BSSS-Institute of Advanced Studies

Study/Reading Material

Course Name: Advertising Management

Course Code: FSM – 2 Batch: 2022-24

CEOs :1. To develop knowledge related to theoretical concepts & terminologies of

Advertising Management

2. To acquire an ability of understanding Advertising Management.

3. To device knowledge related to Advertising Management

4. To apply concepts of Advertising Management & its factors which

influence Consumers & Companies

5. To evaluate the business strategies from Advertising Management

perspectives.

COs: 1. Translate the conceptual knowledge of Advertising Management into

practical understanding.

2. Student will able to identify the Advertising Management concepts and

Market dynamics

3. To create an understanding of Advertising Management and its intricacies

4. Ability to implement the Advertising Management tools &frame-works in

practical scenario.

5. Ability to evaluate and develop decisions related to Advertising domain

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COURSE CONTENTS:

UNIT – 1

Introduction

Advertising is a public announcement to inform and persuade people to buy a

product, a service or an idea. An advertisement would include any notice, circular,
label, wrapper or any other document or any announcement made orally, or by means
of producing or transmitting light, sound or smoke. Advertisements are seen in
newspapers, magazines, on television and internet and are heard on radio. The
average consumer is exposed to a very large number of advertisements every day,
particularly the urban and semi-urban population.

Definition of Advertising

According to William J. Stanton, "Advertising consists of all the activities

involved in presenting to an audience a non-personal, sponsor-identified, paid-for
message about a product or organization."

According to American Marketing Association "advertising is any paid form of

non-personal presentation and promotion of ideas, goods and services by an
identified sponsor".

According to Webstar, “Advertising is to give public notice or to announce

publicity”.

According to Gardner, “Advertising is the means of mass selling that has

grown up parallel with and has been made necessary to mass production”.

Functions of Advertising

Advertising has become an essential marketing activity in the modern era of

large-scale production and severe competition in the market. It performs the following
functions

a) Primary Functions
b) Secondary Functions
c) Social Functions
Primary Functions:

• Create brand/product awareness: Creating brand and product awareness is

one of the primary functions of advertising. This involves introducing a brand
or product to a target audience and making them aware of its existence,
features, benefits, and value. Advertising serves as an introduction to new
brands or products, especially in markets where consumers might not be
familiar with them. It lays the foundation for potential customers to learn about
the offerings.

• Informs about changes in product: When a brand introduces new features,

improvements, or updates to an existing product, advertising is used to
communicate these changes to the target audience. This ensures that customers
are aware of the enhancements and understand how they can benefit from
them.
• Announces special offers and schemes: Announcing special offers and schemes
is a vital aspect of advertising. This function involves using advertising to
inform and entice consumers about limited-time deals, promotions, and
incentives. Advertising effectively communicates the limited availability of
these offers, motivating customers to make a purchase sooner.

• Reminds users: It serves as a tool to keep a brand, product, or service at the

forefront of consumers' minds and encourage them to take action. Advertising
helps maintain a brand's presence in the minds of consumers. By consistently
seeing advertisements, users are more likely to think of that brand when
considering relevant products or services.
• Helps to neutralize competitors advertising: Brands often use advertising to
counter the impact of their competitors' marketing efforts and maintain or
regain a competitive edge. Brands may use advertising to directly compare
their products or services to those of competitors. This approach highlights the
strengths and advantages of their offerings, aiming to diminish the impact of
competitors' claims.
Secondary Functions

• Helps to boost the morale of salesmen and employees: Advertising campaigns

often highlight the company's products, services, or achievements. When
employees see their organization's success being promoted in the market, it can
instill a sense of pride and recognition for their contributions. Advertising can
create excitement and enthusiasm about the products or services being
marketed. Sales teams may find it easier to engage with potential customers
when there is already a buzz about the offerings, which can be motivating and
energizing.
• Reaches customers left by salesmen: Sales teams often have geographical
limitations, and they may not be able to reach customers in distant or remote
areas. Advertising, on the other hand, can transcend geographical boundaries
and reach customers in various locations, including those not covered by sales
teams.
• Announces location of dealers and stockists and supports them: Advertising
plays a critical role in announcing the location of dealers and stockists and
providing support to these essential partners in a business's distribution
network. Advertising campaigns can be designed to support dealers and
stockists by offering promotional materials, discounts, or special offers that
they can pass on to customers.

