ASM

Nature and scope of advertising

Advertising:(Definition)AMA (AMERICAN MARKETING ASSOCIATION):Any paid form of non personal presentation

of ideas, goods or services by an identified sponsor.

Or “Advertising is a form of communication

intended to promote the sale of the product or service to influence public opinion, to gain political support or to advance a particular cause…”

Features/ Nature of Advertising

1. Mass communication Process2. Informative3. Persuasive4. Competitive5. Is Paid for6. Has an Identified Sponsor7. Non personal

Scope of Advertising:1. ADVERTISERS:

2. MEDIA OWNERS: Print, Broadcast, telecast, Direct Mail,

film..paint etc.

3. ADVERTISING AGENCIES:

They act on the behalf of the senders of the messages.

An agency is service organization engaged in planning and executing the advertising programmes for the advertisers

TOP 10 AGENCIES IN INDIA:Ogilvy & Mather, MumbaiSome ads done in 2008: Bajaj Auto – Pulsar

range of motorcycles: Pulsarmania,, Taj Tea Trail – A Tea Tasting Event: Divinity, Taj Tea Trail – A Tea Tasting Event: Genesis

Leo Burnett MumbaiTide Detergent: Lipstick, Tide Detergent: Ice

Cream, Tide Detergent: Ketchup,, Luxor Highlighters: Hitler, Luxor Highlighters: Chaplin, GoaFest 2007 awards: arty farty idea

Saatchi & Saatchi, Mumbai

Cox & Kings Travel: Eiffel Tower, Cox & Kings Travel: London Bridge, Cox & Kings Travel: Statue of Liberty, Olay: Eclipse, Ariel: Stains,

Contact Advertising, MumbaiAadharMudra Communication Pvt Ltd DelhiGodrej Ezee: R K Swami BBDO, MumbaiRediffusion DY&R, MumbaiMcCann-Erickson India Ltd:The prominent name among the best advertising

companies of India is McCann-Erickson India Ltd. They define work in relation to the impact that advertising has on the lives of masses. The testimony of the company in which it firmly believes is the campaign of Coca -cola-'Thanda Matlab Coca Cola'.

4. CONSUMERS:They need information for decision

making….advertisers have to tell why the product stands unique and what is latest in it..??

6. SOCIETY

PURPOSES OF ADVERTISING:(1) To prompt action: Direct action advertising is designed to

motivate people to act. It involves ads that try to persuade people

to make a purchase, call a phone number, or mail/fax/email an order form, and includes many of the common ads consumers see in newspapers, in-store adverting and package advertising.

(2) To encourage information search: In some cases, it is unreasonable to assume

that a consumer is ready to make an immediate purchase based solely on advertising. In these cases, consumers need more information – a test drive or a demonstration – before making up their minds.

(3) To relate product to needs:

A less direct form of advertising, this category includes those ads that draw a link in the consumers’ minds between the product and their needs as a consumer.

(4)To encourage recall of past product satisfaction and prompt a repurchase:

Ads of this nature are designed to summon memories of past satisfaction and get customers to purchase a product again.

(5) To modify attitudes: One of the more challenging objectives facing advertisers is to modify attitudes towards a product. This is often appropriate when a firm’s product has received a bad reputation for one reason or another or if a firm is attempting to recapture customers they lost to a competitor

(6)To reinforce attitudes: The final category of advertising objectives seeks

to reinforce attitudes that customers already have

towards a product. Market leaders (such as Coke or McDonald’s) often use this to maintain their market share and volume.

Advertisements work because they make an effective appeal to some need or desire in the people who view, read or listen to them.

Nature of advertising: Is a tool of Communication

2. Is a science

Define objective/ function of ad create the ad test the ad launch

3. Is an art4. Is interdisciplinary

Involve psychology to understand consumer behavior

Anthropology to understand the response variance in different cultures

Involves marketing to understand the consumer response

Nature of advertising: Is a tool of Communication

InteractiveAdvertisingInteractiveAdvertising

Public ServiceAdvertising

Public ServiceAdvertising

InstitutionalAdvertising

InstitutionalAdvertising

Business-to-Business

Advertising

Business-to-Business

Advertising

Brand Advertising

Brand Advertising

Retail or LocalAdvertising

Retail or LocalAdvertising

PoliticalAdvertising

PoliticalAdvertising

Direct-ResponseAdvertising

Direct-ResponseAdvertising

DirectoryAdvertisingDirectory

Advertising

Types of Advertising

• Types of Advertising– Brand advertising:Brand advertising: focuses on

developing a long-term brand identity and image

– Retail/local advertisingRetail/local advertising:: focuses on retailers or manufacturers that sell merchandise in a restricted area

– Political advertisingPolitical advertising:: focuses on politicians attempting to persuade people to vote for them or their ideas

– Institutional advertisingInstitutional advertising:: corporate advertising used to establish an identity or influence public opinion

– Public service advertising (PSA):Public service advertising (PSA): communicates a message for a good cause

– Interactive advertisingInteractive advertising:: delivered to individual consumers who have access to a computer and the Internet

Main function of Advertising is Main function of Advertising is CommunicationCommunication