The chapter discusses advertising and its role in the modern business world. It defines advertising as any paid form of non-personal presentation and ideas, goods, and services by an identified sponsor. Advertising is part of an organization's marketing communications and is one way to promote products along with the four P's of marketing: product, price, place, and promotion. The chapter also examines advertising's economic, social, and psychological functions and how it is used to attract attention, rouse interest, build desire, and obtain action from consumers. It concludes by listing the top advertising agencies globally.

1. CHAPTER-
ADVERTISING WORLD
FOUNDATIONS OF
ADVERTISING
2
THEORYAND PRACTICE

2. Himalaya Publishing House
Foundations of Advertising Theory
and Practice
S. A. Chunawalla & K. C. Sethia
Chapter 2
Advertising World

3. Himalaya Publishing House
Foundations of Advertising Theory
and Practice
S. A. Chunawalla & K. C. Sethia
Chapter 2
Advertising World
Definition of Advertising
 The American Marketing Association, Chicago,
defines advertising as “any, paid form of non-
personal presentation of ideas, goods and
services by an identified sponsor.”

4. Himalaya Publishing House
Foundations of Advertising Theory
and Practice
S. A. Chunawalla & K. C. Sethia
Chapter 2
Advertising World
Advertising as a Tool of
Communication
Communication Process

5. Himalaya Publishing House
Foundations of Advertising Theory
and Practice
S. A. Chunawalla & K. C. Sethia
Chapter 2
Advertising World
Marketing Communication
 The four P’s — product, price, promotion and
place or distribution channel.
 Advertising
 Sales Promotion
 Publicity
 Personal Selling
 Public Relations

6. Himalaya Publishing House
Foundations of Advertising Theory
and Practice
S. A. Chunawalla & K. C. Sethia
Chapter 2
Advertising World
Communication Model
A — attracting attention
I — rousing interest
D — building desire
A — obtaining action

7. Himalaya Publishing House
Foundations of Advertising Theory
and Practice
S. A. Chunawalla & K. C. Sethia
Chapter 2
Advertising World
Role of Advertising in Modern
Business World
 It is a basic tool of marketing for stimulating
demand and for influencing the level and character
of the demand. It has economic, social and
psychological functions.
 Economic Function:
Example:
gives employment to a, commercial artists, media
employees, free lancers, jingle singers
 Social Function
married
Example: Jeevan Sathi.com website

8. Himalaya Publishing House
Foundations of Advertising Theory
and Practice
S. A. Chunawalla & K. C. Sethia
Chapter 2
Advertising World
 Psychological Functions:
Example: Women are used not only as sexual
symbols in advertisements: there are others —
beds, bathroom fittings, cars and what not.
 Ethics in Advertising
Advertising Standards Council of India (ASCI)

9. Himalaya Publishing House
Foundations of Advertising Theory
and Practice
S. A. Chunawalla & K. C. Sethia
Chapter 2
Advertising World
20 Most Influential People in Advertising

10. Himalaya Publishing House
Foundations of Advertising Theory
and Practice
S. A. Chunawalla & K. C. Sethia
Chapter 2
Advertising World
Overall Ranking of top 25 Agencies
Rank Agency Rank Agency
1. O&M 9. Grey Worldwide
2. Mudra 10. Saatchi & Saatchi
3. JWT 11. Contract
4. McCann Erickson 12. R. K. Swamy BBDO
5. Lowe Lintas 13. Everest
6. Rediffusion DYR 14. Bates Enterprise
7. FCB-Ulka 15. Publicis India
8. Leo Burnett