1. ADVERTISING
BBA 3RD SEMESTER
MANAGEMENT
PREPARED BY – YOGESH KUMAR

2. UNIT - 1
 Advertising
 INTRODUCTION
 SCOPE
 OBJECTIVE
 Importance of Advertising in Business
 Role of Advertising in Social and Economic Development of India
 Ethics and Truths in Indian Advertising

3. Advertising

4. introduction
“Advertising consists of all activities involved in presenting to a group a non-personal, oral or visual,
openly sponsored identified message regarding a product, service, or idea. The message, called an
advertisement, is disseminated through one or more media and is paid for by the identified sponsor.
William Stanton can define term ‘advertising’ as: Advertising is a paid form of mass communication that
consists of the special message sent by the specific person (advertiser or company), for the specific group of
people (listeners, readers, or viewers), for the specific period of time, in the specific manner to achieve the
specific goals and objectives.
Philip Kotler: “Advertising is any paid form of non-personal presentation and promotion of goods, services, or
ideas by an identified sponsor.”
Frank Presbrey: “Advertising is a printed, written, oral and illustrated art of selling. Its objective is to
encourage sales of the advertiser’s products and to create in the mind of people, individually or collectively, an
impression in favour of the advertiser’s interest.”

5. scope
Advertising is often regarded as the most important means of marketing a company’s services and tools. The scope
of advertising is to communicate a message to current customers or potentially target new customers. It helps a
company get a message or a piece of information across to their customer base regarding a new product or special
deal.
(I) SCOPE OF ADVERTISING BY BUDGET
There is always a budget allocated for advertising and promotion within the marketing budget. The budget allocated
should be in coordination with the type of advertisement the organization wants. The resources and other
requirements are to be kept in mind for the budget allocation.

6. (II) SCOPE OF ADVERTISING BY DELIVERABLES
Once the budget is decided, the marketing plan can be projected further. A detailed scope of work that
deliverables require can be outlined. Agencies can now develop a proposed resource plan.
(III) SCOPE OF ADVERTISING BY ALLOCATING DELIVERABLES
For creative work, allocating the type of deliverables (​TV​, online, mobile, press, magazine​,​ etc) based on
the previous campaign requirements can be more insightful after the previous plan.
(IV) SCOPE OF ADVERTISING BY STRATEGY
Once the deliverables are allocated, advertising agencies can define the strategic requirements by brand or
category and develop a scope of work based on past requirements and remuneration for similar strategic
deliverables.

7. 1. TO INFORM BUYERS
This objective includes informing customers regarding product’s availability, price, features, qualities,
services, and performance. Besides, it also includes informing them about changes made in the existing product and
introduction of new products. Company also highlights its location, achievements, policies, and performance
through advertising.
2. TO PERSUADE OR CONVINCE BUYERS
Company uses advertisement to persuade or convince the buyers about superior advantages offered by its
product. Company communicates competitive advantages the product offers to induce customers buy it.
Comparative advertising is used to prove the additional benefits of product at a given price.

8. 3. TO REMIND BUYERS
Marketer uses advertising to remind the buyers regarding existence of company, products, maintenance of
quality, superior services, and chasing customer-orientation. Mostly, the existing firms aim their advertising for this
objective.
Here, the purpose is to inform that the company is still in existence and serving customers in a better way.
Due to huge information bombarded by a number of companies, customers are more likely to forget name of
company and/or products and services it offers.
4. TO FACE COMPETITION
Advertising is treated as the most powerful weapon to fight with competitors effectively. Advertising
enables the firm to respond the competitors strongly. It helps the firm to distinguish its total offerings from
competitors.
In brief, the firm can face competition, can prevent the entry of competitors, or can remove competitors
away from the market. In competitive marketing environment, the firm cannot survive without an effective
advertisement.

9. 6. TO BUILD AND IMPROVE BRAND IMAGE
Advertising is used for brand recognition and acceptance. A company can distinguish its brand by
magnifying major benefits the product offers. Advertisement attracts customers toward the brand; they try it and
accept it over time. In the same way, bad image related to brand can be changed by systematic presentation of facts
and scientific evidences, and removing misunderstanding.
5. TO ACHIEVE SALES TARGETS
Increase sales volume is one of the major advertising objectives. A company can advertise its products in
various media to attract customers situated in different parts of the world. National and international marketing is
the result of advertising. Even, non-users can be converted into users and usage rate can be increased. Thus,
company can achieve its sales objectives by advertisement.
7. TO HELP OR EDUCATE PEOPLE
Advertising is not always used only for company’s benefits. It is meant for helping customers to make the
right choice of product. It educates people about availability of new products, its features and qualities, price,
services, and other related aspects. Such information is instrumental for purchasing suitable products. Thus, it
guides customers to choose the most appropriate product.

