Does sex really sell? Or
is it a negative influence on consumer? The answer is not either
affirmative or negative for these questions, and depends upon a
number of factors.
Effectiveness of ads is measured in terms of the objectives creating awareness may be the objective, and then brand recall is
a measure of effectiveness. The advertising objective may be to
make the consumer buy – here buying intention is a measure of
effectiveness. The following summarizes the research studies in
this context.
Research shows that non-sexual illustrations are more effective
than sexual ones while undergoing brand recall. Men remember
the sexy illustration and neglect the brand. Favorably disposed
people to the use of sex had a higher brand recall of brand
names that used sex appeals in their ads.
Negatively inclined people to sex had a lower brand recall.
Research also shows that nude illustrations of female are least
appealing, are associated with lowest quality product and least
reputable company. Recently Seven’s research shows that explicit
sex appeals do not interfere with the ability to recall brand
names.
It has also been observed that visual which is highly sexual
interferes with the cognitive processing of the message since
readers tend to spend more time on the ad as a whole. Information transmission is definitely adversely affected by sex
appeal.
Functional sex appeals have highest recall and so also symbolism.
Inappropriate sex appeals have lowest recall. Fantasies are also
used as sex appeals. Appeal that are consistent with the product,
lead to a higher recall.
There might be gender-related responses to sex appeal. Females
may find the sexual ad offensive and so its use for a femaletargeted product runs a risk. A lipstick ad showing a female
model that is seductive may grab the attention of the maleaudience rather than the targeted female audience.
Connotative sexual appeals like symbolism are more acceptable
than explicit appeals.
The sexual appeals are justified in case of products like personal
products, panties, bras, undergarments, and swimsuits. They
may not go well with industrial products. The relevance of the
appeal to the product is very important.
The manner of sex portrayal, the sex of the models and the
target segment also affect the effectiveness of the ad. Blatant
references to sex are suddenly the in-thing in American advertising. Marketers promoting perfumes, jeans, alcohols, gloves,
watches and cars are resorting to this route. Media clutter may be
one reason that leads to the explosion of sexual imagery in
advertising. Ads of perfumes have traditionally focused on the

The late Justice Hidayatullah had ruled “where obscenity and art
are mixed, art must be so prepondering as to throw the
obscenity into the shadow.” We tend to agree with him. There
is a thin line between nudity and crudity. Even an act of kissing
has both sexual and non-sexual content. “Of no use to one, yet
it is absolute bliss to two. The small boy gets it for nothing, the
young man has to steal it and the old man has to buy it. The
baby’s right, the lover’s privilege, the hypocrite’s mask. To a
young girl, faith; to a married woman, hope and to an old
maid; charity.”

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Sex appeals are interpreted differently from time to time, region
to region, person to person, country to country, and society to
society. Even the same person reacts to them differently at
different stages of his life cycle.

Direct and Indirect Appeals
Another way of classifying ad appeals, comes about whether we
they are linked directly or indirectly with consumer needs.
Sometimes advertisers are explicit about the need to which they
are appealing, whereas, at other times, appeals are veiled or
purposely kept ambiguous, and the consumer has to determine
the relevance of the appeal to him.

Direct Appeals
Direct appeals are those that clearly communicate with the
consumers about a given need, followed by a message that
extols the advertised brand as a product that satisfies that need.
In Industrial advertising, some ads may have a direct appeal,
satisfying the customer’s technical need; but, in consumer
advertising, the direct appeal plays a very limited role. Examples
of direct appeal ads for consumer products are rare. In America,
the hamburger was once advertised with the hunger appeal. The
ad said: “When you get a man-size hunger, eat a whopper
hamburger.”

Indirect Appeals
Indirect appeals are those that do not emphasize a human need,
but allude to a need. Because advertisers understand the
influence of needs upon selective perception, they leave some
ambiguity in the message so that the consumers may be free to
interpret it and the need to which the advertiser is appealing.
Since this interpretation of the consumer is not difficult, there is
no risk involved in keeping the ambiguity in the message.
Indirect appeals are either product-oriented or consumeroriented, or may be a combination of the two. We shall now
discuss each one of these indirect appeals in details.

Product-Oriented Indirect Appeals: They are
Grouped into three Classifications
i. Feature-oriented Appeals: The basic message is about
product features, characteristics and attributes. Examples:
Instant Shine, Cherry shoe polish, ‘’Promise,’’ the unique
toothpaste with the time-tested clove oil.
ii. Use-oriented Appeals: The basic message emphasizes specific
in-operation and/or post-operation advantages of the brand
advertised. Examples: Anne French hair remover ad: “How
much cruelty can a woman’s skin bear?” The headline is a

iii. Product Comparison Appeals: “The basic message
emphasizes the differences between the advertised brand and
the competing brands. The advertised brand, of course, has
a net advantage over those with which it is compared;
otherwise the whole exercise becomes futile. Think of those
ads of electric fans, when the product features of various
brands are compared in the ad in a tabulated form – such
features as the number of poles of the motor, the number
of bearings, the price, warranty period offered, etc. A
refrigerator advertisement compares the types of
compressors used, whether high speed or low speed,
electricity consumption, noise level, the quality of the white
enameled body, extra tray, etc.

Consumer-Oriented Indirect Appeals: They are
Further Divided as Follows
i. Attitude-oriented Appeals: The basic message is one that is
in line with the consumer’s attitude – his value – belief
structure. Example: The ad series by Shriram group, namely:
“Indian Corporate Evolution. The Shriram Experience.” In
one of the ads, it says: “we are Indians. We must remember
our roots.” Then it goes on to state the group’s belief in
Indian traditions and the advantages it shares with the
country. This message refers indirectly to Maslow’s esteem
need.
ii. Significant Group-oriented Appeals: The basic message
emphasizes the kind of group that uses or approves of the
advertised brand. The group may be a reference group, a
social group, or a peer group, or any other group that is
significant for the consumer target. The ad says: “Some
possessions define a character. Some distinguish it. A
cigarette so distinguished, it’s by appointment to your
Majesty.”
iii. Life Style-oriented Appeals: The basic message emphasizes
an identifiable life style relevant to a defined target market.
Example: An ad of Charminar cigarette making an appeal
with its strong taste. For some hard smokers, a “strong”
cigarette can only give relaxation, particularly after a day’s hard
work. One needs a Charminar.
iv. Sub-conscious-oriented Appeals: The basic message is
distinguished and is directed at the consumer’s subconscious (or unconscious) need. These messages are aimed
at the buyer’s dream world, but are veiled in some manner by
messages appealing to the buyer’s conscious mind. Example:
‘Petals’ brassieres of VIP are advertised with a dreamy
message: “As you flower into a woman, you discover the
epitome of international fashion. Discover Petals.”
v. Image-oriented Appeals: Although all advertising appeals
create a brand image in the minds of consumers, the imageoriented approach is distinct in the sense that here the

advertiser, consciously and purposefully, makes an effort to
mould a brand image. There is an intention to create a specific
brand image. One strategy is to create a brand image that
“fits” either the self-image or self-ideal image of the target
market.

Essentials of an Advertisement Appeal
i. It must be thematically sound.
ii. It must be communicative.
iii. It must be interesting.
iv. It must have credibility.
v. It must have finality and be complete.
vi. It must contain truthful” information.

Selling Points and Appeals
Selling points are those product attributes that are listed in the
advertisement copy to impress upon the consumer the
significance of a product to him. They could be specifications,
quality statements, composition statements, descriptive or
narrative or performance statements. Some selling points are
primary selling points and the rest are subsidiary selling points.
Selling points in order to be effective must have the force to
appeal to a particular buying motive. So selling points successfully touch upon the buying motives.

Notes

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searching question. The- ad message discards other methods
of hair removing – they are shaving, waxing, and threading.
Then it goes on to inform you how gently hair is removed
with Anne French. Another example is of Stayfree belt less
napkins by Johnson & Johnson. It highlights the fact that
there is no need of belts or strings or pins. How convenient
it is’, taking away all the botherations of women!

ADVERTISING MANAGEMENT

LESSON 21:
TUTORIAL
How far do you think “Sex” could be used as an appeal? Bring
out the ethics in this context?
Create appeals for the following products in the form of Voice
Over or Copy for print.
•

Cigarettes

•

Liquor

•

AIDS

•

Computers

•

Amusement park

•

Paints

•

Motorcycle

•

Automobiles

You could take an existing brand or create your own brand. In
case of existing brand you cannot take their appeal. You are to
create a new one.

Notes

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Learning Objectives
•

You will understand via this lesson the importance using
endorsements.

•

You will also understand via the case study on the
effectiveness in using testimony.

Case Study
Opportunity is always knocking, goes a splinter thought of the
popular aphorism. The trick is to open the door every time it
knocks.
For confectionery major Parle Products Ltd, the findings of a
recent study conducted by ACNielsen afforded the perfect
opportunity to set up an interface with Indian consumers and
speak to them about the popularity of flagship glucose biscuit
brand, Parle-G. An opportunity that Parle Products and Everest
Integrated Communications – the agency handling the Parle-G
account – grabbed with both hands. The result? A fivecommercial ‘testimonial’ campaign that underlines the findings
of the ACNielsen study: that Parle-G has emerged as the
world’s largest-selling biscuit brand.
A cursory look at the commercials, just to get a hang of the
campaign. The first commercial (‘boarding school’) is about this
girl recounting her first experience of boarding school. She talks
about the anguish that comes from leaving a big, well-knit
family, the alien atmosphere of the boarding school, the tears
of distress… ‘Phir maine papa ke diye hue jhole ko khola,’ she
says. ‘Pata hai usme kya tha? Parle-G… Wahi pehchaani
khushboo, wahi swaad. Aisa laga jaise main ghar par baithke
Parle-G kha rahi hoon…’ The spot ends with the voiceover:
‘Barson se apna sa swaad. Parle-G.’
The second ad (‘exam’) is about a man harking back to the ‘allnight study plans’ that he and his friends used to chalk out
while preparing for their examinations. The plans, of course,
stayed as plans, with the friends rarely ever burning the midnight oil. ‘Raat bhar chai pee, raat bhar Parle-G khaayaa, thodi si
padhai kar li… aur exams hamesha achhe beet gaye,’ he shrugs

and smiles. ‘Soye dimaag ko jagaaye, Parle-G,’ informs the
voiceover.
Ad three (‘college’) has this boy narrating the story of how he
gave the very desirable ‘Tina’ a lift from college one rainy day. It
turns out that fussy Tina was prone to a bit of whining, while
our narrator was rather stretched for money. ‘Meri jeb mein woh
das ka phata hua note! Usse paise mangta? Tchk…’ the ego
kicks in. The solution presents itself in the form of a roadside
dhaba. ‘Ek cutting chai, ek Parle-G. Uska to mood ban gaya,
yaar…’ the boy says, thrilled. ‘No fuzool, paisa vasool, Parle-G,’
the voiceover chuckles.
The remaining two ads (‘school’ and ‘train journey’) are about a
mother talking about her son tendering excuses for not having
his lunch in school, and about a woman recalling a train journey
where Parle-G helped assuage hunger when the train was left
stranded in the middle of nowhere. All five commercials end
with the slug, ‘Parle-G. Duniya ka sabse zyaada biknewala
biscuit.’ (For the records, as per ORG figures, Parle-G enjoys a
69-per cent share of the domestic glucose biscuit market,
pegged at close to 2.7 lakh tonnes per annum. Closest competitor Britannia Tiger has a 24 per cent market share.)
“The client told us about the ACNielsen report which said that
Parle-G is the world’s largest-selling biscuit,” explains Prabhakar
Mundkur, president, Everest Integrated Communications.
“And we saw there was an opportunity to talk to the consumer
and make her feel proud of the fact that she was among the
millions of Parle-G consumers the world over. It was something that not many brands can boast of, and the opportunity
of reassuring the consumer about her choice of the world’s
most popular biscuit couldn’t be missed.”
The ACNielsen report might have presented the brand a
communication opportunity, but the agency was not content
with simply drumming in the largest-selling-biscuit message. It
wanted to create a campaign that was befitting “a world
champion”; one that would “stand out of the clutter” and
“speak to a wide spectrum of users”. The agency figured that
the best way to achieve all this was to create a campaign featuring
‘real people’ as brand ambassadors of Parle-G. And, for good
measure, layer in Parle-G’s five ‘driving propositions’ (taste,
nutrition, meal substitution, mental development/alertness,
and affordability/value-for-money) by making them integral to
the campaign thought.
“Parle-G’s consumer base is unique in the way it cuts across age
groups, income groups and SECs,” says Shailesh John
Khalkho, account group manager at the agency. “So although
the core target consumers are young mothers and kids in the 6to-12 bracket, we can have a campaign that speaks to the entire
spectrum of consumers. Also, different people have different
reasons for consuming Parle-G. These can be broadly clubbed
under the five pillars of taste, nutrition, meal substitute, mental

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LESSON 22:
TESTIMONIALS & CELEBRITY ENDORSEMENT

ADVERTISING MANAGEMENT

development and price. So we created five stories built around
these five different propositions.” The ‘boarding school’ ad is
rooted in taste and familiarity, ‘exam’ highlights mental
alertness, ‘college’ has affordability at its heart, the ‘school’ ad is
about ‘poshan’ (nutrition) and ‘train journey’ showcases the
brand as a meal substitute.
The most striking feature of the campaign is undoubtedly its
‘candid camera testimonial’ treatment. Absolutely nothing new
about candid camera testimonials, sure. But given the brand’s
history of doing montage-and-jingle advertising (can anyone
think of a Parle-G ad sans the ‘swaad bhare, shakti bhare,
barson se – Parle-G’ chorus?), this is one big departure. “This
was a campaign about real consumers, so we wanted to do a
‘testimonial’ campaign with real people in it,” says Khalkho.
“But we wanted to do interesting testimonials, and do them in
a way that would not only look authentic, but also in a way that
the target audience can identify with.”
And if the campaign has achieved that end, credit should go to
filmmaker Sumantro Ghosal, insists Milind Dhaimade,
executive creative director at Everest. “Testimonials can be
extremely boring and dry, and it’s hard to make them interesting,” he says. “But Sumantro did a lot of homework on this
campaign. He created scratches, he helped us interview 150
consumers to identify actual Parle-G experiences, he kept the
scripts simple, he did some excellent casting and he layered
everything beautifully. I cannot take the credit which is rightfully
Sumantro’s.” Interestingly, Dhaimade reveals that the five
‘Parle-G situations’ in the campaign have been culled out of the
interviews the team had with consumers. “These situations
helped us make our point about the brand, and we only
dramatized them a bit to suit the requirements of a TV
commercial,” he explains. “The situations came from real life,
that’s why they’re so relatable.”
With the help of fresh examples bring out the relevance of
testimony in the above case?

Celebrity Endorsement
What do you Exactly Mean by This Term
Celebrity endorsement of products can fulfill either a strategic or
a tactical purpose. In the case of Taj Mahal Tea, Zakir Hussain
fulfills a strategic role. He is a brand ambassador. An intrinsic
part of the brand itself in many ways. Distancing such celebrities from the brand at hand is a tough task. At times, the
celebrity in question assumes a larger than life image that
overshadows the brand and its delivery appeal.
In the case of a Coke or a Pepsi, the celebrity is pretty much a
tactical initiative that is run for a period of time to plug a
particular proposition. In tactical initiatives that embrace
celebrities, the name of an individual who is the flavor of the
month is pretty much of an incidental issue. It is pretty easy to
divorce celebrity from brand, and yet retain brand sanity.
It has become a fashionable thing to use celebrities when you
want your brand to jump into a point of contemporaneity that
would otherwise take a great deal of effort to build in the good
old way. The celebrity is an easy route! It hits back at you at
times. Look at all the money that went with Hansie Cronje and
our very own Salman Khan! In the case of our very own Mr

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Khan, shooting a Chinkara worried many a wildlife enthusiast.
A later violent image on the sets dampened it more. A much
later accident in a drunken state drove in the nail further!
I am sure now we have got a hold on the subject matter. To go
on with more examples, there’s young Chandrachur Rocky
Singh flaunting his choice of suitings and there is Raveena
singing of love and a ballpoint pen. Akshay in Ruf and Tuf
jeans. The other Akshaye on a speedboat surfing in his father’s
footsteps, on lime freshness.
Amitabh Bachchan hamming it as himself and his screen
characters in a corporate film for a consumer electronics giant.
This is advertising’s very own star track. And the star system is
working out of the film star circuit as well. Cricket has created its
own ad stars… Sachin Tendulkar, Azhar, Rahul Dravid… as their
rating points go up so does their advertising appeal. Internationally tennis, baseball, basketball and soccer stars command
millions in endorsement money while film stars have always
plugged their choice of brands, all for a neat sum of money.
Andre Agassi in Nike ads, Shaquille O’ Neill in the Pepsi
commercials, Michael Jordan recommending his signature line
from Nike, Air Jordan and players coming together to claim,
“this is my planet” for Reebok.
In Indian advertising the celebrity is hot property. The film star
celebrity is naturally first choice. There are clients who come in
from small towns with wads of cash looking for an ad film
script and with a clear agenda… to make a film with their
favourite star. But the film star route is not restricted to small
towners alone flip through the ads and you will notice as many
multinationals using star power, to sell their products. Why do
we choose celebrities to endorse products when it costs an arm
and a leg to put a celebrity under contract? Why do we deal with
celebrity managers and the whole gamut of celebrity management to get the star of our choice, whose choice does the star
finally represent, a star-struck client’s or the consumer’s? What
happens to a brand if it becomes indistinguishable from the
celebrity endorsing it, like the Nawab of Pataudi and Gwalior
suitings? What happens when in an ironic twist a spokesperson
becomes a celebrity because of brand advertising and then
becomes larger than the brand like Lalitaji in the old Surf
commercials? What happens when you run out of celebrity
testimonials or endorsements can actually work two ways. One
to bring quick memorability, recall and recognition for your
brand which helps when your brand is fairly new so you can
cash in on the linkage. If you are a multinational it helps you
project an Indian face and often a popular Indian face. Celebrity
testimonials work when your product makes logical sense in the
celebrity’s life… like a beauty cream for film stars, a range of
tough wear for a tough guy, a memory supplement for an aging
prime minister, a pair of shoes for a famous player, and by
logical transference of this peek into the celebrities behind-thescenes life, make it relevant to our own. But celebrity
testimonials can never be an easy way out if you are looking at
some long-term brand building. For that you need a creative
idea and a celebrity is no substitute for an idea. A film with an
all-starcast can still flop if the script and story don’t deliver. The
consumer like the public is discerning

In India today, the use of celebrity advertising for companies
has become a trend and a perceived winning formula of
corporate image-building and product marketing
Associating a brand with a top-notch celebrity can do more than
perk up brand recall. It can create linkages with the star’s appeal,
thereby adding refreshing and new dimensions to the brand
image.

Celebrity Management: A ConceptSelling Challenge
In a world filled with faces, how many do you remember?
Admittedly the ones that evoke some kind of feeling in you,
whether it’s humor, acceptance, appreciation or recognition
could be it. These are the faces you’d turn to look at, the ones
that would stop you in your tracks. And that’s when you have
more than just a face. You have personality. Personality that’s
reflective of your brand and promises to take it that extra mile is
what you are looking at. As existing media get increasingly
cluttered, the need to stand out has become paramount — and
celebrities have proved to be the ideal way to ensure brand
prominence. Synergising personality with product and message
can create an instant breakthrough. Result? Brand buzz. People
begin to notice opportunities come about. People want to be a
part of the brand. Touch It. Feel it. Experience it. ‘Celebrities as
Brands’ is a concept-selling challenge, as the current notion of
celebrity management is far from ideal — it’s perceived as a
business that merely attaches the celebrity to the brand to get
that added advantage. However, the actual job is not mere
brokerage — it’s about selecting a spokesperson whose
characteristics are congruent with the brand image.

So what Exactly is the Right Personality
It’s one that can personalise your brand, is in sync with the
product/service and is the perfect match for it. The one that
puts buzz into your brand. Creates opportunities for advertising promotions and events. And forms the fertile ground for
clutter-bursting ideas. Celebrity endorsement is a serious
business, and if used effectively could have a lasting impression
on the brand, its activities and its image. Right from Kapil
Dev’s ‘Palmolive ka jawaab nahin’ to the most recent sensational association of Hrithik Roshan with Tamariind, celebrities
have done wonders for brand recall.

The Rewards of Using Celebrities for
Your Brands
Associating a brand with a top-notch celebrity can do more than
perk up brand recall. It can create linkages with the star’s appeal,

thereby adding refreshing and new dimensions to the brand
image. It can also create media and promotion opportunities
that sweep the consumer off her feet. Research conducted by
Katherine Eckel, professor of economics at U.S. Virginia Tech,
has revealed that celebrities or ‘higher status agents’ can get
people to make a better choice but cannot influence ‘people to
make a foolish choice’.
In India today, the use of celebrity advertising for companies
has become a trend and a perceived winning formula of
corporate image building and product marketing. This phenomenon is reflected in the recent market research finding that 8
out of 10 TV commercials scoring the highest recall were those
with celebrity appearances. A few examples: Sachin TendulkarAdidas, Sourav Ganguly-Britannia, Leander Paes and Mahesh
Bhupati-J. Hampstead, Shah Rukh Khan-Pepsi, Sushmita SenEpson and Aishwarya Rai-Coke. The effectiveness of the
endorser depends upon the meaning he or she brings to the
endorsement process. There is a three-stage process of meaning
transfer which involves the formation of the celebrity image,
transfer of meaning from celebrity to brand and finally from
brand to consumer. This is what leads to effective celebrity
advertising.
The selection of a celebrity for a brand is done primarily on the
basis of a marketing brief prepared either by the corporate or
the advertising agency. Once the relationship between the brief,
the brand and the celebrity is established, the association is
accomplished. For example, when S. Kumar was to launch its
new range of readymade garments, Tamariind, there was the
realization that one brand of apparel couldn’t be very different
from the others, and what would make the difference was the
packaging. So in came teen heartthrob Hrithik Roshan. The
brand personality of Tamariind matches that of Hrithik —
Tamariind being a new brand and Hrithik the new heartthrob.
The idea behind Tamariind is the ‘flavor you wear’ — a brand
catering to the fun-loving and adventurous youth. And the
ambassador chosen is a successful and extremely exciting
personality — a youth icon of today’s times. So the marriage is
apt and justified.
The best advertising comes from a deep understanding of the
consumer and how he/she connects with your brands.
Therefore, the jhatka of Mirinda needs a personality with a
sense of humour. That’s Govinda and Amitabh for you.
However, there’s one fact that advertisers using celebrity
endorsements need to keep in mind — never let the celebrity
become your brand. In doing so, one runs the risk of killing the
brand no sooner has the hype and hoopla around the celebrity
faded.
A classic example of the above is Dinesh Suitings, where Sunil
Gavaskar, the brand spokesperson, was allowed to rule the
brand, thus becoming bigger than it. No sooner had the
association ceased than the brand lost its identity, thereby
creating confusion in people’s minds.
Therefore, the use of a celebrity must be proportionate to the
objective.
It is also important for one to be completely clear about why a
brand should use a celebrity. Is it to boost sales or to boost
image? Or is it just to keep the brand alive? If the objective is
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What makes a celebrity testimonial work at a point of time
when words like brand building and realism and real people are
the current buzz. Strangely the same climax that has thrown up
a host of real commercials, featuring real people with real
emotions, really using the brand in question and subscribing
wholly to brand values. The same consumer who is exposed to
Surf Excel advertising is also exposed to Govinda in the
doodh-ganga ad and Madhuri in the Lux commercial. But the
consumer is willing to see category differentiation. A film star in
a beauty soap ad is acceptable, but a film star endorsing a dish
washing powder may require an unimaginable suspension of
belief.

ADVERTISING MANAGEMENT

increase of sales, the celebrity should be used for short-term
promotions and brand activities. (A classic example is the Rani
Mukherjee campaign for Bata which is believed to have helped
boost sales for the ladies’ footwear brand, Sundrop, by a
whopping 500 per cent.) In the event of an image-building
exercise, the celebrity can be used for a longer period of time, so
that the brand can derive the benefit of the celebrity’s image on
its own.
The association of Sushmita Sen, ex-Miss Universe, helped the
brand Epson achieve instant recognition in the computer
printer category even in the presence of other big brands in the
market place. This is the power of celebrity endorsements

Notes

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LESSON 23:
TUTORIAL
•

You are required to pick 5 brands and analyze the choice of
celebrity endorsement used. If you were to change that
celebrity (for any 2 brands) who would be your ideal choice
and why?

•

Write a Long copy on Raymond’s suiting for the print media.

•

Write a Short copy for Amul Butter to be put on Hoardings
around your city.

•

“Love is in the Air”, write a copy, which brings two college
going people together by ‘Fun-cle Chips’.

Notes

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LESSON 24:
MEDIA PLANNING & DECISION

ADVERTISING MANAGEMENT

Learning Objectives
•

You will understand via this lesson the different types of
media for advertising.

•

You will also understand media selection and planning.

•

You will understand via this lesson the strategic decisions in
media.

•

You will also understand the significance of media
scheduling.

•

The focus out here will also be on alternative media and a
recapitulation of various media types.

The term media is plural for medium. In advertising terms,
medium is a channel of communication, such as newspapers,
magazines, radio and television. A medium is a vehicle for
carrying the sales message of an advertiser to the prospects. It is
indeed a vehicle by which advertisers convey their messages to a
large group of prospects and thereby aid in closing the gap
between producer at the one end and the consumer at the other
end. Of course, this is from the viewpoint of advertisers and
the audiences. There is another way of looking at the media,
and that is from the point of view of the medium itself.
Different media are organizations or enterprises for entertainment. They sell the product in the form of newspaper,
magazine and radio and television programmes. At best, they
are service organizations fulfilling the needs of listeners, readers
and viewers for entertainment and information. Each medium
designs its product to be more and more attractive among its
audience. Each medium applies marketing concepts to the
designing of the right product, selling it at the right price,
distributing it through several outlets and, at times, taking the
help of the right promotional means to increase its circulation
or improve the popularity of its programmes. Newspapers
publish, be it local news, national news, special interest information such as business, sports, housekeeping, science, etc.
Similarly, television and radio stations broadcast programmes
that are designed to attract larger segments of the public. In
short, media too have to market their products properly.
Once a medium has been well established and has built up a
significant readership or audience, it is in a stronger position to
attract advertisers who are on the look out for such media to
reach audiences with their selling messages. Of course, they are
willing to pay for this service. Thus, in addition to selling their
products in the form of newspaper, magazine, radio and
television programmes, the media are selling space or time
which, in turn, earns large revenues for them. The money so
earned out of selling advertising space or time which, in turn,
earns large revenues for them. The money so earned out of
selling advertising space and time ultimately helps to make the

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UNIT – 4
MEDIA TYPES & DECISION

product itself (medium) cheaper and more attractive among its
audience.
It would not be inappropriate to mention here that it is
advertising that has been instrumental in the phenomenal
growth of the media. In the nineteenth century, publishers of
newspapers and magazines were faced with the stagnant
circulation of their publications, with the result that profits were
limited. This was due to the fact that the entire cost of writing
and production was covered by subscriptions and newsstand
revenue only. If the circulation was to be increased, it was
possible only when prices were reduced. With lower prices, the
circulation went up, resulting in a widespread reach of advertisers for their selling messages that, in turn, earned more money
for the media. Both the media and the advertisers seem to have
been benefited in the process. The publishers increased their
audiences, profit and sphere of influence; at the same time,
advertisers could reach effectively their prospective customers,
making mass marketing possible for them. Today, every
medium, be it a newspaper or a magazine, the radio or television, has a department with the responsibility of selling
advertising space and time. The media themselves do advertise
and promote the sale of their advertising space and time, for
this is one of the important activities of the media. For their
growth and even for their survival, the media have to be
constantly on their toes to achieve increasingly higher advertising
revenue.

Types of Media
The media are classified into two categories:

Above-the-line Media
Press, TV, outdoor, posters, cinema and radio. The recognized
agencies get ‘commission’ from these media.
Below-the-line Media
Those who do not give commission to the ad agency. The
agency adds a percentage as a handling or profit charge or
charges a service fee. The examples are: Direct mail, pas, SP,
merchandising, exhibitions and sales literature.
The following are the various categories of media available to a
media buyer or an advertiser:
1. Print Media

i. Newspapers
a. Daily
b. Weekly
c. Sunday
d. Weekend Supplement.
ii. Magazines
a. Consumer Magazines: General interest, special interest
magazines like Auto World, Interior India

iii. Direct Advertising: Direct mail.
2. Broadcast Media

i. Radio: Vividh Bharati, FM.
ii. Television: Terrestrial channels like DD and satellite channels
like Star, Zee TV.
iii. Narrow-cast Media: Video and Cable TV, Cinema, Ad Films.
3. Outdoor Media
4. Transit Advertising Media

5. Other Media
a. Specialty Media: T-shirts, buttons, caps, stickers, badges etc.
b. Direct Advertising or Direct Marketing (DM).
c. Internet: Media of the new millennium.
Print media can be considered the first revolution. Electronic
media like radio and TV are the second revolution. Digital
media like Internet are the third and the most spectacular
revolution. Digital media draws on the features of both print
and electronic media. The entire complexion of mass media has
changed due to what is known as interactivity. The individuals
in it multiply the segmented target audiences. The whole mass
can be considered to be one in a different perspective. The
economics and demographics of media traditionally practiced
become a matter of the past. Most renowned publishers have
put their publication on Internet.
Internet advertising affects not only product marketing, but also
its manufacturing and distribution. A product can be ordered
on Internet. The data becomes the input to the production
system. The goods are sent directly to customers. Software is
available to enable a reader to select the editorial matter of the
newspaper available on Internet. It gives the freedom of choice
to the customer.
In digital media, we may come across ‘pay per view’ phenomenon e.g. DTH: direct-to-home TV. Even in the absence of
advertising, digital media may be available at a reasonable cost.

Media Selection
As an electrical current flows from one end to the other through
a conductor, so the advertising message is transmitted through
the advertising media from the advertiser to the target audience.
Advertising media are thus the vehicles that carry the advertising
messages. Various kinds of media are available to an advertiser.
Which one of these should be selected for a particular advertising is a strategic decision.
Effective advertising refers to informing the public about the
right product at the right time through the right medium.
Conveying a right message through a wrong medium at the
wrong time would be a definite waste of resources. Therefore,
the right media selection is the crux of the success of the entire
advertising campaign. However, the right message, the right
timing and the right place of advertising are equally important.
Media selection decision refers only to the selection of a specific
medium of advertising, such as the newspaper, a magazine, the
radio, or television, the mail service or outdoor advertising,

whereas media planning is a general term encompassing
decisions involving the time and place of advertising in
addition to the selection of the medium. A media plan outlines
how advertising time and space in various media will be used to
achieve the marketing objectives of the company through
advertising.
The importance of advertising and its role as a powerful
marketing tool need no further repetition, for this has been
dealt with at great length in the introductory chapters. Promotion is one of the 4 Ps forming the marketing mix, and
advertising is an important part of it. An advertising plan is
based on an overall promotional strategy; and media planning
follows the advertising plan. Media strategy is thus a part of the
marketing strategy. In other words, the media plan is part of
the overall market plan, and media selection is the last stage in
the process of promotion through advertising. Media decisions
are mainly concerned with the following:
What are those available media that will serve our advertising
needs best? Examples: Newspaper, magazine, radio, television,
direct mailing, outdoor, etc. Which individual medium in each
general category of media selected above will be the best vehicle
for our advertising? Examples: TOI, India Today, MumbaiPune-Nagpur radio and Mumbai TV commercials.
What could be the best combination or mix of media for our
total advertising?
What would be the best specific schedule for the release of our
ads in each of these media?
Media planning and media selection assume significance in the
light of frequent reports that advertising is wasteful. One
advertiser confessed: “Half of my advertising is wasted. The
problem is, I don’t know which half.” Following the correct
methodology and using quantitative models in media planning
can achieve elimination of wasteful advertising achieved to a
good extent. This is particularly true because, in the entire
advertising cost, media charges are fairly substantial. The
effectiveness of a well-designed advertising message depends
upon “when” and “where” it is released. These are “time” and
“place” decisions. In short, we may say that the success of
advertising depends upon the right selection of media, the
timely release of the advertisement message, its frequency and
continuity, and the place of its release. All this signifies media
planning.
For the right media planning and selection, the advertiser must
know the consumer profile accurately and the market to be
reached, i.e., the target market. If you direct advertising to
people who have neither the inclination nor the money to buy
your product, you are wasting your effort which otherwise may
be a good advertisement effort in itself. In this case, the
advertisement is effective, while advertising is ineffective.
Therefore, in order to get the most out of the rupees spent on
advertising, it should be directed to the right audience. For each
target, there is an effective message; and it is this effective
message reaching the right audience that makes advertising
most successful.

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b. Business Publications: Industrial publications, trade
publications, institutional publications, etc.

ADVERTISING MANAGEMENT

Media Planning: New Perspective
In India, we are experiencing an economic slow down. Consumer buying is on the decline. Ad spends are curtailed
Agencies are becoming learner. Clients are becoming more
discerning about media usage. Though they are cutting and
budgets, they want more effectiveness. In common parlance,
this is called ‘more bang for the buck.’ Clients have become
extremely vigilant on how agencies spend their money on
media. Intuitive media decisions and exploratory tactics are out.
Everything has to be substantiated. It is necessary to stretch
every media rupee more and more. Though the broader media
mix is planned annually, media planners are continuously
shuffling the actual vehicles they choose channels or
programmes in case of TV and publications in case of print.
Clients want to know how involved their target audience is with
a particular programming. Even though demographics cover the
reach objectives, the target audience may be a passive viewer.
Research on the involvement of the target groups is getting
more attention. Agencies are making use of proprietary
consumer involvement tools that help them measure media
preferences of target audiences.
There is a shift from planning based merely on reach to
planning based on awareness/ involvement. The client wants to
know whether his target audience bas actually seen the campaign. He wants to know whether the client was at home when
the commercial was telecast. Media planning goes beyond media
buying. It has to focus more sharply on consumer decisionmaking process and the importance of media in that process.
Media has to make accountable. Media planners have started
using more efficient media evaluation matrices. Audience
involvement scores are now weighted while arriving at ROI on
media spends.
Media planning has become tactical psychographic, consumer
and brand strategy-led and accountable.

Media Plan
1. The first step in media planning is the collection of useful
information about the people or the market to be reached
through advertising. The more detailed and specific the target
market data available on geography, age group, sex, income,
attitudes, interests, etc., the more appropriate the media
selection would be. However, it is well understood that the
available advertising budget is an important guide to the
media selection. The task is to select a medium most suited
to the target market at a given budget cost. This concept of
“what-can-you-afford?” in media planning is equally relevant
to small as well as large companies, for they do have
something like a budget or an appropriation of fund for
promotion. Irrespective of the size of the company, it finally
settles for how much money it can afford to put in for a
particular market for advertising and/ or for promotion.
2. The second significant step in media planning is to decide
upon the nature of the message to be conveyed to the target
market. However, this decision necessarily follows a
thorough understanding of the consumer profile. The
message or the copy, by which name it is more accurately
called, is decided in the light of the aspect of consumer
behavior or motivation which is intended to be influenced.
126

3. Having gathered this significant information, the next logical
step is to search for an ideal match of the audience
characteristics of media with the target market profile and, at
the same time, check for the perfect adaptability of the
message (copy) requirement with the media. Following the
media planning decision process, we have to take into
account the other media concepts explained in the following
paragraphs.
4. Reach is expressed in terms of the number of households or
individuals reached by a given medium over a period of
time. This is usually expressed in terms of percent of total
households or individuals in the target market. Sometimes,
there is a possibility of duplication, i.e., two media may reach
the target audience. National magazines have a different reach
from that of the regional’ ones or other media, such as TV,
radio, etc. National readership surveys provide information
about published materials, whereas several other conducted
studies may provide the reach percent of other media. One
can buy reach with print in a specific geographical market by
taking a combination of newspapers or magazines.
Frequency refers to the average number of times different
households or individuals are reached by a medium in a given
period of time. The frequency of advertisement exposure of
the target market depends upon the amount of reinforcement
of the image required or the amount of reminding required
having sustaining patronage from the target customers. The
greater the frequency, the greater the probability of the advertisement message making a deep and lasting impression.
To understand these concepts dearly consider the following
illustration. A sample of viewers represents 10 TV Households
(HHs) – Q to Z who watch a programme A over a four week
period.
HHs
Weeks Q R

T U V W X Y Z
Total Exposures

A A

–

– A

–

– A A

A A A

–

A A

Total 3

4 1

– A A

– A

–

– A A

–

– A A

–

4 1 0

Exposures
It is obvious from the above table that from 10 households 8
watch programme A only. Two households U and Y did not
watch the programme at all. It gives a reach of 80% to the
programme A. Two households Sand Ware exposed to
programme 4 times a week, three households (Q, R, V) are
exposed to 3 times a week, and one household (T) is exposed
to one time a week. Therefore, the average frequency is:

= 20/ 8 = 2.5

Reach
Continuity refers to message deliveries over a period of time or
a season. It refers to the of the media insertions. Advertisements are inserted at the time frequency round the year. This
continuity. Shifting from one medium to another involves the
sacrifice of continuity, but may be worthwhile for some other
advantages that may flow from it.
Gross Rating Points (GRP’s) refers to the total weight of a
media effort. Quantitatively, it is equal to reach multiplied by
average frequency. To illustrate, if 80% homes watch Chitrahar,
and are exposed on an average 2.5 times within a four-week
period, the total GRP’s are 200. If the target is 100 GRPs, it can
be achieved by buying 10 spots in a programme with TRPs 10
(lOX10) or 20 spots in TRP 5-rated programme (20 X 5). There
could be umpteen numbers of such combinations.
The size of the message measures the strength and effectiveness
of impression. Size is expressed in terms of the space used in
print media or the time occupied in the broadcast media.
The above terms are interrelated and inter-dependant, and a
different mix of these elements would yield different patterns
of message delivery. Media planning, particularly under a given
budget, must take into consideration the elements of reach,
frequency, continuity and size. Unfortunately, there is no single
combination of these elements that is ideally suited to all kinds
of advertising. Each time the advertiser has to make the most
suitable pattern to get the most out of the advertising rupees
he spends. However, the advertising budget would continue to
be a limiting factor in the final adoption of a specific pattern.
The reverse relationship is equally important – that unless the
message is sufficiently large – and delivered in sufficient
numbers with sufficient regularity, the advertising rupees would
be largely wasted. The job of a media planner is to effect a
balance between the two approaches.
This process, as you will appreciate now, answers the questions:
•

When (the timing of the release)

•

Which (the media selection)

•

How (the coordination in media planning)

•

How much (the budgetary allocation)

In short, this process designs a course of action that shows
how advertising time and space will be used so as to contribute
to the achievement of marketing objectives. Media plan is the
end product of media planning process.
The media objectives are set keeping in mind the background
of the market, the firm’s marketing strategy and its creative
strategy. Media objectives thus contribute to the overall
attainment of marketing objectives.
Media objectives lead us to a definite media strategy to translate
media goals into general guidelines involving planner’s selection
and use of media. The best alternatives are selected.
The details of the media plan are then filled up such as selecting
the broad media classes, selection of media within these classes,
and the actual media use decisions for each medium selected.

The degree of synergy between message content and media
provides the missing piece of the jigsaw that media selection
often is. For substantive messages, TV may not be a right
medium.

Designing a Media Plan
After having explained some of these media concepts, we shall
now discuss some strategic considerations in designing a media
plan.
The first and foremost is the consideration of the market and
the target consumers. We have said earlier that the advertiser
must have a full understanding of the target market. Such
information is available from consumer research studies. For an
appropriate media plan, it is essential to know I the type or class
of consumers – whether all types are women, children, and old
people. They may be professional people, businessmen,
farmers, working class people, etc. Newspapers, magazines,
radio, television and other media, each has a different coverage.
National dailies have different readership from the local or
regional readers. This is equally true of magazines. There are
sports magazines, each having and film magazines, as well as I
business its own following. Similarly, the radio and television I
have their own audience. Different radio and television channels
as well as programmes have a different following.
The type of the products and services to be advertised also
determines the media to be selected. Industrial products and
new products of a technical nature are advertised through the
“Purchase” magazine. Products for exports are advertised in
“Products from India” or in the “Product Finder,” Fashionwear is advertised in film, general or fashion magazines, such as
Filmfare, India Today and Society, respectively.
After the characteristics of the product come the characteristics
of the distribution channel.
Distribution outlets may be classified into national, regional
and local. When advertising is done on a national basis, using
adequate national media, the product should be made available
nationally.
When distribution is restricted to the regional level, advertising
on the national basis would be mostly wasteful. In short,
advertising would be of little or no value in getting the people
to buy products unless these products are made available in an
area that is within their easy reach. Even when the product is
nationally distributed, there are pockets or areas in which the
company wants to operate more intensely. In such territories or
regions, advertising may be more effective if done through
regional magazines or dailies, which have greater followers hip
than the national ones. Similar may be the case with the
broadcasting media. In India, this is significantly true, for we
have many regional, languages.
When products are sold through a network of dealers and
distributors who are few in number, though influential,
advertising to such few target customers may be more effectively
done through direct mail or trade journals. In short, the
characteristics of distribution determine media selection.
Next to the above strategic considerations comes the copy
formulation and its method of presenting the message, because
only an appropriate media can give a proper expression to the

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Total exposures

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advertisement message and create a lasting impression on the
minds of consumers. Newspapers may carry advertisements
only in black and white, whereas magazines may express the
copy in color. The magic of color in effectively attracting
attention to ad messages is well known. It has been found that
orange, red and blue stand high on the attention-getting list of
colors. Men prefer orange, while women like red. These
preferences for colors are useful and significant. In fact, color is
an important means of creating an emotional feeling around an
advertisement and around the product advertised. Similarly,
some photographs and actions in advertisements are more
effective if expressed in color. Some advertisements need only
to be announced on the radio. There is no need for visual,
photo or action behavior.
New products, when introduced, should be supported with
advertising in media that can give exposure of the product to
the audience as sensational news with some degree of urgency.
National or regional dailies, radio and television are appropriate,
but not the fortnightly or monthly magazines.
The consumers of this segment like advertisements for a
product, with the objectives of carving a segment of market for
it and creating a strong brand loyalty by a conscious attempt at
giving the product a personality. This necessitates the designing
of advertisements highlighting the various personality attributes and traits of the target user or the group. The copy
design of the advertisement message and the media through
which the advertisement ‘is released should have a similar
personality if advertising is to be very effective.
Some advertisements appear in several magazines of diverse
interests. This is true of consumer goods and consumer
durable goods. In fact, this is not a very wise thing to do. Each
magazine has its distinct class of readers, with a distinct social,
cultural, and educational background. We have certain habits,
attitudes and stereotypes about events and things around us.
The common advertisement message may be effective with one
set of readers but may not go down well with another group.
Therefore, the right way is to design an advertisement message
in the language best understood by the reader of each magazine. When there are no discernible differences among the
readers, we may project a common advertisement message.
Pictures in ads exert a powerful influence on the target audience.
They speak a universal language. A picture is worth ten thousand words – so goes an old Chinese proverb. An ad with
pictures requires no special training in understanding. Pictures in
color in the print media are great attention-getters; but when
pictures move and talk, it is almost impossible not to pay
attention to them. That is why television ads are very powerful
and effective. But the question that arises is: At what extra cost?
In the first place, pictures with color cost more; but when color
pictures are made to move and talk, an advertisement costs very
much more. However, the gain in terms of extra audience
attention should justify the extra cost incurred.
Similar is the magic of words in creating and holding interest.
One author has correctly said: ‘Words are the window through
which we see images.” Just by naming a place, a person or an
object, we often generate a rush of pleasant thoughts. Some
words or expressions pack a greater emotional kick than others.
128

Their use in ad messages makes for greater emotional stimulus
and arousal of imagery.