Social Functions

a) Public Service Advertising (PSA): One of the most direct ways advertising
contributes to solving social problems is through public service advertising
(PSA). Advertisers, media outlets, and non-profit organizations collaborate to
create PSAs that raise awareness about important issues like health, safety,
education, and social justice. These messages aim to change behavior, promote
positive social change, and provide information to the public.
b) Social Awareness Campaigns: Advertisers and organizations often run
campaigns to draw attention to specific social issues, such as environmental
conservation, poverty alleviation, or equality and diversity. These campaigns
use advertising techniques to engage the public, inspire action, and drive
change.

c) Education and Advocacy: Advertising can be a powerful tool for educating the
public about social problems, their root causes, and potential solutions. It can
also advocate for policy changes or encourage people to take action, such as
voting in elections or participating in community initiatives.

d) Crisis Communication: During crises such as natural disasters, public health

emergencies, or social unrest, advertising can be used for crisis communication.
It provides information, guidance, and support to affected communities.
 e) Behavioral Change: Advertising can encourage positive behavior change by
promoting healthy habits (e.g., quitting smoking, eating well, exercising),
responsible drinking, and safe driving practices.

Role of Advertising in Marketing

Ethical Aspects of Advertising

Advertising is a powerful and pervasive communication tool that influences

consumer behavior, shapes cultural norms, and can have significant ethical
implications. Ethical considerations in advertising are crucial to maintaining trust
between businesses, consumers, and society at large. Here are some key ethical aspects
of advertising.

a) Puffery Advertising: Puffery refers to a usually harmless amount of

exaggeration in sales and marketing materials. Puffery is a statement that uses
exaggeration and/or hyperbole to promote a product or service. While puffery
is considered legal advertising, it becomes illegal when it crosses the boundary
of false advertising. A few common examples of puffery advertising you may
have heard:
✓ World’s best product.
✓ Best in the business.
✓ Tastes better.
✓ Looks better.

b) Subliminal Advertising: Subliminal messages in advertising are designed to

engage people subconsciously. These ads use various colours, shapes, and
words that enable customers to make small but powerful associations between
a brand and an intended meaning. Example: SFX is a sci-fi magazine that began
in 1995. The mag focuses on sci-fi and fantasy news -- and some subliminal
messaging to attract readers. Many sites have reported that the SFX logo often
appears different when women are on the cover, making the reader view the
title as "SEX."
c) Surrogate Advertising: Surrogate advertising is a marketing technique used by
companies to indirectly promote their products or services, which are
prohibited or restricted from advertising directly. Surrogate advertisements
promote a brand or a product that is similar to the banned product, but not the
same, in order to create brand awareness and visibility. Surrogate advertising
is commonly used in industries such as alcohol, tobacco, and gambling, where
direct advertising is either illegal or highly regulated. For example, a company
that sells alcoholic beverages may advertise its brand of mineral water, which
carries the same logo and brand name as the alcohol product but does not
mention the alcohol product itself.

d) Weasel Claim Advertising: Weasel words are vague, ambiguous, or misleading

claims packaged as definitive statements. They can make your customers feel
that you said something meaningful even when you did not. Commonly used
weasel words include "helps" (the champion weasel); "like" (used in a
comparative sense); "virtual" or "virtually"; "acts" or "works"; "can be"; "up to";
"as much as"; "refreshes"; "comforts"; "tackles"; "fights"; "come on"; "the feel of";
"the look of"; "looks like"; "fortified"; "enriched"; and "strengthened."
✓ "Helps control dandruff symptoms with regular use." The weasels include "helps
control," and possibly even "symptoms" and "regular use." The claim is not
"stops dandruff."
✓ "Ayush fights germs." "Fights/removes," not "stops."
e) Stereotype Advertising: A set idea that people have about what someone or
something is like. Most ads are stereotypes giving a stereotypical message to
the audience. Consequently, society starts following and accepting that notion
assuming it to be the culture of the society. Advertisements can be one of the
best tools for changing society. But instead of giving out the right message most
of the ads convey a stereotypical message. Example: Home-appliance ads like
those of refrigerators, washing machines, mixture grinders, exhibit only
females to be the consumers. This conveys the message that women are meant
to be in the kitchen and do all those chores. Even if there are men in some ads,
they never seem to use the products. They are mostly seen standing with their
wives, who are the ones using those appliances. This gives a stereotypical
message to the audience that, yes females are made for this and males are meant
for that.

