ADVERTISING IN CONTEMPORARY

SOCIETY

5 M’S OF ADVERTISEMENT

ADVERTISEMENT – MISSION
- MESSAGE
- MEDIA
- MONEY
- MEASURE

ADVERTISMENT IN INDIAN ECONOMY

Advertisement in general is referred to as
any paid nonpersonal presentation of a
product or a service by an identifiable
sponsor all advertisement campaigns are
influenced by five major elements. These
are popularly referred to as the 5 m’s of
advertising.

1. Mission – The term mission refers to

long term goal of any institution such
a goal will provide the basic direction
for the campaign.
2. Message – Every advertisement
 makes an attempt to convey specific
information to the public. Such a
message is conveyed through a
visual content of an advertisement.
All such messages effect the mission
statement of the unit.
3. Media – Media is the common
vehicle employed by the marketers
to convey the message. A specific
media or combination of the media
can be chosen to ensure effective
communication.
4. Money – Every unit has a marketing
budget, which has a sub-budget in
the form of advertising budget. Each
campaign takes into account the
provision made under the advertising
budget.
5. Measure – This refers to the
mechanism available for measuring
the reach. An effectiveness of
specific campaign. At present these
are measured through special
institutions and rating system
adopted by the various media. The
volume of sales is also one of the
indicates which can be used to
 measure the impact of advertising.

TYPES OF ADVERTISING
On the basis of content – Advertisements
in general can be classified under various
categories as stated below:

1. Consumer advertising
2. Business to business advertising
3. Trade advertising
4. Retail advertising
5. Financial advertising (banks)
6. Direct response advertising
7. Recruitment advertising

On the basis of content – the term content

refers to the main message that is
conveyed through the advertisement.

1. Consumer advertising – If the

message is directly aimed at
influencing the behavior of end users
of the product or service then it is
called consumer advertisement –
e.g. beverages, food items,
consumer durables.
2. Business to business advertising –
 Such advertising is aimed at
announcing the availability of
product or a service for a variety of
industrial and business activities.
3. Trade advertising – These have a
narrow scope. They restrict their
message to the members of the
channel of distribution of a single
trading activity – e.g. wholesaler,
retailer, manufacturers.
4. Retailer advertising – These are
specific messages by local shop
owners to the people residing in
certain locality. At present big retail
unit like shopping malls do
undertake a lot of retail advertising.
5. Financial advertising – As a result of
privatization of financial sector such
advertisement have become highly
essential for the survival of the
banking and insurance unit.
6. Direct response advertising – Such
advertising aims at creating an
immediate response on a part of
target group. They announce
discount prices, reduction, premium
offers.
 7. Recruitment advertising – This refers
to certain employment oriented
advertisements which are aimed at
recruiting the best talent available in
the market. These are designed in a
challenging manner in order to
attract the best of talent.

THEORIES OF ADVERTISING

- Value addition theory

by Martin Meyer
- Emotional theory by
Plutchik
- Advertising effect
theory
- Mimesis theory by
Ginard

VALUE ADDTION
a. Productory Service – Any features
not physically inherent ( include by
psychology they can create impact)
b. Adding value not inherent in the
product Liril Soap – Freshness
Kurlon Mattress – Sound sleep
c. Creation of additional value to the
 product – Kelloggs Corn Flakes –
Intelligence, Parle biscuits –
Cleverness

EMOTIONAL THEORY
a. Anticipation – Axe Deo
b. Acceptance – Fair and Lovely
c. Surprise – Santro
d. Joy – Coke
e. Fear – Saffola Life Insurance
f. Anger – Mortein
g. Sadness – Life Insurance
h. Disgust – Harpic, Itchguard,
Ringguard

ADVERTISIGN EFFECT THEORY

Behavior of person environment

MIMESIS THEORY
AGENT-MODEL – OBJECT-AGENT
E.G nano cars

BASIS OF REACH

1. Local
2. Regional
 3. National
4. Global

An advertisement can be classified on the

basis of reach has local regional national
and global.

LOCAL – Advertisements are essentially

retail advertisements to promote the sale
of goods and services within a specific
locality
e.g. malls, shoppers stop

REGIONAL – Advertising may promote a

product or a service within the state or a
region.
e.g. state transport, chate classes

NATIONAL – Advertising promotes a

brand within the country

GLOBAL – Advertising adopts a multi

country approach and they advertise at
the global level
BASIS ON IMPACT
1. Primary advt
2. Selective advt
3. Direct action advt
4. Delayed response advtg
5. Institutional advt

1. Such advertisements are associated

with the introduction of a new
product or a service they essentially
educate the public
2. These are targeted towards a
specific selection of the population
such as children, women, senior
citizens etc
3. These are aimed at achieving an
immediate response from the
audience such as response is
obtained through discount offers,
price reduction, premier offer and
gifts, contests etc
4. For durable consumer goods
involving huge investments an
advertisement cannot create an
immediate response but when
 people decide to buy such items the
exposure would influence them.
5. These are mainly prepared in order
to build up corporate goodwill and
market reputation such ads do not
have an immediate commercial gain
but they enjoy a long term market
gain.