Let us Recapitulate the Media Planning here with an
Example
In marketing communication, media, which carries the message,
plays a very important role in the whole process as Media is
consumed in varied fashion by an entire spectrum of populace
and hence choosing the right Media is of prime importance in
order for the communication to reach the target population.
Politically speaking Media is often referred as the fourth estate parliament, executive, judiciary and the media. In today’s
globalised economy Media exists primarily to deliver entertainment, information, and advertising to a vast audience. In an
open and liberal economy Media and Advertising are inextricably linked. Advertisements have become one of the most
important cultural factors in our lives and it will be prudent to
say that Advertising is the force, which actually sustains all
commercial media. This brings us to the process of Media
Planning to effectively spend the advertising money.
The starting point for a media plan must be the marketing
situation. This analysis is done to get a bird’s eye view of the
market in which the brand is operating and its relative position
viz. a viz. its competitors. Advertising is used to communicate
certain information to the prospects in order to attain the
marketing objectives. Media are the means, which carry this
communication to the target audience. This is followed by
defining the Advertising Objectives, they are defines to avoid
the possibility that different criteria are used by everyone
involved right from Managing Director to the executive in the
creative department of the agency. For example, the advertising
objective could be driving saliency, increasing awareness,
reinforcement of existing perceptions, improving the brand
image, changing perceptions, inducing certain behavior and
trials.
There is one more dimension to copy strategy. The copy of an
advertisement depends upon the type of media. When the
same product is advertised on the radio, the message is put in
such a way that it goes down effectively with the listeners.
Sometimes messages are presented in a lyrical form, which is
pleasant to the ears; but when the same product is advertised in,
say, a magazine, the copy of the advertisement is read by the
audience; and it should, therefore, be an eye-catcher. While
reading an advertisement, we have more time to think and
analyze it objectively. When the same product is advertised on
TV, the audience has the opportunity of viewing it in addition
to listening to it. The copy in such a case has to be different
from the copy in the other two media. Therefore, in our
opinion, it is equally necessary that a correct copy strategy be
employed which is suitable to the media used for an advertisement.

Media Cost and Media Ability
To get the most out of the advertising rupees spent, the
primary concern of the advertiser is media selection. The cost of
buying space or time is weighed against the number of audience
secured by such advertising. In fact, buying advertising space or
time is nothing different from buying commodities. Usually,

The selectivity offered by some media is useful for advertisers,
for it enables them to reach & target market with minimum
waste. In fact, the media themselves provides a great deal of
information on the media about demographic characteristics.
The objective of any media pi is to achieve the best possible
matching of media and the market.
The media ability is measured under the following heads:
i. Distribution Measurement: Expressed in the number of
copies circulated.

Similar is the method of comparing the costs of buying space
in magazines. The cost per thousand is the unit used, which
measures the cost of reaching one thousand audience. In the
case of television and radio, the rates are expressed in units of
time, i.e., so many rupees per 10 seconds spot (film or slide) or
per 20-second spot, etc. Again, the number of listeners or
viewers varies from one programme to another, or from one
radio station to another. Therefore, the more appropriate unit is
the cost per commercial minute per thousand viewers or
listeners.
The cost aspect of the media and their ability to reach the
audience and achieve the exposure has been worked out in the
following example. For the sake of simplicity, only two
magazines at a time are considered for the purpose of comparison. Table 1 gives information on the comparative efficiency of
circulation and audience for two magazines, A and B.
Comparison Basis
Cost of 2-page colour ad
(central spread)

Magazine “A” Magazine”B”
Rs.15, 000/-

Rs.25, 000/-

50,000

100,000

Circulation efficiency
(cost per 1,000 copies)

300

250

Readers (Nos. per copy)

4/5

225,000

300,000

66/66

83/33

Circulation (No. of copies)

ii. Audience Measurement: Expressed in terms of audience
size, audience composition and the amount of audience
exposure.

Audience Efficiency

iii. Exposure Measurement: The advertiser looks for the ability
of the media to create advertising exposure. Once the media
have produced the desired exposure, the quality of the
message will determine the subsequent impact in terms of
perception, communication and behavioral response.

Magazine A, though having a higher cost of circulation, shows
a better audience efficiency. Similarly, the exposure efficiency may
be compared for any number of magazines. In Table 2
comparison of the exposure efficiency of two magazines A and
D have been shown.

Magazines have different images in the eyes of readers, such as
thorough coverage of subject matter; impartial and accurate
reporting; stimulating reading; modem and up-to-date; good
style of writing, personalized, etc.

Comparison Basis

The standard method of expressing advertising cost in
newspapers is rupees per line of standard dimensions. Also,
rupees per square inch or square centimeter is the cost of space
buying in newspaper’ and magazines. A newspaper having a
larger circulation will naturally charge a higher cost per line or per
unit space. Local or regional newspapers have lower circulation
and therefore, a comparatively lower rate than the national
dailies. For the purpose of effective comparison, both the costs
of buying space are to be reduced to the common denominator
of line or unit space per unit of circulation. Some authors’ have
formulated a milline rate unit. This is useful in the comparison
of newspaper advertising rates. The milling rate is defined as:
Milline rate =

1,000,000 X Rate per agate line
Circulation

A newspaper with an agate line rate of Rs. 25/- and having a
circulation of 100,000 would be cheaper than a newspaper with
a line rate of Rs. 15/- and a circulation of 20,000. In the first
newspaper, the milline rate will be Rs. 250/- whereas, in the
latter newspaper, it would be Rs. 750/-. The milline rate is the
cost expressed in rupees per line per one million circulations.

Issue audience (No. of readers)

Cost of 2-page colour ad
Circulation
Readers per copy
Issue audience
Exposures per reader
Issue exposure
Exposure efficiency

Magazine “A” Magazine”B”
Rs. 15,000/-

Rs. 15,000/-

100,000

3/5

350,000

700,000

42/83

21/42

(cost per 1,000 exposures)
Both magazines A and D have the same circulation and
audience, even though the cost of delivering the exposure is
lower in magazine D than in magazine A. However, it may be
remembered that exposure does not necessarily mean advertisement perception.
A person may have been exposed to the advertisement without
conscious awareness of the fact, and without remembering or
changing his attitude as a result. In order to know the contribution of advertisement to perception, a detailed media research
about the “seeing and reading” data of advertisements are
required.
So far we have talked about only the cost. However, the
availability of media during specific hours of the day or night
has an important bearing on media selection. In various
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ADVERTISING MANAGEMENT

the question is asked: “How wide an audience do I get for every
rupee I spend?” The media cost should be commensurate with
the measure of the media’s ability to carry the message to the
target audience. Media ability covers such qualitative values as
audience characteristics, editorial personality, and contribution to
advertising effectiveness; above all it refers to a “media image”
capable of enhancing the perception and communication value
of a message. For example, Channel A and Channel B deliver
the same message and the same extension of advertising
exposure to the same audience; but if, say, Channel A has a
better reputation, honesty and good editorials, the advertisement in this may receive a higher perception and
communication among its audience than if it is inserted in
Channel B.

ADVERTISING MANAGEMENT

television or radio programmes, time may not be available even
if the advertiser is prepared to pay a premium rate. This is true
of newspapers, too. Sometimes, a specific space in the total
layout is not available. Some advertisers ask for space on the
front page, which may not be available because it has already
been booked, and are no longer unreserved.
The role of a media planner is no longer confined to CPT (Cost
Per Thousand) or TRPs, but I strategic as well. Questions on
which media has a better degree of conversion, building brand
salience against activities at point-of-sale, dictate a media
planner’s job as much as building media reach.
Summarizing media selection factors, we may say that they are:
i. Media characteristics, such as editorial environment,
flexibility, frequency and durability
ii. Nature of the target market;
iii. The nature and type of the product;
iv. The nature of the distribution network; and
v. Overall cost of the medium.

Matching Media and Market
Advertisers must always attempt to match the profile of the
target market with the demographic characteristics of a given
medium’s audience. Let us consider an example of cigarette
advertising. The target market for this is men in the age group
of 25 to 60 years. The advertiser would consider placing ads in
magazines having a predominantly male readership. Advertising
in magazines having a predominantly female readership would
be mostly wasteful for this product. It may be true that rarely
does any magazine have a 100 per cent male readership. Even so,
when selecting a predominantly, men’s magazine, the advertiser
would minimize wasteful expenditure. Some media, such as
general interest consumer magazines and newspapers, network
radio and television offer to an advertiser the means of
transmitting ad messages to a: cross-section of the consumer
market. Against this, some other media, such as spot radio and
television, special interest magazines, business publications, and
some business newspapers offer the means of reaching selective
group of audience. The selectivity offered by some media is
useful for advertisers, for it enables them to reach a distinct
target market with minimum waste. In fact, the media themselves provides a great deal of information on the media about
their demographic characteristics. The objective of any media
planner is to achieve the best possible matching of media and
the market.

Geographical Selectivity
This is different from the class selectivity described above. The
class distinction is based on special interests. It may also be
based on other demographic factors, such as sex, age, marital
status and occupation. The selective class of audience is scattered
throughout the country. If we want only o distribute and
advertise our product on a regional basis, we have necessarily to
have one more selectivity in our media selection, and that is
geographical selectivity. In other words, we would like to have
both geographic and class selectivity’ simultaneously while
doing our media selection exercises. It may often be difficult to
find a special interest magazine that will reach only a particular

130

limited geographic area. This would however, be feasible only
when such special interest magazines bring out more and more
regional editions.
Finally, the durability of the message as a media selection factor
deserves elaboration. The durability of the message refers to

delivering the same message more than once. Where the
repetition of an ad message helps to strengthen the selling
impact, the durability of the message is of special interest to the
advertiser. Some media have this characteristic. Broadcast media
do not offer the durability that an ad message on television
offers. The impact of radio commercials survives only for the
time of announcement, unlike ad messages in print media,
which do survive for a day, a week or a month, depending upon
the nature of the publication. One may again refer to an ad in
print media; but a radio listener or a television viewer cannot do
so once he has heard or viewed it.
Well, now I want you to see what Radio Mirchi has to say about
Radio as a Media.

Radio adds to Print
•
•
•
•
•
•
•
•

Interactivity
Frequency
Reach
Emotion
Day long exposure
Share of voice overcomes clutter
Brings intrusiveness to a press campaign
In a radio-plus-press, radio acts as a
persuader/motivator/caller to action

Radio Vis-à-Vis Outdoor
•
•
•
•
•

Heard in full; no looking away or ignoring
Interactivity
Reach
Emotion
More matter to communicate

advertising budget is a constraint, it is worth considering
advertising only on a regional basis.

iii. When the Market is Segmented and Based on
Such Factors as Income, Social Status, Educational
Level, etc.,
The advertiser has to concentrate on these groups of consumers. Specialty goods require advertising that taps specialized
audiences. This is known as the skim approach.

The Media Mix

In designing a media plan, three factors have to be borne in
mind we get market information, competitive advertising
efforts, and media considerations. Media planners must know
how much their competitors are spending on adverting. What
are their media mixes? And where are they spending advertising
rupees? Media planners must take into account one of the
different approaches to the use of advertising media. These
approaches are media strategies. At any particular time, a specific
approach, or a combination of two approaches, may be
adopted.
Media strategy defines and provides rationale for the recommended media. It is not a tactical plan. Four basic elements of
media strategy statement are:
(a) Media mix, (b) Usage of media, (e) Geographic allocation
and (d) Scheduling ‘strategy.’

Geographic Allocation
The three major media strategies have been briefly discussed in
the following paragraphs:

i. National Plan
When a company has achieved a nation-wide market for its
product and its users are spread over the entire country, this
approach is employed. In order to reach them through advertising, a nation-wide medium is employed. For this plan to
become necessary, other approaches have already been successfully employed over a period before acquiring distribution at the
national level.
ii Regional or Zonal Plan
Many advertisers do not go for mass advertising but concentrate
rather on a regional segment. These are the key markets; and if
distribution is limited only to these, why advertise nationally?
Similarly, if only regional markets are the stronghold and the

Media planning follows the adoption of one of the media
strategies that forms part of the overall promotional strategy. A
media plan is concerned with media selection – what type of
media should be used? Magazines? Newspapers? Television?
Radio? Outdoor? If magazines, then of what classes? Whether
General interest magazines, women’s magazines, romance
magazines, crime magazines, business magazines? If general
magazines, then which specific ones are we looking at- India
Today, Frontline? If newspapers, then which regions are to be
looked at? If radio or television advertising is required, which
radio and TV station should be covered? Media selection is a
rational decision these days. Formerly, it was really the ‘wet
finger’ method. The client would say ‘my wife loves so and so
magazine – put an ad there.’ This kind of approach led to some
silly decisions. When one agency put a vanaspati ad in Hindi,
the client was offended. He said, ‘My consumers don’t read
Hindi.’ He insisted that the ad should be in English.
Once the media selection is decided upon, the next logical step
is to determine the combination of “mix” of the media one
must use. Considering the advertising company’s marketing
objectives will arrive this at, its target market, media characteristics, and it’s matching with the target market. Also, the overall
advertising budget does influence the nature of such mix, in
addition to the available gross audience. As an example, to
achieve certain advertising objectives, one may require to use a
mix of 50 per cent television, 35 per cent magazine and 15 per
cent newspaper. However, more than one mix may fulfill the
advertising objectives, and yet be within the overall budgeted
cost. But one should aim at a balanced mix. It should not be
heavily weighed in favor of either frequency or reach.
Frequency, as explained earlier, is the ability to deliver an ad
message as often as possible within a given period of time,
whereas reach is the number of households or individuals
reached by a given media over a period of time.
Some advertisers prefer to concentrate on one media type mix,
whereas others like to have widely varied media mix. While the
former offers the advertiser an opportunity to make a great
impact on a specific market segment, the latter, being an
assortment of media can deliver different messages about the
same product to different market segments. Furthermore, if an
ad is released in a varied media mix having a varied editorial
environment, there is the probability that the ad message will
not “wear out.” “Wear out” refers to the time it takes for people
to become bored with an ad or a commercial. The varied media
mix also increases the reach of the ad message because no two
media have entirely the same audience. A certain percentage of
each medium’s audience is not reached by any other medium.

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Media Decision

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Commenting further on media mix, we may point out that
those who are heavy viewers of television are light readers of
magazines, and vice versa. When one concentrates on advertising on television, one is achieving a greater impact on heavy
viewers and very little impact on light viewers.
Thus, the impact is uneven. A media mix that contains the
component of advertising in magazines in addition to advertising on television will level out the imbalance. However, by
increasing the number of media in a mix, the advertiser will
have to increase his total budget. Therefore, as said earlier, a
balance has to be struck.
Two more concepts, namely, duplication and gross audience, are
worth considering now.
Duplication refers to the number of prospects who are reached
by more than one of the media in a mix. Many executives who
read Business India, for example, also read the Economic
Times. These: executives are counted in the circulation figures
of both the publications. Ideally, every advertiser would like to
have an unduplicated reach among its best prospects. But,
actually, no two media have an “unoverlapped” audience. A
certain amount of duplication, therefore, is bound to occur.
However, the objective should be to select a mix with the
minimum duplication; but at times this is unavoidable,
particularly when one desires to achieve other advertising
objectives as well.
Gross audience refers to the total number of people exposed to
all the forms of advertising used in a single campaign. This
includes the audience for radio and television programmes,
outdoor and transit displays, circulation figures of various
publications, and the number of people who attend trade
shows. While designing a media mix, the advertiser should
know the gross audience size offered by each alternative
campaign. This would help him to choose the mix that delivers
the greatest number of exposure alternatives.
We should not forget that we never buy media, but we buy
audiences. The client pays an agency to buy audience attention to
his brand.

Media Scheduling
Finally comes the media scheduling decision; that is, the
scheduling and timing of advertisement.
The schedule shows the number of advertisements that are to
appear in each medium, the size of the advertisements, and the
date on which they are to appear. There are many ways of
scheduling any advertising programme. No single way can be
said to be best for all advertisers. Each advertiser must prepare a
specific schedule most suitable for its market and its advertising
objectives. What may be good for one advertiser and his
product may be bad for another. Even for the same advertiser,
the best at one stage of the product life cycle may not be
suitable at another stage. An advertiser, for example, may
schedule to buy six pages space in a monthly consumer
magazine. Alternatively, he may buy one-page space every
alternate month. He may also decide to buy one-page space
every month for the first three months; then he may not buy
space for the next three months; and then again take one-page
space every month for the next three months. There may be a

132

variety of schedules of advertisements. The last method of
scheduling is known as the wave method, or the flighting
method. In flighting, advertisements are bunched with the
intention of providing a concentrated impact. The other
method is the blitz schedule. The insertion of double-page
advertisements in three consecutive issues of a magazine is an
example of the blitz schedule. There are many more methods
of bunching advertisements. However, the purpose of
bunching is to provide concentrated impact with a single issue
of the publication.
We can follow a steady schedule or a ‘pulsed’ campaign.
Normally, scheduling is done for a 4-week period. The six types
of schedules available are:

a. Steady Pulse
It is the easiest. For instance, one ad/week for 52 weeks or one
ad/month for 12 months could be an example.
b. Seasonal Pulse
Products like Vicks Balm, Glycodin Terp-Vasaka Syrup, Pond’s
Cold Cream follows this approach.
c. Period Pulse
Scheduling follows a regular pattern, e.g., media scheduling of
consumer durables, non-durables etc.
d. Erratic Pulse
The ads are spaced irregularly. Perhaps, we want to change the
typical purchase cycles.
e. Start-up Pulse
It is concentrated media scheduling. It launches a new product
or a new campaign.
f. Promotional Pulse
A one-shot affair it suits only a particular promotional theme.
Heavy concentration during a period is the characteristic of this
scheduling. For instance, financial “ advertising of company’s
issue.
The implementation of the media plan requires media buying,
i.e., buying time and space in the various selected media. The
buying of media is handled by the advertising agency on behalf
of the advertiser.
There are no short cuts, no rule-of-thumb methods of solving
media selection problems. Each advertising situation is different
and unique in its own way. Each medium has its own characteristics, and there is no single best way of advertising a product.
Different solutions are appropriate in different situations for
the same product. There are, moreover, various constraints
from time to time.

A Note on Television Rating Points (TRPs)
These points were introduced in 1986 to assess the viewership
of DD programmes by IMRB. The TRP survey is conducted in
9 major cities of India. The data are collected on a weekly-basis.
The panel consists of 3124 adult members. Each panel member
records the viewership of different TV programmes in the diary
specially given to him. The data is then analyzed. The panel has
two groups: Primary audience of adults from TV owning
households and Secondary audience of adults from non-TV
owning households but who watch TV at least once a week.

Media Planning for TV
Based on ratings of the programmes, TV’s media planning was
a simple exercise till mid-80s. However since the end-80s, DD
restricted the allotment of sponsored programmes to 13
episodes at a time, and in multiples thereafter of 13. The ratings
started fluctuating since the viewership became fluid/unpredictable.
TV Media Planning based on rating points (GRP: Gross Rating
Points) specifies the total number of rating points that are to be
achieved once the plan is executed. It then specifies programme
genres that will be used. The choice of specific programmes
from the genre is left to the TV buyers. The TV buyers fill up
the spots on month-to-month basis. To illustrate, a buyer can
be asked to buy 7,350 gross rating points. He then can buy
these as follows:
Gross Rating
(Rating x No. Of
Spots)

Programme Genre

Rating No. of Spots

Prime Time Serial

3600

Film-based Programme

3750
7350

Since then, we have a scenario of multi-channel multiprogramme. How to relate this to GRP based TV planning?
One approach could be to consider the GRP and the viewership
share both at the same time. Just as there is a market share of a
product, each programme has a share of viewership, e.g.,
Chitrahar had a rating of 66 p.c. in Mumbai in 1991 and there
were 2 channels, giving Chitrahar a viewership share of 98%. In
1992 the overall viewership of Chitrahar declined to 56 p.c.
Therefore, its viewership share dropped to 79 p.c.
Ratings alone are not sufficient. The share of viewership that
each programme commands in a scene of multiple channels

and multiple programmes is also important. High viewership
programmes are not affected by certain loss of viewership but
marginal programmes do get affected a lot. A dose watch on
viewership share is therefore important to a media planner.
Initially loss of viewership may not affect ratings but they will
fall in future.
Another important shift may occur in TV Media Planning.
Instead of reach, the frequency will be a consideration in
planning.
Satellite transmission has enabled media planners to segment
the TV viewers in terms of demographic characteristics.
Formerly all ads irrespective of the nature of the product were
put together for airing. More and more data in future will be
available on demographic characteristic of viewers of specific
programmes and channels. Right now, for each channel we can
assign a social economic class. Star channels are for top class
urban audiences, say A-1 in metros. DD caters to the masses,
say D to E groups in urban areas and A to E in the rest of the
country. Zee TV occupies the mid-band, say A2 to C in 5-lac
plus areas. These groupings will move amongst these channels
a great deal. New channel options will create their own band of
followers. High reach levels by using one or two mass based
programmes are not possible now. Audience fragmentation is
thus a thing to reckon with, and spot buying will have to be
spread among the different channels. The frequency level will be
varied according to each channel to economize. Media plans that
were made for a year are now being reviewed every two months.

Telecast Time
Satellite channels enjoy two or three prime time bands, e.g., the
India band, the Dubai band and the Hong Kong band.
DD’s prime time was so far restricted to 7 to 8 p.m. The other
time slots for heavy advertising were the morning slot, and the
early fringe slot (4-7 pm).
In satellite channels, the advertising on Prime Sports is completely event driven.
Star Plus advertising is spread over a five-hour period in the
evenings and late fringes.
Too many ads and lack of time distribution lead to commercial
clutter, which is not in favor of the advertisers and viewers.
Long ad capsules are not viewed.
Commercial breaks within the programme have a higher recall
value for commercials falling in the break (as compared to
programme commercials). DD metro has adopted this format.
The maximum amount of commercial time is restricted to 10
minutes per hour. Hong Kong broadcasters follow what is
known as 10 – 10 rule (10 p.c. of total transmission time can be
utilized for commercials with an overall ceiling of 10 minutes extendable by 2 minuets. for station promotion – per hour. In
India, experts recommend a 5 – 5 rule.
What we need is better target specific programming. Programming can create prime-time slots just as Mahabharata created
9.00 a.m. Sunday morning slot 01′- Zee Horror show has
created 10.00 p.m. late evening slot. Kahani Ghar Ghar Ki and
kyonki Sans Bhi Kobhi Bahu Thi have created prime time slots
for star plus from 10.00 pm to 11.00 pm.

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ADVERTISING MANAGEMENT

Programme’s rating point is the percentage of panel members
who viewed that programmes. One TRP is equal to one per
cent of TV audience. To illustrate, if Ramayana gets 75 TRPs it
means 75 per cent panel members watched Ramayana during
that week. TRP Weekly Reports provide data on weekly
viewership city wise for different programmes. The data are
broken down for both the primary audience and the total
audience (primary audience plus secondary audience). TRP
Monthly Reports give data of frequency of viewing, overlapping of viewership amongst programmes, cumulative reach for
different episodes of the same programme. They also ‘give
viewer’s profit. TRP reports are a good help for media planners.
DD has started publishing weekly TRPs of its programmes.
Feedback on viewership data is still not adequate. TRP is not
representative enough. TV meters are expected to appear. As
you will appreciate, the business of a TV broadcaster is to
deliver “the eyeballs.” The issue is obviously audience share.
TRPs are a quantitative analysis of TV audience. Research is
now moving into qualitative analysis of TV audience. Software
can be pre-tested. Audience involvement can be studied.
Broadcasters do the research for effective media selling and
agencies for effective media buying.

ADVERTISING MANAGEMENT

Media Cost Inflation
Ad agencies grudge the insufficient budgets given by the clients
who expect them to perform miracles. The clients feel they are
receiving too little but paying too much. The agencies feel that
budgets are too little to achieve what clients expect. Media costs
of late have gone up. On TV, the cost of sponsoring a Hindi
feature film on Saturdays has gone up from Rs. 1,12,500 for 10seconds to anything between Rs. 1,60,000 and Rs. 2,50,000
depending upon the film.

Fragmentation
When Mababharata was being televised it had a peak of TRP of
80 points, enabling advertisers to reach 80 .p.c. viewers at one
stroke. However, with channel multiplication, the audience has
got fragmented, and no programme commands such a high
viewership. To achieve the same reach, the advertiser has to now
put the commercial on more than one channel (at least three
channels), and with more frequency. Kaun Banega Crorepati, a
popular game show hosted by Amitabh Bacchan, reached a high
TRP of 13-15 points, but then tapored to around 7 points. The
most popular Kyonki Sans Bhi Kobhi Babu Thi also commands around 15 TRPs .at best.

Increased Advertising Activity
Since electronic media now give geographic selectivity and
demographic selectivity and there is an overall increase in
business activity, the advertising activity has increased simultaneously. Between 1991 and 1994, the number of brands being
advertised on TV has tripled. There are more advertisers on the
mass media. New launches further increase advertising and
media activity. The clutter has made it more difficult for a brand
to stand out. There is more competition for limited viewer
attention. The budget should, therefore, be increased.

Television
The overall impact of media inflation and fragmentation is
cushioned by a rapidly increasing base of TV homes – from 28
million households in 1990 to over 60 million today.
Now we must understand that there are quite a few homes in
the rural segment that do not have TV or even the radio, so
how do we reach out to them. Below you would find some
very interesting mediums of reaching out to the public.

Haats
In India, 47,000 haats are held. They cater to the villages. The
average visitor turnout is 4,500. These haats can be used for
promotion, demos and sampling. They can create brand
awareness.

Melas
Around 2,5000 me/as are held, only about 5,000 melas are
commercial. These can be used to launch new brands and to
build existing brands. Events can be organized. Melas can be
used to create brand awareness.
In rural India, print media is the least effective, considering the
literacy levels. TV is effective, but continuous electricity is not
available. Even then 35 p.c. homes have electric connections.
Outdoor is most effective. Oral culture makes puppetry, Jatras
and street theatre relevant.

134

India has 6.3 lac villages. Fifty per cent of villages are very small,
having a population of less than 500, with limited purchasing
power. Many of them do not have a single shop.
Nearly 2.5 lacs villages have a population of 501-2000. They
have around 5 shops each; still the sales are not good enough.
There are around 60,000 villages with population of 2,000 plus.
A company will have to concentrate on these sixty thousand
villages, and potential villages from 501-2000 categories.
A company can appoint distributors in towns with populations
of around 20,000. If 200 such stockists are appointed, they can
cover as many as 100,000 villages. Each stockist can redistribute
products to 50 locations around the town. In case of durables,
the distribution is easier because 90 p.c. products are purchased
in these 2,000 small or large markets.

Ambient Media
Elephants wearing jackets of advertised products, aerial
advertising, ads on taxis and buses and sporting events – these
are all examples of ambient media. Ambient advertising
medium is any form of advertising that is not mainstream, but
is out of home. The product and the media chosen must be
close to each other, to make an impact. In store ads put the
product before the customer. There are bus-shelter ads through
radio in u.K. Toilet walls, public urinals also come handy for
such advertising. One ad message on the road read that ‘seen
from here it seems you need some new underwear.’

Prime Time
It is the time at which the viewership is maximum; say between
8 p.m. to 10 p.m. Prime time concept is related to advertising
rates that could be set higher due to a high TRP.
The product advertised during prime time gets maximum
audience.
Can we stretch prime time? Channels have tried to extend prime
rime to 10.30 p.m. This is suitable for metro viewers who work
till late hours and consequently view TV at this hour. Formerly
prime time was up to 9.00 p.m. only, but when it is stretched
beyond that it increases the ad revenue. The extended prime
time slot now is 7.00 p.m. to 10.30 p.m. Expanded prime time
means reaching a broad based audience of different viewing
patterns.

Media Buying
Formerly, media planning was taken seriously, and there was no
emphasis on buying because the choice was restricted to press as
the primary media, cinema as another important medium, TV
commercial on DD derived from cinema ad, and radio, mainly
the Vividh Bharati. Media planners tried to understand the
characteristics of press, and interpret the findings of the NRS.
OR was used to optimize the budget allocation to press. Media
planning slowly became professional by adopting ideas like
~normalization of readership curve and opportunity-to-see
(OTS). Media optimization models developed for the press was
to be extended to the cinema, but without success. Media
buying in the sense of negotiations with the media was
confined to the cinema and the press. Large advertisers negotiated even cinema ads because Blaze had monopoly over
theatrical release of cinema ads, and did not entertain negotia-

of such consolidation flow to both the advertisers and group
agencies.
You will find below a ready reckoner for different media types
and characteristics.

Media boom of the late nineties have witnessed cut-threat
competition amongst media to attract advertisers. Proliferation
of media, the increased ad budgets led to price
bargaining on the part of the agencies and as expected
Media Newspap Magazin
by the clients. Rather than the content of the
ers
es
Factors
programme on TV, what counted was the discount
clinched from the media. Rather than the additional
environment what mattered was the free space given
by the press media. The focus has shifted from media
Widest
Limited
planning to media buying.
Circulati
Circulatio
1.
Circulatio
on
Commissions
n
n
According to Shunu Sen, the commission to media
buying agency is 2.5 p.c. This is not enough to
undertake media planning function. If both planning
and buying are to be undertaken a commission of 4
per cent would be fair. Media consultancy, an integrated total approach to media must receive at least 6
per cent commission. But both clients and agencies
Generally
are indifferent to these aspects.
Universal
Ideally, media planning that decides the best placein appeal.
Degree
ment of ads should precede media buying.
It permits Greater
of
restricted Degree of
2.
Howsoever, discounted bought out space or spot is,
Selectivi
Regional Selectivity
it may prove costlier in the absence of planning.
ty
and
A new break-up of traditional agency commission
Linguistic
that has been adopted informally by the industry is:
selectivity
• Strategic planning and creative work
10 p.c.
•

Media buying and negotiations

2.5 p.c.

•

Media planning

2.5 p.c.

The above remuneration structure becomes a part of
AOR arrangement. This works in favor of the large
agencies. Clients enter into AOR arrangements to
avail of rate benefits.

Generally
very
Large,
Audien
Limited
but
ce
limited
in
To those Scope
who can
Read and
Subscribe

Message
may be
Varied at
short
Timelin Notice.
Current
ess
Events
may be
Capitalize
d

Consolidation
The bigger you are, the better is your negotiating
capacity with the media. Interpublic Group is the
world’s largest agglomeration of ad agencies that in
India comprises McCann-Erickson, FCB-Ulka and
Lowe Lintas among others. This group will set up
Magna Global, which will represent aggregate media
negotiating interests of most of Interpublic’s Indian
entities, and will control Rs. 1,700-1,800 crore of
media spend, Mind share represents HTA, O&M,
Contract and Equs in India. It controls Rs. 3,000
crores of billings. Media Edge represents Rediffusion
and Everest. Several such mergers are in the offing.
Such consolidation will change media planning. Large
multi-product clients will enjoy tremendous economies of scale. A lot of clients want one agency to do
media buying for all their brands. Though consolidation is a big opportunity, there are going to be
magnified problems of client conflicts. The benefits

Direct
Mail

Radio

Cinema

Outdo
or

Limite
Restricted
Restricte
d
to the
d
Good
To
Number
To local
local
Circulation
of mailings
Populatio
Circul
n
Contacted
ation

Higher
degree
Of
selectivity

Restricte
d
Regional
and
Linguistic
Selectivit
y

Restricte
d
Local
Selectivit Local
y
Selecti
vity

Limited
to
Limited to
Those
a live
who
Mailing list
CinemaPossess
which
Going
Radio and
Should
Populatio
who
constantly
n
Tune into
Be
the
reviewed
Program
me

Highest
degree
Lack of – Of
Timeline timeliness;
ss;
Selection
Absence of the’
of
Right time
News
and
Right
value
message
Possible

Restricted
Timelines
s’,
Dependin
g
Upon
Program
me
Planning

Timelines
s
But at a
Higher
cost

Limite
d to
Local
Peopl
e

Uneco
nomic
Timeli
ness

135

ADVERTISING MANAGEMENT

tion from small advertisers. Even press ad negotiations were
also confined to big advertisers. The situation overwhelmingly
supported media planning, but was not conducive to media
buying. This remained so till 1990.

ADVERTISING MANAGEMENT

Media
Factors
Flexibility
Of time,
Design
layout.
And color

Life

Repetitive
Value

Newspapers

Magazines

Direct Mail

Outdoor

Higher degree
Of flexibilityBut at
Proportionatel
y
Higher costs

Good degree
Of flexibility
But
uneconomical

High degree
of
Flexibility

Less
Flexibility

Very limited
Life

Longer life,
Commensura
te
With
Frequency or
Issue and
Use for
Reference

Subsequently
Longer life,
Depending
Limited life’
upon
The usefulness
Of the
Literature

Very shortLived unless
Repeated
Very
Frequently

Longer
Life

Repetitive
Value
Restricted to
Frequency of
Publication

Repetitive
Value depends Quick,
On frequency Repetition
of
Possible
Mailing

May be
Repeated in
every
Show but not
To the same’
Audience

Seen every
Time
Prospect
Passes by it

Message may
Be repeated
Every day
and
Adopted to
the
Day’s need

Most effective
Because of
Memory and

Well-planned
Newspaper
In locating
Effectivenes New
8.
s customers
Buying in
market
The
And
Elaborate
supporting publication
Explanations
To support

136

Cinema

Restricted
Flexibility,
Highest degree Depending on
The
Of flexibility
availability-.
Of time

Very
effective
In case of
Goodwill of

9 Suitability

Radio

Very effective
Because
Less effective Made
Because of
Effective by
High
Messages
use
Memorizing
Of cartoons Value
And
elaborate
Explanation

Suitable for
Suitable for
Very suitable for
Suitable for specific
Articles of
all
Types of
Goods,
Articles having a
Daily use in Most suitable Very suitable
goods
according well defined
For Local
Having wide
To Make a
Consumption
Brand
Market and
Goods
To the nature Limited &
Wide
Needing
constant
Enlightened
Explorations Of the
Demand
magazine
market

Newspapers

Magazines

Direct Mail

Radio

Cinema

Outdoor

Secrecy

No Secrecy
can be
Maintained
Because of
Universal
appeal

No Secrecy;
Competitor
s
Also read it

Privacy &
secrecy may
easily be
Maintained

No secrecy

Economy

Moderate
costs
Per
advertiseme
nts
To numbers
contacted

Higher
costs per
advertiseme
nt
But less
overall cost

Cost depends
Upon the size
of
The mailing
List

Costlier

Moderate
cost as a
whole
But higher
per
Contract
cost

Cheap on the
whole but
Higher per
Contract cost

Magazines

Radio

Disadvantages
Disadvantages

Advantages
Advantages

u Good reproduction

u Higher cost per contact

u Demographic
selectivity

u Long-term advertiser
commitments

u Selectivity and
audience segmentation

u Regional/local
selectivity

u Slow audience build-up

u Geographic flexibility

u High frequency to
generate retention

u Entertainment
carryover

u Commercial clutter

u Long advertising life

u Limited demonstration
capabilities

u High pass-along rate

u Lack of urgency

u Short-term ad
commitments

Advantages
Advantages

u Immediate and portable

ADVERTISING MANAGEMENT

Media
Factors

Disadvantages
Disadvantages
u No visual treatment
u Short advertising life

u Background
distractions

u Long lead time

Television
Advantages
Advantages
u Wide diverse audience
u Low cost per thousand
u Creative and
demonstrative
u Immediacy of messages
u Entertainment carryover
u Demographic selectivity
with cable

Disadvantages
Disadvantages
u Short life of message
u Expensive with high
campaign cost
u Little demographic
selectivity with network
u Long-term advertiser
commitments
u Long lead times
u Clutter

Outdoor Media
Advantages
Advantages
u High exposure
frequency

Disadvantages
Disadvantages
u Short message

u Moderate cost

u Lack of demographic
selectivity

u Flexibility

u High “noise” level

u Geographic selectivity
u Broad, diverse market

137

ADVERTISING MANAGEMENT

Internet and World Wide Web
Advantages
Advantages
u Fast growing
u Ability to reach narrow
target audience
u Short lead time
u Moderate cost

Disadvantages
Disadvantages

Fax
Fax Machines
Machines

u Difficult to measure
ad effectiveness and
ROI

Video
Video Shopping
Shopping Carts
Carts

u Ad exposure relies on
“click through”

Computer
Computer
Screen
Screen Savers
Savers
Interactive
Interactive Kiosks
Kiosks
Ads
Ads in
in
Movies
Movies and
and Videos
Videos

Media Selection Considerations

Cost
Costper
perContact
Contact

Cost
Cost per
per
Contact
Contact

Reach
Reach

Frequency
Frequency

Audience
Audience Selectivity
Selectivity

Audience
Audience
Selectivity
Selectivity

Factors
Factors
Influencing
Influencing
Media
Media Mix
Mix
Decisions
Decisions

Media Scheduling
Continuous
Continuous Media
Media Schedule
Schedule

Flighted
Flighted Media
Media Schedule
Schedule

Pulsing
Pulsing Media
Media Schedule
Schedule

138

Examples
Examplesof
of
Alternative
Alternative Media
Media

u Not all consumers
have access to
internet

Media Selection Considerations

Types
Types of
of
Media
Media Schedules
Schedules

Alternative Media

Seasonal
Seasonal Media
Media Schedule
Schedule

The
The cost
cost of
of reaching
reaching one
one
member
member of
of the
the target
target market.
market.
The
The number
number of
of target
target consumers
consumers
exposed
exposed to
to aa commercial
commercial at
at least
least
once
once during
during aa time
time period.
period.
The
The number
number of
of times
times an
an individual
individual
is
is exposed
exposed to
to aa message
message during
during aa
time
time period.
period.
The
The ability
ability of
of an
an advertising
advertising
medium
medium to
to reach
reach aa precisely
precisely
defined
defined market.
market.

Media Scheduling

Continuous
Continuous
Media
Media Schedule
Schedule

Advertising
Advertising is
is run
run steadily
steadily
throughout
throughout the
the period.
period.

Flighted
Flighted
Media
Media Schedule
Schedule

Advertising
Advertising is
is run
run heavily
heavily every
every
other
other month
month or
or every
every two
two weeks.
weeks.

Pulsing
Pulsing
Media
Media Schedule
Schedule

Advertising
Advertising combines
combines continuous
continuous
scheduling
scheduling with
with flighting.
flighting.

Seasonal
Seasonal
Media
Media Schedule
Schedule

Advertising
Advertising is
is run
run only
only when
when the
the
product
product is
is likely
likely to
to be
be used.
used.

ADVERTISING MANAGEMENT

“Quote-Unquote What few Stalwarts have to say
About Media.”
• “Word of mouth is the best medium of all.”
– William Bernbach, quoted in Bill Bernbach said . . . (1989),
DDB Needham Worldwide.
• “The buying of time or space is not the taking out of a
hunting license on someone else’s private preserve but is the
renting of a stage on which we may perform.”
– Howard Gossage, quoted in Randall Rothenberg, Where
the Suckers Moon: An Advertising Story (1994), New York:
Alfred A. Knopf, p. 188.
• “As long as media is mass – when the consumer had no
choice, when it was networks – you could fuck the consumer
all day long with ring around the collar, because she had to
get up and turn off the set to avoid it. With cable and
interactive sets, with that remote control, you can’t do that.
It’s got to be the polite invitation, instead of the harangue.”
– Don Pepper, head of worldwide new business for Chiat/
Day, quoted in Karen Stabiner, Inventing Desire (1993), New
York: Simon & Schuster, p. 92.

Notes

139

ADVERTISING MANAGEMENT

LESSON 25:
TUTORIAL
•

How would you promote a brand of Chawanprash in a
town, which does not have TVs nor do they have radios.

•

Watch any programme of your choice on TV, and analyze the
number of commercial breaks, the durations of each
advertisement, the type of advertisements shown and the
audience watching the programme. Please match the Target
audience of the brand advertised and the audience profile
watching the programme.

•

Pick an Economic Times and Times of India and compare
the type of advertisements in both the newspapers. Analyze
also the placing of the advertisements based on the various
newspaper sub headings, like, Sports, Editorial, Business,
etc.