f) Offensive advertising: Offensive advertising is an act and/or a practice that

violates the norm. Offensive advertising includes messages that transgress
laws and customs (e.g., anti-human rights), breach a moral or social code (e.g.,
profanity, vulgarity) or outrage the moral or physical senses (e.g., gratuitous
use of violence, use of disgusting images). Brands today are doing anything
and everything in their control to go viral and make an impact on their
consumers, but what about going viral for the wrong thing? Offensive
 communication through advertisements, products, or marketing strategies is
something that is disliked by consumers and leads to negative actions like −
✓ Boycotting of the product or service manufactured by the brand
✓ Spreading negative word of mouth regarding the company and its
positioning.
✓ Turning a blind eye to other advertisements and strategies by the
company.
✓ Defaming the company in public forums
✓ Boycotting the products of the umbrella brands

Dove is usually very forward-thinking when it comes to body positivity

and inclusivity in their advertising. However, this distasteful ad proves that
even the titans fall every now and again. In 2017, the cosmetics company
released print ads showing a dark-skinned woman removing her shirt to
become a light-skinned woman. Dove apologized for the ad after the hashtag
#BoycottDove was trending on Twitter.

g) Sex Appeal Advertising: Sexual appeals have been a part of marketing since
the introduction of modern advertising. This technique is often used in
conjunction with bandwagon mentality, repetition, or alleged subliminal
messages. The use of sex appeals is an increasingly popular technique to sell
products, namely those that are image-based, such as candy, liquor, cigarettes,
jewellery, fragrance, cosmetics and fashion goods. Sex appeals seem to capture
the attention of the viewer, which is one of the primary goals of advertising.
Considerable research has been done on ethics in marketing, partly because
marketing is the business function most often charged with unethical practices.
The discussion gets more complex when sex appeals are used in the teen
segment.
Legal Aspects of Advertising

Like any other profession, the advertising field is also governed by the laws
and enactment governing the mass media. There are, however, certain laws and
specific legislative enactment, that are directed specifically at the industry which
"determine both the broad framework within which the industry is allowed to operate
and the content of its output," Some of these are:

h) Section 292 and 293 of the Indian Penal Code, 1860, prohibit the dissemination
of any obscene matter.
i) The Indian Post Office Act, 1898, imposes a similar prohibition on the
transmission of obscene matter through the post.
j) The Customs Act, 1962, allows the detention and seizure of any obscene matter
sought to be imported into the country.
k) The Young Persons (Harmful Publications) Act, 1956, prohibits the
dissemination of publications deemed to be harmful to persons under the age
of twenty years.
l) The Indecent Representation of Women (Prohibition) Act, 1986, forbids the
depiction of women in an indecent or derogatory manner in the mass media.
m) The Children Act, 1960, prohibits the disclosure of the name and address and
other particulars of any child involved in certain proceedings.
n) The Emblems and Names (prevention of Improper Use) Act, 1950, forbids the
use by any private party of certain names, emblems, etc.
o) The Prevention of Insults to the National Honour Act, 1971, forbids the
bringing into contempt of the national flag or the Constitution of India in any
manner.
p) The Indian Penal Code, 1860, prohibits the publication of matters connected
unauthorized lotteries, while the Indian Post Office Act, 1898, imposes a similar
 prohibition on the transmission by the post of such matter. The Indian Penal
Code, 1860, also prohibits the publication of appeals using national symbols for
furthering the prospects of any candidate at an election.
q) The Drugs and Magic Remedies (objectionable Advertisement) Act, 1954,
prohibits advertisements for products and services claiming to cure certain
medical conditions.
r) The Prize Competitions Act, 1955, prohibits the publication of matter with
unauthorized prize competitions, while the Prize Chits and Money Circulation
Schemes (Banning) Act, 1978, imposes a similar prohibition in respect of chits
and money circulation schemes.
s) The Consumer Protection Act, 1986
a) False Advertising: Making false claims about a product or service. False
advertisement is untrue information given to you to get you to buy something,
or to come visit their store. Those who make and sell products must honestly
present their products, services and prices to you. Here are common examples
of false advertising.

b) Comparative Advertising: Making unfair or untrue comparisons between a

product or service and a competitor’s product or service. Comparative
advertising is a marketing tactic which helps to drive brand awareness by
comparing their product or service to a competitor. Comparative advertising
can be executed across media: digital, print, TV, radio, outdoor, and more. As
long as the value of one product or service is being communicated through its
 comparison to another product or service, it qualifies as comparative
advertising.