10. 9. TO ASSIST SALES FORCE AND MIDDLEMEN
Advertising is an aid to middlemen and salesmen. Advertising also popularizes the name of dealers.
Likewise, advertising provides necessary information to the buyers. Middlemen and salesmen are not required to do
the same. It eases the task of sellers. In the same way, advertising encourages sales force.
8. TO BUILD COMPANY IMAGE AND REPUTATION
A company opts for advertisement to build prestige and reputation in the market. Most of the companies,
though they are satisfied with the volume of sales, go for advertising to acquire fame in the market. Many
companies advertise its policies, activities, and achievements to make a permanent place in the mind of people.

11. 10. OTHER OBJECTIVES
There are certain minor objectives of advertising, such as:
• To promote new products.
• To build long-term relations.
• To remove misunderstanding.
• To expand of market.
• To gain confidence of buyers.
• To request customers to compromise with unavoidable circumstances.
• To seek apology of the buyers for any undesirable events, etc.
Company has to select one or more objectives based on its situations. It should be clarified that the list is not
exhaustive. New advertising objectives may emerge as per change in situations. However, the main objective of
advertising is to increase sales and earn profits. Company must define it advertising objectives clearly and precisely.

13. 2. ADVERTISING GIVES BREAKTHROUGHS TO BUSINESSES
Advertising produces quick and dramatic breakthroughs. Over the years, most businesses have
experienced breakthroughs with the help of advertising. When a business or a product is not doing well, advertising
is one of the ways to boost its position. A qualitative and quantitative advertisement helps both new and old
businesses.
1. ADVERTISING HELPS TO INTRODUCE A NEW BUSINESS, A NEW PRODUCT OR SERVICE
When a business is just starting or when a new product or service is being launched, the fastest and most
efficient way to introduce it to the community and to people is through advertising. A good and high-quality
advertisement will help to introduce the business to a large population of people within a short period of time.
Advertising is one of the major keys to the survival of a new business, product or service.
3. IT HELPS TO CREATE AWARENESS ABOUT A BUSINESS OR PRODUCT
Advertising helps to create awareness about a product. Advertising is done over a particular period of
time. So, it makes people constantly aware of a product or a business.

14. 4. IT HELPS CONSUMERS TO DIFFERENTIATE PRODUCTS
Companies and businesses use advertising to show consumers differences between their product and
other products. The advertisement is not done by necessarily comparing and differentiating products, but in such a
way that it shows the uniqueness and benefits of a particular product and imprint it in consumers mind.
5. IT HELPS TO PROMOTE AND CONVINCE CONSUMERS ABOUT A COMPANY, PRODUCT OR SERVICE
Promoting a product is the primary objective of advertising. Letting people know that you have an exciting
product to offer. Advertising can also be used to promote sales and upcoming events in a company.
6. IT HELPS TO DRAW CUSTOMERS TO A BUSINESS AND KEEP EXISTING CUSTOMERS
The more people are aware of your product, the more they will want to patronise it. When you do a good
advertisement, consumers want to try the products. Also, good advertising builds the morale of existing customers
to keep using your products. When they see the advertisement of your product, they are impressed and want to
keep using it.
Advertising is the key to the success of a business in today’s world. It tells people about your business, where it is
located, and what you have to offer. Invest in advertising today and take your business to the next level.

15. IN

16. Advertising is a business, an art, an institution, and a cultural phenomenon. Advertising helps consumers see the
possibilities and meanings in the things that they buy. Advertising also liberates meanings that lie below the surface.
Advertising is part of our everyday culture as it is omnipresent. On an average, we see close to 1,500 ads per day.
Therefore their influence on the cultural consciousness and behavior of the public can’t be denied. In Indian
scenario advertising has a very large influence in the mass media market place as it pays most of the bills and thus
plays a major role in shaping the content and operation of the mass media in India. Advertising also plays an
important role in the popular Indian culture because it shapes and reflects our life styles. It is usually the first to
reflect social trends.
Example: The print advertisement of Scooty/Bike, AMUL.
Advertising promotes a higher quality of goods through the ability of the consumer to identify a particular
manufacturer and thus creating a need for that manufacturer to maintain quality. Advertising also gives business the
ability to roll-out new products fast enough to offset the costs of creating such products. Advertising protects
industry from government and special control as it democratizes information to consumers as to what products are
available. Advertising plays two following broad roles in the socio-economic landscape of a country:
Economic roles
Social roles

17. Advertising performs an economic function for an advertiser, affect
economic decision of the audience and is an integral part of the whole
economic system. Advertising stimulates demand, educate consumer
about new product, policies, programmes services and organizations,
increase competition and improve standard of life-style by helping to bring
new product to the consumer. Advertising boosts the economy by helping
to introduce new products faster and more effectively to consumer by
supporting to achieve the economies of scale faster and by helping to
remove the monopoly of the product.

18. Advertising reflects society and society reflects advertising. At social level
advertising plays upon, derives from and contributes to the social texture
of a country. Various social changes are brought about or helped by
advertising. Adult education, family planning and pulse polio campaign are
the examples of few successful social advertising campaign. It makes role
models who can create societal change. Advertising are efficient source of
information for product quality, new material or merchandise, new
technology and cost. ƒIt reduces distribution costs, encourage competition
and increases product quality through brand identity. ƒIt supports mass
media to maintain independence from government, political parties and
other special interest groups.