•

Explain the medias in which the following brands would
advertise:
•

ICICI Prudential Life Insurance

•

Ried & Taylor

•

Nirma Detergent

•

Xerox Photocopier

•

Omega Watches

•

Tiger Biscuits (Rs. 2/ pack)

•

Mercedes S Class

•

Tiger chaap Agarbattis

•

Coca Cola

•

Aids Awareness

•

Why do you think that selection of media plays a vital role
for an advertising manager of Pepsodent Toothpaste? Not
more than 150 words.

•

Listen to any programme on FM Radio and analyze the
advertisement style and the duration of them. Also compare
them vis a vis television advertising. What benefit do you
think the advertiser would have got in placing an
advertisement in the radio media?

•

Visit / talk /mail a company which hosts website of general
interest on the WWW. Understand the relevance of
advertising in the new media and the type of clientele that
they look at. Also understand the Reach and Impact of
advertising via the new media route.

Notes

140

LESSON 26:
UNDERSTANDING CAMPAIGNS

•

You will understand via this lesson how to make a
campaign.

•

Few award-winning campaigns are given; this will give you a
perspective of how agencies make an advertisement.

Three Phases of Campaign Creation
There are three phases involved in the creation of any campaign.
(i) Strategy Development Phase, (ii) The Briefing Phase and (iii)
The Creative Phase.

i. Strategy Development Phase
This phase decides the objectives and contents of communication. It analyses the research data and decides positioning of a
brand. The strategy formulation is in modern day’s agencies a
team effort. The creative persons form a part of this team not
as creative persons but as a mind. There are brain- storming
sessions. The team throws up the ideas. These ideas ultimately
make up the strategy. The brilliant in the team pick up one or
two ideas from the total ideas generated and develop them. Our
strategy should give us a competitive edge.
AI Ries and Jack Trout started focusing on the strategy side of
advertising business in the late 60s when they first started
writing about positioning. Everybody else was talking about
creativity, whereas they decided to talk about strategy. They
found that clients did not want to buy strategy from an ad
agency.
I want that you appreciate the importance of strategy development phase. If the strategy is wrong, no amount of creativity
will help. If the strategy is right, despite the poor creative work,
we can sell due to right strategy. However, right strategy and
creative campaign is a winning combination. Mere creativity and
no strategy never work. To your client, you should tell what you
are trying to achieve in your communication.
The strategist is the left-brain oriented, very linear in thinking,
very logical in deduction. The strategy formulation leads to an
advertising brief.
If you want to catch fish, you have to think like a fish. If you
want to catch a consumer, you have to think like a consumer.
That’s the first principle. What most companies do is they think
like themselves. They spend all their time with themselves’ (AI
Ries and Jack Trout).
Bob Isherwood, creative director, Saatchi & Saatchi, Australia
emphasizes that a good effective ad has to be married to the
right strategy, if it has to sell. He is also a strong believer of the
theory that a creative director is as important a member of the
strategizing team as the account director is especially if it
involves a product launch.

ii. Advertising Brief to the Creative
As a matter of fact, the client has to brief the agency about the
strategy. However, most of the time this does not happen. The
agency is supposed to brief itself. The strategy formulated is
communicated to the creative people. They are briefed about
how to create the advertising the product needs. The strategy
should be communicated with clarity. The strategist should be a
good motivator for the creative team.
Proper briefing is going halfway as far as creativity is concerned.
Bad brief to the creative team results into bad work. Good
brief ensures good work.
Within the creative team, the copywriter and visualiser work
together and it is difficult to attribute the final product to either
of them. Yes, when they are working, there are sparks of
creativity. Please appreciate that briefing completes half the job.
Creative campaigns are creative due to a good brief.
It is critically very important to question the brief. Very often, a
brief is a set of clichés. We have to get the real situation.
Creative brief of strategy contains a key consumer insight. If
the brief acquaints you with the consumer, and how his mind
works, it has the seeds of creativity in it. It gives stimulus to
creative team.
Success or failure of the advertisement is largely dictated by the
brief.
It is the job of a client to tell the agency what he wants to say
and it is the agency’s job to decide how to say it.
Great briefs inspire great work. Briefs should have clarity and
single-minded objective. They should aim at a target person.
The idea is to have the desired response. All briefs must
suggest a benefit or a product plus.
iii. The Creative Phase
Here the lateral thinkers come on the scene. They leap from a
single unidirectional idea of the strategist to an advertising idea
that will add value to the product/brand. The creative persons
are supposed to be right-brained – lateral thinkers, irrational
thinkers as against the accounts director who is left brained, i.e.,
logical. They make connections that had not existed before.
They rearrange the order of things. They create abruptions in
the consumer mind. There should be a beautiful marriage
between the strategy and the lateral thinking by the creative
people.
The creative director’s post has become a more responsible one.
He does not remain content with a clever copy or stimulating
visuals. He is required to understand the product and its market
completely. He is now an overall ad man, an all-rounder. He
participates in research and has active role in positioning. He
does not follow a policy of art for the sake of art any more. He
sits at briefings alongside the client servicing people. Creatives

141

ADVERTISING MANAGEMENT

Learning Objectives

CHAPTER 7
UNIT – 5
CAMPAI MAKING

ADVERTISING MANAGEMENT

are involved in the whole campaign – right from the concept to
the commissioning stage.
Spink of the Lowe group says “Strong creatives are probably the
cheapest competitive advantage that a company can have.” The
best creatives are derived from a complete understanding of the
product and the benefits it offers. But a thorough understanding of the target audience provides an edge. Norman Berry of
O & M says, “It is the sensitive understanding of the audience
that takes one’s creative from logic to magic.”

Five Steps to Effective Advertising
Prepare
Good advertising begins with good information. And the best
way to gather the information you need is with a little Q & A.
Here are some basic questions that will help you prepare for just
about any ad writing assignment.
• DESCRIPTION. What is the product/service/opportunity
in 50 words or less?
• PURPOSE. What does it do? How does it work?
• PRICE. How much does it cost?
• FEATURES. What are the vital facts about this product/
service/opportunity?
• BENEFITS. What will it do for people? What specific
problems does it solve? Saves money or time? Makes life
better? What is the prime benefit?
• COMPETITION. Why is my product/service/opportunity
better? How is it different? What attributes can I stress that
they don’t?
• GUARANTEE. 30 days free trial? Money back?
• PROSPECT. Who is my ideal prospect? Male or female?
Income? Lifestyle? Biggest concerns?
• OBJECTIVE. What do I want? Inquiries, leads, sales, image
building, traffic, etc.?
• OFFER. What’s the deal? Two for one sale? Limited-time
offer? Free information?
• DEADLINE. When does my offer expire?
• METHOD OF PAYMENT. Cash, bill me, VISA,
MasterCard, etc.?
• METHOD OF ORDERING. Mail, phone, fax, computer,
etc.? 800 number?
You’ll also want to collect these items to help you answer the
questions:
• SAMPLE. Do I have a sample of this product? Do I have a
tape or video to explain the opportunity?
• TESTIMONIALS AND ENDORSEMENTS: Letters from
happy users? Media coverage? Celebrity endorsements?
• COMPLAINTS. Letters from unhappy customers? (This
tells you how to improve your product or offer.)
• SAMPLES OF PAST PROMOTIONS. What was successful
or unsuccessful?
• TABOOS. What can never be said?
• TECHNICAL RESTRICTIONS. No glossy paper for reply
cards. No type less than 12 points. Etc.
142

•

BACKGROUND. Previous ads, brochures, annual reports,
catalogs, article reprints, market research, competitor’s ads,
memos, proposals, etc.

Organize
After you’ve assembled a pile of information, you next need to
organize it. This is simply a matter of neatly rewriting the
essential points in a more concise form and taking notes from
the items you collected.
Here’s the basic information you’ll need at hand:
• Description
• Purpose
• Price
• Features
• Benefits/Prime Benefit
• Guarantee
• Prospect
• Objective
• Offer
• Deadline
• Method of Payment
• Method of Ordering
I’m not suggesting that the other information you have isn’t
important. But these are the central points you’ll need in writing
your ad.
Write
The Prepare and Organize steps can be used for any kind of
advertising. However, Write, Edit, and Review as presented here
is designed specifically for print ads. The general principles,
though, can be altered to work with any media.
Write your Headline

1. Review your Prime Benefit, Offer, Deadline, Price, Prospect,
and Method of Ordering, Description, and Guarantee.
2. Choose the information you want to emphasize.
3. Select a headline type (see “7 Headlines That Work” below)
that best conveys the information you want to emphasize.
4. Write several headlines and choose the best.
Write your Subheads

1. Review your Description, Benefits, Features, Offer, Deadline,
Guarantee, etc.
2. Choose the information that best expands on your headline.
3. Write your subheads in order of importance. Use the active
voice and make every subhead a benefit statement.
Write your Body Copy

Expand on each subhead. List features. Include legal or other
technical information in the body copy.
Write your Call to Action

1. Review your Method of Ordering, Offer, Price, Deadline,
and Guarantee.

ADVERTISING MANAGEMENT

2. Write your call to action including all the above information
that applies. Use the active voice and be straightforward and
clear.
Think through your graphics.
You’ll need a graphic designer, but before you talk to one …
•

Choose a visual that best illustrates your product/service or
the primary benefit in the headline. It should work
independent of your copy as a “visual headline.”

•

Make sure you include your logo, your company or product
name, your address, and your phone number.

•

On your response device or coupon, make sure to repeat
your Offer, Price, Deadline, Method of Payment, and
Guarantee.

•

Be sure your layout leads the reader from the headline and
visual to the subheads, body copy, logo, call to action, and
response device.

Edit
Edit your ad with more questions …
• Does my headline get attention, select an audience, deliver a
complete message, and draw the reader into the body copy?
• Does my headline exploit human motivators such as fear,
exclusivity, guilt, greed, envy, etc.?
• Is my headline clear and to the point? Does it relate to the
product/service?
• Do my headline and visual work together to sell the
product? (The visual should illustrate the product and the
prime benefit, not a “concept.”)
• Do my subheads logically expand on the headline in order
of importance?
• Do I ask for the order? Have I made it clear what I want the
reader to do?
Review
Put your ad aside for a few days and read it later when you’re
fresh. Try these techniques to review your ad.
• Use the “Three Second Test” with a prospect. If they don’t
know what your ad is about after glancing at it for three
seconds, you need to simplify.
• List negatives about your ad and correct them.
• Ask yourself if there is a better way to accomplish your
objective.
• Try the “Stop or Go Test.” Circle references to you in red and
references to your customer in green. When your ad is mostly
green, it’s a GO.

What is an Advertising Campaign?
A series of related
advertisements focusing
on a common theme,
slogan, and set of
advertising appeals.

Steps in Creating an
Advertising Campaign
Determine the
advertising objectives.

Make creative decisions.

Make media decisions.

Evaluate the campaign.

143

ADVERTISING MANAGEMENT

Setting Objectives:
The DAGMAR Approach

Unique Selling Proposition

Goal
Goal of
of
Advertising
Advertising
Objectives
Objectives
Define
Define
Target
Target Audience
Audience

Desirable, exclusive, and
believable advertising
appeal selected as the
theme for a campaign.

Define
Define the
the Time
Time
Frame
Frame for
for Change
Change
Define
Define Desired
Desired
Percentage
Percentage
Change
Change

Creative Decisions

Executing the Message
Identify
Identify
Product
Product Benefits
Benefits

Musical
Musical

Components
Components
of
of
Creative
Creative
Decisions
Decisions

Slice-ofSlice-ofLife
Life

Scientific
Scientific

Lifestyle
Lifestyle

Develop
Develop and
and Evaluate
Evaluate
Advertising
Advertising Appeals
Appeals
Execute
Execute
the
theMessage
Message
Evaluate
Evaluate the
the
Campaign’s
Campaign’s Effectiveness
Effectiveness

Common
Common
Executional
Executional
Styles
Styles

DemonDemonstration
stration
Mood
Mood or
or
Image
Image

Spokesperson/
Testimonial

Fantasy
Fantasy

Real/
Real/
Animated
Animated
Product
Product
Symbols
Symbols

Humorous
Humorous

Common Advertising Appeals
Profit
Profit

Product
Product saves,
saves, makes,
makes, or
or protects
protects money
money

Health
Health

Appeals
Appeals to
to body-conscious
body-conscious or
or health
health seekers
seekers

Love
Love or
or romance
romance

Used
Used in
in selling
selling cosmetics
cosmetics and
and perfumes
perfumes

Fear
Fear

Social
Social embarrassment,
embarrassment, old
old age,
age, losing
losing health
health

Admiration
Admiration

Reason
Reason for
for use
use of
of celebrity
celebrity spokespeople
spokespeople

Convenience
Convenience

Used
Used for
for fast
fast foods
foods and
and microwave
microwave foods
foods

Fun
Fun and
and pleasure
pleasure

Key
Key to
to advertising
advertising vacations,
vacations, beer,
beer, parks
parks

Vanity
Vanity and
and egotism
egotism
Environmental
Environmental
Consciousness
Consciousness

Used
Used for
for expensive
expensive or
or conspicuous
conspicuous items
items

144

Centers
Centers around
around environmental
environmental protection
protection

Media Types
Newspapers
Newspapers
Magazines
Magazines
Radio
Radio
Television
Television

Major
Major Types
Types
of
of
Advertising
Advertising
Media
Media

Outdoor
Outdoor
Internet
Internet
Alternative
Alternative Media
Media

Cost
Cost per
per
Contact
Contact
Reach
Reach
Frequency
Frequency
Audience
Audience
Selectivity
Selectivity

Brand Measure

Chennai

Coca- Most
34.3 29.9
Cola favourite

25.9 21.7

Most
18.9 21.5
favourite

25.9 25.6 29.3

Trichy

Coca- Most
20.1 15.1
Cola favourite

14.4 14.8 14.4

Trichy

Pepsi

Most
14.3 23.9
favourite

24.3 29.4 34.9

Chennai Pepsi

The challenge facing Coca-Cola’s regional team was to identify
the reason for this eroding preference and to find a solution to
regain preference in the T.N. market.

Campaign Objectives
1. Regain preference for brand Coke from brand Pepsi over a
period of 4-6 weeks by identifying and using a truly local
insight to achieve a stronger connect with the T.A.
2. To ensure that this preference gain translates into an increase
in intention to transact with the brand.

The Coca-Cola Brand Essence

Media Scheduling
Continuous
Continuous
Media
Media Schedule
Schedule

Advertising
Advertising is
is run
run steadily
steadily
throughout
throughout the
the period.
period.

Flighted
Flighted
Media
Media Schedule
Schedule

Advertising
Advertising is
is run
run heavily
heavily every
every
other
other month
month or
or every
every two
two weeks.
weeks.

Pulsing
Pulsing
Media
Media Schedule
Schedule

Advertising
Advertising combines
combines continuous
continuous
scheduling
scheduling with
with flighting.
flighting.

Seasonal
Seasonal
Media
Media Schedule
Schedule

Advertising
Advertising is
is run
run only
only when
when the
the
product
product is
is likely
likely to
to be
be used.
used.

Below are few of the successful campaigns. You are to see their
style of campaigning making.

Coca-Cola
Agency : Leo Burnett

With Coke, I can make everyday moments magical which makes
me a winner every time. I am relaxed, uninhibited and inspired
with a Coca-Cola that raises my involvement in my passion
making the overall experience magical and hence memorable.

Target Audience
Demographic profile
Junior college / College going young males. Age: 15-19. SEC A,
B, C
Understanding the Tamil Youth Culture – Whom to
Target
The Tamil youth like all other places have a class divide. There
are
• The Peter’s
– English speaking, brand conscious, popular with girls…
“Metro”
• The Muni’s
– They are the masses, Tamil-speaking, down-to-earth in
dress and mannerisms, unlikely to possess personal
transportation…infact prefer to travel by the local buses.
But that’s where the similarity ends.

Connecting with the Tamil Youth
Coca-Cola Gaanam

The aspiration set is not the Peter…but the Muni

Marketing Challenge
In October 2000 had seen Coke way ahead of Pepsi in both the
Chennai and Trichy regions, the scores on key preference
parameters (Most Favorite brand and Total Favorite Brand) had
shown a dramatic dip in the last quarter of year 2000.

Have communication that is about them and not try and
project the Peter image as the role model/aspiration set

To relate with the Muni’s we have to talk directly to them.

A Closer Look at the Muni’s
• Usually dressed in garish shirt with an undefined pattern and
dull brown terrycot trouser.
• He is lanky, but fiercely strong.
• The typical youngster pretends to study
• All he does in truth is pay a token visit to class once in a
blue moon and hang out with his college buddies
(group) the rest of the time.

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ADVERTISING MANAGEMENT

Media Selection Considerations

Oct. Nov. Dec. Jan. Feb.
’00 ’00
’00 ’01 ’01

Region

ADVERTISING MANAGEMENT

•

He takes pride in belonging to one of these groups.

Objective II. Translate Preference into Intention to Buy

•

And will go to lengths to prove that his college is the most
notorious, most brattish, and therefore most happening
college.

Purchase intention figures from the Continuous Consumer
Track:

•

The other important aspect about him is an amazing level of
confidence.
•

•

Brand

Chennai Coca-Cola

He truly believes that he and his group of friends are the
kings of Chennai.

Measure

Feb
’01

Mar
’01

Purch int-Def.
will buy

30.6

38.9

44.9

54.3

42.4

46.7

72.3

78.5

Chennai

He also has phenomenal enthusiasm and an ability to have a
ball.

Purch intCocaDef+Prob. will
Cola/Coke
buy

Trichy

Coca-Cola

He may not have too much to look forward to but he
dreams big and has a whale of a time each day.

Trichy

Purch intCocaDef+Prob. will
Cola/Coke
buy

•
•

Region

Girls occupy a large part of his thinking.
•

He is extremely frustrated by the fact that he has hardly
any chance of interacting with girls.

•

And when he does try girls seem to dislike him.

•

So he fantasises a whole lot.

The Creative Device
The Muni and his Gaana
• Gaana is the pulse of the Tamil youth.
• A unique form of music, where a group of friends invent
a song impromptu
• The essence of the gaana is in the spontaneity
• It is one of the primary entertainers in the life of a Muni
during college.
• They groove to it
• And use it to express their worldview, their enthusiasm
for life and their sense of humor at any given situation.
• Gaana provided the perfect mix of solutions – perfectly in
sync with the brand values, very relevant to the “Muni” of
Tamil Nadu and a device allowing for a vivid creative
expression.
The Results
The Gaana commercial went on air in mid-April and ran
through end-May

Temptations
Agency: Contract

Background
• The Current State of the Market
• The Need Gap Analysis
Campaign Objective
1. To create a new premium category in the chocolate market
2. To communicate to the chocolate lover segment the
availability of a truly international chocolate eating experience
The Target Audience
• Going beyond demographics and understanding the real
chocolate lover
• The importance of taste, the eat experience- what it should
be, what it means
Creative Strategy
• Brand Positioning
• The Brand Proposition
• The Communication Objective
• Challenges faced while developing communication
Bringing It Alive in Media-

Objective I: Regain preference

The Strategy

The Gaana commercial was aired mid-April through end-May.
Over this period of 6 weeks, the preference scores in both
Chennai and Trichy regions showed a dramatic increase, as
represented in data from the Continuous Consumer Track
conducted on a regular basis by Coke and ORG.

•

Region

Brand

Chennai

CocaMost
21.7 22.3 22.8
Cola/Coke favourite

Chennai Pepsi

146

Feb Mar April May
Measure
’01 ’01 ’01
’01

Most
29.3 24.3 24
favourite

Trichy

CocaMost
14.4 15.5 13.9
Cola/Coke favourite

Trichy

Pepsi

Most
34.9 25.2 24.1
favourite

30.4
22.8
21.7
23

Purch int-Def.
will buy

Conventional Media supported by Innovations

Conventional Media
•

TV; Outdoor; Press

Innovations
•

Web site- www.temptationsworld.com

•

Contest linked to purchase

•

Advertising at ATM kiosks

•

Sampling exercises at restaurants

•

Week Long Promotion at Crossword Book Store

•

Cinema Slides- before the movie came started

Evidence of Results
• Objectives Achieved
• Sales

Market Share

•

Brand Awareness

Kinetic Style
Agency: Mudra

Upsetting the applecart in the
scooterette category. In Style!
Circa 1994, TVS launches Scooty, thereby creating a new category
– The Scooterette. It picks up market share and dominates the
category with over 70% market share since launch.
The strength of Scooty being lower cost, the key segment that
used it was the college going teenagers in urban India, although
it carried a disadvantage of a lower powered engine (60cc.). Of
course, it was the preferred gearless scooter for those who
couldn’t afford a Kinetic.
Kinetic perceived immense opportunity to supplement its
brand equity in the lower segment. To take the bull by the
horns, Kinetic launched Style in 1999.
Style was functionally superior in many aspects. Firstly it came
with a 75cc power packed engine complemented with wider
plusher seats and more storage space. A better product spiced
with the right kind of communication might just about be
enough to wrest market share from the leader it was reckoned…
The whole strategy was distilled to the following objectives.
Communicate functional superiority of Kinetic Style with
regards to space and power, thereby reposition TVS Scooty and
eat into its sales. The journey began…
Who should Style speak to? In this non-aspirational category
given the propensity to switch to motorcycles, targeting female
collegians would make the Style effeminate. Working executives
were more rational in their purchase decisions and were sold out
to motorcycles for want of economy.
Also, research threw up the fact that for young male collegians, a
scooterette served as a surrogate motorcycle – Their ultimate
dream. Also, a scooterette was seen to be a grudge purchase
since parents were decision makers. A product proposition of
better power and comfort would appeal more giving them
vicarious pleasures of owning a motorcycle.
Style honed in on the key insight:
“Collegians rarely traveled single.They always moved around in
pairs with friends.”
The product strengths of bigger seats, more engine capacity
coupled with the competitive need gap of underpowered
engine gave birth to the creative hook – Twins.
While twins fought for comfort all along their childhood trying
to fit into spaces like a bathtub and a swing, the moment they
find themselves on a Kinetic Style, their fights cease. They now
had found a vehicle that was perfectly “Made for Two”.
Press and outdoor was used to launch the Style regionally, and
then TV followed it in a mix of regional and national channels.
Was Style successful? Sales of Style picked up by almost 200%
(1247 units p.m. – 3654 units p.m.) gaining directly from Scooty
sales (16848 units p.m. – 12112 units p.m.).

Apart from this, image perceptions as per the IMRB research
LINKTEST model post communication confirmed the
following findings:
•

Kinetic Style is more powerful and spacious than other
scooterettes

•

Kinetic Style can seat two people comfortably unlike other
scooterettes

•

Kinetic Style is a ‘Scooterette-Made for Two”.

•

Kinetic thus romped home with more sales and improved
brand image… in Style!

Hitachi Air-conditioners : “Perfect !”
Agency: Leo Burnett

Market Scenario
The market for Room Air-conditioners was small and crowded
with entrenched players and multi product, multi national
brands. The market was largely undifferentiated and besotted by
‘me-too’ functional and cooling claims and category clichés. The
presence of a large unorganized sector, the small market size
and historically “low involvement” nature of the product
ensured that the market was highly price sensitive. Brands rely
heavily on dealer push, familiarity and incentives. In sum, the
entry barriers for a new brand, particularly a brand that wanted
to sell at a premium were very high.
Marketing Challenge
To penetrate this market with at least 50% growth without
compromising on a price premium of at least 10% (on the
assumption, that the market will grow at about 30% which was
the reported growth for the previous year).
The role of advertising in this ambitious target was to bring
Hitachi into the consideration set of the prospective customer.
To that end it was imperative to – build awareness – create
Salience for the brand as a superior technology product (in a
market where technology had never been a driver).
What was it that the Campaign was Designed to
Achieve Then
• To bring alive the unique and customized features that made
Hitachi LogiCool a superior and premium product offering.
• Thereby create a place for Hitachi’s technology in a market
that had not seen any significant product improvement for
many years.
In a crowded and undifferentiated market, driven by mostly
functional and cooling claims, the brand’s primary agenda was
to be noticed. Also, afford a premium in a traditionally price
sensitive market, the brand needed a halo and a credible value
claim.
Who was the Most Likely Target
Hitachi’s most likely audience, at this stage, was a relatively
younger male. A new generation AC buyer, at ease with
technology and gizmos. Unafraid to indulge in pleasure and
comfort. His need to own the latest, and most importantly his
need to assert his individuality, formed the stepping-stone to
the creative.

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ADVERTISING MANAGEMENT

•

ADVERTISING MANAGEMENT

Creative Strategy
Step 1
Create a brand halo: “logiCool”. LogiCool became both an
umbrella and a hook that delivered credibility and value.
Step 2
Bring alive the technology.
For those who seek Perfection as a creative platform allowed us
to deliver the brands core proposition, in a manner that not just
engaged but appealed to the core target group. It brought to the
fore Hitachi’s ability to cater to a very basic insight: the “perfect
temperature” is a very personal need. The bald bearded, fussy
protagonist, who ran across communication, delivered an
extreme and exaggerated version of the brand’s obsession with
“perfection”.
a. Television commercials used subtle humour and engaging,
unconventional formats to complement the mystery of the
LogiCool technology, making it warmer and more relevant.
b. Press advertising took the LogiCool claim further,
disseminating information and driving traffic.
c. Magazine advertising meanwhile delivered the “brand
Hitachi”.
What were the Results
• Awareness levels shot up.
• Spontaneous awareness grew by about 52 % (from the
figures we had available for the previous year), reflecting the
emergence of the brand in the active consideration set.
• The brand showed very positive scores on “technology”,
among the set of “spontaneously aware consumers”
• The market failed to grow at even a third of its projection,
but the brand exceeded its targets.
• Most importantly, in a market that saw prices plummeting
and brands jostling for a share of the pie, Hitachi maintained
its price premium without compromising volume objectives.

148

Notes

In a market category that is growing at a snail’s pace, is there
place for another brand new brand?

India, yellowing of whites will be addressed by Tide. So Tide
and Ariel are not exactly interchangeable.”

Why launch another brand in a segment when you already have
one, especially when you have worked very hard over the years at
making the existing brand a success?

In the pricing of the two brands too, P&G has drawn a
distinction. While Ariel comes for Rs 145 per kg, Tide’s price is
Rs 120. For a half kg, Ariel comes for Rs 80 and Tide, Rs 68.
For 200 gm, Tide is priced at Rs 30 against Ariel’s Rs 36. And
unlike the US, there are no plans, in the immediate future, for
variants in Tide. “We have launched the regular Tide here,” says
Jejurikar. “As of now, there are no plans for launching variants.
If specific consumer needs come up in the future, we may
consider variants.”

These are the questions that most practitioners of marketing
have been asking recently! The new brand in question is Tide,
which Procter & Gamble (P&G) recently launched in India.
And, it has been launched in the premium segment of the
detergent powder category, where the company already has Ariel
(P&G defines premium in the detergents category as being any
product over Rs 70 per kg). Stranger still, Tide and Ariel are
seemingly seen by the company as interchangeable and are
normally not launched in the same market anywhere in the
world. So in the US, Tide rules the roost but there is no Ariel.
In Europe, Ariel is what the company offers; Tide has not been
launched in any country out there. In Japan, there’s only Ariel.
Moreover, by P&G’s own estimates, the overall Indian urban
detergents market has been growing at a dismal pace of just
over one per cent per annum. But, points out Mr. Shailesh
Jejurikar, marketing director at P&G India, the premium
detergents market has been growing at three-to-four per cent in
value terms. “And compacts have been growing at around 13
per cent (in value terms); Ariel, in fact, has registered a 14 per
cent growth over the last quarter.” He adds that over the last
quarter, the maximum growth in the detergents category has
been from Surf Excel (a product from competitor Hindustan
Lever’s) and Ariel, both compacts.

A Portfolio of Brands
Mr. Jejurikar responds, “In some categories, it helps to have a
portfolio of brands. While it may be true that in the US, P&G
has only Tide, there are different variants to it. And there are
other brands from the P&G stable — Cheer, Bold, Gain. In
Europe, there is an additional brand in Daz, besides Ariel. But
in Saudi Arabia and Egypt, both brands exist side by side. In
Saudi, Tide and Ariel have a 60:40 share of the two brands’
total turnover. In Egypt, it’s the reverse.”
It all depends, he says, on one question: is there a consumer
need? In India, the premium segment is growing. There is a
specific consumer need for great quality of cleaning — a
dimensionalisation of whiteness. Tide has been launched to
address that — the quality of whiteness in cleaning.
In that, P&G is drawing a distinction between Tide and Ariel.
“In all markets where both brands have been launched,” says
Mr. Jejurikar, “Ariel stands for the best in cleaning. It will keep
redefining the standards of cleaning plus something more.
Could be germs-free. Or as we had advertised sometime back,
no pilling. Ariel will always give the best in performance; it will
talk about the best in global technologies, helping the consumer
redefine standards in cleaning. For the non-Ariel consumer in

More Market Share
Then there is the issue of a market share for P&G. In India,
says Mr. Jejurikar, P&G still has three-fourth way to go in
powder detergent market dominance. In Saudi, it commands 70
per cent of the market. In some other markets, it enjoys around
40-to-45 per cent share. “In India,” he admits, “we have a fair
way to go.” And a portfolio of brands, feels P&G, may be the
answer. For example, what used to be Ariel Super Soaker in the
regular powder detergents segment, has now become Gain,
priced at Rs 49 per kg. “Even in the US, Gain is offered more as
a value proposition.”
Consumers in India haven’t exactly been showing predictable
patterns in product usage and brand loyalty. Their upgrades and
yes, even downgrades, have been unpredictable in the recent
years. Given this, isn’t there a possibility that Ariel users may
shift to Tide? “Yes, there is that possibility,” admits Mr.
Jejurikar. “But our challenge is, can we bring more people into
the P&G detergents fold? Ariel has to find new ways of
bringing in consumers. As the year unfolds, we have strong
plans for both Tide and Ariel. You may even wonder at the
high levels of activity on Ariel. Over the next 12 months, we
have planned strong action on Ariel to ensure that its consumers will not want to switch to another brand.”
And what about competition. Won’t it respond as strongly?
“Competition may come up with special direct offers,” Mr.
Jejurikar guesses, declining to comment further. Incidentally, if
you have been watching detergent ads on television, there seems
to be some competitive action on. Tide’s advertising has shown
the offer of this unnamed product for maximum whiteness
effect. The consumer tries the product and lo and behold, she
gets the promised whiteness. After which the product’s brand
name is revealed as Tide.
Cut to Hindustan Lever’s Rin Supreme ad where this unnamed
detergent powder that is offered for trial does not provide that
super whiteness. And then along come this woman talking
about the super whiteness that Rin Supreme offers, while the
man who had offered the unnamed detergent gets pushed to
the background by a group of women talking about the
excellent performance of the Hindustan Lever brand.

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ADVERTISING MANAGEMENT

LESSON 27:
CASE STUDY & CAMPAIGN MAKING

ADVERTISING MANAGEMENT

Comparative advertising? Sure sounds like it. And if it is, it
looks like the year’s competitive action will find Rin and Tide at
war.
Whatever the warfare may unfold, Mr. Jejurikar is convinced
that the planned action on P&G’s two detergent brands will
have an impact. “Between June this year and July next year
(P&G’s financial year), we plan to significantly and meaningfully
grow our category share. Most laundry consumers know the
difference between the products on offer. You provide a
performance and the consumer evaluates it vis-a-vis price.”

More Action this Year
On “why P&G chose to launch Tide this year, and not last year
or the year before or even next year?” he says, “Our reason for
the launch happening this year is that globally, changes at P&G
have allowed for faster launches. Over the last three years, we
have been working on existing brands, building a solid base.
Now there are new launches coming up.”
Sure enough, this year finds P&G getting active with new
launches. January this year, saw the national launch of Whisper
Ultra, the most technologically advanced sanpro product in
P&G’s global stable. Tide followed on May 3. Since April,
Tempo, a tissue brand and Tampax, P&G’s global tampon
brand, are being test marketed at Tamil Nadu and Delhi, and
Tamil Nadu respectively. “Tempo and Tampax are between
nine-to-twelve months away from a national launch,” estimates
Mr. Jejurikar. “And even here, we will still have to evaluate.
Tampax, after all, is in a very nascent segment in India.”
This year then, at least in terms of advertising communication,
Indian consumers will see a lot of action in laundry detergents.
It is unlikely that P&G’s competitors, specially arch rival
Hindustan Lever, will not react strongly, or even go detergent
proactive. So get ready for a lot of action, hype and high noise
levels. Surprising how something as mundane as washing
clothes can be made so much of by its solution providers.
Your agency has been hired to make a campaign for Tide. Create
a Print and an Electronic advertisement at the cost of 1 crore for
6 months.

Notes

150

ADVERTISING MANAGEMENT

LESSON 28:
TUTORIAL

You are the advertising person handling the brand PARX. You
are required to now position PARX as a revolution in Tee Shirt
market. Identify the target audience and create a creative and
media strategy for the brand. In addition you are also to think
of innovative promotional exercises to ‘reach’ out to the public.
In addition please create the print advertisement and explain the
components of it. The work should be ideally done in syndicates and 30 minutes time to be devoted on the making,
thereafter syndicate presentation.

Notes

151

UNIT III
ADVERTISING STAKEHOLDERS
LESSON 29:
UNIT – 6
CHAPTER 8
AD AGENCIES – A LOOK
ADVERTISING ORGANIZATION

ADVERTISING MANAGEMENT

Learning Objectives
•

You will understand via this lesson the structure of an ad
agency.

•

It will give you an idea as to the type of role you might play
in the organization.

It was only by the beginning of this century that the agency
started to prepare advertisements and deliver them through the
advertisements media. Lord and Thomas was probably the first
agency in the USA, with a reputation for creative work in
advertising. It hired copywriters, who did a marvelous job. One
of the famous advertisement deliveries of this agency was for a
new washing machine. Other agencies also started adopting the
new services; and soon many advertisement agencies had
established departments for copywriting, artwork, layout
design, media selection, etc.
Over the next several decades, the advertisement agency
improved the quality of its services, besides offering additional
new services at extra charge. Agency growth has never looked
back since then It has grown in size and influence through the
years, demonstrating an ability to create effective advertising.
Towards the end of the first half of this century, there were
several large agencies offering a full range of advertising services.
They produced effective advertisements by taking into account
consumer psychology and human needs and wants. Creative
advertising appeals effectively influenced consumers to buy the
advertised products and services. In fact, advertising at this
stage, became a part of the overall marketing mix, furthering the
sales and marketing strategy.

It is estimated that advertising industry will be worth around
Rs. 10,000 crores by the year 2001. Even discounting media
inflation, it is a lot of business.
An advertising agency, (abbreviated to ‘ad agency,’) is a team of
experts appointed by a client to plan, produce and place
advertising campaigns in the media.
Advertising Agencies account for billings of Rs. 2000 crores per
annum. The need for people grows in proportion to billing. It
employs today 10,000 people. It will need twice this number.
2000. They are constantly in need of a diversity of talents both
on the creative as well as product side.

Evolution & History of Advertising
Agency
Volney B Palmer in Philadelphia started the first Ad agency as a
space broker in 1841. He acted as a simple agent, selling space
for his client newspaper on a commission basis. He made no
effort to help the advertiser prepare copy, design a layout and
provide the many specialized services now performed by a
modern agency.
Since then, the nature of an agency has changed considerably,
but the method of compensation in the form or a fixed
percentage of advertising billing continues in spite of the
inherent defect of the system, for the agency generally recommends only a higher media budget than may be appropriate.

152

An advertising agency is shortened as ad agency. Ad agency is a
team of experts appointed by clients to plan, produce and place
advertising campaigns in the media. They are called agencies,
because literally they are agents of the media who pay them the
commission, and the media thus becomes the principal. Media
pays commission to only accredited agencies (INS accreditation),
The agency works for the client, but draws its sustenance from
the media (nearly 75 p.c.).

The Working of Ad Agencies
To begin with, the agencies started as one-man agents who
booked space in the media. Even today, in our country, there are
so many one-man agents who book space in the media. Soon
the space booking was handed over to the contact-man, and
creative wordsmiths adept at sloganising undertook the actual
construction of the ad.
In the course of years, the ad agency became service-oriented,
and was able to offer every possible service including marketing,
market research (MR), and public relations (PR).
Ad agencies have evolved over a period of time. These days we
have mostly studio-based agencies, some industrial and
specialized agencies, and hot-shops who only plan creative
campaign by engaging the services of freelancers.
At Madison Avenue, most of these large agencies of the world
fiercely compete for new accounts, resulting in a shift of
millions of dollars of billing from one agency to another.
Advertising Age is an official publication of the American
Association of Advertising Agencies (AAAA).

Mumbai is considered to be the Mecca of Indian advertising.
These days agencies are also being set up at Bangalore, Madras,
Hyderabad, Ahmedabad and Delhi.
In India the ad agencies are sole proprietary concern, partnership
or private limited companies.
It is better to operate agencies on professional lines, rather than
as a family. It is good to install MBO (Management By Objectives). An agency must necessarily plough back at least 75 % of
its profits into business.
The advertising agencies are shifting from the creative mode to
the marketing mode. Today the onus is on the agency to supply
the client with data on his industry; the days of the clients
briefing the industry are almost over. The agencies are expected
to maintain database. There is a leaning towards software for
optimizing media usage, and computerization of studio
functions.
In India, the legal structure of ad agencies is that of a small
proprietary concern or a big partnership. Sometimes, they are
private limited companies, either big or small.
Indian advertising is a fragmented business. There are over 733
agencies accredited to INS. The top 25 account for 50% of all
billings. In addition, there are many accredited agencies.
It is the top 25 agencies, most of which are headquartered in
Mumbai, that set the pace and define the shape of the industry.
Agencies like HTA, Lintas, Clarion and O & M have shaped the
entire advertising industry in the country. Many Indians firms
are coming up, by importing Western ad techniques.
Many agencies die a premature death. Most people do not
appreciate that an agency –like any other business – must be
properly managed. It is simply not enough just to have great
idea. In recent years, there has been a healthy trend towards
sound management practices, especially financial planning and
control.

department of the client briefs him. He communicates this to
the agency people.
He reaches out to different clients for seeking new business.
Even clients who want an agency’ to work for them contact the
accounts executive. This business development work makes it
virtually a marketing manager of the agency.
Do Right-brained People make Better Account Directors

The faculties of logic and reason are supposed to reside in the
left-brained people. While intuition and creativity are believed to
be in the right. So far, accounts director was considered suitable
if logical and systematic, i.e., left-brained. But if he has to
motivate a team, he should be inspiring and creative too, i.e.,
right-brained.
Copywriters

They are the wordsmiths who do the wording of an advertisement. They are bright and talented. They have a flair for
language. They contribute to the theme of an advertisement.
Creation of successful copies for different clients establishes
them in this field.
Visualisers

These are artists who put on paper what has been thought out
by the copywriter. They in fact design the ad.
Creative Director

He co-ordinates the copywriting and designing. He is a senior
professional who is seasoned in an existing advertising agency
set-up to take on this mantle.
Production Department

Persons of diverse talents like printing technology, DTP,
photography, typography etc. are involved here.
Media Planner

He has to allocate the advertising budget amongst media. He
has to select the appropriate media. He decides about the
frequency, size and position of an advertisement. He decides
about its publication date. He receives the tear-off copies from
the media when the ad is published. He is guided by the media
research, which he undertakes, or by research undertaken by an
outside agency.
Media is the most professionalized department of advertising
agencies.

This is a highly paid profession. It is a conspicuous high wage
island. People operate on high profile. Their life-styles are
opulent because of high expense accounts ‘of entertaining
clients. They got their elitist brand due to this reason. But high
salaries and freedom are necessary to attract talents.

Marketing Research

Women have been an integral part of this profession. We have
examples of Rhoda Meha; (OBM, Media Director), Nargis
Wadia (Interpub, MD), Usha Katrak (ASP for many years), Tara
Sinha (Tara Sinha Associates Delhi; Formerly, Clarion).

Most of the media today sustain on advertising revenue. They
sell space or time. While selling space or time, they have to
convince the client about the reach of their media vehicle, the
composition break-up of their readers and the pricing of their
space/time selling. They monitor the market, survey their
readers, and highlight their readers’ demographic and geographic characteristics. They also maintain relationship with the
media department of advertising agencies who buy space/time
on behalf of clients.

Let us Look at the People Working in an Agency
Accounts Executive

It is a key career option in advertising agency. He is called an
Account Director when he is a member of the Board. He is a
link between a client and his staff. The marketing or advertising

Modern agencies are integrated set-ups. They provide a range of
marketing services. Research data become very useful as input to
the creative process.

The Media

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ADVERTISING MANAGEMENT

In India, advertising business is worth Rs. 8,000 crores. There
were only 62 advertising agencies in 1958, which increased to 168
in 1978, more than 2.5 times the numbers in 1958. There are
more than 500 ad agencies today. The oldest and largest
advertisement agency in India is Hindustan Thompson
Associates Ltd. The second largest advertisement agency is
Lintas.

ADVERTISING MANAGEMENT

Ancillary Services
These are needed to produce/create advertisement. A whole
range of services like studio service, photographic service,
printing service, gift item producers etc. fall into this category.

Freelancers
These are professionals who work independently and have a
successful track record. They are copywriters, jingle singers, radio
announcers, artists, visualizers, technical writers etc.

