Content
1. Advertisement Definition
2. Advertisement Concept
3. Features of Advertisement
4. Objective of Advertising
5. Purpose of Advertising
6. Importance of Advertising
7. Characteristics of Advertising
8. Advertising Functions
9. Advertising and Marketing Management
10. Classification of Advertisement
11. Creation of Ads
11.1 Wrong Ads
12. Advertisement Industry in India.

 Can you imagine world without
advertisement?
 If advertisement not exits then what
happened with people?
 How can people get information about
such products?
 How can traders’ sales their products?
 How can we expand ratio of market?
 How can we know about such delicious
foods?
If advertisement not ….??????

 Advertisement includes so many things….
Education, Awareness about health, Science
& Technology, Vehicles, Jewelers, Social
Awareness, Politics, Economics, Job and so
on… So many things included in it. If we
pick up any of the field advertisement also
plays a vital role. Sometimes it is invisible
because we can’t know that this thing also
included in advertisement. But to small thing
to large thing advertisement becomes
important.

Advertisement as a whole….
Education
Awareness
about Health
Science &
Technology
Vehicles
Politics
Economics
Social
Awareness
Job

Advertisement
The world has become
a global market
Modern market
Dynamic, Competitive,
Consumer-oriented
Marketing Process
Consumers
Competitors
Advertisement
Inform
Attract
Convince the valued Customers
Advertisement
Special message
Sent by the specific person
For specific group of people(listeners, readers
&viewers)
For the specific period of time
Specific manner
To achieve the specific goals

The word
advertisement
came from
Latin word “ad
vertere” it
means “to turn
toward”
Advertisement means
oral, written, audio-visual
message addressed to
the people for the purpose
of informing them to buy
the products or to act
favorably toward idea or
institution.

Features of Advertisement
Tool for
Market
Promotion
Promotion
Publicity Powerful
Personal
selling
Advertising
Sales promotion
Popular
element of
promotional
mix
Expensive

 Non-personal
Advertisement is a type of non-
personal or mass communication with
the target audience, large number of
people are addressed at time. It is
called as non-personal
salesmanship.
 Paid Form
It is not free of cost. Advertiser
(sponsor) spend money for preparing
message, buying media, and
monitoring advertising efforts.
Company has to prepare its
advertisement budget to appropriate
advertising costs.

 Wide Applicability
Advertising is a
popular and widely used
means for communicating
with the target market. It is
not used only for business
and profession, but is
widely used by museums,
charitable trusts,
government agencies,
educational institutions,
and others to inform and
attract various target
publics.

Objective of Advertising
• Preparing Ground for New Product
• Creation of Demand
• Facing the Competition
• Creating or Enhancing Goodwill
• Informing the Changes to the Customers
• Neutralizing Competitor's Advertising
• Barring New Entrants

Purpose of Advertisement
• Communicates information
• Creates ground for personal selling
• Educates people
• Creates and extends demand
• Creates image for the product or service
• Builds goodwill
• Obtain dealer support
• Counters competition

Importance of Advertising
• Product Launch – The foremost aim of advertising is
promotion. Hence, advertising is essential, especially
for a new product that has to be launched in the
market. Advertising helps convey the information
regarding launch of the new product.
• Retain the existing customers – It is essential that
customers keep following, buying and using your
brand. And this is where advertising helps companies
again! It keeps on reminding the customers about the
brand and so, helps in retaining the customers and
increasing the sales.

• Brand Promotion – Promotion is quintessential if any brand wants
to stay in the market. This goal is achieved with the help of
advertising which promotes a product, company or service. When a
brand gets established with the help of advertising, it becomes a
promise of quality and the customers start expecting from a brand.
Thereafter, the stage arises where advertising starts acting as a
reminder. It reminds and convinces customers that their chosen
brand is still there.
• Educates people – Advertising is not only about promotion! It also
educates people and makes the society aware about various issues.
Many social issues like female foeticide, child labor, child abuse,
etc., are also raised thorough sensible advertisements. Thus,
advertising also helps in educating people and spreading
awareness.