We’ll wrap up this guide to comparative advertising with another

example from Twitter. Last Halloween, BMW racked up tens of thousands of
retweets and likes when they poked fun at rival auto manufacturer Mercedes-
Benz. As you can see, the tweet features an image of a Mercedes-Benz sports
car wearing a BMW costume. The punchline, naturally, is that the BMW is a
superhero to the Mercedes. Every Mercedes wants to be a BMW.

The BMW social team does a great job of keeping things light-hearted
while still asserting themselves as the superior brand. You may think that a
tweet like this does nothing more than make people chuckle, but remember
this: 53% of consumers say they remember funny ads. If you’re trying to make
a strong impression, taking a page from the BMW playbook might not be such
a bad idea.

c) Endorsements and Testimonials: Using endorsements and testimonials

without disclosing any material connections between the endorser and the
advertiser. Repurposing testimonials in the form of Advertisements is a great
way to make the most out of the customer praise you collect. Whether you turn
your video testimonials into video ads on Facebook or Youtube, or add your
 photo testimonials to sponsored posts online, there are a multitude of ways to
use your positive customer feedback as advertising. When you are using
customer testimonials in advertising there are a few legal considerations to
keep in mind to make sure you’re not breaking the law.
✓ Disclose your relationship with your customer endorser
✓ Convey accurate, truthful claims
✓ Expert or Celebrity social proof must be recognized
✓ Avoid using exaggerated information
d) Children’s Advertising: Advertising to children in a way that is unfair or
deceptive, or that takes advantage of their credulity. Regulation of advertising
to children has largely evolved in recent years as a result of this vulnerability.
Regulatory systems and procedures that deal with various aspects of
advertising exist in most of the countries. The most commonly employed
advertising control procedures are self- regulatory procedures because it boosts
the advertisers to create non defective advertising messages.

Rural Advertising

Rural markets absorb a big chunk of the market in India, and there has been an
impressive increase in the rural market potential owing to tremendous economic
growth in India.

Advertising in rural markets is a quite a challenge because of lack of standard

opportunities; there exists a sense of solidarity and complexity in the rural markets.
Hence, creating an advertising campaign for rural India is often considered a tough
responsibility. Rural marketing is a different ballgame that drives marketing gurus to
unlearn the traditional concepts. Every facet and feature of marketing demands a
refashion when the focus is shifted to rural marketing.

India is a country of about one billion people where more than 70% of the
humankind inhabits in rural areas. The untempered number of the rural population
demands market research for marketing various goods and services. Although almost
about 30% of the Indian population is considered to be improvised, there exists a great
opportunity for essential marketing articles in rural India.

Examples of Rural Marketing

• HDFC Bank’s “Festive Treats” and “Har Gaon Hamara” Rural Campaigns:
HDFC bank which is the brand name in the private banking sector had
 launched “Festive treats”, a financial services campaign last year in October for
providing benefits to the rural customers as part of its rural marketing strategy.
Through this campaign, people of rural areas are now able to avail special
offers on different banking products like loans, saving accounts, and other
deposits, etc., which are specially designed for them by the bank. Similarly,
another rural marketing initiative “Har Gaon Hamara” was also started by
HDFC Bank with the purpose of creating awareness of different financial
products, digital services, and social welfare schemes among rural people.
Further to strengthen this campaign and rural market outreach, HDFC Bank
introduced ‘Har Gaon Hamara’ IVR (Interactive Voice Response) toll-free
number to facilitate farmers for accessing or availing financial services.

