Course Materials Advertising Management COURSE MATERIALS READINGS IN ADVERTISING MANAGEMENT FACULTY: DR.G.ANTONY SCHOOL OF MANAGEMENT STUDIES COCHIN UNIVERSITY OF SCIENCE & TECHNOLOGY COCHIN 22 0 School of Management Studies Cochin University of Science & Technology, Cochin 22 Course Materials Advertising Management TABLE OF CONTENTS CONTENTS PAGE ARTICLES 1. ADVERTISING BASICS AND ADVERTISING AGENCY 2 2. TRENDS IN ADVERTISING THOUGHT 10 3. INDIAN ADVERTISING 15 4. ADVERTISING AGENCIES – STRUCTURE & FUNCTIONS 29 5. COMMUNICATION MODELS IN ADVERTISING 42 6. SETTING ADVERTISING OBJECTIVE AND DETERMINING 58 TARGET AUDIENCE 7. ADVERTISING APPEALS 67 8. MESSAGE AND COPY IN ADVERTISEMENTS 88 9. VISUALIZATION AND LAYOUT 100 10. HEADLINES IN PRINT ADVERTISING 111 11. TELEVISION ADVERTISEMENTS AND THEIR PRODUCTION 119 12. TESTIMONIALS AND CELEBRITY ENDORSEMENT 126 13. ADVERTISING BUDGET 137 14. ADVERTISING MEDIA: CHARECTERISTICS OF 144 DIFFERENT MEDIA 15. ADVERTISING MEDIA SELECTION, MEDIA PLANNING 155 AND MEDIA SCHEDULING 16. INTERNET ADVERTISING 166 17. MEASURING ADVERTISING EFFECTIVENESS 173 18. ADVERTISING ETHICS AND REGULATIONS 181 19. CONFESSIONS OF AN ADVERTISING MAN, BY DAVID OGILVY – 193 A SUMMARY 1 CASE STUDIES 1. UJALA THE SUPREME WHITENER 2. COLA WAR 1 School of Management Studies Cochin University of Science & Technology, Cochin 22 Course Materials Advertising Management 1. ADVERTISING BASICS AND ADVERTISING AGENCY 1. ADVERTISING – AN INTRODUCTION Advertising, though impersonal in character, could create profound influence in persuading prospects to become customers. In contrast to the marketing devices, the advertising carries only a message to the consumers and does not substantiate consumers with any physical presents. Essentially, advertising means spreading of information. From the earliest day men have proclaimed by word of mouth or in writing the virtue of goods which they have produced. Definition The American Marketing Association has defined Advertising as “any paid form of non- personal presentations and promotion of goods, services or ideas by an identined sponsor”. This definition requires some elaboration. Firstly, advertising is paid for, and hence it is a commercial transaction. This is exactly the element with which the term publicity is distinguished from advertising. The publicity is defined as any form of commercially significant news about a product, an institution, a service, or a person published in space or radio that is not paid for by the sponsor. In short, Advertising is a paid form of publicity. Publicity is not a commercial future. Secondly, Advertising is non-personal. Whatever be the form of advertisements (visual, spoken or written) they are directed at a mass audience, and not directed at the individual as in the case in personal selling. Finally, advertisements are identifiable with their sponsor or originator, which is not always the case with publicity or propaganda. Advertisement is a salesmanship in print. The word advertising has been derived from the Latin word 'advertere' which means tuning the valuable attention towards the product. It may be defined as “selling in print or presenting a commodity in print to the people in such a way that they may be induced to buy it”. In simple words, it is a technique of popularizing a product or a service. The basic task of advertising is to communicate information efficiently to groups of individuals that could number in the hundreds or millions. 2 School of Management Studies Cochin University of Science & Technology, Cochin 22 Course Materials Advertising Management Advertising and Publicity Advertising is paid form; hence it is a commercial transaction. Publicity is any form of commercially significant news about a product, an institution, a service or a person published in space or radio that is not paid for by the sponsor. Advertising is a paid form of publicity. Publicity is not a commercial feature. Secondly, advertising is non-personal. Whatever be the form of advertisements (visual, spoken or written,) they are directed at a mass audience and not directly at the individual as in the case of persona; selling. Thirdly, advertisements are identifiable with their sponsor or originator, which is not always the case with publicity or propaganda. Though the terms advertising and publicity are different in the field of marketing, both are generally used interchangeably. Advertising i openly sponsored or initiated. The advertiser takes the steps to get the advertisements published or the poster pasted or the radio or television commercial skit written and so on. But in the case of publicity the initiative may be taken even by the publisher without any sponsor coming forward. For example the commercial news papers or magazines may