Advertising

Definition & Meaning

The word advertising originates from a Latin word advertise, which
means to turn to. The dictionary meaning of the term is “to give public
notice or to announce publicly”.
Advertising is a public announcement to inform and persuade people to
buy a product, a service or an idea.
“any form of non-personal presentation or promotion of ideas, goods or
services, by an identified sponsor.”
-American Marketing Association.
History in India
 Elements
o dissemination of information to a large group of audience
o non-personal communication, for it is not delivered by an actual person,
nor is it addressed to a specific person
o paid mass media
o identified sponsor
o economical, for it reaches large groups of people and keeps the cost per
message low.
o communication is speedy
o to persuade or influence an audience.
Functions
Provide Product &
Brand Information

Provide Incentives Advertising

To Take Action Performs 3 Basic
Functions

Provide
Reminders and
Reinforcement
 Objectives
o Brand building
o Creation of demand
o Informing Customers about a Product, Company or Service
o Promoting a Particular Feature
o Achieve sales and profit goals
 Importance
o Product Launch
o Retain the existing customers
o Brand Promotion
o Educates people
o Comparison
o Generates employment
 Types
Target Audience
o Consumer product advertising - done to impress the ultimate consumer.
o Industrial product advertising - also called Business-to-Business Advertising.
o Trade advertising - done by the manufacturer to persuade wholesalers and
retailers to sell his goods.
o Professional advertising - executed by manufacturers and distributors to
influence the professionals of a particular trade or business stream.
o Financial advertising - Banks, financial institutions, and corporate firms
issue advertisements to collect funds from markets.
 Types
Medium
o Print – Newspaper, Magazine, Directories, Direct mail, catalogues, etc.
o Radio
o Television & Film
o Window display & POP
o Outdoor and transit
o Online
o Special-novelties
Types
Geographical Area of operation
o Global advertising
o National advertising
o Local advertising
o Regional advertising
 Types
Purpose
o Product
o Pioneering Advertising
o Competitive Advertising
o Retentive Advertising

o Brand (IMC)
o Covert
o Surrogate
o Non Product/Institutional
o Public Service
Types
Purpose
o Goods vs. Non – Goods
o Commercial vs. Non – Commercial
o Action vs. Awareness
o Primary demand vs. Selective demand advertising
ASCI
ASCI is a voluntary Self-Regulation council.
The sponsors of ASCI, are firms of considerable repute and comprise
of Advertisers, Media, Advertising Agencies and other Professional/
Ancillary services connected with advertising practices.
ASCI is not a Government body, nor does it formulate rules for the
public or the relevant industries.
ASCI seeks to ensure that advertisements conform to its Code for
Self-Regulation, which requires advertisements to be legal, decent,
honest and truthful and not hazardous or harmful while observing
fairness in competition.
 ASCI
To ensure the truthfulness and honesty of representations and claims made by
advertisements, and to safeguard against misleading advertisements.
To ensure that advertisements are not offensive to generally accepted
standards of public decency.
To safeguard against the indiscriminate use of advertising for the promotion of
products, which are regarded as hazardous to society or to individuals to a
degree or of a type and which is unacceptable to society at large.
To ensure that advertisements observe fairness in competition so that the
consumer's need to be informed of choices in the marketplace and the canons
of generally accepted competitive behavior in business is both served.
AAAI
The Advertising Agencies Association of India (AAAI) is the official,
national organisation of advertising agencies, formed in 1945 to
promote their interests so that they continue to make an essential
and ever-increasing contribution to the nation, by working towards
the following objectives:
•To benefit Indian consumers and to protect their interests by helping
ensure that advertising is honest and in good taste.
•To benefit Indian advertisers by promoting their sales, increasing
their sales and increasing productivity & profitability, to stimulate
business and industrial activity.
AAAI
•To benefit media by establishing sound business practices between
advertisers and advertising agencies and each of the various media
owners.
•To benefit the nation by harnessing advertising for the good of the
country, its institutions, its citizens to co-operate with the
Government in promoting its social objectives and in the task of
nation-building.
•To question advertising that is wasteful and extravagant to make it
possible for the small entrepreneur to grow through advertising and
to compete with the biggest to encourage market and media
research to serve society by meeting its social responsibilities.
AAAI
•To encourage the interest of young individuals in the business of
communication, to assist in education and training programmes and
to provide information of benefit to members. Non-members are
also provided this service for a fee.
•To establish a common platform in building and sustaining the
prestige of the advertising profession and to serve as a spokesman
against unwarranted attacks or restrictions on advertising.
•To establish a forum where representatives of advertisers,
advertising agencies, media owners and Government can meet on
mutual ground and examine problems of mutual concern.
AAAI
•To offer effective co-operation and liaison with Government officials
and bodies for the purpose of broadening their understanding of the
role of advertisers, advertising and advertising agencies.
•To co-operate with Government bodies in discussion of matters such
as taxes, radio and TV advertising, legislation, political campaign
advertising, controls on pharmaceuticals, tobacco or liquor
advertising and other subjects of similar complexity and sensitivity.
Economic aspect of Advertising
Value of Products
Effect on prices
Effect on consumer demand and choices
Effect on business cycle
Social aspect of Advertising
• Deception in Advertising
• The Subliminal Advertising
• Effect on Our Value System
• Offensiveness
Social aspect of Advertising
But at the last, there are some great positive aspects which help
• Development of society and growth of technologies
• Employment
• Gives choices to buyers with self interest
• Welcomes healthy competition
• Improving standard of living.
• Give information on social, economic and health issues.
Psychological & Cultural aspect of
Advertising
• Advertising is used to stir emotion and often rationality is thrown
to winds
• Commercials that advertise food are leading factors in obesity
• Advertising promotes materialistic behaviour, consumption
instead of consumer
• Advertising usually drive people into following ‘Social Norm’
• At times advertising really does not provide any choice
• Cradle to grave advertising strategies bombard young
impressionable minds with plethora of emotions
Psychological & Cultural aspect of
Advertising
• Advertising often promotes stereotyping in gender, race, social
roles
• Blind following of perceived social norm creates a homogeneous
generation devoid of cultural diversity
• ‘normalising’ values or behaviours