• “Experience Hyundai” Campaign by Hyundai: Hyundai Motor India had

launched a rural marketing campaign in India, i.e., “Experience Hyundai”
across 418 rural areas. The objective of this campaign was to generate strong
customer engagement. The campaign was launched to increase the customer
base and to connect more rural audience using a caravan in which Hyundai
cars were displayed in villages and smaller towns.
• “Khushion Ki Doli” by Hindustan Unilever Ltd (HUL): The well-known FMCG
Company, Hindustan Unilever Ltd’s (HUL) campaign “Khushion Ki Doli” also
known as “Caravan of Happiness” was very popular in the rural areas. The
main purpose of this campaign was to establish the HUL brand in dark rural
areas or villages and to develop a deep customer engagement for brand
adoption. Different HUL home care and personal care products or brands were
promoted under this campaign like Surf Excel, Fair and Lovely, Lifeboy, Wheel,
and Close-Up as per the daily needs of rural customers.

• “Accessibility” Campaign by Coca-Cola: The soft drink giant Coca-Cola’s

“Accessibility” campaign introduced “Chota Coke,” which was smaller in size
than the traditional bottle of Coke and that is also at a lesser price. This rural
marketing strategy of Coke helped in closing the gap between Coke and
common refreshments that rural people generally took, like tea, lemonade, etc.
It increased the company’s sales in the rural market by almost 60%.
Integrated Marketing Communication

Integrated Marketing Communications (IMC) is a concept under which a

company carefully integrates and coordinates its many communications channels to
deliver a clear and consistent message. It aims to ensure the consistency of the message
and the complementary use of media. IMC is an integration of all marketing tools,
approaches and resources within a company which maximizes impact on the
consumer mind resulting in maximum profit at minimum cost. It uses several
innovative ways to ensure that the customer gets the right message at the right place
and right time.

IMC Tools

The major Integrated Marketing Communication tools are as follows: -

• Advertising: Companies pay to advertise their service or product to a high

number of people at the same time. Common forms of advertisements include
ads in television, newspapers, direct mail, radio, magazines or online.
• Sales promotion: Sales promotions are short-term incentives to encourage
people to buy a product or service. Examples include coupons, rebates or
games and contests that the public can participate in.
• Public relations: This type of promotion communicates a company’s services
and image to the public. Examples can include news conferences or press
releases.
• Direct marketing: This strategy is a more personal approach, targeting
customers directly through in-person promotions, catalogs, e-mail, telephone
calls or mail.
• Personal selling: Personal selling is also one of the most effective tools for
integrated marketing communication. Personal selling takes place when
 marketer or sales representative sells products or services to clients. Personal
selling goes a long way in strengthening the relationship between the
organization and the end-users.

To implement integrated marketing communication, it is essential for the

organizations to communicate effectively with the clients. You need to know how
your products or services would benefit your end-users. The more effectively you
promote your brand, the more demand would it have in the market. Identify your
target audience. Remember, not everyone would need your product. Understand why
would an individual invest in your brand unless and until you have something unique
and interesting to offer? The benefits of the brand need.

Annexures:

Reference Books

• Batra, R., Myers, J. G., & Aaker, D. A. (2006). Advertising management.

Pearson.
• Tyagi, C. L., & Kumar, A. (2004). Advertising management. Atlantic
Publishers & Dist.
• Rosenbaum-Elliott, R. (2020). Strategic advertising management. Oxford
University Press.

Case study Links

• Batra, R., Myers, J. G., & Aaker, D. A. (2006). Advertising management.

Pearson.
Video & Other links

• https://www.youtube.com/watch?v=GyxdlocMSpY&ab_channel=IITRoorkeeJu
ly2018

• https://www.youtube.com/watch?v=2EQXMcmZc3o&ab_channel=Marketing9
1
• https://www.youtube.com/watch?v=oaIH8tiLaaM&ab_channel=Marketi
ng91

Sample Questions:

• What are the primary functions of advertising?

• How can consumers identify false or misleading claims in advertisements?
• How does false advertising affect consumer trust and brand reputation?
• What ethical considerations should advertisers keep in mind when creating an
ad?
• What are the legal regulations and guidelines that advertisers need to adhere?
• How does advertising influence societal norms?
• What challenges do companies face when marketing products or services in
rural regions?
• What are some innovative approaches to marketing agricultural products and
services in rural areas?
• What is the fundamental concept behind Integrated Marketing
Communications (IMC)?
• What role does digital marketing play in a modern IMC approach?