Unit - 1

UNIT -1
INTRODUCTION TO
ADVERTSING
DEFINITION
◦ Advertising is any paid form of non personal presentation of ideas,

goods and services by an identified sponsor.
◦ AMA Defines “Advertising is any paid form of non personal
presentation and promotion of ideas, goods and services by an
identified sponsor.
CHARACTERSTICS
◦ One method of promotion mix.
◦ Paid mass communication
◦ Form of Publicity
◦ Salesmanship in writing
◦ Mass non personal Communication
◦ Sponsored Publicity
◦ Influences buying behaviour of customers
◦ Drives buyers towards satisfactory expenditure
◦ Persuades buyers
NATURE OF ADVERTISING
◦ Element of Marketing Mix.
◦ Promotion Mix.
◦ Mass Communication
◦ Messages
◦ Price of Advertising
◦ Sponsor
◦ Persuasive
◦ Element of Control
◦ Identifiable
◦ Target Group
SCOPE OF ADVERTISING
◦ Effectiveness of Message
◦ Appropriate Media
◦ Merchandise
◦ Advertising Functions
◦ Responsibility of the Advertiser
◦ Fulfilment of objectives
◦ Generate various Activities
FACTORS WHICH DETERMINE ADVERTISABILITY OF A
PRODUCT
◦ Primary Demand
◦ Demand Expansion
◦ Distinguishing nature of the Product
◦ Technical features of the product
◦ Capable of Provoking emotional buying motives
◦ Price of the Product
◦ Availability of funds for advertising campaign
MANAGEMENT OF ADVERTISING
PROGRAMME
◦ Setting the advertising Objectives
◦ Deciding on the Advertising Budget
◦ Choosing the advertising message
◦ Selection of Media
◦ Measuring Effectiveness
5 M’s in Developing an advertisement

Mission , Money, Message, Media and Measurement
DEVELOPING AN ADVERTISMENT
CAMPAIGN
◦ The Advertiser Himself
◦ Facilitating Institutions – The Advertising Agency
-The Media
- Research Suppliers
◦ Control Institutions
FUNCTIONS OF ADVERTISING
◦ Commercial Functions – Stimulate sales to create more demand
◦ Social Functions- Introductions of Goods and services to common people (Society)
◦ Economic Functions – Advertisement helps in Production/Distribution and
Employment.
◦ Psychological Functions- method of including people to buy the goods and services.
PRIMARY FUNCTIONS
◦ To increase sales
◦ Persuading dealers to stock
◦ Assisting dealers to liquidate stock
◦ Increase in per- capita use
◦ Recognition for Quality
◦ Protecting Manufacturers Interest
◦ To eliminate seasonal fluctuations
◦ Creation of Demand
SECONDARY FUNCTIONS
◦ To lend moral support to salesmen
◦ To furnish correct information
◦ Ensures Product improvement
◦ Sense of Security
◦ Appointment of efficient Employees
CRITICISMS OF ADVERTSING
◦ Advertising is a waste
◦ Many advertisements are deceptive and misleading
◦ Playing on human weakness, feelings and sentiments
◦ Advertising does not help in lowering price
◦ Emphasis on brand – Consumers are made as slaves
ADVERTISING AGENCY
◦ An Advertising agency is an independent form formed for the purpose of rendering
specialised services in advertising.
◦ Preparing Copy and layout for advertisement, getting blocks made for layouts and getting
the advertisement out through suitable media.
ROLE OF ADVERTISING AGENCY

◦ Functions on behalf of the customer or adviser
◦ Charges Remuneration – Basis of Commission Fixed before hand.
◦ In house agency
IMPORTANCE OF ADVERTISING
AGENCY
◦ A company cannot have all types of specialist – Economical and cheaper to use the
services.
◦ An advertising agency can take an unbiased or objective view of any advertising
problem.
◦ Rich Experience
◦ Effectiveness in performance – working under pressure
◦ Can be easily terminated
◦ Agency is paid by the media owner
TYPES OF ADVERTISING
AGENCIES.
Full service Agencies
◦ Large size agencies.
◦ Deals with all stages of advertisement.
◦ Different expert people for different departments.
◦ Starts work from gathering data and analyzing and ends on payment of bills
to the media people.
Interactive Agencies
◦ Modernized modes of communication are used.
◦ Uses online advertisements, sending personal messages on mobile phones, etc.
◦ The ads produced are very interactive, having very new concepts, and very innovative.
Creative Boutiques
◦ Very creative and innovative ads.
◦ No other function is performed other than creating actual ads.
◦ Small sized agencies with their own copywriters, directors, and creative people.
Media Buying Agencies
◦ Buys place for advertise and sells it to the advertisers. ( Radio/tv Time)
◦ Sells time in which advertisement will be placed.
◦ Schedules slots at different television channels and radio stations.
◦ Finally supervises or checks whether the ad has been telecasted at opted time and place or
not.
In-House Agencies
◦ As good as the full service agencies.
◦ Big organization prefers these type of agencies which are in built and work only for them.
◦ These agencies work as per the requirements of the organizations.
Top 10 Advertising Agencies In India
◦ Madison Communication Pvt. Ltd.
◦ Brandemic
◦ Rediffusion Dentsu Young & Rubicam Private Ltd
◦ McCann Erickson India Pvt. Ltd.
◦ Mullen Lowe Lintas Group
◦ Ogilvy & Mather Pvt. Ltd.
◦ DDB Mudra Group
◦ Dentsu Aegis Network
◦ FCB Ulka Advertising Pvt. Ltd.
◦ Group M Media India Pvt. Ltd.

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UNIT -1

◦ Advertising is any paid form of non personal presentation of ideas,

5 M’s in Developing an advertisement

ROLE OF ADVERTISING AGENCY

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