In Jocularity it is Often said that
“Advertising is a funny business because it is not only a
business – it is half a business, quarter a profession and quarter
an art.”
Every business entity, irrespective of its size, ownership and
kind of business, does take the help of advertising – the push
that makes things happen. Advertising is a function of
marketing, and pushes the product in the market for bigger
sales. The different kinds of advertising have been discussed in
the introductory chapter. Here, we shall be concerned with the
study of the organization that plan~, produces and places
advertising campaigns in the media and the internal organization of the advertising department. When a firm has decided
upon an advertising programme as part of its overall promotion mix, it needs to have a system and an organization to
implement it for the attainment of the desired objective. Firms
do have an advertising and publicity department to manage the
advertising function. In some small firms, there may not be a
separate department in the name of advertising, but the
function is either looked after by the marketing manager or the
chief executive. The company’s advertising department usually
relies on outside experts, often the advertising agency which
prepares the advertisement messages, selects appropriate media,
and arranges to release them. The advertising department of a
company has only a limited creative function, primarily a
supervisory one. This department is merely a liaison point in
the company for the agency, though it is responsible for the
advertisement budget, and supervises the performance of the
agency. An advertising manager has to co-ordinate with the
marketing and sales function, so that the advertising efforts may
be fully integrated with the firm’s marketing and sales strategy.
He has also to perform the managerial task of formulating
advertising strategy and planning advertising through the
advertising agency. The agency often assists the advertising
manager in programme formulation.
Very importantly let us look at the function of a very important
person in the organization – the advertising manager. We shall
also look at the various ways the he could run the agency and
the organization structure of an ad agency.

The Advertising Manager
The advertising manager usually works under the marketing
manager for effective advertising. However, in some organizations, he may function directly under the higher management.
Whatever may be the hierarchical levels, the advertising
programmes should be in conformity with total marl planning.
Product managers and brand managers have also to co-ordinate
with the advertising department for appropriate advertising
efforts, so that a particular product or brand may receive

154

adequate promotional support. The hiring of an advertising
agency is a function of the advertising manager. If the agency
has to be changed, the advertising manager to that effect makes
the recommendation to the higher management.
In a large corporation, the advertising staff is employed for
different product/brand like Product or brand managers
develop the advertising and promotion needs of their products
or bran! Similarly, sales managers determine the kind of
advertising support they need for sales, and distribution
managers inform it of the advertising support they require. A
manager, who is known as the advertising manager, coordinates
all these requirements. He sets the advertising objectives al
communicates them to the agency. In a typical, large-size
organization, the advertising manager reports to the vicepresident in charge of advertising, sales promotion, publicity
and public relation with a view to determining an effective total
promotion mix. The advertising manager and r department
work closely with the agency in the preparation of the ad
budget, the media schedule the creation of individual ads and
the schedule of their release. Very large organizations may hire
services of more than one ad agency to cater to the varying
nature of their advertising jobs.
VICE-PRESIDENT IN CHARGE OF ADVERTISING.
SALES PROMOTION AND PUBLIC RELATIONS

Ad
manager
Agency
Plates

Sales promotion Manager
Premiums Printed
Materials
Specialty
Firm

Media

Direct
Mails
Letter Service

House Organs
Annual reports
Agency

Agency

Sales
Outlet

Finished Art
Printer

Finished Art

Printer

Sales
Outlet

Mailing Service

Sales Force

Publicity

Mail or Other
Form Of
Distribution

Post office

Organization of a Typical Advertising Department

Organization Structure of Advertising
Department
All major advertisers maintain an advertising department. The
structure of the department however may vary from one
organization to another, as each one tries to develop a form,
which is most suited to one’s requirements. The principal forms
of organizational structure are based on (i) sub functions of
advertising, such as copywriting or artworks (ii) communication
media (iii) geographical spread (iv) product and (v) end users.
Irrespective of the specific form, the advertising department has
to perform several functions. Principal among these are setting
advertising goals, plans and budget, selecting the outside ad
agency, maintaining contacts, providing support to the marketing staff and monitor the functioning of the ad agency.
Selecting the ad agency is one of the important tasks of the
advertising department. Several criteria, including experience,

tance advertising is given to the total operations of the firm.
There are several alternatives. These are:

As you know, there are different categories of advertisers.
Depending upon their functions, each organization develops its
own structure, of which advertising department is a part. What
is important in this connection is to analyze the functions an
advertisement department is expected to perform.

•

Report to the Chief Executive (Chairman/MD.)

•

Report to the Director (Marketing)

•

Report to the divisional head if the firm is a multi-division
firm and responsibility is delegated at the division level.

Organization is a Manufacturing Unit
Manufacturing firms carries out bulk of advertising. It is
therefore, necessary to understand the various principles on
which the advertising department can be organized in manufacturing units. The basic principles are:

a. By Sub-functions of Advertising
Advertising as a function can be segmented into its various
components, such as, Copywriting, Art Production and Media.
A specialist who in turn reports to the advertising manager can
handle each component.
Advertising Manager

Copywriting Manager

Art Manager

Production Manager

Media Manager

b. By Media
Advertising Manager

Newspaper

Broadcasting

Manager

Magazine

Outdoor

Direct mailing

Product B

Product C

Product D

d. By Geography

In operation it gets the necessary product, market, and budget
information from the divisions and then controls the execution
of the various programmes by:
1. Providing the needed information and guidance to the
advertising agency and other services;
2. Then reviewing and approving the completed work before
getting division approval
A Decentralized Advertising Activity is operated and controlled
by individual units located in each major division, usually
reporting to a division head or to a division marketing or sales
head. The division advertising, sales and marketing people and
control both the ‘what’ and ‘how’ of the advertising job,
getting only advice and counsel plus miscellaneous services
from a central advertising function.

2. Most companies entrust their advertising work to outside
agencies and it is more convenient with them in a centralized
way.

Interface with other Departments
Advertising Manager

Zonal Manager A

ZM(B)

ZM (C)

e. By End User
Advertising Manager

Consumer

Centralized Advertising Activity has been defined as that which
– is located at or directed by headquarters, reporting to corporate
sales or marketing head or in top management.

1. It is difficult to transfer the tasks of preparation and
execution of creative advertising from to the many without
loss of efficiency to a great extent.

Advertising Manager

Market Manager

Sou1d advertising be done on a centralized basis or should the
responsibility be delegated to lower levels – say product or
geographical divisions?

In practice, however, it has been found that most companies
follow the centralized pattern of advertising organization. There
are at least two important reasons for it.

c. By Product

Product A

Centralization or Decentralization

Institutional

Government

Market Manager

Reporting Structure
The advertising manager has to report to somebody who is
higher up in the organizational structure. To whom the
advertising manager would depend upon how much impor-

Advertising and, therefore the people, manning the advertising
department, do not function in a vacuum. Advertising is a tool
of marketing. It is done to achieve a specified short-term or
long term goal. The advertising staff, therefore, must actively
interact with other departments most importantly, marketing
and sales. The interaction has to be intensive to draw up a
coordinated plan, of which advertising is a part. In fact, not
only the advertising department, but also the outside advertising agency it may have employed, would have to be actively
associated with the formulation of the marketing plan.
In companies, which realize the importance of advertising in its
proper perspective, the advertising department gets useful
inputs from sales, product and brand managers; from Marketing heads, General managers and top management and also
from many others in the engineering and manufacturing
departments who provide valuable advice in respect of appeals
to be focused and also other advertising matters.

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ADVERTISING MANAGEMENT

size, track record and the quality of the personnel, are considered in the selection process.

ADVERTISING MANAGEMENT

Functions of the Advertising Department

Functions of Advertising Agency

Just as the organizational structure of an advertising department varies, the activity profile also is subject to change from
one organization to another. Kleppner has identified 14
activities, which include all the major functions an advertising
department in a manufacturing organization is supposed to
carry out. These are:

Accounts Executive or Director: Key Executive of
Agency
The agency’s key executive is Accounts Executive (he is accounts
director when he is a member of the Board in case of a limited
agency).
Account in advertising parlance means a client. Thus Hindustan
Lever is an account for Lintas, or ITC is an account for Lintas.
This accounts executive is a link between the agency and client.
Functions of Accounts Executives
He understands what the client wants. He has to get this done
through his agency. The marketing or sales or advertising
department of the client briefs him. He communicates this to
the agency people. He is also called client service executive.
Account Planning or Client Servicing.
An ad agency’s primary function is to create advertising, and
account-planning function provides a basis for this. Account
Planner has to perform a number of functions.
1. Planning the objectives of the advertising: Here he makes
use of skills of analysis, synthesis, logic and insight.
2. Selecting and evaluating research feedback on the basis of
which the team makes judgments and takes decisions.
3. Making the objective and the feedback relevant and
stimulating to the rest of the team particularly the creative.
An account planner may not head the account team mayor. But
the above function should be attended to. It is better to invest a
separate person with the composite responsibility. The positive
use of research is establishing a dialogue between the creative
team and the consumer is a valuable contribution that’ a
planner can make.
Selecting and evaluating research feedback on the basis of which
the team makes judgments and takes decisions.
Making the objective and the feedback relevant and stimulating
to the rest of the team particularly the creative.
An account planner may not head the account team mayor. But
the above function should be attended to. It is better to invest a
separate person with the composite responsibility. The positive
use of research is establishing a dialogue between the creative
team and the consumer is a valuable contribution that’ a
planner can make.
The importance of account management in client-agency
relationship is on the decline. Successful account managers are
true experts on their client’s brand and competitions, and have a
clear point of view. Clients talk to them, and use then as
sounding boards. The client seeks their advice.
They are also used as surrogate brand managers, especially for
getting things done. Account managers lacking expertise face the
threat of extinction.
Planning in agencies conforms to brand responses – the desired
responses that a brand’s advertising should generate. But when
we advertise, apart from brand responses we also generate
advertising responses, – effects on our target audience like
amusement, education, entertainment moving effect etc. Many
times, these advertising responses are an essential part of what

1. Determine in consultation with top management the
advertising goals, the advertising budget, and the advertising
plan.
2. Help select the advertising agency.
3. Set up a plan of activity, allocating which work is to be done
by the agency and which by the advertiser. Establish with top
management the internal division of such noncommissionable duties as sales promotion, research and
public relations.
4. Transmit the policy and problems of management to the
agency; keep it informed of changes in marketing strategies
and other related areas.
5. Decide upon the proportion of the appropriation to be
assigned to different tasks in the advertising programme
depending upon the importance of these tasks.
6. Approve the plans for advertisements by the agency and by
others who work on the advertising problems.
7. Prepare, purchase and issue sales material – point-of-purchase
displays and direct mail, including receipts, dealer advertising
service, premiums (unless company has separate premium
departments).
8. Prepare, issue and control billing of corporate advertising.
9. Keep the sales force informed of forthcoming advertising.
10.Prepare portfolios of advertising for the salesman’s use in
showing advertising to the trade and to other distributors.
11.Work with the sales department in preparing special
programmes.
12.Prepare instruction manuals for those who will sell and use
the product; all in all, do everything possible to make the
most effective use of the advertising investment.
13.See that all mail enquiries are answered with mailings as
required.
14.See that all bills are properly checked; keep an account of
funds and prepare proper reports for management.
The ad manager in charge of an advertising department has
both managerial and operational functions. He is responsible
for interacting with agencies and the media. He pays attention to
outdoor aids. He takes part in campaign planning and media
planning. He frames an ad budget, and allocates it. He is
responsible for broadcast media. He gets POP prepared. He is
the man behind SP and merchandising. He maintains press
relations, and PR functions. He brings out a house-journal. He
is appointed on the basis of his knowledge of advertising and
journalism, his knowledge of the industry, his management
background, and his marketing background. He maintains a
good clientagency relationship so essential for the success for the
campaigns.

156

Modern days agencies have two major sections.
Agency
Creative Side

Accounts

Marketing

Accounts

Creative

Executive

Research

Supervisors

Directors

Production Media
Dept.

Cont.

Public
Relations

Production Side

The two sides are supplementary to each other. Now the
creative section has a team of bright, talented copywriters who
do the wording of an advertisement. Copywriters contribute to
the theme of an advertisement, like a college girl asking another
the secret of her flawless complexion, and as an answer coming
to know that it is Clearasil Cream. Now this is called copy
platform. These copywriters report to their head, who may be
called Copy Chief ’ or Chief ’ Copywriter.
But merely the copy is not enough. The visua/iser puts on
paper what has been thought out by the copywriter. He in fact
designs the ad. He takes the help of layout artists, typographers’
and finished artists who prepare the final artwork. As you will
see, creative energies of copywriters must be coordinated with
the design energies of the visualisers. The person who performs this role is called the Creative Director. So now we can
put here the organizational structure of the Creative Section of
an ad agency.

Accounts

Field

Asst.

Staff

Planner
Buyer
Outdoor
Film/TV/Radio

Copy

Visualization

TV
Production Asst

Traffic Controller

The top management of an ad organization consists of a Plan
Board. This comprises of a committee of department heads, be
it media, accounts, PR, creative, etc. it plans campaigns by
consensus.
The other is the Review Board. This committee reviews and
criticizes a campaign, which it has not planned or created.

Now we shall come to the studio-based production department, which delivers a complete approved ad copy. This
department is in charge of the production manager who has
several assistants. For prints ads, these people do typography,
lettering, blocks, stereos, and electros. They also supply text and
artwork for photogravure process. Production manager
organizes the workflow (copy and artwork proofs and corrections – final copy as per time schedule). In larger agencies this
workflow is under the control of a traffic controller. Some part
of the production work can be bought from free-lance sources.
After this the Media planner understands the budget and how
the ad is to allocated in various medias.

The overall structure of the top management looks something
like this:

In addition to this the agencies also have a Marketing Research
Department, which does product research, consumer research,
positioning studies, price and distribution research, sales and
packaging research and motivational research.
The administrative manager, with office, accounts and finance
functions are few of the other departments. Some agencies have
a separate Public Relations cell. So this is what an agency looks
like.

Chairman

Plans Board

OR
Creative Groups

Account
Exe.

Checking

Creative MR
Director Dir.

Production Media PR
Dir.
Controller

Accounting

Language Administrative
Copy Dept.
Dept.

Office

157

ADVERTISING MANAGEMENT

Chief of the Agency

the brand is offering the consumer. Failure to see advertising
responses makes our planning remote and ineffective.

ADVERTISING MANAGEMENT

New Business
The agency, like any other business organization, has something
to sell. The business of the agency should, therefore, grow so
that, at any stage, its volume of business may justify its facilities
for the services that are offered by it. Moreover, growth is one
of the desirable requirements of any business. It is, therefore,
logical to have a separate cell in the agency, which is responsible
for the growth of business. This growth may be achieved either
by increasing the business with the present accounts or by
getting new accounts. The first is within the jurisdiction of the
account executive, while he may look after the second in a small
agency. In large agencies, the top management assumes this
responsibility. It has a few executives who are exclusively hired
for developing new accounts. Some agencies aggressively solicit
new business by themselves engaging in advertising.
They highlight the agency’s competent personnel, the resources
and the facilities at their disposal, the influential accounts they
service and the successful -advertisement campaigns they have
handled.

Development of New Agency System
Agencies grew in size, offering more varied and specialized
services. Later, in order to cater to the needs of overseas clients,
and as more multinational corporations came into being;
advertising agencies acquired a multinational character. Simultaneously, some other forms of agencies came into being. They
are the boutique agency, the a fa carte agency, and the in-house
agency. Copywriters and art directors, instead of being tied up
with a single agency, set-up their own shop to sell the creative
function at a fee. These shops have come to be known as
creative “boutiques.” In an a fa carte agency, each service is sold
on an optional basis at an individual fee. The advertiser, as its
name implies, owns the in-house agency. In fact, this is nothing
but the advertising department of a company. Large corporations have in-house agencies, which operate and control the
entire advertising programme by themselves. For example,
Reliance has Mudra, Malhotras have Bharat Advertising, Golden
Tobacco has Govan Advertising and Lohia Machines have
Shrishti. By contrast, Lever which promoted and owned Lintas
Worldwide diverted its holdings and in India too, the
Hindustan Lever followed suit.
As Sajid Peerbhoy rightly remarked ‘An in-house agency can
hardly be sacked.’ Here, objectivity and creativity may also suffer.
When corporations have a variety of products and services to
sell and have a multi-divisional set-up, the in-house agency is
very economical to have.
Before we go into a discussion of agency compensation, one
more salient point regarding the agency’s organization structure
deserves detailed description. This is the facility of the art
studio within the agency. A small agency or space-broker may
“not have an art studio. Hiring an outside artist in that case
does the artwork. But, in our understanding of the modern
agency, everyone has a well-developed art studio.

Notes

158

Learning Objectives
•

You will understand via the case study the issue of the
agencies to become more environmentally attuned.

Indian advertising industry is alive, kicking and growing. Forget
the head-banging growth of 49.5 per cent logged during 1995.
That growth was after all triggered off by fresh waves of
liberalization. Even the current growth rate of 18 to 20 per cent
is okay considering the fact that it is thrice our GDP growth rate.
There are more reasons to cheer about. The Indian advertising
industry is turning globally competitive, Indian advertising
agencies account for more than 33 per cent of the Asia-Pacific
profits and ranks the seventh highest profit-contributors in the
global advertising world.
That is why so many global players straddle across the Indian
advertising scene. Sample this data: the share of global agencies
in Indian advertising is nearly 47.4 per cent. These global
advertising agencies in India are clamoring for higher returns
from their activities in India. And Indian advertising skills are
considered the best by world standards. Agrees Vijay Varma,
chief operating officer of Mudra Communications: “Advertising is an intellectual-oriented business and the analytical skills of
Indian advertising agencies are among the best in the world.”
True. Media and account planning tools and skills in India are
far superior and rank only next to America’s and China’s.
Commendable. More so because Indian account and media
planners are working in a market stacked with odds: the market
is complex and the culture diverse. “In India, there must be at
least 100-odd channels and around 400 publications covered by
the Audit Bureau of Circulation,” says Apurva Purohit, media
director with the Mumbai-based FCB Ulka.
Despite this diversity, the advertising industry is set to grow.
Emerging e-initiatives, mushrooming of dot-coms and rising
rural spending are only a few of the many bullish factors that
are promising great times ahead for the Indian adworld. Says
Ramesh Narayan, president of the Mumbai-based Advertising
Agencies Association of India (AAAI): “The advertising
industry is set to grow healthily. For, consumerism is rising and
India is opening its markets for more global competition. The
rule of the thumb is that greater the competition and greater
the consumerism, higher will be the growth in advertising.”
And new opportunities are opening up for the Indian advertising industry. These opportunities are: insurance, healthcares,
dot-coms, direct marketing and financial advertising on the Net.

Rising Defaults
It is not hunky-dory all the way, however. There are quite a few
irritants on the ground. One of them is the rising incidence of
client defaults. Agency clients are not only delaying payments,
they are defaulting as well. This is putting pressure on advertising agencies, which are already surviving on wafer-thin margins.

For, despite client defaults, advertising agencies have to pay
media houses on time.
How about going to courts? That is ruled out because litigation
involves a lot of time, energy and money. Going to AAAI
could be a last recourse. Alas, AAAI has no teeth. At the most,
what AAAI can do is to send letters to all advertising agencies
imploring them not to accept any advertisements from the
defaulting clients. But, any action taken normally works against
the advertising agency, which has lodged a complaint with
AAAI. As soon as other advertising agencies realize that there is
a problem between a client and his advertising agency, there is a
mad rush to grab that client. So, in most cases the agency just
prefers to wait. And the wait sometimes gets stretched interminably.
Such functioning exerts tremendous pressure on the margins
of an advertising agency. Smaller agencies, which do not have
floats, have to turn to banks and financial institutions to
borrow money. So, margins get whittled down depending upon
the time the clients take to pay up and whittled down margins
mean cash flow problems.
What needs to be done now? INS members should take the
initiative and refrain from accepting advertisements from
defaulting clients. However, at the end of the day, it is a
problem that advertising agencies have to deal with. Of late,
INS has taken one major step though. It has ensured that all
payments relating to dot-com advertisements should be made
in advance.

One-stop Solutions
Rising incidence of defaults is just one of the problems. Clientservicing today calls for more effective inputs, changing market
dynamics is demanding faster responses from advertising
agencies and the market is turning more competitive. Says
Narayan of AAAI: “Satellite television is exploding and Indian
consumers know today what his counterpart is enjoying
elsewhere in the world. So, their aspirations have been soaring
and they have begun to demand more.”
Alongside, media costs too are soaring. As media vehicles
remain fragmented, rising media costs are getting fuelled
further. So, the challenge for the industry now is to get on to
the next smart cost-effective idea, which can add to brand equity.
Says Varma of Mudra Communications: “Offering a better
output has become the newest challenge for the Indian
advertising industry.”
How are advertising agencies going about this? They are shifting
focus to become one-stop advertising solution-providers. The
top five advertising agencies in India are diversified. For
instance, Lintas has a public relations arm LinOpinion and a
market research agency called Pathfinders. The Mudra group has
a well-integrated set of subsidiaries that supports its functioning. O&M and Hindustan Thomson Associates too are

159

ADVERTISING MANAGEMENT

TUTORIAL: CASE STUDY

ADVERTISING MANAGEMENT

diversified. And Trikaya Grey has repositioned itself as a
communications company.
But, mere diversification is not enough. The biggest challenge
facing advertising agencies today is acquiring new skills. For, the
world of media is transforming rapidly. Broadcasting is giving
way to narrow casting. This is redefining traditional paradigms
and the focus of advertising agencies is shifting from marketing-many to marketing-one.
What’s more, Internet is ushering in online advertising and
advertising on hand-held devices is rapidly catching up too. All
these developments are then forcing advertising agencies to
acquire new skills and offer integrated communication solutions
to clients across assorted channels. Says Narayan of AAAI:
“That is why workshops, seminars and training programmes
are fast becoming a must for advertising agencies.”

Automated Media Buying
All these changes are bound to influence media buying and
media management too. Very soon, media management will
assume tremendous importance in the Indian advertising
matrix. “Media will soon be at the forefront of the advertising
strategy table,” says Purohit of FCB Ulka. Needless to say, roles
of media buyers will become more complex with data getting
more sophisticated. Meanwhile, multiplicity of channels will
mean greater audience segmentation. Advertisers will have to go
beyond television rating points and find more efficient means
of assessing ad spend.
As customer relationship management (CRM) assumes
importance, technology will play an important role in advertising. Technology will drive the initiatives in devising better ways
of reaching consumers. Technology makes it possible to finetune customized communications and so chances are that
media buying will become highly automated.
Already, global advertising agencies are talking about automating and integrating offline and online media. Plans are to extend
the same core technology that is being used to offer customized
communication on the Net to other media as well. That means,
it will be possible to deliver targeted advertisements both in the
traditional media and on the Net.
Such focused advertisements will soon be a reality. For, sharing
of psychographic and demographic information are all becoming possible? Days are not far when online and offline
media-buying companies will be fully integrated and automated.
This is already beginning to happen. AdRelevance has begun to
integrate online and offline data through parent Media Metrix.
Abroad, Double-click had a plan to marry its offline and online
databases. But, the plan was shelved thanks to the controversy
about invasion of privacy.
However, once these issues are resolved such integration and
automation would happen fast. With the possibility of
interactive television happening in India in a couple of years,
days of such automation and integration are not very far. Says B
Venkataramanan, group media manager with the Mumbaibased Hindustan Lever: “Advertising agencies should be at the
cutting edge of technology and at the same time should adapt
to local market conditions.”

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Emerging Scenario
That means adaptation is two-fold. Indian advertising needs to
adapt to all those emerging technologies. As Internet turns
more pervasive, Indian advertising is bound to see more
opportunities and challenges.
Advertising on the Net is going to be a hot area. The Indian
advertising turf might soon see advertising networks and
interactive agencies mushrooming up, thanks to the fact that
more advertising agencies and software companies specializing
in media latching on to the technology bandwagon.
As the bandwagon gathers speed, the gap between interactive
agencies and advertising networks is bound to get bridged. In a
bid to gain muscle, large interactive will get into advertising
networks and large ad-networks are bound to get into the
promising business of interactive.
Further, as technology dictates the content of advertising,
specialized niche advertising agencies will emerge on the Net.
Once interactive advertisements catch on in India, the number
of advertising agencies offering specialized services will also
move up.
Not just that. These specialized advertising players might go in
for strategic alliances to gain competencies. For instance, players
specializing in rich media technology might end up forming
strategic alliances with advertising networks.

Net Initiatives
So, then all these new initiatives call for new thinking. Advertising agencies will have to assess new media opportunities and
build effective strategies. For instance, there exists an opportunity to tap small and medium companies for online advertising.
Online advertising might soon become the proverbial pot of
gold at the end of the advertising rainbow. True, online
advertising accounts for a very small percentage of the total
Indian adspend at the moment. But technology initiatives are
bound to fuel online advertising soon.
Number of online advertisers is bound to rise. And there are
scores of small advertisers who can latch on to online advertising in a big way. Such opportunities are tremendous and
tapping them calls for educating small agencies on online
advertising. In this Internet age, it is essential that advertising
agencies leverage technology and deliver smart one-stop
advertising solutions.

Client Agency Relationship
You must realize that as competition increases, companies are
demanding more from their advertising agencies. Hence, clientagency relationships are more prone to stress and strain than
ever before. There must be compatibility among the clients, the
agency and the brand. Some clients have a rating method for
their agency. Some clients tend to change when other agency
gives an alternative marketing plan. Some clients spread their
budget on more than one agency. Some clients prefer on
appraisal system for the agency. Clients sometimes switch over
to new agencies when the creative team of the old agency moves
out to a new agency just to maintain ‘brand continuity.’
The classic to-and-fro shuttles between a client and an agency are
comparable to the matrimonial dithers of Elizabeth Taylor

logical patterns. Creative people are like naughty people. The
secret of creativity is simplicity.

i. International alignments may cause a change.

Fourthly, the account executive must have ability to understand
the client’s problems.

ii. Management changes.
iii. Product conflicts with mergers, takeovers or new product
introductions.
iv. Disenchantment with each other.
v. Brand failures.
There can be a variety of minor reasons like payment disputes,
differences of opinion about communication strategy etc. Most
of the reasons for break up also become the reasons for a
winback account. The break-up may not be for professional
reasons, but for personal and cultural reasons. In future, CAR
will be much more professional than emotional.
Agencies will no longer be creative business consultants. They
should be seen as a gateway to a whole range of other services.
Some big brands like Disney are not big advertisers. They
succeed on the strength of brand experience. There could be
more idea- and fee-based agencies in future. The ideas could be
media-neutral. There will be multi-media teams. There will be
ideas specialists. Small agencies will merge into big agencies or
sell out. There will’ be consolidation.

Basic Principles of Client-Agency
Relationship (CAR)
These principles are:
i. The agency avoids advertising a close substitute competing
product. The client, too, avoids engaging the services of
another competing agency;
ii. The agency receives the green signal from the client for all the
expenses incurred on his advertising;
iii. The agency keeps the media commission for itself, and the
client undertakes, to foot the bill promptly;
iv. If the media grants any cash discount, it is passed on to the
client;
v. The agency is not taken to task for media lapses in terms of
scheduling, positioning, etc.

Basic Principles of Agency-Media
Relationship
These principles are:
i. The agency alone is responsible for payment to the media;
ii. The agency does not allow any cut from the commission
received from the media to go to the client;
iii. The media do not discriminate amongst the agencies dealt
with, and follow a uniform policy for all the agencies;
iv. The media do not alter the advertising material without the
prior consent of the agency.

Selection of an Advertising Agency
First and foremost, the agency must be known. Previously
unknown agencies are not preferred.

Thirdly, the agency must have a sound track record, a good deal
of experience.

Fifthly, you may look at the accounts they handle, and the
accounts they have gained and lost. In other words, the work
they have produced for other clients does matter.
Sixthly, the personal equation of the client with the agency also
matters. If you know them personally, they are compatible with
you.
Seventhly, their ability and presentation may make you opt for
them. Premier Auto (the company that makes Fiat cars) was
shopping around for an agency to launch its 118 NE. It invited
presentations from various agencies and then shifted its account
from its old agency Sistas to Ulka. More and more clients prefer
to invite presentations for campaigns of new products and then
award the campaign to the agency that they think has made the
best presentation.
Lastly, there are some unique considerations, some prefer a
small, some a medium, some a large agency. Increasingly, clients
prefer to fragment their business, giving different products to
different agencies.
Other factors that need consideration is the staff of the agency
and its caliber, its flexibility, practical and consumer-oriented
approach, the use it makes of MR, its media understanding, the
attention it gives to the client, its growth, the ability to handle
below-the-line publicity, and its
International tie-ups.

So creativity, commitment to client and the quality of its topmanagement goes a long way in the selection of an agency.
Unfortunately, many think ‘creativity’ is just another way of
saying, ‘I like the agency.’
Mr. Jacques, Chairman, BBDO quoted Unilever chairman as
saying, “If our agencies become no more than efficient distribution systems, we will have to go elsewhere for ideas.”

Client-Agency Relationships (CAR)
The average tenure for a client-agency relationship is 9-10 years
in India, and about 5-7 years in the developed countries. The
frequent client-agency breaks now are attributed to more
involvement of top management in ad decisions, and more
changes in the top management itself. Global alignments also
affect the local accounts. Some clients keep separate agencies for
handling different categories worldwide. A client may walk out
whenever there is brand or creative fatigue: Creative agencies
generally have shorter tenures, because they tend to continue a
particular creative even when the market situation changes.
When agency is changed, generally a brand is repositioned, e.g.,
Thums up was a fun brand. Then it became a taste the thunder
brand. Now it is ‘I want my thunder’ brand, while such
repositioning is done, the core values of the brand are kept
constant.

Secondly, the agency must have creativity. Creative people are a
little crazy, non-conformist. Creativity does not follow any
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ADVERTISING MANAGEMENT

which show ‘on – again and off – again’ refrain. Many times
accounts shift to a new agency and again come back to the old
agency. The client-agency relationship may break due to any of
the following factors:

ADVERTISING MANAGEMENT

Client Turnover
When an advertiser leaves one ad agency and switches over to
another, it is known as client turnover. The various reasons for
client-turnover are:
i. The account is not profitable;
ii. The advertiser is interested in a new medium with which the
present agency is not familiar;
iii. The client and agency perceive the ad strategy in a drastically
different manner;
iv. Lack of coordination between the top executives of the client
and the agency;
v. Change for the sake of change;
vi. Staff changes also lead to client-turnover;
vii.Perceived unreasonableness of the other party;
viii.Loss of confidence;
ix. When the client does not like the ad programme conceived
by the agency;
x. Politics and nepotism result in client-turnover;
xi. Separation of client and agency is an easy thing to bring
about.
Researchers have identified as many as 40 factors, which
influence the sale of a product, advertising being one of them.
But the Agency is almost always blamed if something goes
wrong, and the relationship terminates. There are three reasons
for this:
1. It is very difficult to measure advertisement’s contribution to
the success or failure of a product.
2. Legally, it is so simple to terminate a relationship (e.g., a few
weeks’ notice).
3. New people in the client’s office might like to have a change.
Again, sometimes creative people leave an agency. The client
therefore naturally changes to a new agency, because the people
who worked for him are not there.
Many times, there is a change for the sake of change. Clients
prefer an agency that is currently popular. Sometimes, the agency
itself voluntarily resigns from an account. Maybe, there are
differing perceptions. Maybe, the agency is accepting another
competitive account. Agencies also abandon a consistently
losing account. Agencies resign when the client is over-bearing.
Many ad people resent the diktats from the client about their
own professional work.

Agency Compensation
The method of paying the agency has been a subject of much
discussion nowadays at almost all the meetings of advertisement agency associations and advertisement clubs. There are,
basically three methods in practice. They are:
a. Commission System: This is the most common and the
oldest system of remuneration. The agency is paid a fixed
commission by the media on the advertising bill for the
advertisement space bought by the agency. This fixed rate of
commission is 15 per cent in the USA, as well as in India.
Though the rate varies from country to country, the rate of
15 per cent is almost universal. For example, an agency places

162

a full-page advertisement in a magazine, which costs, say, Rs.
10,000/-. After the advertisement has run, the magazine (the
medium) will bill the agency for Rs, 10,000/-, less 15 per
cent. This means that the agency will pay to the medium Rs.
8,500/-. The agency, in turn, will bill the advertiser for Rs.
10,000/-. Thus, Rs. 1,500/- will go towards the efforts made
and the services rendered by the agency in the preparation of
the advertisement and its delivery in the medium. Indian
Newspaper Society (INS) accreditation earns the agencies 15%
commission and 60 days of credit from the media. Nonaccredited agencies have to pay the media in advance and get
10% commission, which in real terms translates to a
miserable 5 p.c. The popular criticism of this method is that
the agency is always tempted to recommend for several
deliveries through expensive media in order to draw a larger
remuneration.
These days some agencies get compensation on ‘sliding scale
of commission.’ It is inversely based on volumes of media
spends. The larger the billings, the lower is the commission
percent paid. Some question the logic of linking ad
payments to media billing or media volumes. The sliding
scale works like the royalty payments to an author.
b. Fee System: The system came into effect following a
controversy between an advertiser and an agency. The former
argued that 15 per cent commission was too high a rate;
whereas the agency took the stand that it was
unremunerative for the many services rendered to the client.
The fee system is used in TV advertising; when once the
commercial is created, it may be used over a long time. A flat
fee is paid to the agency for the specialized services
performed by it. The fees charged depend upon the number
of ad people working on an account, salaries, man-hours,
and overheads. A dollar in salary, as a rule of thumb, accrues
to a dollar in overheads. A profit margin of 10-25 p.c. is then
added along with performance-based bonus. The agency
develops a ‘scope of work’ document for the client and then
develops resources against this plan. These resources are
charged on a time-basis or man.-hour basis. The final fee
tally is not related to billings.
c. Service Charges: The third type of compensation consists of
service charges. These are added to the cost of materials, and
services bought by the agency for the client in artwork,
photography, typography, plates, etc. Normally, it is cost plus
15 per cent.
In practice one of the above systems of compensation, or a
combination of the fee-and-media commission plan, or a
method by which commissions granted by the media are
credited against professional fees, is used.
Industrial advertising, involving the preparation of catalogues
and sales materials, and retail advertising, point-of-purchase
materials for advertising and direct mail prices do not usually
involve a commission. Here, the fee basis of compensation is
mostly employed. When new product advertising is involved,
the agencies are remunerated on a special fee basis.
The agency-advertiser relationship is like the physician-patient or
the lawyer-client relationship; the patient pays the physician’s fee,
whether he gets relief or not. However, the quality of the

Trends in Compensation of Ad Agencies
Several multi-brand advertisers are going in for bulk media
purchases through a single source (either an ad agency or an inhouse outfit). Here the agency is appointed as AOR; Agency on
Record. AOR creates and releases its own advertising. In
addition, AOR releases advertisements created by another
agency. Thirdly, AOR releases the software it has invested in.
Generally, when two agencies are involved, the releasing agency
gets 21 p.c. and the agency that provided creative gets 12.5 p.c. In
case of software, the situation is complicated.
Some clients may opt to purchase creative work on a flat fee, and
negotiate media commission on the basis of volume with
AOR.
Compensation at the rate of 15% of billing is called billingbased compensation. Compensation on the basis of costs is
called fee-based compensation. Internationally a third option
has emerged – Performance-based compensation whereby a
performance falling below expectation will earn the agency only
14% commission and a performance which is successful will
earn it 16%. However, this is too subjective.
Clients these days are reluctant to pay a blanket rate of 15 p.c. on
media billings, since they argue this is too high and illogical.
What is paid is not linked to what is put in. Media inflation
increases the agency’s remuneration. Specialized service providers
have challenged the agency’s monopoly. Clients take business
elsewhere if the agency is not ready to negotiate the 15 per cent.
There is a tendency to discount the compensation.

Commission System
Though lousy, there is, no better alternative to commission
system. ‘Payment by results’ is experimented with. But still
commission system is not a dinosaur. It may not be the best,
but it is the ‘least worst’. Fees are okay to sell time, but advertising agencies sell ideas of unlimited value. Commissions put a

value on an idea. The media spend is an index of the value the
client attaches to the idea. Commissions, however, cannot relate
efforts taken by the agency and the rewards earned. There can be
a combination of fee-based system and commission. There can
be several variations of commission – fixed scale commission,
sliding scale commission.

Undercutting by the Agencies
Advertising now competes with sales promotion and direct
marketing (DM) for funds. There is no breakthrough in
advertising theory ever since the concept of positioning
materialized. In fact both these facts are not responsible for the
not so healthy bottom-lines of the advertising agencies in the
States. The culprit is the haggling over the advertising commissions by the clients. US Agencies have been receiving less than
the prescribed 15 p.c. since long. In a way, it is a pricing strategy
for an ad agency to attract its clients. The subject of commission
negotiation is an anathema to Indian agencies. Unconfirmed
reports suggest that even Indian agencies have started offering
kickbacks to the clients. However, it is not done in a transparent
manner, and so becomes unpleasant and unethical. With
transparency, no one will deny this basic marketing right to
maneuver price in this manner to the agencies. Lower prices may
damage an agency’s reputation for quality. High prices may be
associated with quality, but if it is an illusion, and the delivery
does not match the expectations, there can be a rapid decline in
business.
Let commission negotiations be open. This will be conducive
for growth in the long run. The bottom-line will be healthier, if
extravagance shown by the ad people is curtailed.
All said and done, 15% commission is ideal.

Article
In a significant move, the Advertising Agencies Association of
India (AAAI) has set up a ‘steering committee’ to examine the
issues concerning the agency remuneration system in the Indian
advertising industry. The committee’s members have been
selected from its 16-member executive committee.
According to AAAI president Sam Balsara, extensive inquiries
(based on both number and volume) have revealed that the
vast majority of business conducted by AAAI members is on a
15 per cent commission basis (creative plus media agency
commission). “Of the 3,000-4,000 advertisers, there may be a
handful who for a variety of reasons may be operating on a
commission or fee that is lower than 15 per cent, but a few
exceptions do not make the rule,” he says.
The AAAI step comes in the wake of the Indian Newspapers
Society (INS) warning agencies that it will “carefully scrutinise
the operations of accredited agencies as and when required and
disaccredit those who violate INS rules and regulations.”
Even though many large and multinational advertisers are
reported to be operating on less than 15 per cent commission,
an AAAI release says it’s not because of the meltdown of the
commission system but because of the nature of global
arrangement between multinational advertisers and their club
agencies.

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ADVERTISING MANAGEMENT

physician’s services will be ultimately reflected in the number of
patients visiting him, or the volume of business he has. But
there is no direct link between the fee paid and the effectiveness
of medical treatment to an individual patient. As a patient, he is
entitled to get an effective cure in return for the fee he has paid.
The lawyer, too, takes the fee, irrespective of the judgment in
the case. However, he faithfully argues the case for his client.
This raises the question of the efficacy of the remuneration
method of advertising. The ideal and desirable method must
relate compensation to its effectiveness in some form or the
other. Only such a method will have a greater acceptability
among the advertisers. Not only this, such compensation
method will encourage the growth of a greater measure of
professionalization in advertising. This, however, looks simple
but is difficult to implement, because the necessary condition
for the success of any such compensation plan is to find
methods for measuring advertising effectiveness. Once this has
been achieved, it would not be difficult to correlate it with the
compensation payable to the agency. The possible future
methods of compensation, using suitable scales for measuring
the effectiveness of advertisement, can be devised. However, till
other alternative methods are available, we have to continue
with the existing methods.

ADVERTISING MANAGEMENT

As the advertising market grows and evolves, so do advertiser
requirements and there could be certain situations where the
agency commission is not 15 per cent. Media buying or media
planning plus buying are separately paid for. The entire gamut
of services in the area of Creative (consumer research/insight,
strategy, creative) is not availed of.
The fee system, however, does not always reduce agency
commission. In fact, in cases where it is related to the volume
of advertising, it may actually be higher than 15 per cent. While
in the global marketplace, it is the fee system that is followed,
this may not be suitable in India for the majority of small and
medium advertisers as arriving at the amount is usually an
elaborate and time consuming process.
Says Mr Balsara, “We strongly look down upon members who
may reduce agency commission under pressure from clients or
in order to win new business. Agencies in their own self-interest
should resist such temptation for short-term gain, as in the
long-term this would impair the industry’s ability to attract, pay
for and retain the best talent.”
What are your views on this?

Agency of Record (AOR) Concept
Heavy spenders are centralizing Media buying. They appoint a
single agency to buy space-time for all its brands, e.g., Unilever
has appointed HTA as the central media buying agency for the
Unilever group of companies, though the creative work is
executed mainly by Limas. HTA, in its turn, has set up an
agency of record (AOR), Fulcrum that aims to deal with Lever
brand exclusively. Media marketers now negotiate with the big
buyers and that is the basis of the concept of AOR. AOR starts
investing in updated and accurate data and sets up system which
otherwise were taken for granted. It bargains for a bulk amount,
and is not taken for a ride by the intermediaries. So far only
media planning function was given some thought, but now
clients have accepted that media buying is also equally important, and is a specialized activity in its own right. However, AOR
sings a requiem to 15% ad agency’s commission. It is still a
moot point how far an AOR can do justice to the’ client.
There is a lack of qualified people in this field. We do not have
specially trained media buyers in India. They are just negotiators.

Selecting Your Ad Agency
Most small businesses don’t have huge advertising budgets, it
is important the money you do have are spent wisely. That
means working with an agency that can really meet your needs
and with which you feel comfortable. Not all advertising
agencies can deliver everything they claim. There are lots of
companies vying for your precious money, so carefully consider
the following issues before committing to any contractual
agreement.
1. Define your objective in hiring an ad agency. What do you
want to achieve? What should be different after the agency
goes to work for you? What kind of working relationship do
you prefer?
2. Check out sources. Consider work you’ve seen or heard that
has impressed you. Call friends and colleagues you trust and
get their recommendations. Attend professional or trade
164

association meetings, and talk to members who have used
agencies before. Seek out their opinions, and note whose
names come up often (both pro and con). Watch for articles
about ad agencies in area papers, trade magazines and related
publications (such as chamber of commerce newsletters).
3. Once you have a list of candidates, screen them by phone.
Ask about their backgrounds, projects they’ve worked on,
the results they’ve had, their fees and anything else important
to you. Then set up interviews with the three or four firms
that impressed you the most.
4. Interview The Finalists. Find out the following:
Do they have experience working with your industry? What
is their track record when working with companies like
yours? Do they understand your business and the nuances
of what you do? If not, are they willing to research the
information they need?
Is there chemistry? You can tell if there is a good “fit” with
an ad agency. A good agency will express interest in getting to
know you as an individual and learning more about your
company. They will be good listeners and quick learners.
They will make good suggestions and react quickly to your
questions and opinions. They should demonstrate the
ability to anticipate what is best for your business and be
prepared to disagree with you if they feel you’re on the
wrong track.
Do they show originality and creativity? Based on the
agency’s previous work, do you feel these people understand
how best to “sell” your product or service? If you operate a
home health-care agency, for example, you probably don’t
want an ad campaign that features technology over
tenderness. Sensing your clientele, the agency should know
enough about you to put together the appropriate message.
Are they reliable and budget conscious? No amount of
chemistry and creativity can make up for a missed deadline or
an estimate that’s way off. Be sure the agency has not only
the creative skills needed but also the time and commitment
to devote to your needs. Whether you’re the biggest or
smallest client in their stable, you should be able to count on
consistent attention to detail. They should be available to
answer your questions and be accountable for delays and
expenses.