• Comparison – Advertising also provides the
opportunity of comparing various products to
the customers. Based on features, qualities or
specifications described through advertising,
customers can take their pick on the available
products.

17
Characteristics of Advertising
Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Message Content Control
Sponsor Identification
Reaching Large Audience
Message Flexibility
Advertising
Indirect and non-personal
Low
Little
Delayed
One-way
Yes
Yes
Fast
Same message to all audiences

5 M’s of advertising:
MISSION
MEASURE
MENT
MEDIA
MESSAGE
MONEY
5 M’s

19
Advertising Functions
Informing
Persuading
Reminding
Adding Value
Assisting Other Company Efforts

Advertising and Marketing Management
1. Advertising and Product : A product is normally a set of
physical elements, such as quality, shape, size, colour and other features. The
product may be of very high quality .At times, the product is so designed
that it requires careful handling and operations. Buyers must be informed
and educated on the various aspects of the product. This can be
effectively done through advertising. Thus, advertising plays the role of
information and education.
2. Advertising and Price : The price is the exchange value of the product. A
marketer may bring out a very high quality product with additional
features as compared to competitors. In such a case, price would be
definitely high. But buyers may not be willing to pay a high price would be
definitely high. Here comes advertising. Advertising can convince buyers
regarding the superiority of the brand and thus its value for money. This
can be done by associating the product with prestigious people,
situations, or events. Alternatively when a firm offers a low price products
the job of advertising needs to stress the price advantage by using hard
hitting copy. It is not just enough to convince, but it is desirable to
persuade the buyer. Thus advertising plays the role of conviction and
persuasion.

3. Advertising and Place : Place refers to physical distribution and the
stores where the goods are available Marketer should see to it that
the goods are available at the convenient place and that too at the
right time when the buyers need it. To facilitate effective
distribution and expansion of market, advertising is of great
significance. Thus advertising do help in effective distribution and
market expansion.
4. Advertising and Promotion : Promotion consists of advertising,
publicity, personal selling and sales promotion technique.
Businessmen today have to face a lot of competition. Every seller
needs effective promotion to survive and succeed in this
competitive business world. Advertising can play a significant role
to put forward the claim of seller, and to counter the claims of
competitor. Through effective advertising, sellers can face
competition and also help to develop brand image and brand
loyalty.

5. Advertising and Pace : Pace refers to the speed in marketing decisions and
actions. It involves among other things the launch of new products or brand
variations at greater speed than before. As and when new brands are
launched, advertising plays an important role of informing, educating and
persuading the customers to buy the product.
6. Advertising and Packaging : The main purpose of packaging is protection of
the product during transit, and preservation of quality and quantity.
Nowadays, marketers take lot of efforts to develop and design attractive
packages as they carry advertising value. A creatively design package attract
the attention of the customers. It also carries an assurance of quality and
creates confidence in the minds of customers to buy the product.
7. Advertising and Positioning : Product positioning aims at creating and
maintaining a distinct image of the brands in the minds of the customers.
Through advertising the marketer can convey the positioning of the brand
and accordingly can influence the buying decision of the target audience.

Local/Regional
One good example of this is the Nirma
Washing Powder.
It started selling in Gujarat in the initial
days. Later on if spread to all parts of India.
So the company’s advertising, which was
confined to Gujarat in the beginning, later
spread to all over the country.

National advertising is undertaken by organizations
doing business all over a country.
When the target audience is spread all over the country, the
advertising uses national media. In
India, national advertising uses both Hindi and English
languages.
They use Doordarshan and other TV channels, all the major
Hindi and English newspapers and magazines.
Business houses like Hindustan Lever, Godrej, Escorts, Tata,
etc. spend crores of rupees every year on national
advertising.
Companies doing national advertising also do regional
advertising to strengthen their position in specific regions.

