Advertising is a paid form of non-personal promotion to introduce or promote a product, service or idea. The purpose is to convince potential customers to purchase or use what is being advertised. Advertising decisions involve setting objectives, budgets, messages and evaluating effectiveness. Objectives can be informative, persuasive, for reminder or reinforcement. Budgets are set through top-down or bottom-up approaches. Messages are created and media is selected to reach the target audience. Effectiveness is measured through communication effects and sales effects.

2. What is Advertising?
Advertising is a message designed to promote a product, a
service, or an idea. The purpose of advertising is to sell
products or services.Business firms, charitable trusts and
government agencies use advertsing to promote their
products, services and ideas.
The word advertising is derived from two Latin words
‘Ad’ and ‘Verto’.
Ad – Towards
Verto – I turn
Literally it means to turn the people’s attention to a specific
thing.
Advertising Meaning

3. Definitions:-
DAGMAR: Defining Advertising Goals for Measured Advertsing
Results (Russell Coley in 1950)
AIDA: Attention, Interst, Desire, Action(Ad should attract
attention, gain interestm arouse a desire and result in action)
Advertising is any form of paid non-personal presentation of
ideas, goods, or services for the purpose of inducing people to
buy. ------WEELER.
Advertising is the nonpersonal communication of information,
usually paid for and usually persuasive in nature, about products
(goods and services), or ideas by identified sponsors through the
various media. -----AMA
Advertising is defined as any paid form of non personal
presentation and promotion of ideas, goods or services by an
identified sponsor.

4. Advertising Decisions:

5. Advertising Decisions:
1. Setting advertising objective(Mission)
2. Setting advertising budget(Money)
3. Message decision (Message)
4. Media decisions (Media)
5. Evaluating advertising campaigns (Measurements)

6. Advertising Decisions:
1. Setting advertising objective(Mission):
An advertsing goal or objective is a specific
communication task and an achievement level to be
accomplished with a specific audience in a specific
period of time. Objectives are classified in 4 categories:
a) Informative (awareness and information)
b) Persuasive(Aims to create liking, preference,change)
c) Reminder(Aims to stimulate repeat purchase)
d)Reinforcement (Aims to convince current purchasers
that they made right decision)
a) TVS * city b) Close up c)Coco-Cola
d)Nano(1,00,000)

7. Advertising Decisions:
1. Setting advertising objective(Mission)
2. Setting advertising budget(Money)

8. Advertising Decisions:
1. Setting advertising objective(Mission)
2. Setting advertising budget(Money)
Many advertisers implement a number of budgeting methods
developed through practice and experience. They are two
types 1. Top down 2. Bottom-Up Budgeting

9. Advertising Decisions:
1. Setting advertising objective(Mission)
2. Setting advertising budget(Money)
They are two types 1. Top down 2. Bottom-Up Budgeting
1. Top down approach:
In this method budgetary amount is established at top
management level and the money will be allotted to various
departments. These budgets are predetermined and have bno
theoritical basis. The approaches are
a) Affordable methods b) Arbitary allocation
c) Percentage of sales method d) Competitive parity method
e) Return on investment method

10. Top-down approach:
a)Affordable methods (all- you- can- afford)
b)Arbitary allocation(mgt determines the budget solely on the
basis of what is felt to be necessary)
c)Percentage of sales method
d)Competitive parity method (Managers decide the budget
matching the competition percentage of sales expenditures)
e) Return on investment method (In this methods advertsing and
promotions are cosidered investmetns like plant and
equipment)
Bottom-up approach:
a)Objective and task methods(1. Defining communication
objecitves 2. Determine the specific strategies ad tasks needed to
attain them 3.estimate the costs associated with performance of
these strategies and tasks)
b)Payout planning (Investment value of the advertising and
promotion appropriation)
c)Quantitative models (Simulation and regression)

11. Advertising Message:
It has two major elements: a) Creating message b)Selecting media
1. Advertising campaign (Unique Selling Proposition, Brand image,
Inherent drama, Positioning)
2. Ad. Copy(The verbal and written material of an advertisement
including the headline, illustrations, name and address of the
advertiser adn his signature)
a. Never write an advertisement you wouldn’t want your own family
to read
b.Bid ideas are uaually simple ideas
c.Every word in the copy must count (David ogilvy)
3.Media planning(Reach, Coverage, Frequency, Impact)
4.Cost of advertising (Absolute(Actual) costs, Relative
Costs(Relationship between the price paid for advertising time
and size of the audience)
5. Media profile (Television, News papers, Magazines)

12. Examples of successful long running advertisinig
campaigns http://knowndiscovery.blogspot.in/2007/09/companies-brands-their-taglines-part-1.html
Company or Brand Campaign Theme
LG Lifes good
AMAZON.COM Earth's Biggest BookStore
TIMESJOBS.COM If you have a reason, we have the job
Windows XP Do More with Less
Accenture High Performance. Delivered
TCS Beyond the Obvious
BMW The Ultimate Driving Machine
HYUNDAI Drive Your Way
TOYOTA Touch The Perfection
HONDA The Power of Dreams
SKODA Obsessed with Quality since 1897.
VOLKSWAGEN Drivers wanted
FIAT Driven by Passion. FIAT

13. Examples of successful long running advertisinig
campaigns
Company or Brand Campaign Theme
Kotak Think Investments. Think Kotak.
CNBC Profit from it
British airways The Way to Fly.
Sahara Emotionally yours.
Malaysian Airlines - Going Beyond Expectations
BPCL Pure for Sure
NDTV Profit - News you can Use.
(NASDAQ)National Association of
Securities Dealers Automated Quotations,
Stock market for the digital world
Max NewYork Life Insurance Your Partner for life
India's International Bank Bank of Baroda
The World's Local Bank HSBC
WALMART Always low prices. Always. -
VIZAG STEEL Pride of Steel -

14. Advertising Measurement:
 The measurement of advertising effectiveness is done to test
both the communication effects and sales effects of an ad. The
funamental research on effectiveness is very little
 Communication effect: Communication effects of an ad tell
whether the ad is communicating well or not. Copy testing is
the method used to test this effect. This can be done before an
ad in put into media and after it is printed or braodcost. Thse
are knows as pre testing and post testing of an ad. (Consumer
feedback, portfolio tsts, laboratory tests)
 Sales effect: this is very difficult than communication effect. It
is possible through following two methods 1. Historical
Appraoch 2. Experimental Appraoch

15. Classifications of Advertisement
 Classification by medium:
 Print advertising (newspaper, magazines, brochures,
flyers)
 Electronic advertising (television, radio: commercials;
Internet)
 Outdoor advertising (billboards, kiosks, public
transport, events)
 Direct-mail advertising (through the Postal Service
and by e-mail)
 POP (point of purchase) advertising