Picking Your PR Firm
When looking for a public relations firm, you will probably hear
plenty of so-called experts say PR is better than advertising. This
isn’t necessarily true: PR is simply different from advertising.
In many instances, PR carries more weight because it seems to
imply a third-party endorsement. We all know ads are paid for
by the business advertised and thus are inherently biased. A
positive mention in the med.3ia, however, sends a different
message. Rightly or wrongly, it is considered more objective and
believable than an ad.
While the advantage to PR is that it is seen as less self-serving
and often more honest than ads, the disadvantage is that you
have no control over the timing, the placement or the spin
given to your mention by the media. But when advertising and
PR efforts are partnered together, the results can be spectacular.

Foreign tie-ups help the agencies in their new role as brand
builder; Brands are built around their inherent feel and core
values, e.g., ‘Colgate’s fresh breath energy’, The functional
attributes of the tooth paste are side tracked. Tata Tea’s Asli
Tazgi campaign, stresses on vitality and freshness, rather than
strength and flavor. Tie-ups help build the brand values.

The local chapter of the Public Relations Society of America
(PRSA) can provide a list of members available for hire. Because
PRSA members agree to abide by a code of ethics, you are likely
to find firms and individuals you can trust.

Commonality of work culture emerges as the main determinant
of equity participation. However, this does not mean that if
there is 10 p.c. stake of a foreign agency, the mindset would be
integrated to 10 p.c. The trend is towards greater foreign equity.

The need is to look for references and testimonials when
choosing a firm, also consider recommendations from local
media and the amount of attention you can expect to get.

The management and strategic capabilities of the top five or six
Indian advertising agencies and their contributions to worldwide profits can be ranked among the best. Indian advertising
agencies account for more than 33 per cent of Asia-Pacific
advertising profits.

“Choosing a PR firm is like selecting a nanny for your child.”
You want [an agency that] will represent you and protect your
`child’ as if it were your own. But don’t approach a firm with
unrealistic expectations. No one can get your company on the
front page of Times of India if you’ve done nothing newsworthy.”
The PR arena is becoming more and more specialized. Many PR
firms now focus on clients within a single industry, such as in
environmental issues, health care or transportation. If it’s
important to you that your PR agency has a deep knowledge of
your business niche, then start noticing which companies in
your industry get the kind of press you would like, and find
out what PR firms they are using.
You may have to balance the need for an industry-specific PR
firm with the constraints of your budget. If you have limited
resources, a smaller, more general PR firm with a wide variety of
clientele and experience could be a better choice than a more
expensive, more specialized firm.
In an effort to get your business, PR firms may exaggerate their
knowledge of your industry. If you’re seeking a firm with
specialized experience, don’t hesitate to quiz the principals
about their knowledge of your field. Ask for examples of what
they’ve done for others in your industry.

Winning Partnership
Almost always, PR and advertising firms send their best and
brightest employees to make the sales pitch to you. Be aware,
however, that those may not be the people you end up dealing
with.
If you can afford it, aim to deal with the decision makers at the
advertising agency or PR firm. But don’t lose sight of the fact
that sometimes a staff person can do what you need just as well
. . . and more economically. The key is to know from the
beginning of the relationship whom you’ll be dealing with on a
daily basis.
For many small businesses, hiring an advertising or PR agency is
a huge step down an unfamiliar path. But if you take the time
to carefully assess your resources before you select an agency to
help guide you to your goals, the journey to a more profitable
business can be an exciting one.

Foreign Tie-ups
Agencies now have a new role – they are brand stewards rather
than just account managers or creatives or media planners.

However, Indian advertising agencies are far too ethnic in their
communication and thus have a limited universal appeal. Not
only execution, even their ideas are ethnic. This should change.
We should be ready for advertisements through automated
teller machines, WAP devices and interactive television?
India is an emerging economy. So, television and the Internet
are expected to grow exponentially. And Internet on mobile
devices will grow even faster. We are in a growth curve that is
looking upward. Sure, we are catching up fast. Ironically, both
the bullock cart and space technology are going hand-in-hand in
India.
Yes, advertising agencies are gearing up to grab the emerging
opportunities. For instance, O&M India has already put in place
people for its interactive division. They are up-to-date on ebusiness solutions, advertising on WAP devices, Internet and
interactive television. They are constantly at these developments
and are preparing themselves for the future. Already they have a
business plan in place. Soon their interactive division will
become a global outsourcing platform.
Once data is available, online advertising will explode. Three
years ago, they had just two people working in our New Yorkbased interactive division. Today, there are 250 people there. The
point is it is necessary to understand these emerging media
opportunities and what could be delivered through them.

Advantages
Mutual benefits. International brands are moving into Indian
markets. Foreign agencies should do well to register their
presence.
International exposure benefits Indian agencies. Data exchange
is mutually beneficial. Greater exchange of resource persons in
near future ought to take place.
Equity tie-ups are the biggest advantage. The world over, 100
clients account for 75 p.c. of ad expenditure. Agencies handling
these 100 accounts fall into specific groups (e.g., Unilever,
Colgate Palmolive or P&G. Kellogs uses Leo Burnett and JWT
and Coke uses McCann Erickson and Lintas. An agency, which
is in one of these camps, will not get accounts from another
multinational. It is obvious that at least a third of ad expenditure will be generated by multinationals.

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Much of the same advice that applies to finding an ad agency
applies to a PR firm as well. Start by defining why you need a
PR firm and what you expect to get from it. Look for candidates
by asking colleagues and others you respect for recommendations. Consult professional and trade associations and
publications.

ADVERTISING MANAGEMENT

Agencies Aligned with International
Networks
Advertising Agency

Foreign Partner

Ambience D’Arcy
Ammina Puris Lintas
Bares Clarion
Chrra Leo Burnett
Contnct Advertising
Enrerprise Nexus
Equus
EutO RSCG
FCB-Uka
Hindusnn Thompson Associates
MAA Bozell
McCann-Erickson
Mudn
Ogilvy & Mather
Publicis Zen
Quadnnt (formerly Pratibha)
R.K.Swamy/BBDO
Rediffusion DY & R
Saarchi & Saatchi
SSC&B
Speer
TBWA Anthem
Trikaya Grey

D’Arcy (formerly DMB & B)
Ammirati Puris Limas
Bates Worldwide
Leo Burnett
J. Walter Thompson
The Lowe Group
WPP
Euro RSCG
Foote, Cone & Belding
J. Walter Thompson
Bozell
McCann-Erickson
DDB Needham
Ogilvy & Mather Worldwide
Publicis
Ammirati Puris Lintas
BBDO Worldwide
Dentsu Young & Rubicam
Saatchi & Saatchi
Ammirati Puris Uncas
Ogilvy & Mather Worldwide
,TBWA World wide
Grey

Future of Advertising Agency
The competition would be keen and intense in the advertising
business in India in the coming years, but it need not pose a
problem of survival if Indian advertising agencies show
enough resilience to exploit emerging opportunities. The future
of the advertising agency seems to be bright. Opportunity
awaits the agency to broaden its scope of services in spite of the
various emerging challenges on the advertising scene. These
challenges pertain to market, media, motivations or putting
messages across to the audience. An ethical standing in terms of
the message formulation is concerned is also another area the
Indian ad agencies should look into. Looking at the Information Communication & Entertainment age, the following are
the ways the advertising should come of age.
•

The challenge for advertising and marketing is to move from
the familiar to the unfamiliar zone, to get on top of the
changes and meet the varied needs of the consumers in the
emerging ICE age. The key issue in this digital age is more
of access than of ownership.

•

The key is to move from mass customization to
personalization.

•

Traditional media buying companies and P R agencies will
have to re-invent themselves to stay relevant in this ICE age.
Speed, imagination and excellence in execution will always
remain relevant

•

Integrating technology with the ICE factor.

IT and Agencies
Information Technology (IT) has been accepted by the ad
agencies by and large, but still it has not made many inroads
into the creative and production departments. Agencies so to
say, are becoming ‘wired.’ Creative has the least use for computers. A felt-tip-pen is still considered better by art-directors than a
computer. Of course, digital cameras are now being used for
shoots. CDROMs are a source of information, images. They are
window to the global culture.

Your Future in an Advertising Agency
In case you want to make a career in the advertising field
especially as an account executive, the following will give you a
general idea about what the job entails. Robert S. Aitchison
suggests 29-ways to be an accounts executive
1. He should get along with people, not only in client’s
organization but also in his own agency organization.
2. He must be a good planner.
3. He makes available the facts about the product so that the
job of writing is not unduly difficult.
4. He will strive for creative and imaginative approaches.
5. He will be sure about the copy theme chosen.
6. He does not solely depend upon literature. He interacts with
people in client organization. He insists on seeing the
product being made. He takes the trouble to see it in use. He
interacts with the trade.
7. He always thinks- in terms of client’s best interest first.
8. He believes in teamwork.
9. He makes sure that the creative people get an opportunity to
see the client’s plant and the production process. He exposes
them to the trade.
10.He appreciates the work of the creative people to meet a
short deadline.
11.He does not keep things pending and then expect the
creative people to meet a short deadline.
12.He puts requests to other departments in writing.
13.He accepts the blame for the mistakes made.
14.He is open to new ideas and does not have a closed mind.
15.He knows the difference between a good creative and a bad
one.
16.He believes that ads are related to sales.
17.He knows when to fight and when to retreat.
18.He explains the problems of working to the client. He
knows that no agency is perfect.
19.He advises against certain wasteful expenditures.
20.He honestly admits if he does not know an answer. He does
not bluff.
21.Sometimes things have to be done overnight but not always.
Every job cannot be a rush job.
22.He anticipates client’s needs.
23.He makes it convenient to attend client’s sales meetings.
24.He is aware of media trends.
25.He knows how far he should go in being a media expert.

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26.He acquaints himself with the editorial environment of the
media.
27.He spends clients budget prudently.
28.He is in a position to communicate effectively with the
production department. He, therefore, knows enough about
printing, engraving, film making etc.
29.He will have a good idea as to when research inputs are to be
used.

Notes

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LESSON 30:
TUTORIAL
1. Visit the nearest advertising organization in your city and
find out the following:
•

Organization Structure

•

Role of the following personnel’s:
•

Account Manager

•

Creative Manager

•

Media Manager

•

Client Servicing Manager

Also find out as to how they maintain cordial relationship
with their clients.
2. Visit any organization of your choice (but with an
advertising department), interview the manager to find out
as to what criteria’s do they lay out in order to select an
advertising agency.
3. Ask the same organization as NO. 2, as to are they happy
with the compensation that they pay to the ad agency and if
the compensation would be based on advertising: sales ratio
would they prefer that or the mandatory 15%.

Notes

168

LESSON 31:
REGULATION IN ADVERTISING

CHAPTER 9
UNIT – 7
ISSUES IN ADVERTISING

•

You will understand via this lesson the need for regulation
in agencies.

•

The 3 case studies will explain to you the relevance of actually
having regulations and the bodies which play a vital role in
them and their role in the implementation of regulations.

ADVERTISING MANAGEMENT

Learning Objectives

Lesson: Regulation In Advertising

I have purposefully taken this advertisement. Although this is
an AMUL advertisement but still, the adaptation of the subject
matter will give you an idea as to what the controversy regarding
MR Coffee was all about. Please note the subjective image now
understand as to why there was so much hue and cry when a
TV commercial was aired.
Advertising regulation is a fascinating subject, and it is heavily
determined by political attitudes. Those who believe in less
government and think that business should be left alone to
regulate itself tend to favor less advertising regulation. Others
who believe government has a role to play tend to want more
legislation and government regulation.
To understand advertising regulation, a host of issues need to
be addressed. One central issue is definitional- what is deception? One ad claimed that “Milwaukee’s finest beer,” is
deception involved when many (particularly other Milwaukee
brewers) argue that other beers are superior? What does “finest”
mean? One advertisement claimed that a hair dye would color
hair permanently. If someone exposed to the advertisement
believed that the dye would hold for hair not yet grown and
thus a single dye would last for decades, is the claim deceptive?
Coming to Indian experience, put brand X fairness cream and
you will get married.
A basic issue in the enforcement of these laws against deceptive
advertising, to which we now turn, is how to define and
identify deception.
Conceptually, deception exists when an advertisement is
introduced into the perceptual process of some audience and
the output of that perceptual process

The input itself may be determined to contain falsehoods. The
more difficult and perhaps more common case, however, is
when the input, the advertisement, is not obviously false, but
the perceptual process generates an impression that is deceptive.
A disclaimer may not pass through the attention filter or the
message may be misinterpreted.
Dividing the definition into its three major components, it
states that deception will be found if
1. There is a misrepresentation, omission, or practice that is
likely to mislead.
2. The consumer is acting responsibly (or reasonably) in the
circumstances.
3. The practice is material and consumer injury is possible
because consumers are likely to have chosen differently if
there was no deception.
Although some argue that this definition only codifies the body
of law that preceded it, most observers suggest that the
definition involves two major changes from prior positions
that make it harder for an as to quality as deceptive. First, the
deception must be likely to mislead. Second, the deception
must occur in consumers acting responsibly or reasonably in the
circumstances rather than simply occurring in a substantial
number of consumers (even if they are naïve and unthinking).
Thus, the consumer is charged with at least some minimal
responsibility in interpreting the advertising.
In the following discussion, we will look more closely at the
three dimensions of deceptive advertising discussed above.

A Misrepresentation or Omission
There are a variety of ways in which misrepresentations or
omissions can occur:

1. Differs from the reality of the situation and

1. Suggesting that a small difference is important.

2. Affects buying behavior to the detriment of the consumer.

2. Artificial product demonstrations
3. Using an ambiguous or easily confused phrase.
4. Implying a benefit that does not fully or partially exist.

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5. Implying that a product benefit is unique to a brand.
6. Implying that a benefit is needed or that a product will fulfill
a benefit when it will not.
7. Incorrectly implying that an endorser uses and advocates the
brand.
8. Making a claim without substantiation
9. Bait and switch
10. Identifying the advertising

11.Telemarketing
12.Intellectualproperty

Corrective Advertising
Corrective advertising required advertisers to rectify past
deception by making suitable statements in future commercials.
Some important issues could need your research on the subject.
Any remedy should be nonpunitive in nature and should not
be burdensome. How do you determine whether the corrective
advertising is generating damage to sales or image? Any remedy
should preserve First Amendment rights to express ideas.
What about those ideas that are counter to the corrective
message’s claims? Can an advertiser simply decide to stop
advertising, thereby avoiding corrective advertising?

Puffery
A rather well-established rule of law is that trade puffing is
permissible. Puffing takes two general forms.
The first is a subjective statements of opinion about a product’s
quality, using such terms as “best or greatest”. Nearly all
advertisements contain some measure of puffery. “You can’t
get any closer” (Norelco), “Try something better” (J&B Scotch),
“ Gas gives you a better deal” (American Gas Association), “
Live better electrically” (Edison Electric Institution), “State Farm
is all you need to know about insurance,” and “Super Shell” are
examples. None of these statements has been proved to be
true, but neither have been proved false. They all involve some
measure of exaggeration
The second form of puffery is exaggerations extended to the
point of outright spoof that is obviously not true. A Green
Giant is obviously fictitious, and even if he were real, he
wouldn’t be talking the way he does. In the 1927 Ostermoor
case, the court pointed to the puffery argument in denying that
a mattress company was deceptive in using an illustration
appearing to depict that the inner filling of a mattress would
expand to 35 inches when in fact it would expand only 3 to 6
inches.
Based on stated definitions and policy, puffing has been
narrowed to the point where no deceptive claim can properly be
termed puffery

Remedies
Cease –and – Desist Orders
The cease –and –desist order, which prohibits the respondent
from engaging further in the deceptive practice, It has been
criticized as being a command to “go and sin no more”, which
has little practical effect. By the time the cease- and-desist order is
issued, the advertising may have served its purpose and another
campaign may be underway anyway.
Restitution
Restitution means that the consumer is compensated for any
damage. Restitution is rarely considered because of its severity.
Affirmative Disclosures
If an advertisement has provided insufficient information to
the consumer, an affirmative disclosure might be issued.
Affirmative disclosures require “clear and conspicuous”
disclosure of the omitted information. Often the involved
information relates to deficiencies or limitations of the product
or service relating to matters of health or safety.

170

One problem with corrective advertising is that it has usually
resulted in lawyers writing copy and insisting that it be run
some arbitrary length of time.
The implementation of the communication objective approach
to corrective advertising will always face difficulties. The problem
of ascertaining how misperception and its effect are to be
measured and the appropriate target level of misperception that
should be obtained reappears in this context. Judgments on
such questions are required to set communication objectives.
Obviously, a zero misperception level is not generally feasible.
Yet regulators and the general public to which they must answer
have difficulty accepting realistic standards. A key is to know
whether the advertiser is making a good faith effort toward the
objective. Copy testing could logically be used to address this
point, but the parties would have to agree in advance on
relevant and suitable tests, a difficult prospect. Another
problem is the cost of measuring deception over time. The
tracking required measuring the impact of the commercials- no
problem for large advertisers, who do that anyway – could be
costly for smaller advertisers and may require the government to
share some of the costs.
Corrective advertising has only rarely been considered, largely
because of the difficulties in deciding on the target objective.
However, it remains an important option and serves to focus
attention on the central issues in deception cases.

Another mechanism that inhibits deceptive advertising is the
possibility of competitor lawsuits, in which firms charge that
false advertising has caused them damage.
I want you to read the following article and make observations
about it.
Videocon puts the lid on Godrej, Voltas “large” claims
Namrata Singh
MUMBAI, December 21: Godrej GE Appliances and Voltas,
engaged in an MRTPC battle over “we are the largest” advertisement campaign for their twin-tub washing machines, have
withdrawn their case as Videocon is launching the largest
capacity twin-tub washing machine — Videocon VNA 700 T.
Videocon will shortly introduce a new 7kg capacity twin-tub
washing machine priced at Rs 9,990. It will, thus, be larger than
Godrej’s Smart Wash (5.9 kg) and Voltas’ (5 kg) model. Further,
VNA 700 T is cheaper than Godrej Smart Wash, priced at Rs
10,978 and Voltas, priced at Rs 9,090.
Godrej GE Appliances had dragged Voltas to the Monopolies
and Restrictive Trade Practices Commission (MRTPC) on the
latter’s advertisement which claimed that it’s washing machine
had the largest twin-tub. Following Voltas’ advertisement, a war
broke out between the two, with Godrej GE launching a
counter ad-campaign stating that Godrej Smart Wash was the
largest. Godrej GE had stated to the MRTPC that Voltas’ claim
is patently false as the washing capacity of Godrej GE’s twintub product is larger at 5.9 kg as against Voltas’ 5 kg.
Godrej GE’s statement was based on the fact that the washing
capacity of any machine is measured in terms of the weight of
dry clothes that can be washed at a given point of time. Voltas
put forth the argument that their product had a larger volume
similar to that of TVS Super, TVS Super Plus and the other
model of Godrej having a capacity of 5 kg.Volume wise, Godrej
GE has a tub capacity of 54 litres compared to Voltas’ 50 litres.
Those of TVS Super and TVS Super Plus have a wash tub
capacity of 50 litres. As compared to these, Videocon’s VNA
700T has a tub volume of 69 litres with cloth load.
As an interim measure, the commission, in its hearing held on
September 15, directed Godrej and Voltas to stop their
advertisements claiming to have the largest twin-tub washing
machine.
Even before the MRTPC could draw a conclusion, the warring
parties discovered that a third party (Videocon) was launching a
washing machine with a larger capacity. This put to rest all
squabbles between the two arch rivals.
1997 Indian Express Newspapers (Bombay) Ltd
Below are 3 case studies that you are required to do in order that
you understand the subject matter. They pertain to Indian
experience and will show you the fillip side to what deceptive,
misleading advertising is all about. Please go over them and
discuss the issue of this lecture.

Case Study 1
In South Africa, a bank ad. says ‘Beef up your account with us’
and shows a cow. Hindu religious groups claim their sentiments have been hurt and the bank tenders an apology.

Closer home, a father in a fairness ad. says ‘Kash mera beta
hota’ (If only I had a son!). Consumer activist groups allege
that this is exploitation of a social evil and so in bad taste. The
issue goes up to Parliament and the ad. is banned.
Cigarettes are known to be harmful for health. Yet they are
readily available and sold. However, their advertising on
electronic media is banned. And advertisers and advertising
agencies alike wait with bated breath for a total ban on the
category’s advertising.
When a scantily dressed woman appears in a liquor or perfume
ad, women’s rights groups complain of disrespect being shown
to womanhood. The model is harassed; cases are filed in courts
and the ad is forced to be discontinued.
A man does bungee jumping in a cola ad. One boy in a far out
town jumps from the fifth floor of a building in imitation and
dies. Another man removes a can of soft drink from the
mouth of a cheetah.
Again, one boy puts his hand into the mouth of his dog. And
this is enough for people to believe that such ads encourage
dangerous practices among children and so the ads should be
banned.

Is the Environment being Harsh on Advertising?
Is advertising actually a powerful influence or are consumer
groups actually exploiting it to gain publicity and noticeability?
Are the messages beamed out by other entertainment (movies,
serials) and news media (TV and press) more sensitive to the
world outside?
Is advertising being singled out for harsh treatment because it’s
the easiest to aim at?
There is no doubt that advertising has a strong social responsibility, independent of its known commercial responsibility. In a
free economy like India, it must be judged like any other media
beamed to the consumer at large. Freedom of expression for
commercial purposes must not be viewed differently from
freedom of expression.
The environment has changed dramatically in the last decade.
The average Indian consumer is today more exposed to the
West through travel and the entertainment media. And this
means greater exposure to their values, lifestyles and social
rituals.
Not surprisingly, this has led to the average consumer becoming
more liberal and open- minded. While he may not adopt many
of those values and lifestyles, he has become more open to
accept differing views.
This is reflected in the mix-n-match culture we see around us —
in food, clothes, language and even marriages where there is a
shift from arranged marriage to arranged love marriage. With it
has come more advertising — and the consumer growing more
cynical of its claims and stories.
Even in small towns, consumers say this about celebrity
advertising — “He has been paid to say good things about the
product” and “The product will cost more as the company has
to pay for the advertising!”
Clearly he has become more advertising savvy. In this context,
to believe that advertising has an overwhelming power in
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Competitor Lawsuits

ADVERTISING MANAGEMENT

bringing about social change is to give it greater weight than it
deserves.
Advertising is just one of the social influences in a capitalistic
economy like India, and no less commercial than the others.
Movies, serials, magazines — play as big or even bigger roles in
shaping social behaviour.
Movie stars are bigger than ad. models. Not surprisingly,
movies are a final destination for all budding models. A recent
WHO survey shows that 80 per cent of Bollywood movies had
their heroes smoking — a very unhealthy but strong
glamourisation of the smoking habit — stronger than any
brand advertising. It is subliminal yet more powerful!
The social backdrop of most of the K-serials is of the repression of women. Though the women come out winners in the
end. And audiences accept this and they garner high TRPs —
often connecting with the woman protagonist.
Music videos like Kanta Laga and Yeh Vada Raha use women
purely like sex objects. And such videos are mushrooming by
the day and are beamed by music channels over and over again.
(And in the name of glamour, the average Hindi film heroine is
more scantily dressed than the vamps of yesteryears!) Action
movies are replete with stunts that are very exciting to the
average child and very dangerous too.
These are however the harbingers of change, the barometer of
consumer acceptance levels and hence should not be ignored. So
the social responsibility of advertising needs to be judged in
this context rather than in isolation.
The time has come to let the Indian consumer decide what is
good for him. In a democratic set up, where every individual has
a right to vote and in a free economy, where he has a right to
choose products he wants, there is no reason why he should
not be allowed to decide what the stretching limit of the social
code is in advertising.
Over the years, the Indian consumer has shown great maturity
in accepting and rejecting communication. In the early ’90s, M R
Coffee advertised ‘real pleasure doesn’t come in minutes’ by
showing explicit sex.

Advertising must be sensitive to religious and political sensitivities — primarily because India is a religious country with a high
religious sensitivity. And unnecessarily provoking it is not
healthy.
Advertising must not promote undesirable products —
declared illegal by law i.e. drugs. However, in this context
banning of advertising of liquor and cigarettes smacks of
hypocrisy. Anything that can be sold openly should be allowed
to be promoted openly.
If the government does believe in the pursuation power of
advertising, it is advised to take out a portion of the funds it
annually collects as sales tax and excise duty and invest it in antismoking and anti-drinking campaigns!
Advertising must not promote accepted social ills — Saying that
‘dowry is good’ or ‘it’s good to have a male child rather than a
female child’ or ‘it’s hep to ride a bike without a helmet’ should
be avoided as part of the social responsibility of advertising.
Bringing an issue upfront as the fairness ad. did is not undesirable in this context.
Finally, regulators and consumer groups must accept that social
change is inevitable and much depiction must be seen in the
context in which the advertising is beamed.
Winds of change are inevitable and trying to slow them down
or stop them is neither advertising’s responsibility nor its
capability. And in such a situation, the ads. supposedly degrading women (liquor, perfume) and promoting bad behaviour
among children (soft drinks) aren’t doing that. Let them pass.
It may always be useful to remember David Ogilvy’s famous
adage “The consumer is not a moron, she is your wife”. It
often appears that advertising agencies respect the consumer
more than the average consumer activist.
Something worth thinking about!

Do you Support the Author’s Views and Why

The consumer rejected it and the brand sunk. At the same time
when Subhash Ghai released Khalnayak, the song, Choli ke
peeche kya hai, created a furore among women’s groups, but the
average viewer accepted it in spirit and both the movie and the
song became a runaway hit. Let’s respect the intelligence of the
consumer and not take on the role of his moral conscience.
This does not mean that there is no need to regulate advertising
and its content. In fact, advertising is one fraternity that has its
independent self-regulation body — ASCI — which monitors
and guides advertisers to remain socially responsible.
However, environmental pressures can make it difficult for even
a body like ASCI to perform independently, open mindedly and
fairly. The frame of reference needs to be recognized and
accepted.
Advertising must be truthful. Not misleading or ambiguous or
make wrong factual claims that can get consumers to buy
inferior products thinking these products are delivering more.

172

Case Study 2
Advertisers who claim that their products are the best things
since sliced bread bombard us. But, when can advertisers be
taken to court for overstating the benefits of their products?
Courts around the world have traditionally been generous
towards advertisers. They’ve allowed what is called ‘seller’s talk’

The ‘puffing doctrine’ developed in the west permits the use of
superlative or hyperbolic terms like “amazing”, “perfect”,
“wonderful” or “exceptional” so long as the products are not
so shoddy or worthless as to make the terms wholly inaccurate.
Indian courts have frequently ruled on deceptive advertising.
One popular forum is the Monopolies and Restrictive Trade
Practices Commission (MRTPC) where cases are brought on the
grounds of unfair trade practices. Two recent cases of corporate
advertising are worth looking at.
In Director General (Investigation and Registration) vs. CanFin
Homes Ltd the company — which is in the housing business
— accepted fixed deposits from the public. In its advertisement
for deposits, the company stated that its deposits were “risk
free”. The director general argued that deposits were unsecured
and could not be “risk free” and this was, therefore, a misrepresentation.
The company pointed to its rating from credit rating agency
ICRA Ltd. ICRA had awarded CanFin Housing an “MAA”
rating indicating ‘high-safety’.
The MRTPC held on April 2, 2002, that as viewed by the
Supreme Court in Lakhanpal National Ltd’s case, the issue
whether an advertisement contains a false statement and/or is
misleading “could not be resolved by merely examining
whether the representation is correct or incorrect in the literal
sense”.
In Lakhanpal National the Supreme Court said it was “necessary
to examine whether the representation, complained of, contains
the element of misleading the buyer. Does a reasonable man on
reading the advertisement form a belief different from what the
truth is? The position will have to be viewed with objectivity, in
an impersonal manner”.
Keeping these guidelines in mind the MRTPC held that CanFin
Home’s advertisement was not an unfair trade practice.
The Commission said: “The intention of the respondent does
not appear to be to keep the depositors in the dark. The ‘risk
free’ claim, on the face of it looks exaggerated. But we cannot
ignore the fact that it is backed by credit rating done by ICRA
that rated these deposits as ‘MAA’. The past performance of the
respondent and, above all, the absence of complaints from any
of the depositors lends further credence to the claim of the
respondent.”
More significantly, the MRTPC observed that, “in today’s
competitive world, use of hyperboles and puffed-up statements couched in attractive words and phrases is an accepted
practice in the advertising sector. Such advertisements cannot be
struck down unless it is established beyond doubt that they
contain a false or misleading representation which is prejudicial
to public interest.”
The Commission had to decide on a similar issue involving
Tata Finance, which had also invited fixed deposits. The
company claimed that by investing with it, depositors could
have “100 per cent peace of mind”. This was alleged to be false
and misleading because the company’s deposits were unsecured.

In this case too the company argued that, “the high rating of
FAA+ given by leading rating agency, Crisil, denotes high safety
and timely payment of both interest and principal. The claim of
‘100 per cent peace of mind’ was neither baseless nor exaggerated and in any case cannot be construed as misleading.”
The MRTPC agreed and held that the company’s claims could
not be termed misleading or false even if it was considered
“exaggerated”. These two decisions show that advertisements
shouldn’t be taken literally. Advertisers should be careful about
their claims but the courts won’t interpret every word as if it
was a legal document.
Based on the above case, explain what could be termed as
deception and misinterpretation? Also highlight the issues of
the 2 companies in question.

Case Study 3
The Indian Advertising Regulations
MUMBAI: Even as the US has decided to ban outdoor
advertising of tobacco products and in the UK live models are
barred in tobacco ads, there is no enforceable code to regulate
tobacco advertising in India.
The only self-regulatory advertising code that could have
“morally bound” the tobacco lobby was the one formulated by
the Advertising Standards Council of India (ASCI), which was
prematurely struck down after the tobacco industry decided it
could not adhere to many of its diktats.
So now we have a code on advertising that has been formulated
by the Tobacco Institute of India (a body of tobacco majors).
Although it took shape in 1995 and underwent a revamp last
year, it is yet to get the proposed ombudsman “comprising
officials of TII, industry and eminent people” to oversee the
implementation of the code.
The TII has still to rope in the industry and the rules of
procedure are yet to be finalised, since they have to be done in
consultation with the ombudsman.
The ASCI code, incidentally, broke down because of two key
issues—celebrity endorsements and surrogate advertising (like
the Red and White Bravery Awards or the Four Square and
Wills Cricket Gear ads).
Both these issues are linked to the same issue—that of
targeting youngsters, say ASCI officials. Explains Sam Balsara,
managing director of Madison DMB&B and one of the
members who drafted the ASCI tobacco code, What we were
worried about was that ads which use movie stars and other
celebrities have a direct bearing on the minds of the youth, and
ASCI strictly forbids this’’.
The glamour and aspirational element is also harmful,’’ says
Swarn Kohli, chairperson, Consumer Education and Research
Centre and an ASCI member. “The glamour element associated
with cigarette smoking is definitely pernicious. The swanky
houses, lavish cars and rich lifestyles portrayed even in brands
which are not targeted at the upper class is disturbing. But the
main concern is that these ads portray (to youngsters) that
smoking is the ‘in thing’. The small illegible health warning on
the packs too needs to be reviewed and made bigger. Youngsters near colleges and schools also should not be targeted.”

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or ‘puffing’ as it is also known. Under this doctrine exaggerated
claims are fine as long they don’t cross the boundary and
become deceptive or misleading.

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A survey has shown that advertising does not initiate tobacco
consumption and it is other factors like peer pressure, for
instance, that induces the youth to take to smoking. When
questioned on why companies like ITC then spend crores of
rupees on advertising if ads don’t induce consumption that is
for building a trademark. There is nothing wrong if companies
use their trademarks, which are perceived to be of high value by
consumers, and diversify into new product categories.
Wills, for instance, has extended its brand name to cricket gear.
No one is stopping them from making bats, but then they
should not show Sachin Tendulkar carrying a Wills bat.
Tendulkar is a hero to millions of little children and youngsters.’’ The ASCI code required that if the name of a tobacco
brand was to be used for any other product category, it was only
fair that the same restrictions imposed on the tobacco brand be
applicable to that category as well. If not, then the whole
exercise becomes redundant.
The second issue — that of surrogate advertising — had also
got ASCI and the tobacco lobby in a non-negotiable mood.
The Red and White Bravery Award instituted by Godfrey
Philips is one such example. Says Gautam Rakshit, managing
director, Avenues Advertising:“Role models portray the ideal
behavior patterns for the youth of today. The Red and White
Bravery Award is attempting to create role models for the young
and the association of a role model with a brand of cigarettes is
by implication stating that role models endorse cigarette
smoking. This has a negative influence on young people.”
Leave alone the ASCI code, even the TII code does not seem to
have been adhered to by many of the members themselves. For
example a provision states that ads shall not include any direct
personal testimonial (written or spoken) urging or recommending the use of a tobacco product by a person of distinction in
any walk of life in a manner which is particularly attractive to
minors. However, The Akshay Kumar ads for Godfrey Philips’
Red and White cigarettes all over the city are a mute testimony
to the fact that the code is being violated.
Another provision prohibits tobacco ads through any media
primarily meant for schools, hospitals and places of worship, or
on the compound walls of these institutions. However, the
most blatant violation of this clause is seen
within the premises of the Mahalaxmi temple at Haji Ali in
Mumbai. Inside the compound wall of the main temple (at the
coveted junction of Peddar Road and Bhulabhai Desai Road is
a huge hoarding of Indian Tobacco’s Company’s (ITC) Wills
Sport ad (cheering India for the World Cup). Just some weeks
back a Gold Flake hoarding towered over commuters. A few
yards away, near a smaller temple, a Four Square Cigarette
signage illuminates another paan shop. The entrance near the
Haji Ali Dargah too has similar shop signs of Will’s Filter
Kings. Adds Mr Rakshit: “If there is a violation, then even at
the cost of commercial loss it should not be used if the tobacco
lobby is serious about implementing the code.” On direct
marketing, the code says: “No known non-smoker or non-user
of tobacco products will be sampled or contacted.” The catch in
this sentence is the word ‘known’ Says Amol Bose of Amol
Bose Advertising and past president of the Advertising
Association of India: “It iswell-nigh impossible to ask every
174

individual whether he is above 18 or not, and there have been
instances where youngsters have been asked to distribute
cigarette samples near cinema halls.” According to Ms Viji
Venkatesh of the Cancer Patients’ Aid Association, “A leading
brand of cigarettes from ITC was freely sampled to all and
sundry near Shivaji Park and at various discotheques.”
While the tobacco code stipulates that minors (those below 18
years) should not be targeted, Mr Rakshit says this whole
business of minors is wrong. Its youngsters, period, who
should not be targeted. A person could be 20 years old and yet
be a potential target. Students who just enter college are clearly
below the age of eighteen (assuming they haven’t repeated any
class.’’
The code is vague on other issues too. It states that exhibition
of any tobacco product should not be undertaken in a children’s
film or a TV show meant for children. But on the other hand, it
says: “It is clarified that the mere
granting of a U certificate does not make the film a children’s
film.” But then there is no special certification for children’s
films. Unless there is a clear-cut way to define a children’s film, it
won’t be easy to interpret the clause. The code has to be more
explicit in its definition of what constitutes a children’s film, say
industry officials.
Is the government really serious about regulating advertisements for the benefit of the consuming public? One wonders,
especially with many traffic booths being sponsored by tobacco
companies. Moreover, it is time to define what constitutes an
advertisement. According to a high court judgement, a logo in
itself does not constitute an advertisement, and so we see the
Indian cricket team sporting the Wills logo. But the anti-tobacco
insists that a logo is an advertisement. If that weren’t the case,
one fails to understand why ITC spends crores of rupees to get
sportsmen to don its Wills logo. It’s high time these issues
were discussed in open forums, and more importantly, aptly
represented by all sections of society, to arrive at a consensus.
How do you sort out these issues if you were a member of the
ASCI?

“Quote-Unquote What few Stalwarts have to say
about Regulation.”
• “Commercials on television are similar to sex and taxes; the
more talk there is about them, the less likely they are to be
curbed.”
– Jack Gould (1963), quoted in Bruce Bohle, The Home
Book of American Quotations, 1967, New York, NY: Dodd,
Mead & Company, p. 5.
• “Advertising is speech. It’s regulated because it’s often
effective speech.”
– Jef I. Richards (1995), advertising professor, The
University of Texas at Austin.
“Quote-Unquote What few Stalwarts have to say
about Waste.”
• “Chess is as elaborate a waste of human intelligence as you
can find outside an advertising agency.”
– Raymond Chandler

“There is more money wasted in advertising by
underspending than by overspending. Years ago someone
said that underspending in advertising is like buying a ticket
halfway to Europe. You’ve spent your money but you never
get there.”
– Morris Hite, quoted in Adman: Morris Hite’s Methods for
Winning the Ad Game, 1988, Dallas, TX: E-Heart Press, p.
204-205.

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•

Notes

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LESSON 32:
ADVERTISING EFFECTIVENESS
Learning Objectives
•

You will understand via this lesson as to how and why is the
need to measure effectiveness of an ad.

•

It also goes on to explain the various methods of measuring
effectiveness.

A brand is a compound of two elements. It is first of all a
product or service that provides functional benefits rich enough
to persuade some (or sometimes many) consumers to buy the
brand repeatedly. It also has added values, or psychological
qualities and associations in the minds of these consumers;
values that underscore and reinforce their preference for the
brand. The manufacturer provides the functional benefits. The
added values are mainly created and built gradually but inexorably by the brand’s advertising. It is a fair generalization that a
brand is the joint product of a sound and well-organized
manufacturer and imaginative advertising.
Although the agency writes the advertising campaigns, these are
also the concern of the advertiser. The advertiser’s contribution
concentrates on the important managerial tasks of evaluating
the agency’s proposals; using their judgement to plan the
“business” of the campaign (especially budget and media); and,
most importantly, measuring the campaign’s effects in the
marketplace.
The specific jobs that should be carried out by the client in close
co-operation with the agency should be five fold. To accomplish
these, this article mentions a number of research techniques that
are more readily available in a sophisticated market like the
United States than in a burgeoning market such as India.
Nevertheless, in all developed and less developed countries, the
best research available should be used to tackle these five

176

important tasks. It is to be hoped that the specific techniques
described here will soon be as fully available in India as they are
today in North America and Europe.

1. The Five Tasks
•

Measure behavioral effects

•

Pre-test to weed out ineffective advertisements

•

Determine advertisement budgets strategically

•

Media continuity, not concentration

•

Use promotions tactically

Task 1: Measure Behavioral Effects
Advertising has three orders of effects ~ short-term, mediumterm and long-term. These effects can be measured in terms of
consumer purchasing (cognitive and attitudinal data are too soft
and indirect to measure these effects robustly). One extremely
important point is that each effect is a gatekeeper to the next. In
particular, without a short-term effect, no other effect is
possible.
Before the mid 1980s, it was impossible to measure accurately
the short-term effects of advertising. These are felt within seven
days of an advertisement appearing and such effects are highly
volatile. Measurement is only possible with the use of a large
scale and expensive technique called Pure Single Source Research,
a type of investigation that has been used in a number of
countries since the early 1990s. The measure of an
advertisement’s short-term effect is market share change and is

The medium-term effect represents the repetition of short-term
effects across the course of a year, but deducting the short-term
effects of competitive advertising campaigns. This means that
the medium- term effect is invariably smaller than each shortterm effect. The medium-term effect of a campaign can be
measured with reasonable precision using regression analysis.
Many examples are available to show this technique in action.
These cases quantify the proportion of annual sales that are
accounted for by advertising and they also show the return on
the advertising investment, measured in cents per advertising
dollar. The econometric analysis to determine medium-term
effects with which I am most familiar and on which I have
published, are the work of the prominent research organization
Media Marketing Assessment.
Advertising is also capable of a long-term effect, which is
manifested through a strengthening of the brand and in
particular the growth in its added values ~ the positive psychological associations of the brand in the minds of consumers. If
there is a long-term effect, this is shown by a gradual increase
each year in the measured medium-term effect.
Long-term effect of advertising is measured in six ways:
•

Rising penetration i.e. an increasing user base

•

Increasing purchase frequency

•

Reducing price elasticity of demand

•

Above-average consumer price

•

Increasing advertising elasticity
Reducing advertising intensiveness i.e. An increasingly
effective use of advertising dollars

When the long-term effect of advertising is added to the
medium-term effect, advertising can be in circumstances shown
to produce a return on investment (ROI) higher than the actual
sum spent on it.

Task 2: Pre-Test to Weed out Ineffective
Advertisements
In view of the fact that only a third of campaigns produce
strongly positive short-term results, it is very important that
manufacturers should pre-test their advertisements to predict as
accurately as possible whether their campaigns will be effective in
the market place. A number of pre-testing systems are available
in the United States. The method with the best track record is
that named after the research organization Advertising Research
Systems (ARS).
This method tests the commercial in a cinema in front of an
audience of 500 people. These people see an entertainment
program in which are inserted some commercials, including the
one being tested. The entertainment program is preceded by a
lottery, in which people are asked to allocate a sum of money
among different brands (including the one being tested). After
the program, there is another similar lottery. The measurement

of the effectiveness of the tested commercial is determined by
comparing the audience preference for the brand after the
program with their preference before the program.
This testing system has been used for 50 years and there is a
very large battery of test evidence of its effectiveness from a
number of countries. This evidence for the predictive ability of
the system is very strong and aggregated data are available to
illustrate this. There are also a number of cases, which show the
system in action for specific named brands.