19. NEGATIVE ROLE OF ADVERTISING IN THE SOCIETY
Objectionable and in bad taste – Some critics feel that advertising is
objectionable because the creative effort behind it is not in good taste. Intrusive,
repetitive, unreal, offensive and depressing are some of its unpleasant
features.Excessive fear appeal – The fear appeal in advertising creates anxiety that is
supposed to be subsidized by an available product. Such appeals may create emotional
disturbances in some audience members. Products like fairness cream, insurance or a
germ killing toothpaste all tries to play with the fear factor. Intrusiveness – An
advertisement campaign moves with repetition from a period of effectiveness to
acceptance, to a period of irritation. Manipulation – Advertisements have the raw
power to manipulate consumers. Many companies have the capacity to obtain large
numbers of advertisement exposures, which is not good for healthy competition.

20. EFFECTS ON VALUES AND LIFE-STYLE
Advertising receives wide exposure as it is disseminated through mass media. It
has an effects on what people buy and thus on their activities. It is a persuasive vehicle
which has an impact on the values and life-style of society. The impact of advertising
has its negative as well as positive side. The relationship of advertising to materialism –
Advertising create or foster materialism. Materialism is defined as the tendency to give
undue importance to material interests. People buy high-end luxury products for social
status. It reflects changing values and attitudes that are created by more significant
sociological forces. Advertising plays role in creating harmful stereotypes of women and
ethnic minorities. Contribution of advertising in promoting harmful products – The
harmful products like tobacco, alcohol are promoted through surrogate advertising.

22. Ethics means a set of moral principles which govern a person’s behavior or how the activity is conducted. And
advertising means a mode of communication between a seller and a buyer.
Thus ethics in advertising means a set of well defined principles which govern the ways of communication taking
place between the seller and the buyer. Ethics is the most important feature of the advertising industry. Though
there are many benefits of advertising but then there are some points which don’t match the ethical norms of
advertising.
An ethical ad is the one which doesn’t lie, doesn’t make fake or false claims and is in the limit of decency.
Nowadays, ads are more exaggerated and a lot of puffing is used. It seems like the advertisers lack knowledge of
ethical norms and principles. They just don’t understand and are unable to decide what is correct and what is wrong.
The main area of interest for advertisers is to increase their sales, gain more and more customers, and increase the
demand for the product by presenting a well decorated, puffed and colorful ad. They claim that their product is the
best, having unique qualities than the competitors, more cost effective, and more beneficial. But most of these ads
are found to be false, misleading customers and unethical. The best example of these types of ads is the one which
shows evening snacks for the kids, they use coloring and gluing to make the product look glossy and attractive to the
consumers who are watching the ads on television and convince them to buy the product without giving a second
thought.

23. Ethics in Advertising is directly related to the purpose of advertising and the nature of advertising. Sometimes
exaggerating the ad becomes necessary to prove the benefit of the product. For e.g. a sanitary napkin ad which
shows that when the napkin was dropped in a river by some girls, the napkin soaked whole water of the river. Thus,
the purpose of advertising was only to inform women about the product quality. Obviously, every woman knows
that this cannot practically happen but the ad was accepted. This doesn’t show that the ad was unethical.
1. PHARMACEUTICAL ADVERTISING
Companies in the pharmaceutical industry employ advertising strategy as a way to create awareness. The
main point in the adverts which is emphasized upon by advertisers is that medicines cure; however, they rarely give
information regarding the side effects or associated risks. This obviously shows that most advertisers talk of positive
values while neglecting the negative effects associated with the product.

24. 3. ALCOHOL
Up to the current market place, no advertisement has been shown with a person practically drinking the
actual liquor. In these ads, the demonstrators usually use sodas and mineral water which pose the actual liquor
brand name. For such ads, they are referred to as surrogate adverts. Practically, whether there are alcohol
advertisements or not, it is highly possible that loyal consumers will continue drinking alcohol.
2. CHILDREN
The main sellers in product advertisements are the children. The reason is that they have a convincing
power to lure buyers to purchase a product. The thing is that in case children are used in ads, they should not be
casted handling activities independently, for instance, holding milk bottles, toy playing and teeth brushing. These
should be shown when an adult person is assisting them to handle the activities. It is logical for parents to be shown
getting involved with their children when advertising certain products and services.

25. 5. ADS FOR SOCIAL CAUSES
Adverts associated with social causes are classified as ethical and should be acceptable among people.
Nevertheless, advertisements associated with condoms and pills for contraceptives should be controlled because
they exhibit unethical nature. Basically, such activity may compromise the decency and morality particularly in areas
where education and knowledge of the product are limited. Based on the approach mentioned above, it becomes
vital for advertisers to be responsible for ensuring that ads are self regulated.
4. CIGARETTES AND TOBACCO
In the real sense, tobacco and cigarettes need not be advertised because people consuming these
products are likely to suffer severe health issues and cancer. Practically, such adverts are banned in a number of
countries namely Singapore, Finland, India and Norway.
END