write an editorial or give a report about the merits of a new ting discovered if it is of interest to business men. But the discoverer of that device might have not sought such publicity at that time. The information is published as a news time bu the publisher and hence it comes under publicity and not under advertising. Hut if the discoverer pays to the publisher the step will be counted as Advertising. Sometimes names of various firms and their products, their merits and uses are mentioned casually in fiction, story books by the authors, the commodities no doubt get some publicity. But this is not advertising. But if the manufacturer pays for such stories, he is advertising his products through stories. From the view point of the general public both publicity and advertising mean the same thing. Advertising and Salesmanship Both advertising and salesmanship are designed to achieve the same ultimate objective for which each is important and one cannot replace or supplant the other. However, advertising is different from personal salesmanship in the following aspects. (i) In salesmanship appeal is made through persons. In advertising, appeal is made through advertisements which are non-personal in nature. (ii) Advertising leads prospects to salesmen. Hence in the distribution, advertising precedes salesmanship. (iii) Advertising is addressed to the masses while salesmanship is concerned with specific individuals. 3 School of Management Studies Cochin University of Science & Technology, Cochin 22 Course Materials Advertising Management (iv) A salesman talks to the prospect before him. But advertisements are made to influence and appeal groups of persons. (v) Though the ultimate objective of both salesmanship and advertising is the same, immediate objectives differ. Advertising is primarily concerned with creating interest in the buyers in general by building acceptance for a product and by arousing confidence and respect for the firm and its products. (vi) Since a salesman talks, the listener understands whether he is educated or uneducated. But it is difficult to convey messages of advertising to illiterate persons except in certain forms like radio messages. (vii) Advertising has given a great feeling to the art of copy writing, commercial art and engraving while salesmanship has promoted the art and manner of speaking impressively by salesmen. (viii) In bringing about sales, salesmanship plays a superb part while in attracting the notice of prospects, advertising plays a tremendous role. (ix) To employ salesmen everywhere to make sales appeals in financially very expensive. But advertising is not so costly. It is the most convenient and simple device to make sales appeals over wider areas and larger audience. (x) The ultimate purpose in both salesmanship and advertising is the same viz; increase in sales and both are complementary to each other. Advertising makes the job of salesmen Propaganda Propaganda means spreading of ideas or doctrines or messages. Like publicity and advertising it also communicates ideas. But in propaganda there is favour for a cause. Who is not familiar with the vigorous propaganda on the eve of elections ? Public opinion is sought to be influenced in form of something. Propaganda may be a paid form if a newspaper, for example, publishes a certain matter on payment. It may be self sponsored if the newspaper itself goes on printing something in favour of the subject matter. But one feature about propaganda is that is usually temporary and when the case no longer has an appeal, it ceases. For example as the day of election approaches, the vigour and strength of propaganda in favour of different candidates and parties gathers momentum. But as soon as elections are over the propaganda comes to an end. Reith report on advertising It may be pertinent to reproduce here certain opinions found in Reith Report on Advertising Commissioned by the Labour Party in the United Kingdom. Most of its comments are the best reply to the critics of advertisements. 4 School of Management Studies Cochin University of Science & Technology, Cochin 22 Course Materials Advertising Management This report crystallized the major hypothesis concerning the effects of advertising. (i) Advertising tends to produce a higher degree of concentrations in industry that is warranted by the existence of economies of large scale production. (ii) The high initial expenditure needs to make any impact by advertising tend to limit free in to markets. (iii) Advertising trend to engage producers in price competition. (iv) The proposition that advertising promotes industrial concentration has not been proved in empirical studies. Advertising intensity is not correlated with the size of firms. (v) There is little conclusive evidence