Task 3: Determine Advertisement Budgets
Strategically
In view of the long-term effects of advertising, manufacturers
should normally set their advertising budgets in terms of
competitive advertising expenditures within their category. In
order to boost the long-term competitiveness of their brands
manufacturers should not make tactical reductions in the
budget in an attempt to boost profit.
Manufacturer’s advertising investments in any category can be
described with a statistical regression known as the Advertising
Intensiveness Curve (AIC). This shows that small brands must
over-advertise (with their share of voice exceeding their share of
market). On the other hand, large brands can afford to underadvertise (with their share of voice below their share of market).
This is a measure of the above-average profitability of large
brands. But there are strict limits. Any reduction below these
limits will invariably lead to a loss in market share. Cases are
available to illustrate this point.
Task 4: Media Continuity, Not Concentration
For many years the advertising industry followed a pattern of
short-term media concentration to ensure that consumers saw
three exposures of an advertisement before they were expected
to buy a brand. This policy was based on an incorrect interpretation of available research.
Any policy of media deployment must be based on evidence of
the incremental effect of extra advertising exposures on sales of
a brand. The vast weight of existing evidence supports the view
that a single advertising exposure can produce sales and more
exposures generate diminishing returns. This means that shortterm media concentration produces sales that are more and
more expensive to achieve. This is therefore uneconomic. At the
same time, any gaps in a manufacturer’s annual media schedule
will leave the brand vulnerable to the competition from other
brands in the marketplace. When schedules are based on shortterm concentration, there are inevitably going to be long gaps
between the periods of high advertising weight ~ a highly
inefficient way of employing media budgets.
Since the mid 1990s, it has been realized by the majority of
American advertisers that the most effective and economic
media policy is to reduce the weight of the short-term bursts of
advertising and to deploy the money on a relatively continuous
basis across a year. A number of individual cases are available to
demonstrate this point. And more recently, aggregated data
from Media Marketing Assessment, based on rigorous
econometric evaluation, have shown clearly that continuity is the
best policy.

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entitled Short Term Advertising Strength (STAS). In about
30% of cases this effect is very large. In about 40% of cases it is
slightly positive. In about 30% of cases sales actually go down
because the campaign is unable to protect the brand from
stronger campaigns from competitors. STAS is driven exclusively by the creative quality of the advertising campaign.

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Task 5: Use Promotions Tactically
Manufacturers are subjected to a number of pressures to
increase their expenditures on trade and consumer promotions.
These pressures include the competition from other manufacturers who promote in order to boost their own short-term
sales. But the regrettable fact is that the vast majority of
promotions are totally uneconomic. Despite the high sales
return they achieve, they generally cause an actual reduction in
the manufacturer’s profit.
A basic problem with promotions is that they encourage a
general disloyalty to brands on the part of consumers. An even
worse problem is that promotions have no long-term effects.
They are different from advertising in this respect, because
advertising can produce a long-term effect, which can be added
to its medium-term effect, with a beneficial effect on a brand’s
ROI.
One proven system of improving the benefit of trade and
consumer promotions is to use such promotions together with
consumer advertising, in a mutually supporting role. Cases are
available to demonstrate that this can be to the long-term
benefit of brands.
All the analysis that are referred to here are based on manufacturers and advertising agencies using good and experienced
judgment in developing their advertising plans. As already
mentioned, such plans should also be based on the best
research that the market research industry in the country is able
to provide. In many cases, the research lessons learned at great
expense in developed countries can also be applied at least
approximately to less developed ones. This is generally the
policy of the leading multinational advertisers.
Copy Testing

You must understand that an ad copy is one of the key areas
where testing is essential. Since it contains elements like the
Headline, Illustrations, Body copy, Logo and Baseline, it
becomes imperative to understand the mix and match of these
subjects. Very essentially we need to see that, whether the layout
is effectively read out or not. Essentially you must understand
that a viewer of a print ad sees the above-mentioned elements
in the following manner:

•

Illustration

•

Headline

178

•

Logo

•

Copy

It is not a hard and fast rule, but normally the above is true. So
various combinations of the elements are given to us and we
try to see as to which one is stronger than the other. We have 2
types of testing for ad copy being effective:
1. Pre-testing: This is the test of the copy before it is given to
the media.
2. Post-testing: This is the testing, which is done after the ad
copy has come out in the media and the audience has seen
the advertisement.
The purpose of pre-testing is as follows:
•

To spot errors in the copy

•

To make communication more effective

•

To design the ad better

•

To reduce wastage in advertising

•

To ensure that the money is spent prudently.

Whereas the purpose of post-testing are as below:
•

To find out the impact of an ad in terms of it being noticed,
seen and read.

•

To find out its credibility.

•

To find out its comprehension

•

To measure its memorability.

•

To assess its effect on buyers.

•

To assess its fit with the promotion and marketing mix

•

To assess whether it has achieved its objectives.

•

To assess the relative effectiveness of different copies and
media plans.

•

To improve future advertising efforts.

Now, but naturally you will ask me as to how you test the ad
copy. So following are the different methods for firstly, pretesting.

3. Mock magazine test: This is very similar to the portfolio test,
however the ads are put in an actual magazine and is exposed
to the consumer. The recall test is then taken to adjudge
which is the best ad.
4. Perceptual Meaning Studies (PMS): It is a method that is
uses time exposure to test the ads. Tachistoscope is an
instrument that may be used in this test. The respondent
sees the ad for a pre-determined time, and then is subjected
to a recall test-product, brand illustration and the main copy.
Where the pre-testing for the broadcasting ads are concerned, we
have the following types:
1. In-home projection tests: A movie projector screens the ads
in the setting of the consumer’s home. He is then
questioned before and after the exposure. We can then assess
the strong and the weak points of the ads.

•

Is the copy based on the briefing?

•

Is it interesting?

•

Is it interactive?

•

Is the story line complete and fluid in its completion?

•

Are there pauses and breaks while reading?

•

Does it end interestingly?

•

Was it able to hold the attention?

There are quite a number of other questions that you could
possibly have. The method is however suitable only for the
body text and not for any other element.
1. Consumer jury test: Here the ranking of the advertisements
are done by a group of people called the jurors. The point
system is given to an average of 4-5 copies that they are given
to rank. The order of merit is the one, which determine
which is the best advertisement by the jurors and which has
been rated as the worst. The points given by the jurors are
then added together to determine which is the ad, which has
got the maximum points. This is the one that is the chosen
one. Within this context we have paired comparison. In a
Paired Comparison at a time two ad copies are compared. It
is one-to-one comparison amongst test ads. More than six
ad copies can also be compared by this method. Every single
ad is compared with all others, but only two (a pair) is
considered at one period of time. Sources are recorded on
cards. They are summed up. The winner gets the highest
score. The other ads are rated according to their scores after
summation. It is easier technique than order of merits. Till
ten copies, there is good accuracy; which later decreases. The
number of comparisons one is required to make with the
help of the following formula:
2. Portfolio test: Here some dummy ads are mixed with regular
ads. They are then put in a portfolio. The consumer samples
each advertisements and judges, which is the best one. In
case the selected ad is the dummy one, then the regular ad is
changed or modified in the manner of the dummy ad.

2. Trailer tests: A real life like shopping environment is created
to measure consumer behavior. One group is given coupons
to purchase selective brands, and the other group is not
given the coupons. The redemption rate of the coupons may
give an idea about the effectiveness of the test ads.
3. Theatre test: A set of captive audience is sent a questionnaire.
Later they are sent free ads to view the test ads in a theatre
and then again are administered a questionnaire. It assesses
product, brand and the ad theme.
4. Live telecast tests: Here the inaccuracies of artificial testing
environment are not encountered. Ads are put on air either
by narrow casting or live telecasting. These ads are test ads,
and not the regular ads. Later, viewers are interviewed to
know their reactions.
Now let us come down to the post-testing methods. This
actually gives us an idea about the actual performance of the ad
in terms of exposure, perception, communication and sales
effect. We can assess the credibility and comprehension of the
ads.

Few of the Methods of this Type of Tests are
1. Recall tests: In this type of tests the individuals are asked to
answer about the ads entirely on the basis of their memory.
It could be aided recall, where they are given few cues to help
them recall and unaided recall, which of course is based on
memory alone.
2. Recognition test: These are also known as readership tests,
whereby it is seen whether they buy the product upon seeing
the ads. Importantly, the individual has to qualify as the
reader of that particular issue.
3. Triple association test: Here the respondent is given certain
cues wherein he can relate to a certain brand. For example –
“Thanda Matlab”, if the answer is coca cola, then it is correct.
And if the respondent is able to connect the product with
the company then it is a triple association.
4. Sales effect tests: They measure the various stages of buyer
awareness, preference, buying intention and actual purchase
in relation to actual advertising effort.
5. Sales results tests: The additional sales generated by the ads
are recorded. It is difficult however to correlate an increase in
sales to advertising alone.
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1. Checklist method: Within this we have certain issues like
readability or audibility. It is a simple and a speedy process.
You could ask questions like:

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6. Enquires test: These are couponed ads of consumer
durables. They invite consumers to send back the coupon to
seek a demo or more details. The number of enquires
determine the effectiveness of the ads.
7. Attitude test: Attitudes show our predisposition towards
objects, ideas, people and places. They indicate overall
feelings. The change in attitude as a result of advertising is
assessed. The assumption is that a favorable attitude
towards a product will lead to a purchase. Most ads are
designed either to reinforce or change the existing attitudes.
The DAGMAR process, which we had studied in an earlier
lesson, is an important element in the measurement of
effectiveness of ads. Briefly, let me recapitulate the process.
Defining Advertising Goals for Measured Advertising Results.
Well you might ask me what are few of the goals out of the set
of 52 goals? Well, to briefly put some goals:
•

Persuade the prospect to visit a showroom and ask for a
demonstration.

•

Build up the morale of the company’s salesforce.

•

Facilitate sales by correcting false impressions,
misinformation and other obstacles.

•

Announce a special reason for buying NOW (e.g., sale).

•

Make a brand identity known and easily recognizable.

•

Provide information or implant attitude regarding benefits
and superior features of brand.

According to the DAGMAR approach, the communication task
of the brand is to gain:
•

Awareness

•

Comprehension

•

Conviction

•

Image

•

Action

DAGMAR is a planning and a control tool. But the formulation of some basic inputs of DAGMAR is difficult to
formulate and also inhibits creativity.

180

Notes

Learning Objectives
•

You will understand the historical evolution of Indian
advertising.

•

What the future holds for the Indian adverting?

UNIT – 8

assembled the best advertising talent in the country and pitched
for every big account. In its decade-old existence, MCM rewrote
the rules of ‘creativity’ in India and inspired a legion of
wannabes. Rediffusion, Enterprise, Trikaya … spun off by
Arun Nanda, Mohamed Khan, and Ravi Gupta who made the
‘creative product’ the hero of their agency’s offering. The rest as
they say, is history.
Next came the mid-90’s. With the Indian economy opening up,
the international ‘big daddies’ started rolling into India. First to
arrive was Saatchi & Saatchi, followed soon by Leo Burnett,
BBDO, McCann Erickson, Y&R, TBWA, et al. During this
period, the country was going through an economic slowdown
(effected by global recession), which compounded the problems
for the ad business. Agencies began down sizing or as some
(rightly?) called it ‘right sizing’. Ownership of agencies changed
hands. Some even shut shop. All in all, the recession lasted
longer than one hoped it should.

The Age of the Creative Product
A Perspective
Just a few decades ago, Indian advertising was headed by
expatriates. Agencies that held sway were mostly foreign owned.
Like JWT, D. J. Keymer (now O&M), Grant Advertising
(Contract) & L. A. Stronachs. With a long list of ‘Brits’ as
heads. Like Fielden & Greg Baton to name a few. (It is interesting to note that the first few ad agencies were part of a network
that was British in origin – and Madison Avenue had yet to
come into its own.)
The first Indian-owned agency was National Advertising,
followed by B. Dattaram and Sistas. Then there was the stalwart
national effort of setting up Everest Advertising by Ibrahim
Patel (until then the Advertising Manager of The Times of
India). Not to forget commercial artist Ratan Batra, who set up
Ratan Batra Pvt. Ltd and co-founded Communications Artists
Guild (CAG). Somewhere along the way a few ‘angry young
men’ split from D.J. Keymer to set up ‘Clarion Advertising’
with legendary film maker Satyajit Ray as one of its founders.
Pleasant images complimented smart lines. And lip service was
paid to research (for good measure). It is rumoured that
‘Advertising Age’ and ‘Campaign’ formed the unofficial source
of inspiration. Along with the ‘Black Book’ of course. Ad Club
of Bombay published a newsletter called ‘Solus’, which often
featured local ads, to celebrate what could be termed as ‘creative
coincidence’. The feeling in the advertising community was rosy,
bordering on the euphoric. Till suddenly, a young Turk shook
up a complacent ad world.

The Second Wave
Kersey Katrak, a maverick young copywriter who had graduated
to client service, started Mass Communication & Marketing
(MCM), from the back of his car (his own words). Soon, he

If there was one agency that emerged unscathed by the slowdown, it was Mumbai headquartered O&M. Under the
leadership of Ranjan Kapur and in close collaboration with
Creative Director Suresh Mullick, O&M decided to make
‘creativity’ the fulcrum of the Agency’s march to a leadership
position. Mallick’s blue-eyed boy Piyush Pandey who aggressively imputed his dynamic energy to build the agency’s creative
product inherited the creative mantle. Other agencies that
decided to play catch-up included Lintas (now Lowe) spearheaded by National Creative Director Balki (successor of Kersey
Katrak). Suddenly creativity was taken seriously by the Indian
advertising industry. (Incidentally, WPP owned O&M also
successfully proved that creativity could be harnessed with the
financial discipline that is typical of WPP companies.) It was not
long before Indian ad persons were sitting on juries at Cannes
and elsewhere. Indian campaigns were bagging ‘golds’ ‘silvers’
& bronzes’ the world over. (All but the ‘Agency of the Year’
which still continues to elude Indian agencies.) Indian communications professionals have learnt the game. Global recognition
is pouring in. Plagiarization is almost unheard of. Gone are the
days when art directors lived by the ‘Black Book’.
Advertising in India is a highly competitive business. Today
with the increasing consumer awareness no business can survive
for long without advertising. With growing business competition it has become necessary to ensure right media mix to each
target audience. Today, advertising agencies are precisely taking
care of consumer needs and provide creative designs with
concept & ideas.
Advertisers in India reach about 75 per cent of the population
through television, and almost the entire population through
radio. Certain televised programs enjoy a viewership of more
than 100 million. The Indian viewership exhibits brand name

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LESSON 33:
LESSON: INDIAN ADVERTISING

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recognition of both foreign and domestic products and
services.
With value added information such as television rating points,
audience profiles, and opinion polls available to marketers, the
sophistication of advertising in India is at par with world
standards. The world’s leading advertising agencies – Ogilvy &
Mather, J W Thompson, BBDO, Young & Rubican, Lintas,
McCann Ericsson, Leo Burnett and a host of others – all have a
major presence in the Indian market.
The major Indian advertising media are newspapers, magazines,
television and radio, business publications and billboards.
Advertising on the Internet is the most cost-efficient way of
reaching customers all over the world including ones own
country. Indian advertising agencies need to wake up to the
challenges posed by global economic trends and emerging
interactive technologies like the Internet, Indian companies need
to pay attention to characteristics of the new economy like open
standards, digitalization, and volatility, as Internet-based
communication offers “tremendous new opportunities for
Indian companies via media convergence and re-intermediation.” This also requires Indian advertising agencies to pay
attention to the importance of online market research, since
new media like the Net are bound to affect people’s perceptions
of advertising. The challenge for Indian advertising agencies in
the coming years is to be able to target the rural market as well
as the sophisticated urban market that may have Internet access.
Concrete advertising history begins with classified advertising.
Advertisements appeared for the first time in print in Hickey’s
Bengal Gazette, which was India’s first newspaper, being weekly
in nature.
Horlicks becomes the first ‘malted milk’ to be patented on 5th
June 1883 (No. 278967). Following is the historical account of
the Indian advertising industry.

A Brief History Of ‘Ind – Ads’
1905

– B Dattaram & Co claims to be the oldest existing
Indian agency in Girgaum in Bombay

1912

– ITC (then Imperial Tobacco Co. Ltd.) launches
Gold Flake

1920s

– Enter the first foreign owned ad agencies
– Gujarat Advertising and Indian Advertising set up
– Expatriate agencies emerge: Alliance Advertising,
Tata Publicity
– LA Stronach’s merges into today’s Norvicson
Advertising
– D J Keymer gives rise to Ogilvy & Mather and
Clarion

1925

– LR Swami & Co, Madras

1926

– LA Stronach & Co (India) Pr. Ltd, Bombay starts
– Agency called National set up for American rather
than British advertisers
– American importers hire Jagan Nath Jaini, then
advertising manager of Civil and Military Gazette,
Lahore. National today is still run by Jaini’s family

182

–

Beginning of multinational agencies

– J Walter Thompson (JWT) opened to service
General Motors business
1928

– BOMAS Ltd (Formerly DJ Keymer & Co Ltd) set
up

1929

– J Walter Thompson Co Pr. Ltd formed

Indian Agencies, Foreign Advertising in the Thirties
1931
– National Advertising Service Pr. Ltd. Bombay set
up
– Universal Publicity Co, Calcutta formed full service
Indian agency
1935
– Indian Publicity Bureau Pr Ltd, Calcutta established
1936
– Krishna Publicity Co Pr. Ltd, Kanpur begins
operations
– Studio Ratan Batra Pr. Ltd, Bombay established
– Indian Broadcasting Company becomes All India
Radio (AIR)
1938
– Jayendra Publicity, Kolhapur started
1939
– Lever’s advertising department launches Dalda – the
first major example of a brand and a marketing
campaign specifically developed for India
– The Press Syndicate Ltd, Bombay set up
Indianising Advertisements in the Forties
1940
– Navanitlal & Co., Ahmedabad set up
1941
– Lux signs Leela Chitnis as the first Indian film
actress to endorse the product
– Hindustan Thompson Associates (HTA), the
current incarnation of JWT, coins the Balanced
Nourishment concept to make Horlicks more
relevant to India
– Green’s Advertising Service Agents, Bombay
formed
1943
– Advertising & Sales Promotion Co (ASP), Calcutta
established
1944
– Dazzal, Bombay comes into existence
– Ranjit Sales & Publicity Pr. Ltd, Bombay started
1945
– Efficient Publicities Pr. Ltd, Madras set up
– Tom & Bay (Advertising) Pr. Ltd., Poona begins
operations in India
1946
– Eastern Psychograph Pr. Ltd., Bombay set up
– Everest Advertising Pr. Ltd, Bombay established
1947
– Grant Advertising Inc, Bombay formed
– Swami Advertising Bureau, Sholapur started
1948
– RC Advertising Co, Bombay set up
– Phoenix Advertising Pr. Ltd, Calcutta formed
Corporate Advertising in the Fifties
1950s – Radio Ceylon and Radio Goa become the media
option
1951
– Vicks VapoRub: a rub for colds, causes ripples with
its entry in the balm market

– Shantilal G Shah & Co, Bombay

1954

– Advertising Club, Mumbai set up
– Express Advertising Agency, Bombay
– India Publicity Co. Pr. Ltd., Calcutta

1956

– Aiyars Advertising & Marketing, Bombay

1972

– Western Outdoor Advertising Pvt Ltd (WOAPL)
introduces first closed circuit TV (CCT) in the
country at the race course in Mumbai

1973

– RK Swamy/BBDO established

1974

– MCM goes out of business
– Arun Nanda & Ajit Balakrishnan set up
Rediffusion

– Clarion Advertising Services Pr. Ltd, Calcutta
1957

– Vividh Bharati kicks off

1958

– Shree Advertising Agency, Bombay

1959

– Associated Publicity, Cuttack

Creative Revolution in the Sixties
1960
– Advertising Accessories, Trichur started
– Marketing Advertising Associates, Bombay set up
1961
– Industrial Advertising Agency, Bombay comes into
existence
– Bal Mundkur quits BOMAS to set up Ulka the
same year
1962
– India’s television’s first soap opera – Teesra Rasta
enthralls Viewers
1963
– BOMAS changes names to SH Benson’s
– Stronach’s absorbed into Norvicson
– Lintas heading for uncertainty
– Levers toying with giving its brands to other
agencies
– Nargis Wadia sets up Interpub
– Wills Filter Tipped cigarettes launched and
positioned as made for each other, filter and
tobacco match
1965
– Kersey Katrak sets up Mass Communication and
Marketing (MCM)
1966
– Government persuaded to open up the broadcast
media
– Ayaz Peerbhoy sets up Marketing and Advertising
Associates (MAA)
1967
– First commercial appears on Vividh Bharati
1968
– Nari Hira sets up Creative Unit
– India wins the bid for the Asian Advertising
Congress
1969
– Sylvester daCunha left Stronach’s to run ASP; later
sets up daCunha Associates
1970
– Frank Simoes sets up Frank Simoes Associates
The Problematic Seventies
1970, 1978- National Readership Studies provided relevant data
on consumers’ reading habits
1970
– Concept of commercial programming accepted by
All India Radio
– Hasan Rezavi gives the very first spot on Radio
Ceylon
1971
– Benson’s undergo change in name to Ogilvy,
Benson & Mather

1975

– Ravi Gupta sets up Trikaya Grey

1976

– Commercial Television initiated

1978

– First television commercial seen

1979

– Ogilvy, Benson & Mather’s name changes to Ogilvy
& Mather

Glued to the Television in the Eighties
1980
– Mudra Communications Ltd set up
– King-sized Virginia filter cigarette enters market
with brand name of ‘Charms’
1981
– Network, associate of UTV, pioneers cable
television in India
1982
– The biggest milestone in television was the Asiad
’82 when television turned to colour transmission
– Bombay Dyeing becomes the first colour TV ad
– 13th Asian Advertising Congress in New Delhi
– Media planning gets a boost
1983
– Maggi Noodles launched to become an overnight
success
– Canco Advertising Pvt. Ltd. founded
– Manohar Shyam Joshi’s Hum Log makes commercial television come alive
– Mudra sponsors first commercial telecast of a
major sporting event with the India-West Indies
series
1984
– Hum Log, Doordarshan’s first soap opera in the
colour era is born
– Viewers still remember the sponsor (Vicco) of Yeh
Jo Hai Zindagi!
1985
– Mudra makes India’s first telefilm, Janam
1985-86 – 915 new brands of products and services appearing
on the Indian market
1986
– Sananda is born on July 31. The Bengali magazine
stupefies India by selling 75,000 copies within three
hours of appearing on the newsstands.
– Mudra Communications creates India’s first folkhistory TV serial Buniyaad. Shown on DD, it
becomes the first of the mega soaps
– Price quality positioning of Nirma detergent cakes
boost sales
1988
– AAAI’s Premnarayan Award instituted
1989
– Advertising Club Bombay begins a biennial
seminar called ’Advertising that Works’
– Advertising & Marketing (A&M) magazine
launched
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ADVERTISING MANAGEMENT

1952

ADVERTISING MANAGEMENT

Tech Savvy in the Nineties
1990
– Marks the beginning of new medium Internet
– Agencies open new media shops; go virtual with
websites and Internet advertising
– Brand Equity (magazine) of The Economic Times
is born
1991
– First India-targetted satellite channel, Zee TV starts
broadcast
– Close on the throes of the Gulf War enters STAR
(Satellite Transmission for Asia Region)
1992
– Spectrum, publisher of A&M, constitutes its own
award known as ’A&M Awards’
– Scribes and media planners credit The Bold And
The Beautiful serial on STAR Plus channel as a
soap that started the cultural invasion
1993
– India’s only advertising school, MICA (Mudra
Institute of Communications Ahmedabad), is
born
– Tara on Zee TV becomes India’s first female-centric
soap
1995
– Advertising Club of Bombay calls its awards as
Abby
– Country’s first brand consulting firm, SABRE
(Strategic Advantage for Brand Equity) begins
operations.
1996
– The ad fraternity hits big time for the first time by
bagging three awards at the 43rd International
Advertising Festival, Cannes Sun TV becomes the
first regional TV channel to go live 24 hours
– a day on all days of the week
1997
– Media boom with the growth of cable and satellite;
print medium sees an increase in titles, especially in
specialised areas
– Government turns towards professional advertising in the private sector for its VDIS campaigns
– Army resorts to the services of private sector
agencies
– Advertising on the Internet gains popularity
– Equitor Consulting becomes the only independent
brand consultancy company in the country
– Several exercises in changing corporate identity
– For the first time ever, Indians stand the chance of
winning the $ 1- million booty being offered by
Gillette as part of its Football World Cup promo
1998
– Events assume important role in marketing mix
– Rise of software TV producers banking on ad
industry talent
– Reinventing of cinema -advertising through cinema
begins
1998
– Lintas becomes Ammirati Puri Lintas (APL)

184

1999

– B2B site agencyfaqs.com launched on September
28, 1999
– The Advertising Club Bombay announces the
AdWorks Trophy

In the New Millennium
2000

– Mudra launches magindia.com – India’s first
advertising and marketing gallery
– Lintas merges with Lowe Group to become Lowe
Lintas and Partners (LLP)
– Bigideasunlimited.com – a portal offering free and
fee ideas for money launched by Alyque Padamsee
and Sam Mathews
– Game shows like Kaun Banega Crorepati become a
rage; media buying industry is bullish on KBC
– Kyunki Saas Bhi Kabhi Bahu Thi marks the return
of family-oriented soap on TV
– French advertising major Publicis acquires
Maadhyam

2001

– Trikaya Grey becomes Grey Worldwide
– Bharti’s Rs 2.75-crore corporate TV commercial,
where a baby girl is born in a football stadium,
becomes the most expensive campaign of the year

2002

– Lowe Lintas & Partners rechristened Lowe
Worldwide
– For the first time in the history of HTA, a new
post of president is created. Kamal Oberoi is
appointed as the first president of HTA

Indian Advertising – A Critique
This is the best of times and worst of times for Indian
advertising agencies. On the one hand, there are ample opportunities for growth not only in existing areas of activity, but also
in new fields that are opening up thanks to liberalization and
globalization, technological progresses and changing lifestyles.
At the other end of the spectrum, risks are looming large on
the horizon of agencies that are not able to identify the critical
competencies they need to stay on course and decide how they
should build and deploy these competencies, given their current
scope and resources. The risk of getting stuck in the middle is
now very real for many agencies, and the time has come for such

Changing Environment of the
Advertising World
The performance of the Indian advertising industry since the
middle of the nineties can be termed as healthy. The current
growth rate of 18-20 per cent, though below the 49.5 per cent
achieved during 1995, is still above many industries in India.
The Rs 10000-crore industry is becoming globally competitive
and presently accounts for 33 per cent of total industry profit in
the Asia-Pacific region and ranks seventh highest in terms of
contribution to global profit. Global agencies are increasingly
getting attracted to the Indian market and now have a share of
about 47 per cent of total Indian advertising.
In spite of this healthy state of the industry during the midand late 1990s, the uncertainty of the future remains a cause of
concern for all agencies, big, medium or small. Developments in
the last five to 10 years have changed (or are changing) the rules
of the industry dramatically. Let’s take a look at some of these
developments to identify the opportunities and vulnerabilities
of Indian advertising agencies: Clients are increasingly looking
for a one-stop communication solution, including direct
marketing, event management and public relations.
•

Emergence of Internet and other new media such as ATM,
WAP devices and interactive TV are both exciting and
threatening — exciting for fast and first movers in building
capabilities and early advantages and threatening for laggards
and those basking in past glory.

•

Interactive divisions of many agencies are now offering
online consulting, web branding, web designing and offline
advertising strategies.

•

Concentration in the industry is clearly visible, with the top
15 agencies accounting for 80 per cent of the billing and the
balance 20 per cent being shared by a 100-odd agencies.

•

Opportunities for growth appear substantial — total billing
is expected to grow to Rs. 20,000 crore by 2005 with two to
three agencies billing more than Rs 3000 crore. Some of the
opportunity areas will be healthcare, insurance, financial
services, dot.com, Internet and special communications.

•

Online advertising will be on the rise and will reach Rs. 300
crore by 2005. However, it will change the rules of
advertising and will help advertisers to shift focus from
broadcasting to narrow casting.

•

With media planning and media buying becoming highly
specialized thanks to the emergence of new media and need
for better relating media characteristics with brand and
consumer profile, there is a possibility that these two
activities will move out of the range of services provided by
a traditional advertising agency, implying splitting of the
commission presently being earned. It is bad news for full
service agencies that will have to establish as to how they can
add value in such areas as speed, coordination and optimum
media plans.
Clients will be looking for more comprehensive and also
better services with greater speed in delivery and applications

across geographically dispersed markets. They will also be
increasingly demanding a different remuneration structure
(either fixed fee-based or performance-linked) to ensure
accountability.
•

Media planning has become far more complex than before
— there are 100-odd channels, 400 publications and a
plethora of new media that keep popping up every other
day. With the rising cost of media and its ever-growing
fragmentation, the efficiency and effectiveness of ad spend
are now being examined critically more than ever before.

•

Online and offline media-buying companies will be fully
integrated and automated. In general, technology will drive
initiatives in devising better ways to reach consumers.

•

Faced with increasing media cost and intense competition,
many agencies are now trying to scale up quickly to become
one-stop solution providers and reduce cost. In fact, the
industry has already started witnessing a number of M&As
and strategic alliances.

Areas of Repositioning
Given the changes mentioned above, the strategies that worked
in the past will need to be revisited to check their relevance in the
new environment. Some of the areas where fresh views are
needed are:

Segmentation
The choice of segments to be served in the emerging future is
the first aspect to be revisited in order to reposition an advertising agency in the new competitive environment. It is now clear
that no organization can be ‘all things to all people’. The need
to divide existing and prospective clients into a number of
homogeneous segments and then select the few where the
agency wishes to focus in the coming years will be a key task
since it will help the agency to have clarity, consistency and
commitment in development of strategy, allocation of
resources and identification of critical skills. The choice of
segments to be targeted must take into account such aspects as
scale of future operations, new opportunity areas (e.g. relative
emphasis on non-traditional media and choice of segments
such as retailing, dot.com, health care, insurance etc.) and
underlying capabilities to serve such areas, competitors’ existing
and future offerings, agency’s present strengths and vulnerabilities and its agenda for building specific capabilities in the future.
Scope
An agency should examine if it should become a full service
agency or focus on one or two specialized areas. There will
increasingly be a sharp distinction between ‘pure’ players in
select areas and full-fledged communication practitioners. Scale
A critical issue to be addressed is how big the size of an agency
should be. Size will undoubtedly matter if new capabilities are
to be built, more value-added services are to be provided and
cost to the client is to be reduced. It is also a fact that the
industry is getting concentrated, and unless an agency figures in
the top ten, it is unlikely to make reasonable money.
Capability Building
One key issue that needs to be revisited is what kind of future
capabilities an agency should build so that it can have competitive advantages to offer value that is better than its other direct
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ADVERTISING MANAGEMENT

agencies as well as others — operating at the top and bottom
rung — to revisit their strategies including scope, scale and
competitive advantages.

ADVERTISING MANAGEMENT

competitors as well as niche players. The list of capabilities has
to be developed keeping in view the need for micro-segmentation, requirement of faster delivery, emergence of e-business,
new technological possibilities in IT and telecom, and development of non-traditional media such as Internet, ATM, WAP
devices, interactive TV etc. Care must be taken not to build
capabilities in all possible areas (for example, the agency need
not build capabilities in software required to support its online
initiatives). Needless to say, the more the number of areas
where capabilities need to be built, the more will be the
investment that will be required in technology, creative people
and associated training and development. Two additional
considerations, while deciding on future capabilities, will be:
•

Applicability of newly developed capabilities across different
geographical markets around the world

•

Breadths of sectors to be covered (e.g. retailing, distribution,
promotions, merchandising, sampling etc.)

Value Proposition
The decisions taken to reposition the agency in four specific
areas of segmentation, scope, scale and capabilities will determine the value proposition that the agency intends to offer to
its clients. The uniqueness and sustainability of such value
proposition and the ability to deliver such values at a competitive cost will be a critical aspect of an agency’s plan to reposition
itself. The key thing to figure out will be what specific values
clients in each segment targeted will be looking for (which may
not always be articulated by the clients). While value expectations will differ from one segment to another, some common
aspects are clear:
• Providing research and intellectual inputs to clients in three
key areas, viz understanding changes in consumer behavior,
developing business insights (including making available
frameworks for formulating strategic options) and
crystallizing the brand vision. Agencies have not paid
sufficient attention to supporting clients in the last
mentioned two areas, namely business insights and brand
vision. They will need to involve themselves in these
upstream areas to not only assist the clients in their strategic
brand management function but also to ensure excellence in
downstream activities. Interestingly, an agency need not build
all the capabilities needed to excel in these areas. Strategic
alliances and networking with individuals and specialist
organizations (such as industry experts, strategy consultants,
research companies etc.) can provide the required concepts
and best practices.
• Development of a range of options, so far as choice of
media — both online and offline — is concerned, given the
content of the message and the profile of target consumer
or customer group. Providing value — cost leveraging of
each of these options and ranking them on a ‘neutral’ basis
through relating each option to the specific context such as
business strategy being adopted, short- and long-term goals
and brand vision of the client — will be a critical component
of the value proposed to be created. Specifically, clients will
like to know how effective various traditional and new media
options (remember 80 per cent of the cost of a campaign is
the media-related cost) for a particular product or service will
186

be, given the overall business and brand strategy and shortand medium-term marketing objectives.
•

Speed in delivering error-free, quality output and
responsiveness as well as the flexibility to change the package
of offering at short notice will help agencies reduce
customers’ anxieties to get an advantage over competition.

•

Subjecting the agency’s remuneration structure, on a proactive
basis, to certain accountability format. This will communicate
seriousness, professionalism and sensitivity to a client’s
needs and help greatly in building a strong goodwill in favor
of the agency.

•

Building a track record of measurable success in all aspects of
the agency’s operation and services — creative, media
planning, media buying, production and account servicing. A
track record of superior performance builds reputation and
equity in the minds of the client.

•

Expertise and professionalism of the agency’s staff, at both
the front and back office, reduce customers’ anxieties to a
great extent and are thus sources of value.

•

A well-developed, well-communicated, and well-delivered
value proposition that I s meaningful and relevant to the
target client groups will help the agency ‘position’ itself
clearly and uniquely in the minds of the clients vis-à-vis
competition.

Performance Criteria
As with any other organization, an agency will need to define a
few critical parameters against which it will measure its shortand long-term performance, given the industry’s standards and
clients’ expectations. Such parameters should be chosen to
reflect the importance of both client satisfaction and internal
efficiency. Against the backdrop of the increasing propensity of
clients to shift from a commission or fee-based remuneration
structure to a system based on ‘payment by result’, it is obvious
that an agency will need to incorporate in its list of key success
factors such parameters as the advertiser’s business performance
(e.g. sales, volume etc.), the performance of advertising (e.g.
level of awareness created, enhancement of brand image etc.)
and performance of the agency vis-à-vis clients’ expectations and
service standards set in delivering the service (e.g. task competencies, service delivery-quality, timeliness and professionalism).
These three areas, in addition to other items that measure
internal efficiency, must be fine-tuned, quantified and
benchmarked to make sure that both clients and employees of
the agency understand and evaluate the kind of value the agency
proposes to deliver and how the agency ensures high-quality
execution of the same.
Organizing for the Future
Against the background of changing environment and the
repositioning required to deliver the new value proposition
discussed above, a key issue the agencies will face is how to
organize their activities in future to implement the new
direction. While traditional thinking will probably indicate the
need to possess all required capabilities and infrastructure inhouse, the guiding principle should be to include only those
few core activities where the agency has established capabilities
(or has plans to develop such capabilities); any other activity,

Notes

ADVERTISING MANAGEMENT

however unconventional it may sound, must be subjected to
critical scrutiny and be considered for outsourcing (without,
however, losing control over the same). In the 21st century, the
resources that will be critical for ensuring the success of any
organization are essentially creative people, ideas, information
and network; there will be less and less emphasis on physical
infrastructure and layers of bureaucracy to deliver the value
desired by customers — and advertising agencies will not be any
exception. The real challenge for agencies will be how to keep
the core activities to the minimum and how to establish a
collaborative relationship with a large number of individuals
and organizations who will provide specialized and standard
services, depending on each individual’s and organization’s
intrinsic strengths, in a seamless manner. Such individuals and
organizations will be legally separate but must work along with
the agency in an operationally synchronized manner. Advancement of information and communication technology can help
an agency to have control over activities of such satellite units by
establishing contractual control on digital information.

Conclusion
The need of the agencies of tomorrow to reposition themselves in the fast-changing business and advertising world
cannot be overemphasized. The areas that should be revisited
by the agencies have been identified in this article and these
require urgent review. A fresh prospective is necessary in each of
these areas to reposition the agency in the new scenario.
Obviously there will be a number of alternatives under each of
these areas, and the final choice will essentially depend on how
the managers of each concerned agency perceive the dynamics of
the new environment, including the opportunities that are
opening up and the competencies they need to develop. Also
important will be the aspirations these managers have to
dominate the nature and pace of the future evolution of the
advertising industry.

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ADVERTISING MANAGEMENT

LESSON 34:
ETHICS IN ADVERTISING
Learning Objectives
•

You will understand via this lesson the need for in
advertising.

•

The type of advertisements that could come under ethical
issues.

Advertising is criticized because selling carries a stigma. Centuries ago, Anacharis, had said, “the market is the place set aside
where men may deceive each other’. Even to this date despite
the rise in consumerism and efforts to counter market deception, buyers are still gullible and are not particularly on guard
against deception. To create an impact, the advertisers pit creative
message-makers against blasé sophisticates, hardened by
thousands of commercials. The objective is to cut through the
clutter, to grip ones attention and to create an impression that
lingers on in the memory of the prospective buyers. And, while
doing so, they create desires, shape attitudes, mould temperaments, alter social values and raise many an ethical question. To
which there is no easy answer.
The measure of advertising’s success is the extent to which it
increases demand. Competition or declining profits can blow
good intention out of the boardroom. Under such circumstances, the perspective shifts from what is best in the long run
for the society to what is best in the short-run for the company.
Ethics, the advertisers say, is fine for the secure, but a greater
market share is all the slipping company needs!

Ad Areas Under Scrutiny of Ethics

Even as a section of the media and public lambasted the
advertisers and the agencies for the falling scores of taste and
decency in advertising, such ads raged on and became an order
of the day. Brands that are far-fetched from carnality started
portraying all-consuming lust in their ads. Candie’s shoes ad,
for instance, showed a girl sitting in a sink in an intimate
posture with her tattooed boyfriend. Luggage brand Jansport
advertised its backpacks showing topless female model.
While this was the trend the world over, our homeland, India,
was not really far behind. It was in July 23, 1995, that a Mumbai
tabloid published a photograph of an ad for Tuff shoes that
had models Madhu Sapre and Milind Soman posing in the
nude with a python wrapped around them, just about covering
the vitals. The controversy and protests dragged on for along
time. The ad agencies defended their creative rights while the
nation pooh-poohed the couple’s audacity.

Dying to be Noticed
Thus advertisers and admen are increasingly under fire for
upsetting the socio-cultural-religious sensitivities and sensibilities of consumers. And, unfortunately, things are looking only
worse day by day. With slashing down of the ad budget and
with the business slumping, every one is even more desperate
to stand out in a hurry. To boost short-term sales or to win ad
awards. Their slogan is ‘Love it. Or hate it. Or think it is
offensive. But you have to notice it.

188

Advertising ethics affects the practice of our lives and also the
practice of business, in subtle and prominent ways. Indeed,
ethics in ads concern us all in one way or the other. The areas
under scrutiny of the critics are as follows:

Types of ads
Ads for Sex Related Products
Instead of making people aware of the necessity of safe sex and
the benefits of birth control condom ads continue to intrigue
the youngsters with the unique feel it has to offer.

Ads for Health Care and Professional Services
The slimming centers that promise miraculous weight reduction; the cosmetic surgery clinics that assure permanent solution
to beauty problems.
Ads for Vices with Fatal Effects
Tobacco chewing ads, commercials of alcoholic beverages
that tempt the non-alcoholics to have a sip.

Types of Appeals
Use of Questionable Appeals
The ads that bank on fear and negative appeal like neighbor’s
envy, jealousy, feud between daughter-in-law and mother-in-law
etc.
Stereotypical Appeals
Sexual or racial stereotyping. Ads that imply that a woman,
whether in kitchen or in the boardroom, ought to look
sensuous and inviting under any circumstances is a . The
fairness creams stereotype the dusky women as socially less
desired for marriage.

Value Formation
Advertisements responsible for molding society, material wants.
The ads displaying scantily clad female models commoditize
women. And the deluge of ads that increase ones propensity of
consumption makes one feel that possessing a certain commodity is essential to show that one belongs to the higher
echelon of the society.
Media Content
Information content of ads; the ads that suggest the use of
preserved food items without a slightest mention of the fact
that many of these preservatives have been proved to have
carcinogenic effect.

Use of Deception
The ads of brands that conceal their negative aspects. The ads
of cosmetics that say nothing about the long-term effects of
regular usage of their products; the ads of the educational
institution that wrongly claim to give 100 percent placement to
its students are examples of this type.
Advertising Targeting Children and Adolescents
The ads that target the vulnerability of the children and
adolescents create role models whom the kids are expected to
emulate and, thus, shape their dreams and aspirations in an
unbecoming way.