International Ads
With the lifting of trade barriers and the opening of
previously closed markets, MNCs now are spreading
their businesses to many countries. Cola giants Coke
and Pepsi, fast-food giants like McDonald's, KFC and
Pizza Hut, companies like UniLever, IBM, Sony etc.,
have got strong presence in hundreds of countries.
These companies use international media like the
Time or Newsweek magazines,Readers Digest and the
entire major international. TV channels like CNN, Star
etc.

- Print Advertising (Using Newspapers and Magazines)
- Broadcast Advertising (Using Radio & Television)
- Video Advertising
- Cinema Advertising
- Outdoor Advertising (Posters, Wall writing, Hoardings, Boards, Various types of
signboards, Banners, Balloons, Sky writing etc.
- Transit Advertising (Using a variety of vehicles)
- Postal Advertising (Direct Mail Advertising - used by Readers Digest and many
direct selling companies)
- Point of Purchase (POP) Advertising: Usually printed publicity material like
leaflets, brochures, danglers, pamphlets, posters or other special displays distributed
or displayed at the places where products are sold.
- Internet Advertising
- Special Media Advertising: Advertisers sometimes use the backside of
matchboxes, the postal and other official stationary to give brief messages. These
advertising messages are mostly social.
Classification of Advertising: On the basis of Media

Consumer product advertising
This is done to impress the ultimate consumer. An ultimate
consumer is a person who buys the product or service for his
personal use. This type of advertising is done by the manufacturer
or dealer of the product or service. Examples: Advertisements of
Intel, Kouttons (shirt), Lakme (cosmetics) etc.
Industrial product advertising :
This is also called Business-to-Business Advertising. This is done by
the industrial manufacturer or his distributor and is so designed
that it increases the demand of industrial product or services
manufactured by the manufacturer. It is directed towards the
industrial customer. The marketer chooses only trade-specific
magazines or journals that the targeted customers are likely to
read. Examples: Assam Oil, servo, Oil and Natural Gas Corporation,
Oil India etc.

Tradeadvertising
This is done by the manufacturer to persuade wholesalers
and retailers to sell his goods.
This is executed by manufacturers and distributors to
influence the professionals of a particular trade or business
stream.
The doctor is convinced by medical representatives of
pharmaceutical firms like Cipla, Tata Steel, Ambuja Cement
etc.
Professional advertising
This is executed by manufacturers and distributors to
influence the professionals of a particular trade or
business stream. These professionals recommend or
prescribe the products of these manufacturers to the
ultimate buyer

Direct action advertising
This is done to get immediate responses from customers.
Examples: Season’s sale, purchase coupons in a magazine.
Indirect action advertising
This type of advertising exercise is carried out to make a
positive effect on the mind of the reader or viewer. After
getting the advertisement he does not rush to buy the product
but he develops a favourable image of the brand in his mind.
He would buy only that product or service whose image is
positive in his mind. Examples: The ad of Indica V2 (More car
per car), Amul (the taste of India ).

Primary demand advertising
It is also called Generic Advertising. This category of advertising is
designed to increase the primary demand. The name of the firm is
advertised, but the objective of the exercise is to increase the demand
of products of a particular class and not the demand of the products of
that company.
Selective demand advertising
This is done by a company or dealer to increase the company demand.
The company would advertise its own brand only. The retailer can also
advertise a particular brand. Examples: Titan wrist watch , Hero and
Honda bike , Sony television etc.

Step 1 - Briefing: the advertiser needs to brief about the product or
the service which has to be advertised and doing the SWOT analysis
of the company and the product.
Step 2 - Knowing the Objective: one should first know the objective
or the purpose of advertising. i.e. what message is to be delivered to
the audience?
Step 3 - Research: this step involves finding out the market behavior,
knowing the competitors, what type of advertising they are using,
what is the response of the consumers, availability of the resources
needed in the process, etc.
Step 4 - Target Audience: the next step is to identify the target
consumers most likely to buy the product.
Creation of Advertising

Step 5 - Media Selection: now that the target audience is identified,
one should select an appropriate media for advertising so that the
customers who are to be informed about the product and are willing
to buy are successfully reached.
Step 6 - Setting the Budget: then the advertising budget has to be
planned so that there is no short of funds or excess of funds during
the process of advertising and also there are no losses to the
company.
Step 7 - Designing and Creating the Ad: first the design that is the
outline of ad on papers is made by the copywriters of the agency, then
the actual creation of ad is done with help of the art directors and the
creative personnel of the agency.