ROLE OF ADVERTISEMENT

1. Consumer Perspective – a.
Communication role – All
advertisements aimed at
communication the product and
services to the consumer through
verbal visual manager
b. Guidance role – Many
advertisements contain a
demonstration which acts as a
practical guide to use the product or
service
c. persuasion role – ads aimed at
removing the reluctance of the public
by persuading them from various
 angles.
d. motivational role – by announcing
various special advantages and
incentives advertisement influence
the customers
e. welfare role – all products and
services contribute towards human
welfare such a welfare role is a part
and parcel of the product.

2. Marketing perspective

a. Commercial Role – all ads aimed

at promoting the sale of goods
and services in order to provide
a commercial gain.
b. Competing role – A marketer
uses the ads to win over
competition and to strengthen his
own marketing base
c. Brand building role – the task of
brand build involves the creation
of a mental image in the minds of
the consumers. Ads play a key
role in brand building.
d. Institutional bldg role – the
corporate image has to be
 consciously built over a number
of years. Such image building
activity would become crucial in
the event of any rises. Ads help
the company to overcome such
critical situations.
e. Social responsibility role –
corporate social responsibility
has become highly popular
concept at present publishing
welfare messages and popularity
welfare themes and undertaken
by corporates e.g. AIDs control,
child labor.

3. MEDIA PERSPECTIVE

a. Sustenance Role – All media

sources sustain themselves only
with the help of ad support and
sponsorship initially by the
company.
b. Revenue role – media earns its
revenue through several types of
news and non news features.
Features printed or broadcasted
over a period of time such
 revenue are mainly earned with
the help of the space and time
booked by the various
advertisers.
c. Creative role – Advertisement
campaigns bring out the creative
talents of a variety of individuals
such as copy writers commercial
artists and other technical
personnel
d. Growth role – a media unit can
expand his operations only with
the help of advertising support
thus ad support the media and is
responsible for its success and
growth.

4. SOCIAL PERSPECTIVE

a. Distribution role – Ads bridge the

gap between demand and supply
and enable the public to buy and
enjoy a variety of goods and
services
b. Employer role – the media
industries as well as other
related industry provide
 employment opportunity to the
masses
c. Lifestyle elevator role – ads
make the public aware of the
variety of goods and services
which elevates the life style.
d. Consumer choice provider role –
ads inform the public of the
availability of multiple brands.
This would influence consumer
choice. In the short run but over
a period of time big
multinationals may adopt
aggressive ad campaigns &
attempt monopoly status. This
would reduce consumer choice
in the long run.
e. Consumer welfare role –
consumer welfare refers to a
positive state of mind on the part
of the public ads affect a major
section of the population in the
negative manner by making
them feel discontented and
unhappy this affects consumer
welfare
f. Price reducer role – ads can
 bring about large scale
economies and this in turn can
bring about reduction in prices
but many manufacturers do not
pass on the benefits to the
consumers and this affects price
reduction. Thus ads have a
variety of roles to play in the
economy.

WHAT IS LIBERALISATION AND ITS

IMPACT ON ADVERTISING

LIBERALISATION
- Industrial policy
- Indstrial liscencing
policy
 - MRTP – monopol
detective trade
professed act

During 1991 the Govt of India announced

the policy of liberalisatio of the Indian
economy. Till then India was a closed
protected economy ful of internal controls.
Such controls regulated the growth and
functioning of the India industries.
Liberalization relaxes thse rigid policies
thus certain existing poilices were
amended and few others were newly
introduced.

POLICY MEASURING CHART

- LISCENSING
POLICY
- FEMA ACT
- MRTP ACT

1. The new industrial policy allowed the

private sector to participate in new
areas fo industrial activities. These
increase the scope for advertising.
2. Liscencing policty of 1951 was
amended and the govt relaxed the
lisecning requirement for industirnal
units. Thus greater participation of
the private sector increased the
socpe for advtg.
3. Foreigh exchange magnt act –
during 1973 the govt had enacted
FERA (Foreign Exchange Reguation
Act) which restricted the inflow and
outflow of foreign exchange in the
country. The FEMA of 2003 relaxed
the provision related to the
movement of foreigh exchange. This
resulted in greater opportunities for
FDI and FII (Foreign Driect
Investment and Foreign Institutional
Investment) to invest in India these
in turn increased the potential for
advertising.
4. MRTP act – this act was originally
passed in 1973 to prevent the
formation of business monopoly and
to redracted the zamindari system.
After liberation this act was amended
to enabl the expansion of business
units and to facilitate the growth of
 trade and advtg. The amendment
relation to restrictive practices
felicitated the growth of industrie and
advtg

GLOBALISATION
This refers to the practice of opening up
the Indian economy for foreign goods and
services and allowing theindian goods and
services to be explored in interntational
markets. This was brought about through
introduction of a new EXIM policy (export
import policy)

PRIVATISAION
This was the consepquenc of
gloobalisation and liberalization. It
enallbed private individuals to undertake
the ownership ventures even in areas like
banking and insurance