Advertisers’ Concern
Voice/Tone of the ad
Comparative ads that thrive on inflicting vitriolic attacks on their
rivals; copying the idea in the ad world is another such menace.
Impediments to Research
The impediments to research on advertising ethics are identified
as follows:
Lack of Practitioner Interest

Research is impeded by the inapplicability of published findings
to business operations, the disinterest of corporations in
sponsoring research on ad ethics and the funding constraints
that cause researchers to rely on a convenience sample.
Lack of Sound Measures and Framework

Research is impeded by the lack of psychometrically sound
measurement scales and theoretical frameworks in advertising/
marketing.
Lack of Relevant Theories in Related Disciplines

Research is impeded by theoretical shortcomings in anthropology, management, philosophy, psychology, sociology and
advertising/ marketing.
Lack of Academic Interest

Research is impeded by lack of a journal editor and the difficulty
researchers face when they try to relate ethical issues to traditional advertising issues.

Why be Ethical
At the 83rd Annual Management Conference of the American
Association of Advertising Agencies, Keith Reinhard, the 64year-old chairman and the chief executive of the US $15-billion
DDB Worldwide Communications Group, stood up to quote

the legendary co-founder of DDB, Bill Bernbach: “All of us
who professionally use the mass media are the shapers of the
society. We can vulgarize that society. We can brutalize it. Or we
can help lift it onto a higher level.” No. Reinhad is not against
the edgy and the unconventional. He is against prurient sex.
Filthy humor. And Violence.
By making a success story out of the ads that are offensive to
public decency, the message is disturbingly clear: the more rude
and shocking you can be the more successful you will be in the
advertising. And, moreover, such ads send out faulty signal to
the youngsters who represent the future of our society. The
young creative directors who take pride in their eccentric thought
process ought to be blamed for this. And the ad awards
machineries from Cannes to Clios that place such creations on
the pedestal. Passion is, surely, the most important ingredient
in creative achievement. But its flame need not necessarily leap
for obscenity, bullets and falsehoods alone. It is essential to
reinforce the virtue of positive passion in today’s ad world.
The need to add ethics in advertising is essential as we have a
duty to live a good moral life. This duty is as much applicable to
our business lives as to our private lives. And marketing
professionals also know that ethics brings good business.
Unethical ads are often found to have negative consequences,
ranging from adverse publicity to diminished corporate
reputation, to consumer boycotts and even legal sanctions.
Conversely, an ethical ad can contribute to a good corporate
reputation, heighten morale and, thus, increase repeat business.

What are Ethics?
ETHICS …
n

standards or moral values which dictate
what is right and what is wrong, or good
or bad, which are
culturally-based and formed based upon
society’s expectations
n vary by person, and by situation
n everyone develops their own “code of
ethics”
n

Influences on Ethical Behavior

Family

Experiences
Personal
Code of
Ethics

Peer Groups

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Larger Effects on the Society

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Responsibility
Towards
Environment

Advertising Ethics
n
n

Responsibility
Towards
Customers

Social
Responsibility

Responsibility
Towards
Investors

Responsibility
Towards
Employees

n
n

Influences on
Business
Social
Responsibility

Environment Social
Responsibility Issues
n Air

Pollution
n Water Pollution
n Land Pollution
n Toxic Waste
n Acid Rain

Some call for advertising to children be curtailed
Others would ban alcoholic beverage advertising
Marketers must carefully draw the line between
advertising and entertainment
Cookies: small text files that automatically
download to a user’s computer whenever that
user visits a Web Site and that is capable of
gathering information on the user, are
questioned by many

Advertising Ethics (Cont.)
n

n
n

Puffery refers to exaggerated claims of a
product’s superiority or the use of subjective or
vague statements that may not be literally true
Deception is when the consumer is led to
believe something which is not true
The Uniform Commercial Code makes a
distinction between puffery and any specific or
quantifiable statement about a product quality or
performance that constitutes an “express
warranty,” which obligates the company to stand
behind its claim

Advertising Ethics
Puffery and Deception
n Puffery refers to exaggerated claim of a
product’s superiority or the use of
subjective or vague statements that may
not be literally true.
n The Uniform Commercial Code
standardizes sales and business practices
throughout the U.S. It makes a distinction
between puffery and any specific or
quantifiable statement about product
quality or performance that constitutes an
“express warranty.”

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Customer Responsibility Issues
n Rights
•
•
•
•

of Consumers

to safe products
to be informed
to be heard
to choose what they buy

n Unfair

Pricing – collusion / price gouging
n Ethics in Advertising

Employee Responsibility Issues

Notes

Human resource management issues
n Social responsibility issues
n Privacy issues
n Encouraging ethical behaviour
n

Responsibility Towards Investors
Improper Financial Management
Kiting Cheques
n Insider Trading
n Misrepresentation of Finances
n
n

Approaches to Social Responsibility
low
n

obstructionist stance
• does as little as possible

defensive stance

accommodative stance

• does only what is legally required

• meets legal & ethical requirements and sometimes
goes beyond what is required

proactive stance
• seeks opportunities to be socially responsible

high

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So the next time you are out there seeing a woman in her bare
nothings posing for a shaving cream, you know exactly what to
do.

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LESSON 35:
CHILDREN & WOMEN IN ADVERTISING
Learning Objectives
•

You will understand via this lesson the use of children in
advertisement.

•

The case study is a critique on children advertising

•

You will understand via this lesson the way women are
portrayed in advertisements.

Case Study
The print and electronic media today consist of slickly choreographed, visually appealing and professionally managed
programming that has transformed the current generation of
urban youth into a bunch of mindless consumers. It is
therefore important to bring into consideration the types of
programming and its impact on emotional and intellectual
growth. The advertising world claim that it provides every
individual with the right to choose and that therefore it is
impossible to imagine a world without advertising tends to run
away from an important issue. When cynical TV programming
meets unscrupulous advertising, life is grossly simplified,
depriving the rebelliousness that characterizes youth – the time
set apart in all civilized cultures for the young to trouble and
question the established order of substance. The issue is
therefore not only the impact but also the cause of the impact
itself and that is the content of the ad and to whom this
content is directed. TV surveys in 1990 revealed that the ad
agencies estimate on the worth of the youth market was 2000 2500 crores. Advertisers therefore discovered an untapped
market among the youth and the persuasive power it yielded
over the decision makers in the family. Children could therefore
be used to reach the target segment – the Parents. Advertising is
based on the suggestibility of the human mind and tends to
exploit this trait, which is especially heightened in children who
do not possess the power to discriminate and hence believe in
everything they see and hear. Exploiting the ignorance of the
masses in this case children and more specifically upper middle
192

class children, advertising tends to firstly stimulate materialistic
desires creating wrong values where children begin to respect
only people with materialistic possessions and destroys the
ability for original thinking where they blindly ape western
attitudes – teeny bopper look-alikes. Secondly, focusing on
parental worries especially those of working parents who face
the guilt of not spending enough time with their children,
advertising has given rise to demanding attitudes among
children. Parents look for ways to appease children and advertising suggests a basket of goodies to cure the ‘ you don’t love
me’ syndrome, which is simply emotional blackmail underlined
by parental guilt.
Also, children more susceptible to peer pressure always want to
“keep up” and want something that their friends have or
something better ranging from toys to the family vehicle. Apart
from creating mindless consumers, advertising also runs the
risk of influencing values (gender values, male – female relationships, family ties and their quality, reinforcing stereotypes),
buying patterns and lifestyles.

To Cite a Few Examples
• Mothers on TV are young, pretty, and indulgent, ever ready
to clean and serve husband and children. Food, washing
powder, etc.
• Buying power with the father – credit card “ now even she
wants one”
• A certain soft drink company gets away with blowing up
huge amounts of money to get a cricketer to endorse the
product while exhorting young people to eat cricket, sleep
cricket, but drink only that particular brand. It is never
mentioned that these young people can actually play cricket.

The important question here is that – are we raising children to
be indulgent, mindless, couch potatoes who go through life
thinking that life is the synthetic reality they see on television. It
is a happy world devoid of any ugliness. Is this how we teach
our children to face the outside world? What are we protecting

Based on the above case study, do you think that the ad
industry is trying to change the social structure, especially where
children are concerned? Give latest examples to clarify your
arguments.

Advertising to children has been a major focus of public policy
and concern for many years. The major issues are whether TV
advertising to children is inherently unfair, whether it causes
children to make poor product decisions, whether it increases
parent-child conflict, and whether it results in undesirable
socialization of children. The broader issues, particularly
associated with toys and games that involve violence, are
whether advertising of such games, or the games themselves,
should be disallowed, A related question is whether advertising,
even though it does not contain violent material, should be
sponsoring television programs that do depict violent scenes
that can be seen by children.
You have to see that therehas been identification of three types
of child information processing:
1. Strategic- for ages ten to eleven years old and older,
2. Cued- six to ten years old, and
3. Limited- under six years old.
Strategic processors can evaluate a product’s appeal with greater
sophistication because they can store information about the
selling intent, other products, and past experiences. Prompts
can be used to encourage use of storage and retrieval strategies
by cued processors but would not benefit limited processors
very much. The following set of guidelines have been developed for determining when children’s advertising can be
considered deceptive:

1. Pre-examination of questioned advertisements,
2. Sample selection to obtain relevant and representative
children,
3. Determination of the understanding level of the children,
4. Measurement of appropriate responses,
5. Determination of whether deception does exist,
6. Determination of the impact of the deception,
7. Making a final decision concerning continuation of the as
campaign or a cease and desist order with or without
corrective advertising.
I need to point out that the Children’s TV Act of 1990 in US,
requires broadcasters to provide programming that serves the
educational and informational needs of children and must limit
the amount of advertising for any programming aimed at
children. One criticism is that the Act is to general in specifying
what content is “educational an informational.” Some stations
have attempted to use public service announcement and
programs such as the Flintstones and G.I. Joe to satisfy the
regulations. In Europe, a Broadcast Commission Directive on
advertising was adopted in 1989 that banned subliminal
techniques, banned tobacco and prescription medicine ads, and
set conditions for advertising alcohol and ads aimed at children.
There have been many instances in India about young Boys and
Girls getting entangled in premature relationship as a result of
the exposure to Internet. All sensible and responsible Netizens
would like the benefits of Internet to reach their children at an
early age but are unable to accept the present level of pornographic Spam and uncontrolled chat options available on the
Internet. In fact the new media has become a major contentious
issue due to the accessesiblity of pornographic material. The
idea behind introducing this subject is that I want to say that
the media should be more responsible towards the next
generation.
It is amusing to note that these pages carry the names of many
prominent Indian Companies and Institutions at the masthead
since the masthead is a rotating banner ad. The Ads under
which nude photos are being displayed are in the names of few
large corporate institutions. You must understand that they too
have to be responsible.
I want to impress upon the fact that you switch to any television channel and you find children jumping about in a large
number of television commercials ranging from products such
as ice creams and candies to airconditioners and refrigerators to
automobiles. The trend is hard to miss — that advertisers in
India are increasingly using children in their campaigns. And
product categories unrelated to children but that use them form
a substantial chunk of these ads.
A detailed analysis of over 400 TV commercials done by KidsLink, the Delhi-based research wing of the events company
Kidstuff Events & Promos, is an eye-opener that corroborates
the trend. The research agency evaluated a total of 408 Indian
commercials posted on the advertising website Agencyfaqs.
These campaigns cut across product categories such as food,
white goods, household products and beverages. Of the 408
TV commercials that Kids-Link studied, 16 per cent were found

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them from or are we protecting them at all? Children have
become mere pawns in the world where money and power have
become the primary agenda. Ads with their lively, catchy tunes
feature children and animals to flag attention, add emotional
undertones and trigger an emotional response.
Children are being used to market even non – children products
and have become the decision makers not only for chocolates
and toys but automobiles and electronic gadgets – Candy TV metaphor – packaging of the product to look like something a
child would want to buy, in this case, candy. Media has become a
surrogate parent of sorts, teaching values, imparting lifestyles
and telling children what they should buy, eat or wear.

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to have used children either as central or secondary characters in
the advertising films.
Kids-Link further segmented the commercials into 27 product
categories. Of these, only 44 per cent were found to be associated with children, that is, where they form the bulk of the
primary consumers. Among these were categories such as
biscuits, candies, chocolates, dairy products, fast food, ice creams
etc. The highest penetration of kids in commercials was
discovered in the foods segment followed by the white goods
brands. For instance, 21 per cent of the total commercials (121)
in the foods category use children in their campaigns.

We must however understand that the indiscriminate usage of
children in advertising will invariably lead to brand not conveying the intended message. Using children in unrelated categories
or for unrelated appeals is an indicator of not having a welldefined strategy for the brand. As far as the emotional connect
goes, evoking mush and romance is the easiest way out,
however, going by the flood of commercials using children
available today, it seems that is far from possible.

However, it was the white goods segment that threw up a
bigger surprise. Of the 83 commercials of refrigerators and
television brands that were evaluated, nearly 16 per cent featured
children in their films. In fact, even among the 77 household
products such as fabric whiteners, detergents etc under the
scanner, 10 per cent made use of kids to sell their brands.
So based on the above we can say that the analysis validates the
hypothesis that children are being planted in television commercials not only to sell products linked to them but to also push
goods like fabric whiteners and refrigerators. The latter being the
product categories where kids are not traditionally expected to
be a part of the decision-making process.
The brand managers, perhaps, target children in the hope of
building brand loyalty right from the beginning. There is an
increasing realization among marketers that children play a
dominant role in decision-making for products other than the
ones they consume themselves especially decisions related to the
purchase of high involvement categories such as durables and
non-durables,”
Children have become the focal point of intense advertising
pressure. A research in the US states that children between the
ages of two and eleven spend about 25 hours per week
watching television and see approximately 20,000 ads per year.
So it does not come as a surprise that in India children between
the age of 11 and 15 influence their parents to buy a product
and succeed nearly 50 % of times.
Advertisements featuring children in categories such as
airconditioners, washing machines, cooking oil, home appliances and even paint is based on the acceptance of this target
audience as a strong influencing and persuasive group among
marketers. Consequently, categories using kids today extends to
the family spending area including beverage, toothpaste or even
a luxury car. Hyundai and Maruti Udyog Ltd hold painting
contests for kids and distribute free T-shirts.
Clearly, advertisers have been quick to cash in on the growing
importance of kids within the families. Ever since the emergence of nuclear families in urban areas, all the activities in a
household revolve around the “young ones” and parents
would do anything to keep the children happy. Besides, in most
product categories where there is no tangible benefit or
differentiator among brands, the decisions are emotionally
driven. Here, kids tend to play a bigger role. So, in case of parity
among most brand offerings (features, quality, price) be it
durables or fast moving consumer goods, the advertising
focuses on emotional connect.

194

A growing concern is the tobacco advertisements on television.
Tobacco use among young people continues to rise as the
industry aggressively promotes its products to a new generation
of potential smokers. Companies spend billions a year to
promote their products. Much of this promotion takes the
form of powerful advertising that influences children and
adolescents in their views on tobacco.
The WHO is calling on lawmakers around the world to take
action against advertising of tobacco and tobacco products to
protect the health of the young and the old. All advertising
reaches children and teenagers—whether intended or not.
Tobacco advertising nominally aimed at 18-24 year olds is
especially attractive to teenagers aspiring to enter this age group.
Advertising should be responsible regarding this exposure and
social problem where children are concerned.
Now, coming back to the ‘child power’, advertising experts feel
that the trend is likely to continue. However, with the children
getting smarter, advertising will need to be better thought out.
Commercials will have to present a more convincing reason and
offer a more tangible value and logic before children buy the
brands they promote.

time for their commercials during programmes watched by the
particular “target” audience they consider most likely to buy. For
example, during cricket matches and other sport events you
would see ads of Kingfisher and Foster. On the other hand,
during a cookery show like Khana Khazana, you would see ads
of Badshah Masalas or other groceries.
Coming to the question of change, the roles of men and
women have changed. The world of the Indian woman is no
longer limited to the four walls of her home and the Indian
male has to chip in with household chores. Advertisers are
taking notice of this metamorphosis: A father cleaning his
child’s dirty t-shirt in the Ariel Ad or “the woman of substance” as portrayed by Femina Ads – independent and head on!
Ads have taken a step forward by identifying what women view
as masculinity and vice-versa. This is what can be called
“Gendered Advertising”- similar in some respects to customized advertising. Advertisers want viewers to enjoy their
commercials and to associate the advertised products with a
comfortable reinforcing picture of mainstream cultural values.
As a result, commercials are designed to take optimal advantage
of gender-specific fantasies, myths, and fears. The Raymond
Man is almost a dream come true for a woman. The ad plays
out her fantasies and becomes aspirational for men.

India is a patriarchal country- with almost everything centered
on the Adult Indian Male – even communications. This is
evident in Beauty crème ads, where there has to be a male to
appreciate beauty. With the woman stepping out of the house
and beyond, it wasn’t long before marketers started revamping
their ad campaigns. In the earlier talcum powder ads, there used
to be a woman coming out the shower and casually applying
the talc. A woman now steps out of home on the street
carrying the talc in her purse and using it whenever she feels like.
This is just one of the changes that advertising has undergone.
To put it empathetically, stereotypes were prevalent in advertising. Women were featured in Nycil or Dettol ads taking care of
children’s wounds and soothing them. This was true in other
media vehicles as well. If you ever paid attention to radio ads
there was always a lilting feminine voice endorsing a brand.

No longer do you see only Karen Lunel and Pooja Bedi
sporting bikinis in ads, men too are baring it all. (Be it the
Denim man who doesn’t “have to try too hard” or the nextdoor Brylcreem guy.) It is the Elle 18 girls who are daring to be
different. Advertising to the genders has changed.
Gender perception in communication has evolved by introspecting the roles of men and women in society. These images
in television commercials provide an especially intriguing field
of study for consumer behavior. Advertisers on the other hand
seem quite willing to manipulate these fantasies and exploit our
anxieties about our identities, to sell products.

Coming back to television, it is said that women view television
for longer hours. Definitely! No wonder that cosmetics and
grocery brands are heavily advertised during daytime. Based on
this, we might as well assume that shaving creams ads are aired
at nighttime. Wrong! Because it is the woman who purchases
even toiletries for men.
Women make up over two-thirds of the adult viewing audience
on weekday afternoons, the programme that traditionally
includes soap operas. The only time of the week when men
routinely form the largest proportion of the viewing audience is
during sports telecasts on weekend afternoons. Prime time
evening audiences are more evenly divided, but women viewers
still out-number men.
Complementary to the concept that television viewing is a
gendered activity, is the advertisers’ awareness that consumer
behavior is also gendered. Men and women have been conditioned to purchase different products in different ways for
different reasons. As a result, most advertisers carefully purchase

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Women in Advertising

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The status of women in India has raised many a controversy
and headed many a movement. With the passage of time, the
Indian woman’s role has metamorphosed from a domestic
manager to a prime purchaser. She has now emerged as a
potential consumer, ready to redefine her status in the worldwide economy, and her contribution to the society is no longer
confined to being solely aprogenitor.

Emergence of Women as Consumers
Traditionally, the role of wife and mother has been seen as a
woman’s destiny and her only career choice. For years, she
remained totally dependent on her husband financially and
chose to remain unaware of the world outside her home. It was
the man who was the consumer for the whole family and thus a
target for marketers. However, in the last 40 years, the rapid
strides in education and employment have paved the way for
drastic changes in the status of women—the latter have become
self-reliant and also share enhanced emotional bonds with their
husbands. From the woman confined to the domestic sphere
to the liberated woman of the 21st century, from the woman
totally dependent on a man to the totally independent career
woman of today, women have made their way through and
have evolved as individuals in their own right. And as far as the
notion of consumers is concerned, women have become the
target market for products and services in India.

Gender in Advertising
Advertising seems to be obsessed with gender and sexuality
and continues to represent an arena in which gender display
plays a major role. It has emerged as a world of ‘commercial
realism’ in which we are given ‘realistic’ images of domestic life
and male-female relationships which are not actually real but
which provide us with a ‘stimulated slice of life’. As gender
representation is such a dominant feature of modern-day
advertising, it is often called the social resource ‘used most’ by
advertisers. In turn, advertising provides an ideal place to
examine the encoding of cultural norms and values in ritualized
formats.
Bearing in mind that India has a very low literacy rate, the trend
of magazines as an informative and entertaining medium has
comparatively gained enormous popularity among the increasing urban population of India. Magazines in India are regarded
as a strategic informational, educational and cultural institution
as well as the fifth state of public inquest. They are read for
gaining knowledge, for recreation and for equipping oneself
with the latest information. Women’s magazines were introduced in the Indian market only after the women’s liberation
movement. They now reach out to women in both urban and
rural societies in India and cater to women in terms of their age,
class and role. The market for women’s magazines is increasing
at such a rapid pace that it is no more flooded only with
domestic women’s magazines but also with global ones such as
Cosmopolitan and Vogue which choose to cater to an elite
audience. And the ad agencies that create the advertisements in
these magazines strive to promote a sophisticated consumerist
culture and encourage the readers to imitate the style, philosophy and format of western magazines and advertisements.

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Female Role Portrayals in Women’s
Magazines
In recent years widespread attention has been drawn to the roles
portrayed by women in advertisement. In certain cultures, the
mainstream media still reinforces the stereotyped image of a
woman whose identity has been shaped by the limited roles she
has to play in society and on screen. The media not only reflects
social values, attitudes and behavior towards women very subtly
but also at times distorts the images of women. A study in
1970 in Britain revealed that magazine advertisements presented
the following clichés about women’s roles in the society:
1. A woman’s place is in the home,
2. Women do not make important decisions,
3. Women are dependent and need men’s protection, and
4. Men regard women primarily as sexual objects; they’re not
interested in women as people.
Assaulted by criticism from feminist leaders against this
presentation of women in advertising, the National Advertising
Review Board (NARB) established a panel to address charges
that advertising was rampantly sexist in the 1970s. Women were
often portrayed as housewives and too infrequently as professionals. Women were featured as sex objects to the exclusion of
their individuality and portrayed often as dependent, requiring
men to solve their problems. However, since 1988, advertisers
have become increasingly sensitive to the issue of stereotyping—there is less stereotyping of women as physical objects,
and a trend towards portrayals using either ‘family’ or ‘independent’ cues is visible.
Even though the developing nations have directed increasingly
sharp criticism at the mass media for the so-called stereotyped
portrayals of women in traditional wife and mother roles,
women are still not seen as individuals in their own right.
Today in India, women are entrepreneurs in their own right,
but the press coverage of their efforts is minimal. And even if a
woman is projected as a professional, she is first viewed as
somebody’s daughter or wife.
Until very recently, Indian magazine advertisements continued
to portray women in their stereotypical images. A woman was
either shown in the kitchen cooking food, washing a bucketful
of clothes, bandaging wounds or feeding her husband and
children. Therefore, the picture that emerged was that of a
woman who never produced knowledge or wealth but always
consumed and remained a sort of hanger-on to her male. In
addition to this, advertising was blatantly anti-woman, treating
her as a sex symbol. Studies in the past on the projection of
women in advertisements have shown that whether she was
used for advertising cosmetics, fabrics, jewellery, domestic
gadgets, suitcases, scooters or stationery, a woman was mostly
projected as glamorous or enticing. Another trend in advertisements of men’s clothes was the invariable use of admiring
women by the side of men, which created an impression that,
all a woman desired was a man dressed in sophisticated
garments. However, in the post-feministic 1990s and subsequently, advertisers have been attempting to construct multiple
possible identities for women in an effort to change their
stereotypical image and enhance their spending power. In India,

The Different roles that a woman portrays in an advertisement
are:

Decorative Role Portrayal
Decorative models are passive and non-functional and their
primary activity is to adorn the product/service as a sexual or
attractive stimulus. They are like mannequins with the least
lifelike of roles. ‘She’ is in an artificial world, often obviously so
in the way she stands and looks (dummy poses and catalogue
expressions). She is on exhibition in competition with others.
She is aloof, haughty, and ostensibly sufficient unto herself,
while relying on others to reinforce her self-image. Her outdoor
image tends to be exotic and her indoor one non-domestic.
Recreational Role Portrayal
The recreational portrayal is of models in a non-working activity
of leisure (reading, watching television) or of sports (hiking,
jogging, swimming, and boating). The importance of these ads
is that women are not shown in passive poses, a pattern
portrayal that every study on gender roles has shown to be
prevalent. In the past, the Indian woman was seen as someone
very sensitive and delicate. Recreational activities mentioned
earlier were, therefore, not connected with women but with
men.

Independent Career Role Portrayal
The independent career woman is the only woman involved in
something that does not have to do with social success, home
and family, or even her own femininity. She has stability and a
substantial nature. She is portrayed infrequently. Women in
India are rapidly advancing towards becoming financially
independent individuals by seeking higher education and
opting for a career rather than remaining housewives for the rest
of their lives.

Self-involved Role Portrayal
The self-involved female is the woman who is literally and
metaphorically wrapped up in herself. Even when being
seductive, she is aware of her femininity and sensuality rather
than the presence of any potential lover. She may be portrayed
in a haze of romance, perhaps with a man, and is more bound
up with aspirations and dreams of her own than with the
actuality of the man. The ubiquitous diamond engagement ring
advertisements are almost perfect examples e.g. De Beers. Here,
attention is focused on the woman’s feelings about herself
where she has a typically soft expression and directs her
attention and tactility towards herself. She is alone with herself,
involved with her body, thoughts and beauty.
Carefree Role Portrayal
The carefree woman is always a girl or a woman with a girlish
look, which gives one a sense of a short spell of deceptive
freedom. She is like a fluttering butterfly, which has not yet
decided where to settle. She is having fun while she’s young.
The carefreeness or friendliness is social in nature to some
extent and outgoing as well. Yet, the exuberance and cheeriness
are rarely directed towards anyone or anything in particular and
are only held in the minds of the actor, for example in the
Tampax ads. It must be noted that since the ‘carefree girl’ is very
much into herself and looking for some excitement in her life,
she is mostly shown on her own and very rarely with a man or a
child.
Family Role Portrayal
The family or domestic management role is described in ads in
which women are shown performing household chores, taking
care of children, or supervising home furnishing or maintenance. An example would be in the home environment where
the house, its furnishings, its decoration, and the food served
in it are marks of a woman’s sophistication, fashion awareness,
sense of good taste and status. She is proud of this world,
which is her creation, but cannot possibly escape from it. A
comparative study on gender displays in US and Indian
advertisements by Griffin et al (1994) showed that over three
times as many images of women as domestic managers
appeared in ads in The Illustrated Weekly of India than in Life.
India Today had about twice as many domestic management
portrayals as Newsweek. More than three times as many images
of body display appeared in Life as The Illustrated Weekly of
India. Therefore, one can say that Indian advertisements do
portray women in their traditional roles till today, although
because of the influence of western society, this trend is
changing—more and more advertisements portray women as
career-oriented and persons who are not just expected to remain
in the confines of their homes but are outgoing and enjoy an
active social life.
Nudity
Today, there is a related phenomenon that may possess even
more long-term significance both for marketing managers and
society in general. This trend is towards increasing eroticism and
nudity in advertisements. Nudity, even if not blatant as
currently portrayed, has been common in women’s advertisements for some years. Nakedness is a feature of advertisements
for products of the feminine sort and is private, isolated and a
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nowhere is this trend reflected more clearly than in advertising
imagery, where the image of the ‘new Indian woman’ is
expressed explicitly. Today in India, women appear less
frequently dependent upon men while men are less likely to be
depicted in themes of sex appeal, dominance over women and
as authority figures. Advertisements have also started portraying
women more frequently as career-oriented and in non-traditional activities and are constructing the persona of the ‘new
Indian woman’.
Bearing in mind the importance of the ‘new Indian woman’ as
a consumer, advertisers have targeted this profile in a systematic
manner. With the increase in urban population, the trend is of
booming consumerism. Based on extensive market research,
advertisements for goods and services are now addressed to the
growing class of urban middle-class woman with either
independent salaries or who have an increasing control in
purchase decisions. Even with the entry of global products as
well as advertising, the role played by the Indian woman in
advertising is still very much Indian—in the sense that strategies
of advertising representation are careful to avoid a ‘westernized’
image of her. Hence, media producers attempt to construct a
cognate, pan-Indian identity for this ‘new woman’, cutting
across regional, linguistic, caste and other differences. In this way
India, with its own social and cultural imperatives, has managed
to keep its distinctive cultural baggage even in the face of an
increasingly open market system.

ADVERTISING MANAGEMENT

source of wonder, pleasure, and satisfaction to the subject.
Moreover, the body is considered to be an object to admire or
even revere in a quasi-religious way. According to Wiles et al
(1994), the use of erotic or sexual appeal is hardly new. What is
new is the intensity of such appeal and the increasing number
and variety of products being marketed with sexual overtones.
Now not only are nude models used to advertise well-known
consumer products such as cosmetics, ski equipment, and
wearing apparel, but industrial companies also use them. No
longer is nudity employed solely as a shock device or attentioncreating ploy. It is increasingly being used in a more
sophisticated and aesthetic sense in a functional communication
role. Sexuality has been linked directly with advertisements
because it is usual for young women to compare themselves to
models in advertisements — thus; advertisers feel they can be
persuaded to buy the product. For women, and to a lesser
extent for men, the ‘sexual revolution’ has meant a positive
increase in the amount of their sexual freedom. It has also
meant an increase in their ‘use’ as sexual objects. The use of
dramatic, isolating shadows, mysterious darkness and the
ethereal mistiness of focus are common techniques of transporting the female into a personal world of reverie and
self-contemplation.

Conclusion
Urban India is slowly transforming into a western society. The
West, through the various media, is increasingly influencing this
sector of the Indian economy, especially in terms of its
fashion—and nowhere is this trend more prominent than in
Indian women’s fashion magazines. This shows that even
though Indian advertisements have Indian models with
traditional dresses, they are being increasingly replaced with
models in western outfits or have other western aspects to
them. It is only in the last 20 years that India has opened up to
western culture. With the advent of privatization and the
liberalization of the economy, India has seen a surge of
multinationals invade her consumer market. And the new
revolution in advertising is also a true revelation of the changed
consumer scenario. The presence of an increasing number of
women’s magazines, as well as advertising in these magazines
portraying the different roles of women, clearly reveal the
changing perception of women in today’s society. As marketers,
unlike before, are investing large sums of money and time,
investigating and collecting data solely on women’s
psychographics—attitudes, habits, preferences—to meet their
needs and wants, it is obvious that women today are no longer
cocooned in their traditions but have imbibed western culture
to their convenience. This osmosis of traditional culture with
western culture not only reflects the metamorphosis of women
in society but also reveals the new Indian market—a revolutionized consumer marketplace.
Decorative models are passive and non-functional and their
primary activity is to adorn the product/service as a sexual or
attractive stimulus. They are like mannequins with the least
lifelike of roles. ‘She’ is in an artificial world, often obviously so
in the way she stands and looks (dummy poses and catalogue
expressions).

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Notes

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LESSON 36:
TUTORIAL
You are to take up the issue of ethics in front of a committee
and give valid arguments against the following advertisements
being put on air:
•

Fair & Lovely ads portraying that if a woman is not fair in
her skin tone then she faces the problem of getting married.
That the girl is luck in finding a match. If she is fair then the
boy is lucky.

•

Use of children to sell products. Especially the “Chabaza”
advertisement.

•

Sexual undertones in advertisements.

Ideally this tutorial should be made in the form of a conference
where a student has to present his / her viewpoints in not
more than 10 minutes. You could also enact advertisements
(electronic) to prove your point. It is left to the faculty as to how
he / she wants to go about it.
The faculty could give another tutorial if he / she so desires.

Notes

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LESSON 37:
KEY QUESTIONS

ADVERTISING MANAGEMENT

Learning Objectives
•

Within this lesson you would have to prepare the projects at
the discretion of the faculty.

A list of possible projects is provided below, but students can
create their own projects subject to the faculty’s approval. Each
report should be submitted in written form (3-5 pages each),
but can also take the form of a PowerPoint presentation.
1. Review an advertisement on television, or radio. Identify the
target audience, attention getting techniques, messages,
visuals, and/or sound effects. What motives are being
addressed? Analyze the advertisement’s effectiveness and
appropriateness of messages, visuals and/or sound
elements.
2. Review a print advertisement. It can be a display ad,
classified, or outdoor form of advertising. Identify the target
audience, attention getting techniques, messages and visuals.
What motives are being addressed? Analyze the
advertisement’s effectiveness and appropriateness of
messages and visuals.
3. Locate an example of an online banner or online display
advertisement that either really “works,” or really does not
work. Give your professional opinion as to why (in
advertising terms). Consider issues related to target audience,
placement, suitability of message and visuals given the actual
(as opposed to intended) audience. Provide the location and
context and give your rationale as to why the advertisement
was functional or not.

properly targets your identified market. What are the costs,
sizes, discounts, etc.
8. Choose a cable TV specialty channel such as ESPN or
Discovery. Describe the target audience (in terms of
demographics and psychographics) that the channel seems to
be aiming towards. Compare that to the advertisements that
are running on the station. Describe those that seem to
match the target audience and those that do not.
9. Read several advertising-related help wanted advertisements.
Use advertising journals for this exercise as opposed to
newspapers. Describe the duties and requirements for the
jobs, and salary if cited.
10.Attend an advertising-related function such as a media trade
show or advertising seminar. (Note: your instructor may be
able to help you locate a local event). Write a general account
of the event.
11.Research a failed product or service. Describe why they failed
from an advertising perspective. How did the marketers fail
to adequately promote the product or service?
12.Find an example of an unusual form of advertising
(examples include cash register tapes, promotional items, or
wrapped cars [cars painted as a rolling advertisement for a
product]). Discuss the ad from a creative and strategic
perspective. Does it work? Does it make an impact? Does it
make sense?

4. Pick a product or service currently being advertised that
“bothers” you in some way (ex: cigarette or alcohol
commercials aimed at children, political “slur” campaigns,
violent video games, etc.). Discuss what you think are the
ethical implications of the product or service’s introduction
to both the intended and unintended audience. Discuss what
you would do (or change) if you were the advertising
manager in charge of that offering. Discuss ways in which
you could balance the profit needs of the company with
societal concerns.
5. Find a product that interests you. Write a print advertisement
for that product that could be used to direct market it in a
national magazine.
6. Watch an infomercial (a commercial that runs 30 minutes to
sell a product). Aside from length, what are the differences
between the infomercial and a regular 30-second commercial?
What are the advantages and disadvantages? Discuss what
are critical concerns for an infomercial advertiser.
7. Think up a target group to which you would like to market a
product or service. Locate a publication that would properly
target that market. Order a media kit from the advertising
offices of the publication. Describe how the publication

200

UNIT IV
EXERCISES
UNIT – 9
CHAPTER 10
CAMPAIGNS & CASES

Notes

ADVERTISING MANAGEMENT

LESSON 38:
ADVERTISING CAMPAIGN EXERCISE
Learning Objectives
•

Within this lesson you would have to prepare the projects at
the discretion of the faculty.

Notes
You will be developing a complete advertising campaign for a 6month to 1-year period of time for a product / brand of your
choice. Your campaign should serve as an advertising plan and
should include: identification of the target audience, objectives,
selection of appropriate media, creative work, budgets, advertising calendars, and methods for monitoring progress.
Note: The creative work should include at least one (1) example
of a print advertisement, one (1) television commercial, and one
(1) radio spot. Your print advertisement can be any size at or
above a ¼ page of a standard-size magazine. Your layouts can
be rough (this is not an art class), but should be as realistic as
possible for you. The television commercial should contain a
minimum of 5 storyboard frames. Place the copy below the
frames, and include a script complete with any visual or sound
effects. The radio spot should be for a 60-second commercial,
and should contain a script complete with sound effects
(optional).

Submission of Campaign Making
Because this is a college-level course, the campaign should be
typed. Make sure to document and reference where you obtain
your information. Beyond documentation, you can submit
your assignments in any attractive and readable format.

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LESSON 39:
CASES 1 & 2
Case 1

People Who Matter Most in Life

With Kid Gloves
Why understanding a child’s mind is important for a marketer

A majority of seven- to 12-year-olds said it was parents and
siblings with an appreciable number conveying that teachers and
cousins also played a key role. Among 13- to 15-year-old boys,
other than parents and siblings, advice from friends with
experience in the profession they wished to choose also
mattered. Teachers played a key role in imbibing moral values.

Source: Business Standard

Whatever the mood of economy, children will not stop
running to the kirana store to buy that new chocolate bar or
pester their parents to go for a flat TV from Sony. Kids form
three markets, all rolled into one.
As a primary market, children have access to money from
various sources and spend part or all of it on themselves. They
generally spend on products like beverages,books, confectionery,
snacks and sports gear. Many brands are now affordable, and
brand messages are flashed continuously on various television
channels.
As influencers, they play a key role in the purchase process by
making requests or demands for certain products. Some
products like cars, air-conditioners, refrigerators and washing
machines (normally an adult domain) catch their fancy and they
would like to own them.
This segment has been fuelled by factors like double-income
parents willing to meet their kids’ demands (maybe as a
substitute for their attention, time etc), and easy access to
market information via the media and peer pressure.
Yet another segment formed by them is the future market.
Wooing them early with market programmes enable companies
to convert them into loyal customers when they reach market
age. A six-year-old could aspire for a bicycle, which say a nineyear-old is riding.
This nine-year-old might be dreaming of owning a stereo
system, which his 13-year-old cousin blasts at full volume. And
this 13-year-old might be impatient to buy his own mobike,
which his 19-year-old brother zooms around in.
Kids have been used in a number of advertisements to provide
an emotional platform so that the ad has a chance of being
unique. Also the presence of a child communicates “family”
and not individual values. Some common positioning ideas
used in TV commercials have been:
Kids being naughty, defying parents (eg, Videocon Internet TV
where he creates havoc at a movie shooting),
Doing things differently (Carrier air-conditioners making
teenagers’ drinks freeze),
Concern/love and fulfillment of wishes by parents(Kissan
Tom Tom Sauce, where the father spruces up the kids’ lunch).
However, in order to target them effectively it is essential to
have a thorough understanding of who they are.
Kids-Link, the market research arm of Kidstuff Promos &
Events, carried out a number of focus group discussions
among SEC-A, seven to 15-year-old boys and girls in Delhi on
various aspects.
202

The girls had almost similar views; but they said “We are more
formal with teachers; parents are almost like friends.”
A brand can play a key role in kids’ lives by understanding who
matter most to them and then trying to create a relationship
based on that insight. For intance, the Maggi ad showed kids
coming to their mother saying, “Mummy, bhookh lagi”, an
Annapurna Iodised Salt ad shows teachers playing a game with
the students, while a grandmother is seen telling her grandchildren not to take short-cuts in an ad for Himalaya
Chyavanaprash.

Biggest Fears or Worries
The seven- to 12-year-olds are petrified by lions, snakes, ghosts
and lesser evils like the class teacher, specially when they haven’t
done their homework, losing a good position in class, exams,
board exams and friendships breaking up.
For the boys, the stress was more performance-related: “How
to be a successful man, how to come first in class, difficulties in
my career and studies, what if I’m not able to do what my
parents expect from me, board exams”. Some others were
pollution, not owning a cellphone and losing near and dear
ones.
The girls were perturbed by “failure in achieving anything you
want, failing in board exams, relationship with parents, fight
with mothers losing friends and World War III”.
Fears and worries are powerful emotions and marketers who
can help comfort a child by resolving a fear will have gained a
loyal patron.

The Most Important Thing in Life
“Fun, fame, money, doing good to others, becoming a cricketer,
discovering what scientists have yet not discovered, becoming a
doctor to help the poor,” are some of the most vital things in
the life of seven- to 12-year-olds. For 13- to 15-year-old boys it
was simple: Money only or money and fame. The girls were
more explicit with answers like fame, respect, money and
satisfaction.

Technology in Their Lives
Most seven- to 12-year-olds are familiar with a PC and use it for
e-mail, games, project work and surfing sites like
cartoonnetworkindia.com, classteacher.com, pitara.com and
ealiz.com. Computers are mostly used in school as only a few
had PCs at home.

The girls’ responses were similar to the boys. They used the PC
mostly for chatting, e-mail and games. Some singled out
playing cards, using PaintBrush software and collecting news
and articles. Favourite sites were yahoo.com, indiatimes.com,
hotmail.com and baazee.com.
Children today are much more sophisticated and computer
literate than we were. In order to sell to them, marketers need to
understand implications of technology in their lives — for
example, it has made them less social to some extent.

Some Favourite Brands Seven- to 12-yearolds
Cornetto:-”because the cone is very crisp”
Boomer: “because it’s sweeter and softer (than other gums)”
MAX Candy: “because there are so many different types”
Frooti: “because it’s mango and natural”
Head & Shoulders: “because it keeps hair silky”
Sunsilk: “because it nourishes”
Doy: “because it comes in different colours and sizes”
Band Aid: “because of free stickers”
MRF Cricket Bat: “because it has a firm stroke”

13- to 15-year-old Boys
Cadbury Dairy Milk: “because it’s tasty”
Nirula’s ice cream: “because the flavours are very nice and there is
variety”
Alpenliebe: “because it tastes good”
Hero Cycles: “because they are cool, better than others and run
very faster”
Britannia: “because of its wide range of biscuits”
Reebok: “because they are durable and fashionable”
Benetton: “because it’s cool”

13- to 15-year-old Girls
Pepsodent: “because it is in fashion and I like the ads”
McDonald’s burger: “because it’s very tasty and they are the
best”
Top Ramen Noodles: “because they taste good”
Temptations chocolate: “because it is tempting”
Lakme: “because it is the best”
Domino’s pizza: “because they are yummy”
Compared to adults, kids are less capable of processing product
information, and they have lesser product experience to ealize in
their decision-making process. They search for bits and pieces of
information that they can make sense of and tend to develop
brand loyalty based on these. Marketers need to understand
how kids receive brands while targeting them.