Step 8 - Perfection: then the created ad is re-examined and
the ad is redefined to make it perfect to enter the market.
Step 9 - Place and Time of Ad: the next step is to decide
where and when the ad will be shown.
Step 10 - Execution: finally the advertise is released with
perfect creation, perfect placement and perfect timing in
the market.

Step 11 - Performance: the last step is to judge the
performance of the ad in terms of the response from the
customers, whether they are satisfied with the ad and the
product, did the ad reached all the targeted people, was the
advertise capable enough to compete with the other
players, etc. Every point is studied properly and changes are
made, if any.

Advertising in India
• The Indian advertising industry has evolved
from being a small-scaled business to a full-
fledged industry.
• The advertising industry is projected to be the
second fastest growing advertising market in
Asia after China.
• It is estimated that by 2025, the share of ad
spend in India’s will be around 26.30% 54.39
Billion US Dollar.

• The Indian government has given tremendous
support to the advertising and marketing
industry.
• Advertising expenditure is likely to increase in the
financial sector, driven by Reserve Bank of India
(RBI) policies which could result in a more
favourable business environment.
• Also, proposed licences for new banks and better
market sentiments render the advertising and
marketing industry in India a fertile space.

Market Size
• Print contributes a significant portion to the total advertising
revenue, accounting for almost 41.2 per cent,
• whereas TV contributes 38.2 per cent, and digital contributes 11 per
cent of the total revenue.
• Outdoor, Radio and Cinema make up the balance 10 per cent.
• India’s digital advertisement market is expected to grow at a
compound annual growth rate (CAGR) of 33.5 per cent to cross the
Rs 25,500 crore (US$ 3.8 billion) mark by 2020.*
• The Internet's share in total advertising revenue is anticipated to
grow twofold from eight per cent in 2013 to 16 per cent in 2018.
• Online advertising, which was estimated at Rs 2,900 crore (US$ 435
million) in 2013, could jump threefold to Rs 10,000 crore (US$ 1.5
billion) in five years, increasing at a compound annual rate of 28 per
cent.

New Initiative
• The Indian Railways is working on a new advertising policy aimed at installing
100,000 big digital screens at 2,175 railway stations across the country, which is
expected generate Rs 11,770 crore (US$ 1.76 billion) revenue annually.
• Times Internet Limited plans to invest US$ 100 million in development of smart
marketing technology platform Colombia, which will serve its marketers to engage
with around 200 million digital users per month.
• Zarget, a Software-as-a-Service (SaaS) based conversion rate optimisation start-up,
has raised US$ 1.5 million in seed funding from Accel Partners, Matrix Partners and
Freshdesk Inc's founder Mr Girish Mathrubootham, which will be used to build
more marketing related tools.
• Snapdeal.com, one of India’s largest and fast growing e-commerce companies, has
acquired TargetingMantra (Insightful Pvt. Ltd), which is a Gurugram-based
marketing and personalisation services company, as part of its plan to enhance the
experience for its customers.
• Indian Railways has appointed Ernst & Young (EY) as a consultant to discover its
advertising potential, which is in line with the Railway Budget proposal of
increasing non-fare earnings to over Rs 5,000 crore (US$ 750 million) in five years.