While marketing to kids we need to adapt the marketing
programmes. Based on their nuances they need to be treated
specially. Some simple steps are:
Keep the positioning simple and childlike: The communication
message must be based on simple ideas and appeal to the kids’
imagination.
Example: Boomer chewing gum with the jingle “Boom boom
boomer” and Boomer Man, the super hero.
Give them instant gratification: Kids are overjoyed by instant
gratification, however small the gift may be. Tattoos with candy,
dinky cars with Maggi noodles and cricket bats with Milo are
some examples of freebies that have successfully driven sales
among kids. These premiums appeal to kids who are constantly
seeking excitement and novelty on a short-term basis. Also
collectibles work well in peer groups, which are strong among
kids.
Reach their height and sell to them: Retail outlets selling to kids
need to ealize that children who come to their store must be
made comfortable — for instance, give a sweet to every kid who
comes in.
Display products at their level so that they can conveniently
interact with them. Kids love bright colours and cartoon
characters — make sure your store has those.
A little special effort in selling to these little consumers will go a
long way.

Case 2
PR or Advertising – Who’s on Top?
By Richard Nemec

It’s a quintessential communication story for the 1990s: The
client is a start-up venture with a few million dollars in current
revenues and billions of dollars’ worth of potential. Their
product is on the low end of high tech, but with a broad range
of new market potential. Where does this new enterprise turn
for its marketing communication needs?
A virtual marketing department serves as the corporate
communication arm of this company, which produces both
hardware and software, operates a clinic in Los Angeles, and
through the Internet has created a nationwide network of 300
professionals in the psychological counseling field, using an
evolving electronic health-care tool.
One lone experienced communication professional provides the
start-up enterprise’s combined advertising, PR, marketing and
sales operation. The uniqueness of the product and the
professional counseling service providers’ market make the
traditional marketing approaches obsolete. Big national
publicity splashes are in the works and two books are already
being published.
“There is no question that we are absolutely going to hire a PR
firm before we hire an ad agency,” says Kent Pelz, sole proprietor of AdVantage, providing virtual marketing/advertising
departments for start-up companies and others, most of which
have not gone public yet and have visions of exploiting the
Internet. Pelz has a real client, EEG Spectrum, a biofeedback
firm in southern California owned by some creative venture
capitalists, for whom his statement above applies.
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Among 13- and 15-year-old boys, the PC applications were
nearly the same as seven- to 12-year-olds. Some pointed out
“chatting with cousins” and “working on different software” as
additional use. Some popular sites were rediff.com,
indiatimes.com, yahoo.com, egurucool.com and espn.com.
Majority used PCs at school, some at home and few at cyber
cafés.

ADVERTISING MANAGEMENT

“Traditionally, that is pretty unusual,” Pelz, who has more than
three decades in the advertising/marketing business, admits.
“At least in my experience, hiring an ad agency always came first.
“The business world hasn’t been its traditional self for a long
time now – ever since microchips and Microsoft and the Net
consumed our lives. A globalization of the world’s economies
and consolidation of the largest companies and industries have
followed suit. No wonder PR-advertising isn’t the same old
game.

They cite Anita Roddick’s personal publicity approach to
building her Body Shop stores worldwide; Starbucks Coffee,
which has reportedly spent only about U.S. $10 million in
advertising over the past 10 years; and Wal-Mart as examples of
successful multi-billion-dollar, late-20th century businesses that
have used no, or relatively little, advertising to gain their success.
The Rieses think most of today’s successful new brands have
reached their success by being first in new categories of products.

As the international business giants get ever bigger, myriad
niche businesses are springing up in health care, telecommunication, energy, banking and entertainment. We live in a business
climate that has shifted radically in less than a decade, but it
promises to shift some more before the millennium is only a
few years old.

“There is a strong relationship between the two,” according to
the Rieses. “The news media wants to talk about what’s new,
what’s first, and what’s hot, not what’s better. When your brand
can make news, it has a chance to generate publicity. And the
best way to make news is to announce a new category, not a new
product.”

The communication drivers for these still-to-be defined markets
have been turned upside down or totally reinvented.

One of the harbingers of the Rieses’ observation is the fact that
communication professionals increasingly are serving senior
management or clients that want to combine the old separate
business disciplines of PR, advertising, marketing and opinion
research. Regarding the latter, I have personally observed a
growing tendency to combine previously separate and tightly
segmented disciplines for marketing, advertising, public
opinion and political research. Traditional political polling
techniques are now routinely used among employee or niche
advertising audiences to find out what’s on people’s minds, but
also what moves, or motivates, them.

“There is no doubt that the communication paradigm has
shifted,” said Gerald Swerling, former Porter/Novelli West
Coast operations head and now an independent counselor and
head of the graduate PR program at the University of Southern
California Annenberg School of Communication. He notes
that a “tremendous maturity” has taken place in the public
relations function this decade. He sees CEOs “demanding” that
there be PR professionals at the strategic planning table for new
products and initiatives, although he is realistic enough to note
that the situation could change just as quickly as it has developed.
Nevertheless, the perception remains that advertising is still king
of the communication mix in any serious marketing effort.
And it is true that there is more advertising being sold these
days than ever before. (A projected U.S. $112 billion in the U.S.
alone in 1998, with another $88 billion collectively in Japan,
Germany, the United Kingdom and France.)
The Wall Street Journal technology supplement in November
quoted Marian Salzman, Young & Rubicam’s futurist and the
co-author of the book “Next: The Flow of the Future” on
communication’s future role: “By 2008, we’ll be even more
bombarded by advertising messages than we are in 1998! They’ll
add to the stress of info overload.”
The raw numbers, however, may belie the dynamics in today’s
global markets that make branding and focus more important
than ever – even for the mega-organizations with consolidated
breadth and depth to their businesses. Relative apples-tooranges comparisons arise if advertising placement dollars are
used; more accurate is a comparison of PR and advertising
agency fees for clients.
“The birth of a brand is achieved with publicity, not advertising,” write Al and Laura Ries in their newest book, “The 22
Immutable Laws of Branding,” in which “Law Three” (the
third chapter) is devoted to publicity’s new prevalence over
advertising in creating brands for consumers.
“Today brands are born, not made,” write the Rieses, a fatherdaughter marketing consultancy based in Atlanta, Ga. “A new
brand must be capable of generating favorable publicity in the
media or it won’t have a chance in the marketplace.”

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Communication is increasingly behavior-focused – whether it is
political, commercial or public policy-based. The critical question
to answer: What is moving, or will move, important narrow
audiences?
“Many of my clients are demanding an integrated marketing
approach to their issues,” says Gwen Young, president and
founder of Young Communications, Los Angeles. “This is
particularly true in the social marketing area [anti-smoking, birth
control, safe sex, and utility deregulation, to cite a few].”
One of the latest examples of this flip-flop in advertisingpublic relations in late 1998 was the PR senior executive chosen
to head Young & Rubicam, Inc., the U.S.-based international ad
agency. It made headlines in the national business press when
Thomas Bell, a former president and CEO of BursonMarsteller Worldwide, was picked to head the operations of
Y&R Worldwide, the fifth largest international communication
company. Speculation is that Bell eventually will be chairman
and CEO of a vast multinational communication empire in
which PR and advertising are increasingly blurred, although
Y&R’s roots are firmly planted in the ad business. If current
indications are borne out, communication efforts may, in fact,
be driven more by public relations and broad public policy
considerations focused on narrow audiences who can be moved
to act. But the other side for communication professionals is
the fact that the riskiness of their jobs and projects will continue
to grow. There is nowhere to hide. Adaptability and flexibility
will be necessities for anyone trying to build and carry out
successful, integrated communication programs.
“Those who adapt are most likely to prosper; those who resist
are most likely to wake up one day and say, ‘What happened?’”
writes New York City based executive recruiter Elaine Goldman

supplant it. Senior management still doesn’t appreciate how
public positioning can help create a better image.”

But seasoned professional communicators – in both advertising
and public relations – are reluctant to make sweeping judgments
because the footprint of advertising is so large in our increasingly market-driven society. Our electronic and technological
revolution has increased exponentially the numbers of products
and services. This, in turn, has created unlimited choices for
consumers. All of this means big bucks for advertising.

Dennis thinks the trend will continue toward integration of
advertising and public relations, but the speed and scope of
advertising will always attract support from business leaders. It
can make a splash and be done quickly if necessary. Effective PR
programs take more time, and their value isn’t always related as
readily to the overall company marketing effort.

What is more subtle and less recognized as yet is the inherent
need to be able to focus and differentiate products and services
better in this cacophonous competing data stream. In this
increasingly crowded, complicated marketplace, tethered as it is
to its electronic moorings, advertising will not differentiate your
client or product. It is not a good branding mechanism.
Example: A fledgling part of the multi-billion-dollar U.S.
electric generation industry that deals with producing power
from environmentally clean sources – so-called “green” power illustrates how complex our consumer products and services are
becoming. (Color-coded electricity!) Necessarily, the communication campaigns for these items must be more strategically
focused and conceived.
“If you look at the standard ways green power has been
advertised so far, it hasn’t been getting a really great response,”
says John Giese, green power manager for the nation’s largest
municipal utility, the City of Los Angeles Department of Water
and Power. “We feel we’ve got to use some nontraditional ways
to get the word out, so people understand that this really does
make a difference.
“I don’t think people really understand that when you bring
green power on the grid, you’re starting to actually clean up the
air for your kids. It is a tough message to get out there.
Traditional advertising is very expensive and since you’re in a
thin margin business, you have to find ways to reach people
with a good message for a lot less money than having full-on
TV ads every day.”
You need news value and a human side to your messages in
today’s world. This is why integrated marketing communication
has been such a buzz word, although only the insiders know
what it really means. (I am still unsure.) I prefer to think that,
realistically, the concept is still being defined, just as markets and
market segments are being constantly redefined in our
cyberspace-driven world. Audiences shift with the click of a
mouse.
So the challenge for communicators to ponder is that today’s
constantly shifting business/communication climate involving
more and more consolidations and increasing niche companies
and markets may be turned upside down in regard to communication drivers. The perception, nevertheless, remains that
advertising is top dog in any major marketing effort. It is
probably only a “perception,” however.
“Your premise is right on,” says veteran communication
executive and counselor Lloyd Dennis, from his seaside home
office in southern California. “Advertising, however, is still
viewed as the major marketing tool. I don’t think publicity will

What we miss sometimes is that the communication function
has become much more strategic and broad-based. Thus
advertising keeps a high, big-budget profile, but it should not
drive communication strategy. In this arena, the public relations
aspects should drive, and increasingly are driving, integrated
communication strategies. This is true because advertising
increasingly is used to reinforce and maintain points of view,
but not create them.
In Gerald Swerling’s graduate PR program at University of
Southern California’s Annenberg School, students are prepared
to be “strategists” and general problem-solvers for organizations. Swerling no longer sees them as solely communication
specialists; rather they are “organizational strategists” familiar
and comfortable with organizational dynamics. “They are
people with a grasp of the whole business structure, just as any
good marketing or accounting professionals would be, too,”
Swerling says.
Today’s world has many more voices and diverse cultural
backgrounds to be dealt with in integrated communication
efforts. The open space of the Internet tends to accentuate this
diverse landscape. In this environment, there is more emphasis
on strategic focus and a need to educate audiences.
An experienced social marketing/public relations professional
acknowledges that more often than not she finds herself
working more closely with clients’ marketing staffs than with
the traditional PR and community outreach professionals. Her
clients continue to employ advertising, but with a more
community-based approach. They tend to apply public relations
skills to strengthen an advertising campaign’s main message,
provide more depth and offer more credibility through
articulating third-party voices.
The creation of understanding and motivation, and eventually
behavior changes, needs a more focused, people-to-people
approach. And that is possible only in highly strategic PR/
marketing efforts to create a cadre of third-party endorsers. This
effort, albeit slower than an advertising campaign, will create the
desired climate, which advertising will then be used to reinforce.
And if research shows the climate has not been created,
organizations can save their advertising dollars until the time is
right.
Lotus Notes became the successful company that was eventually
bought by IBM for U.S. $3.5 billion through publicity, despite
its disconnected advertising, according to Al and Laura Ries.
“Most companies develop their branding strategies as if
advertising were the primary communication vehicle. They’re
wrong. Strategy should be developed first from a publicity point
of view.”

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in an article in the Public Relations Society of America’s quarterly
professional publication, Strategist (Spring 1998).

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I would caution drawing too many conclusions from this
provocative thought, knowing that with each individual
communication leader and organizational head goes a different
definition and expectation of what is meant by “publicity,”
“PR” and “promotion.” Regardless, it is clear that something
new is developing in the traditional relationships among
communication disciplines.
Increasingly today, PR may be the “lead,” or driver, for a
communication program because it comes first in the timing
sequence. The entertainment industry, which some professionals think has expanded its strategic communication
tremendously since its historic narrow focus on the publicity
function alone, provides a good example of this new sequence
in the way it now uses PR to build awareness of major new
movies before moving into heavy advertising and hype. The late
1997 introduction of Paul Simon’s short-lived Broadway
musical, “Capeman,” is another example where intense interest
in the real-life character on which the production was based (the
“news” value or PR) provided a rich communication mix long
before the show opened and advertising dollars were used.
“Advertising in the 1990s may be too complex and expensive at
times,” says Swerling, who provides strategic PR counsel to
various Fortune 1000 clients in addition to his ongoing
academic ties. “You can’t just run ads on the major networks
anymore if you want a ‘national campaign.’ There are a lot more
diverse channels now. Media are fragmented and the costs are
up all over.”
It is understood today that all corporate communication, in
essence, exists to support the movement of a product or service
into the hands of the consumer. So within a given organization, communicators are dealing with an audience that is going
to produce a product, do it efficiently, and ultimately get it out
the door and on a shelf.
“There is more of a bottom-line, net-income mentality that
exists at all levels of communication now that I don’t think had
existed before,” says Kathleen Des Rosiers, managing director
with New York-based Marshall Consultants, Inc., a corporate
and marketing communication executive search firm. “You see
it in all areas of communication. I see striking changes in
internal communication.”
To cut through the thicket of theory and practice on this subject
that is spread across organizations – both public and private today, I talked with a number of communication veterans,
survivors of various information wars over the past three
decades. All of them see less distinction among marketing,
public relations and advertising.
One such vet, Chuck Rossie, a former network-affiliate TV news
director and more recently a crisis communication consultant to
organizations around the U.S., referred to his old edition of
Cutlip & Center’s PR book, “Effective Publlic Relations,” to
recall the essence of the three fields. By the textbook definitions
of old: (1) “marketing,” which is spreading throughout even
the public sector these days, is supposed to identify human
needs or wants and fulfill them with products and services; (2)
“advertising” then uses paid media to support that effort; and
(3) “PR” uses relationship-building to create publicity and thirdparty support.
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Since the essence of all successful business, government and
philanthropy at the close of the twentieth century is “relationships,” PR has to be taken more seriously and used more fully
and creatively. If it is, marketing should be more thorough and
successful, and advertising will be more focused and creative.
“To me, the future leads to an integration in which the relationships on the old PR side have to expand to include emotional
connections,” Rossie says. “The ‘transactions’ on the old
marketing side will have to expand to create or support
relationships beyond plain cash exchange, and all of the
messages to inform or persuade – including direct and indirect
advertising – must meld together.
“This means that maybe the person who produces the online
computer newsletter, and the person who writes the speeches
for the bosses to put on video, and the person who buys the
pop-up advertising online may have different roots, but will
look more like each other in 25 years than they did 25 years ago.”
It promises to be an exciting 25 years. But communicators had
better buckle up for the ride!

Notes

Case 3
Is Celebrity Advertising Effective
By Business Standard

What are the benefits of representing India in the national
cricket team? It is an opportunity to compete with the best in
the world and pitch one’s talent against the best.
It is an opportunity to travel around the world. It is an
opportunity to uphold national pride. And make good money
from every match played. But there is more — a ticket to
modelling in the advertising world (and a future perhaps in
Bollywood). Not surprisingly it’s a very attractive profession.
As advertisers pour crores of rupees every year into celebrity
advertising, the question arises… is it worth all the money and
the headaches of coordinating stars and managing their
tantrums.
Think of Sachin Tendulkar. He means Pepsi in soft drinks,
Boost in malted beverages, MRF (MRF.BO, news) in tyres, Fiat
Palio in cars, TVS Victor in two-wheelers, Colgate (COLGd.BO,
news) Total in toothpastes, Britannia in biscuits, Visa in credit
cards, Airtel in mobile services and Band-aid.
Clearly, an overload of brands and categories associated with
one star. Does it actually help each of the brands? Does the
consumer think in categories and slot brands accordingly or is it
one big maze of brands and saliency is dependent on recency.
Interestingly, while celebrity advertising is big, few agencies
actually present celebrity advertising as a solution to client
problems. In the advertising world, celebrity advertising is seen
as a substitute for ‘absence of ideas’ — and actually frowned
upon. Yet it appears again and again.

There is no doubt that celebrity advertising has its benefits —
the four Qs:
Quick saliency: It gets cut through because of the star and his
attention getting value. Goodlass (GDLA.BO, news) Nerolac
has ensured high saliency for its brand with the inclusion of
Amitabh Bachchan in its advertising.
Quick connect: There needs to be no insight but the communication connects because the star connects. Sachin, Shahrukh and
their ilk’s ensure an easy connect for Pepsi with the youth.
Quick shorthand for brand values: The right star can actually
telegraph a brand message fast without elaborate story telling.
Kapil Dev and Sachin Tendulkar seem to have done that
successfully for Boost in the early ’90s. And helped to differentiate it in the malted beverages market.
Quick means of brand differentiation: In a category where no
brand is using a celebrity, the first that picks one up could use it
to differentiate itself in the market. Boost did it in the malted
beverage category.
And Preity Zinta does all the above four for Perk — connecting
with the youth and reinforcing the brand’s youthful, spontaneous, energetic values.
There are however the classic fears of celebrity usage.
The celebrity vampires the product: Unless the celebrity’s values,
the category benefit and the brand values are closely linked, there
are chances that the celebrity is remembered more than the
brand he is advertising for.

The reasons are quite insightful.

And in a celebrity clutter, the chances that the brand and category
can be remembered become even more difficult for the average
consumer. Pepsi and Lux tend to use multiple celebrities in an
attempt to overcome this.

A client hits upon celebrity as a solution when his agency is
unable to present to him a viable, exciting solution for his
communication/marketing problem. He then feels that the
presence of a well-known face is an easy way out.

The celebrity trap: Once into a celebrity, it is hard to get out of
it. If the brand has done even moderately well after the break of
a celebrity campaign, it becomes difficult to separate the role of
message and the role of the celebrity in selling the brand.

A client looks at a celebrity solution, sometimes, to follow
competition. When attacked with a celebrity, a quick response is
to get another one to combat. The result is often, at best,
achieving parity.

And hence, the celebrity becomes an addiction for the marketing
team. And the task to find substitutes becomes more and more
difficult. Interestingly, celebrity is a disease that is seen to spread
across a marketing department. Once one brand manager gets
into it, others tend to follow, not wanting to be left behind!

A third, and often unfortunate, reason for celebrities is a client’s
desire to rub shoulders with the glitterati. And signing a
celebrity is a passport to that. Most frequently, celebrities are
given as ‘fate accompli’ to the agency. And scripts are written
around them.
It is rare that there is an idea on the table and client and agency
mutually agree that the presence of a celebrity will actually lift the
script. This is very similar to Bollywood blockbuster films
where the cast is decided upon and the script either written
accordingly or re-engineered around the cast!

With the surfeit of celebrities on screen and in the newspapers,
there are two new drawbacks emerging for celebrity usage.
Celebrity credibility is coming under question. Consumers are
getting more and more advertising savvy and are beginning to
voice opinions, even in small towns, like “He has been paid to
sell the product”. Clearly celebrity endorsement is no longer as
credible as it was a few decades ago.
Unless category and celebrity are closely linked (like Nike and
sports stars), the power of a celebrity’s word is questionable.

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LESSON 40:
CASES STUDY

ADVERTISING MANAGEMENT

The trustworthiness of public figures, which celebrities tended
to bring in the past, is bound to disappear if a celebrity begins
to appear and endorse a brand in every conceivable category!
Celebrity clutter. With each celebrity endorsing multiple
products and multi brands in a category, resorting to different
celebrities, the consumer is left confused. And reluctant to get
into ‘this celebrity is bigger than that comparison’ to make
brand choices.
Santro is endorsed by Shahrukh Khan and Palio by Sachin
Tendulkar… does the consumer buy the brands because of the
star pull? … a question worth pondering about. It ends up
making brand parity rather than giving brand differentiation,
often one of the key aims of using a celebrity.
When Palmolive used Kapil Dev in the ’80s, his line ‘Palmolive
da jawaab nahin’ became famous — it is remembered even
today. Pataudi gave Gwalior suitings a strong competitive edge
and pushed it to Number 2 in perceptions in the suitings
market.
Even Sridevi made Cema bulbs and tubes memorable by
dancing in a bulb! The advertisements by themselves were fairly
non-descript; the celebrities gave the brand the differentiation.
Celebrity advertising were few and far in between in those days.
The days of ‘pure’ celebrity working for the brand seem to be
over.
Today, it is back to the power of an idea and an insight. No
simple solutions exist any longer. Unless there is something
powerful in the idea, the celebrity is just another cost.
Aamir Khan and Coke is the ultimate example of the same. As
long as the brand depended on his star value and wove
interesting stories around him, it just didn’t cut ice with the
consumer — until ‘Thanda Matlab Coca-Cola’ happened. Could
it have worked as well without a celebrity? One will never know
as the brand has entered the celebrity trap.
Something worth thinking about.
madhukar.sabnavis@ogilvy.com
(The writer is Country Manager – Discovery, Ogilvy and Mather
India)

Case 4
If the medium is indeed the message, why is media planning
not at the heart of the communication process? Why are the
media function still seen as an important but a peripheral player,
a kind of quantitative outhouse in the main agency compound?
Why is it the perennial postscript at presentations (“And finally,
we will do media if we have the time”)? To be sure, media has
evolved dramatically. We all know how the media landscape has
changed. The media explosion and the resultant media
fragmentation has given rise to a new, even more dazzling set
of acronyms that the function can befuddle its audiences with.
Structurally the function has changed, the business model has
changed as have tracking methods. In short, virtually everything
has changed.
And yet, what this change seems to have accomplished is to
push media even more into isolation. It has become a more
specialized island, where mainland laws do not apply. It is a
code language that specialists whisper to each other while

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everyone else in the room furtively looks at their watches. Maybe
there is nothing wrong with this.
Maybe media has become too complex a subject for generalists.
Maybe the wise thing to do is to let media as a function evolve
on its own as a full discipline in its own right
and here lies the paradox. There are enough respected thinkers
who believe that media plays the primary role in communication. That content is nothing and media is everything. Marshall
McLuhan is the most celebrated among a band of media
determinists who believe that media has impacted society much
more than the content it carries. And that every medium has its
own implicit language through which it effects the viewer.
At a commonsensical level, this is not new to us. We know that
the same message carried in print produces a different effect
than if carried on television. And likewise for all media. The
question is, how much do we know about these differences?
Apart from clichés like ‘newspapers are good for topicality and
magazines retentivity (a word created unmistakably by media
planners), how well do we really understand the effect media
has on people?
The truth is that our conception of media is that it is a passive
vehicle, an inert deliverer of a ‘potent’ message. Its role is to
bridge the distance between the message and the receiver. Its
effectiveness is judged on the basis of how many people it
delivers the message to at what level of intensity and cost. All
measurement of media effectiveness relates to how well the
message is transmitted and not how well it is received. Media is
thus seen as a ‘dead’ intermediary, a mere postman in the core
communication process. The larger problem lies in our
definition of what constitutes media. Again we define the
tangible carriers of message as media. What about typography?
Typography is, in fact, a medium; choosing one font over
another is conceptually like choosing one medium over another.
Only here, the evaluation is not based on reach and frequency
but on which font best conveys the intent of the message.
Typography is a good way for us to grasp the full conceptual
meaning of media. Like all media, a font is a carrier of a
message, but one that transforms the message itself. Imagine
the Sony logo in a thin elegant typeface; it would forever alter
the meaning of that brand, without any change in any other
message.
In a similar way, the cartoon is a medium. It has its own
language and produces its own distinctive effect. A mouse
beating the brains out of a cat is considered funny, for one. A
music video is likewise a medium for a similar set of reasons.
By the same token, a 30-second commercial is a medium and,
that too, one distinct from a 10-second commercial.
When we define media in terms of tangible carriers of messages, we inevitably focus largely on numbers. Since it is
assumed that the only effect media has on people is that it
faithfully transports a message, the evaluation is quantitative:
how many people it reached how many times.
Even the qualitative parameters used – finding a fit between the
environment and the message or ensuring that the message is
delivered at a time when the receiver is most receptive — are not
derived from the transformational role that the medium itself
plays.

Oral cultures, on the other hand, do not separate thought from
action, and respond instantly and with emotion. The oralwritten difference is at the heart of the East-West divide in the
way each think and what they respond to. The implications of
this perspective are quite interesting. Given the fact that India
has been an oral culture, what kind of message do we as a
people respond to? What narrative styles are we instinctively
more comfortable with?
The Hindi film structure tells us that we certainly do respond to
a unique narrative style. Befitting an oral culture, our films are
dramatic and decidedly non-linear, unlike western films. The
power of music is another pointer to what we respond to.
The challenge for us is to understand the full scope and power
of media and to cascade it back on to the message strategy.
Currently, no one in the communication planning process
understands how media and people interact. This could lead to
completely new perspectives. For instance, we could segment
the audience not by demographics or psychographics or even in
terms of what they buy or watch but on the basis of how they
consume media, how they process information. Again this is
not really new, but we know for instance that different children
learn differently. Some learn by rote (oral culture strikes again),
others by writing, and yet others by analogies. Why not use this
understanding in defining media segments?
This would conceivably lead to defining people from a true
media perspective, which is not from the transmission but at
the reception end. It would also take media into the heart of
the strategic and creative processes where it rightfully belongs.
Is this a point of view that makes sense conceptually but is not
really relevant in the real world? Not really. We all know that the
30-second commercial is no longer the cornerstone of the
communication mix. The brand will increasingly communicate
through non-traditional means. Already events, promotions,
brand ambassadors and their ilk are eating into budgets of
what we traditionally define as media. We must be able to
evaluate whether Rs 3 crore are better spent on a commercial or
on roping in Shah Rukh Khan as a brand ambassador. If the
media function stays stuck in its narrow definition of what it
calls media as well as in evaluating everything primarily on the
basis of numbers, it will find itself addressing an ever-smaller
share of the communication pie.
The basis for evaluation has to shift to determining which
‘medium’ produces the best effect. The media strategists of
tomorrow must become focused on how people receive
messages, regardless of which source they come from. It calls
for a radical overhaul of the media mindset, a willingness to
acquire new skills and a desire to embrace a new intellectually
more challenging role.

Case 5
Fido’s Second Coming
7-Up’s mascot is back after a 10-year break to add punch to the
clear lime segment which is on the fast track to growth.
In 1987, Joanna Ferrone and Susan Jones — both advertising
professionals — sat at a roadside cafe in New York’s Greenwich
Village and, on a creative impulse, doodled on a napkin. This
was the birth of Fido Dido — in India, better recognised as the
scrawny, no-holds-barred, ultra-cool 7-Up mascot.
Circa 1992, when Pepsi launched 7-Up in India, the campaign
relived the Greenwich Village episode — model Sheri Meher
Homji sits in a cafe and, while sipping on 7-Up, doodles on a
napkin. Only this time, Fido doesn’t wait to be created: in his
half-drawn state, he darts out of the napkin, snatches the pencil
from the model’s hand and completes himself. Then, he goes
on to pour himself a drink of 7-Up. This campaign ran for two
years. Then, Pepsi tells you, Fido took a break.
The official story is that the company believes in “constant
innovation” and that none of its taglines have remained
“constant” — the only exception being brand Pepsi’s “Yeh Dil
Maange More” positioning.
The reason, says Shashi K Kalathil, executive director, marketing, Pepsi Food Private Limited, is that the soft drinks category
is a “high-impact one where you can get stale very quickly” and
the target audience is a “highly promiscuous set of young
people who are always falling in line with changing tastes and
value”.
But starting April this year, Fido is back. “The current campaign
is almost a frame-by-frame copy of the previous one, only it
features a different model,” says Kalathil.
Before we analyse the campaign’s logic and figure out the
reasons for Fido’s resurrection, here are a few facts about his
association with the brand. Fido became the mascot in the US
in 1988, a year after he was born. The Indian communication
started in 1992, at the time of the brand’s launch here. The Fido
campaign was taken off the air in the mid-nineties — worldwide.
Fido, the trademark, is not owned by 7-Up — the brand uses
him from time to time. The US campaign, which is again pretty
similar to the Indian one (“Our marketing is in complete sync,”
says a Pepsi spokesperson), is created by BBDO. In India, ad
agency HTA borrowed the whole concept and gave it an Indian
setting. And significantly, in the US brand 7-Up is not a Pepsi
brand, but a Cadbury Schweppes’ one — in India, Pepsi has
bought out the company, so it is part of the Pepsi portfolio.
Now, why is Fido Dido back in the reckoning once again?
“When we sent him on the sabbatical, it was understood that
he would be brought back again — it was only a matter of
time,” says Kalathil. Brand research over the years threw up one
overwhelming indication: Fido Dido was the most visible and
enduring face of 7-Up. “What is interesting is that Fido’s appeal
straddles generations — he is not a time-bound entity.
For instance, the early nineties’ kids are now teenagers, and they
all associate the brand with Fido. What’s more, the teenagers
then who are adults now feel the same way,” he adds.

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And this role is critical. Walter Ong uses the example of
morality and literacy to make this point. The medium of
writing has profoundly changed the world. Writing allows us to
separate thought from action, logic from emotion. It allows us
to not react instantly but to formulate our thoughts and place
them in a structure. It robs our reactions of their immediacy
and hence postpones emotion.

ADVERTISING MANAGEMENT

Fido may be the King of Cool, but there’s more to him than
that. “He is a highly evolved and fleshed-out character,” says
Kalathil. According to him, the brand properties of 7-Up match
up to Fido’s persona: 7-Up is “natural, clear, refreshing and
sparkling” — all these find brand extensions in Fido: “true to
himself, simple, chilled out, quick-witted”.
Let’s consider the carbonated soft drinks (CSD) market in India.
The industry is pegged at Rs 6,000 crore in terms of consumer
spend (for the calender year 2002). The clear lemon category —
where 7-Up belongs — is approximately 6 to 7 per cent of the
industry.
This category is experiencing a strong double-digit growth. In
fact, 7-Up grew by 50 per cent in the last year (the industry per se
grew at 25 to 26 per cent), and now has a 54 per cent share in the
category (the main competitor is Sprite, a brand owned by CocaCola India).
“The main reason for the growth is that the cola segment has
now hit saturation point with marketing games being played to
the hilt,” says Kalathil.
Like Fido did in the nineties, the cola segment is probably going
to take a break from fast-paced growth. The time is right to
market the lemon segment, which in India has historical
implications. Nimbu paani is still the most popular “unofficial”
drink. Lemon is widely considered a good digestive for heavy
Indian cuisines. And so on.
The new thrust on the lemon segment is being helped by
Pepsi’s claim that Fido had been “sharpening his wits” while he
was lying low. So what’s in store for the brand?
For starters, Pepsi is doing aggressive ground promotions and
street hoardings in pockets that are 7-Up’s strongholds — the
south (Tamil Nadu and Andhra Pradesh in particular) and the
east (Orissa). Then, the retailing strategy is being given a
makeover.
In 7-Up’s high-selling pockets, there are special danglers and
bottle holders, which serve as points of purchase. For instance,
the rack is a cut-out of Fido and 7-Up bottles are displayed
strategically so that you get to view both the mascot and the
brand.
There will also be new packaging. For instance, the 1.5-litre and
2-litre PET bottles of 7-Up will brandish the five
“Fidosophies” (which embodies the 7-Up core brand values):
(1) It’s cool to be you, (2) Normal is boring, (3) Your best
friend is your head, (4) Dare to be different, and (5) Life is
short, live it up!
Then there is a radio communication being planned. With FM
getting a boost in India, Pepsi plans to target consumers
through FM in all cities which have access to it.
How has the campaign fared? Has Fido received a hero’s
welcome? “It’s early days yet to track that but whatever initial
feedback we have received has been extremely positive: people
were delighted to see Fido back,” says Kalathil.
Based on the above write down the marketing and advertising
plans chalked out by the company? Understand all the elements
like positioning, media plans, etc. You should be able to come
up with a print advertisement for the above brand and also

210

create an advertisement for hoardings in your city. Attempt to
understand as to where would you like to place 4 hoardings in
your city.

Case 6
A Saga of Hackneyed Efforts
Fund advertisements lack differentiation and suffer from
positioning blues.
For mutual funds in India, advertising has always been a
handle-with-care affair. With the Securities and Exchange Board
of India (Sebi) keeping an eagle eye on every campaign,
advertisers have preferred to play it safe to avoid making tall
claims. In the bargain, most of the 30-odd mutual funds have
been repetitive in their ads, and thereby lack differentiation.
For example, take the case of slogans. LIC Mutual Fund
promises to be “With you, all the time”, while SBI Mutual is
“A partner for life”. CanBank Mutual will be “Together, for
long-term prosperity”.
Private players, with their multinational connections, have not
been able to make a difference, either. While DSP Merrill Lynch
calls itself “A 100 per cent money manager”, Franklin
Templeton Investments speaks a language that will “Take
money off your mind”.
If you thought financial advertising was different from fast
moving consumer goods (FMCG) and consumer durables
advertising, sample this. Globally, Allianz positions itself as
“The power on your side”, the French financial services
company AXA adopts a more in-the-face advertising with the
punchline, “You, you, you and us”.
Ajay K Kakar, executive director and head, financial practice,
Ogilvy and Mather (O&M), says, “Mutual funds are as much a
365-day product as chocolates or colas. FMCGs and durables
companies have realised this and are reaching out to the
consumers consistently.”
But financial services companies are beset with budget considerations. Ad executives estimate that the industry would have
totally spent as little as Rs 30 crore in the entire last year on mass
media (TV, print, hoardings, radio and Internet). Even a private
mutual fund executive admits, “Most advertising for mutual
funds in the country is typecast.”
Kakar is particularly critical of the sporadic bursts of advertising,
a strategy employed by most funds. In the early 2000 when
markets were booming, most funds came into the limelight for
delivering their hard-sell. But as the markets crashed, most
funds stopped advertising, giving rise to the notion that
mutual funds are partners only in good times.
To be fair, fund managers have their own share of hurdles
while sending their product message across to the consumer.
For instance, mutual funds are governed by product parity. Any
new scheme that hits the market can be easily duplicated. Ditto
with advertising. There is little the industry can do about it.
Shridhar Narayan, director, Commugrads, an agency specialising
in mutual fund advertising, says, “Investment opportunities are
the same for all players. It’s only the risk appetite where players
can make a difference.”

Point taken. But there are other reasons where regulations often
play the spoilsport. For example, Sebi rules specify that fund
managers must “avoid future forecasts and estimates of
growth”.
This is the point where advertising professionals such as
Yubaraj Bhattacharya, group account director, Leo Burnett, see
an obstacle as such curbs do not allow fund managers to make a
promise as to returns. After all, every investor is bothered only
about the future of his investments.
For foreign companies such as Australian firm AMP, and others
such as John Hannock, the importance of a comfortable future
plays the central theme in their communication. Take a look at
one AMP commercial. The television spot showcases a young
woman in an empty quadrangle. An old woman soon enters
the scene and tells the former everything that has happened in
her life till date, with the precision of a soothsayer.
As the young lady wonders how a stranger knows something
about her personal life, the old lady confesses, “I’m you, thirty
years from now”. And a John Hannock commercial is focused
on a baby cradled comfortably in the hands of its parent to
show how the future could be secure.
The signals from international advertising are clear. Emotions
always play a predominant part in advertising. “The purpose of
mutual fund ads should be to generate conviction among
investors,” says Bhattacharya.
An advertising professional points out, “Not a single Indian
fund has communicated in this manner. Only Prudential ICICI
has consistently attempted to build bonds with the consumer.”
The case in point is the Prudential ICICI commercial which
shows a kid being sent to pre-primary school. As tears roll
down the cheeks of the girl at being separated from her father,
the parent re-enters the classroom to allay her fears.
The campaign created by Ogilvy and Mather has been just one
of the commercials that have managed to stand out among a
raft of many tacky financial advertisements. Bhattacharya points
out that the analogy of sending kids to school is apt for a
mutual fund ad, because a school gives a good environment
and a good education. However, it cannot guarantee anything.
The LIC Mutual Fund ad is one such example. In a television
ad, an individual taking part in a game of hoopla manages to
circle the target only after being hand-held by a professional.
Such commercials only manage to lower interest in a category
where consumer interest has never attained exceptional heights.
There are other reasons that slow down the pace and take the
gloss away from mutual fund advertising. Under the regulations
for advertising in satellite television, any product or service
provider has to satisfy a minimum export commitment over
two years, before he is permitted to advertise. This is in lieu

with the forex considerations, as satellite television service
providers have to be paid in foreign currency.
Then there is a blanket ban on celebrity endorsements for
mutual funds. Ad executives point out that these serve as
disincentives for advertising.
If ad professionals are to be believed, no mutual fund has
clearly targeted the retail customer till date. This is because new
mutual funds get critical mass from big-ticket investors who are
usually corporates.
Bhattacharya estimates that nearly 80 per cent of the corpus
would be contributed by institutional investors. This is
probably the case, as apart from critical mass the institutional
segment also attracts a comparatively lesser cost of servicing
compared to the retail investor.
However, this is an area where industry observers such as Kakar
see the need for mutuals to build a strong brand. The logic : if a
big-ticket investor exits from a fund, it could shake the fund’s
foundations. This will not be the case if a large pool of small
retail investors support the fund.
An advertising executive points out that much like the banking
industry where players such as ICICI Bank and HDFC Bank or
even the international players such as StanchartGrindlays or
HSBC have been concentrating on the retail sector in recent
times, mutual funds will have to follow the same path.
Add to this the increasing media costs. Another mutual fund
executive points out to the decreasing size of broadsheet
newspapers that has added to media costs. For instance, if an
advertiser got 100 column centimetres (cc) of space in a
newspaper earlier, today he gets only close to 75 cc at the same
cost. This is because though the size has decreased, newspapers
still follow the same eight column format.
Then risk factors are a part and parcel of mutual fund ads. For
instance, in a 100 cc ad of Alliance Capital’s Frontline Equity
Fund, nearly 20 cc was consumed by the issue details. In
another 100 cc ad introducing the short-term fund of DSP
Merrill Lynch, 40 per cent of the ad space was about the issue
details.
But that is because unlike in the west, the Indian mutual fund
industry is still nascent, hence they have to target customers by
providing all the details.
So what is the typical profile of an Indian retail investor? A
survey by the advertising agency, Leo Burnett, among 730
middle class Indian males in the age-group of 25-40, indicated
that nearly 55 per cent of the respondents were “extrovert,
thinking, judging and sensing type”.
This personality type lives in a world where abiding by the
standard operating procedures was a primary tenet. For them,
following protocol is the right path to leading a happy and
rewarding life. Money for this personality type is something that
had to go into devices that assure a solid foundation and long
term security. Money must grow in the long term, however
slow the growth may be and he would not be able to live with
an irresponsible and risky decision.
Naturally, this consumer is drawn towards companies which
speak the language of responsibility, soundness, solidity and

211

ADVERTISING MANAGEMENT

An executive at GIC Mutual Fund finds Sebi regulations as the
reason behind the plain vanilla advertising. He says, “Advertising that is barred will often be boring.” However, there are
others such as Ambareesh Murty, associate vice-president,
marketing at Prudential ICICI Asset Management, who feel
that “regulations keep up responsibility levels in the industry”.
“Regulations do not conflict with advertising as good advertising is all about the truth,” Murty adds.

ADVERTISING MANAGEMENT

long term. But to grab his attention, as Kakar says, it is
necessary to speak to the customer in a language that he is
prepared to listen.
Vinod Chacko, account director, O&M, adds, “Funds have to
spell out that the offerer (fund house) is bigger than the
offering.”
An advertising executive points out that as the customer’s
stated need for safety, liquidity and return cannot be fulfilled
through advertising owing to Sebi guidelines, then the unstated
need of “peace of mind” is something that mutual funds
should aim for. This was precisely what Standard Chartered
mutual fund aimed at when it took up the positioning of
‘peace of mind’ through visuals of individuals with their eyes
closed as a form of relaxation.
However, as fund officials and ad executives put it, it has also
sent mixed signals about investing with your eyes closed
(nobody exhibits blind faith when it comes to money).
However, there have also been examples of good advertising.
For example, several advertising executives laud the efforts of
PruICICI for its ‘hand’ advertisement which summed up the
investment culture of the retail investor.
Developed initially as an Internet advertisement by Mediaturf,
the ad was rolled out across mediums to include print, hoardings and even television. Even the Allianz ad on television,
which focus on the fortune lines of a palm strike the right
chord. The Birla Sun Life Mutual Fund ad where a prospective
groom asks the picture of his mother-in-law (just to draw a corelation as to how his to-be wife would look like 30 years down
the line) is another case of advertising that stands out.
So what is the right track that mutual funds could take? Kakar
feels that advertising should be educative. According to him,
companies have to move away from advertising “why me” to
talking “why mutual funds”.
This suggestion finds approval from other executives. In fact,
advertising agencies suggest that the Association of Mutual
Funds in India should be the flagbearer for such a campaign.
Importantly, the advertising should be consistent keeping in
mind that the product could be bought throughout the year.
But there is hope. Recent radio commercials such as the
PruICICI ads, which answer basic questions such as “What is a
mutual fund?” and “What is an NAV?”, along with
Mindstorm, an investor education series initiative from IL&FS
mutual fund, are indicators that mutual funds are taking some
initiative on the educational front. It remains to be seen
whether small beginnings result in great endings.
Prasad Sangameswaran

Notes

212

“The lesson content has been compiled from various sources in public domain including but not limited to the
internet for the convenience of the users. The university has no proprietary right on the same.”

Jorethang, District Namchi, Sikkim- 737121, India
www.eiilmuniversity.ac.in

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