• MoMark Services, a mobile based customer engagement platform for small and
medium businesses, has raised US$ 600,000 from YourNest Angel Fund and LNB
Group, to scale up its product offerings and talent acquisition.
• Tata Motors has appointed renowned football player Lionel Messi as the global
brand ambassador for Tata cars and utility vehicles globally, with an aim to tap the
youth market and expand visibility and presence of Tata Motors in newer markets.
• Advertising agency J Walter Thompson has launched its global digital agency
network 'Mirum' in India which will provide services such as strategy and
consulting services, campaigns and content, experience and platforms, analytics
and innovation and product development, with the target to increase non-
traditional media revenues to 40-45 per cent from 35 per cent currently.
• DDB Mudra Group has planned to launch ‘Track DDB’, a brand that addresses the
data-led world of marketing communications, which will provide services like
creative, data and digital analytics, database marketing, CRM, digital and mobile
marketing in India.
• All India Radio (AIR) has appointed ‘releaseMyAd’ as a virtual agency to let
advertisers book ads for all of AIR’s station online.

• Google is all set to help India implement Prime Minister Mr Narendra
Modi's "Digital India" initiative, and the government has a well laid out
plan to realise it, said Google's Chief Internet Evangelist Mr Vinton G. Cerf.
Digital India is Rs 1.13 trillion (US$ 16.95 billion) government initiative that
seeks to transform the country into a connected economy, attract
investment in electronics manufacturing, and create millions of jobs and
support trade.
• As companies look for better productivity and increasing efficiencies in a
tough market environment, market research firm Nielsen has launched its
first consumer neuroscience lab in India at its Mumbai headquarters. The
neuroscience lab will augment the company's research capabilities in
packaging and research, improving their effectiveness.
• MPS North America LLC, the US subsidiary of Bengaluru-based publishing
solutions provider MPS Ltd, has acquired Electronic Publishing Services
Inc. (EPS), a New York-based firm with interests in content creation, art
rendering, design and production. The deal will allow MPS to strengthen
its foothold in North America.

• Jaipur-based Girnar Software Private Limited, which owns and operates
the website CarDekho.com, announced that it has raised US$ 50 million in
its second round of funding. The funding was led by Hillhouse Capital with
participation from Tybourne Capital and Sequoia Capital.
• ZipDial has become the first Indian technology product startup to be
bought by Twitter in what is the third such deal led by a global corporation
following the acquisitions by Facebook and Yahoo. The ZipDial deal is
expected to cost Twitter US$ 34-35 million. This feature is expected to
help Twitter reach people who will come online for the first time in
countries such as Brazil, India and Indonesia, mostly using a mobile device.
• Telecom major Axiata's subsidiary, Axiata Digital Advertising (ADA) has
formed a joint venture with US-based advertising tech firm Adknowledge
to get into the US$ 47 billion digital ad market in the Asia Pacific region
and has identified India as a 'key' market.

• The advertising and marketing sector in India is expected to enjoy a
good run.
• Growth is expected in retail advertisement, on the back of factors
such as several players entering the food and beverages segment, e-
commerce gaining more popularity in the country, and domestic
companies testing out the waters.
• The rural region is a potentially profitable target. For instance, in
the automobiles sector, the focus of two-wheelers on rural areas
could mean more launches and more advertising spends.
• The telecom sector could see growth as well, driven by better smart
phone penetration and service providers cutting down on prices.

References
• Philip Kotler, Kelvin Lane, Keller, Abraham Koshi, Mitihlesh Jha, Principles of
Marketing Management, South Asian Perspective, Pearson Education, 14th Edition
2011.
• Philip Kotlern and Gary Armstrong “Principles of Marketing”, New Delhi,
Prentice Hall of India, 15th Edition, 2013.
• Belch: Advertising and Promotion: An Integrated Marketing Communications
Perspective .8th Edition, The McGraw−Hill Companies, 2011
• Thomas O'Guinn , Chris Allen , Richard J. Semenik and Angeline Close
Scheinbaum Advertising and Integrated Brand Promotion (with CourseMate with
Ad Age Printed Access Card) 7th Edition,Cengage learning, Stanford USA , 2014.
•
• O’Guinn,Allen,Semenik,4E,Advertising & Integrated Brand Promotion, Thomson,
India Edition, New Delhi,2007.
• Media Reports, Press Releases, McKinsey Report Note: #- Pitch Madison
Advertising Report 2016, ## - According to a report by Morgan Stanley, * - as per a
report by Confederation of Indian Industry (CII) and KPMG

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