advertising and sales promotion

1. ME03001 - ADVERTISING AND
SALES PROMOTION
COURSE FACULTY: MS VIDHYA J
ASSISTANT PROFESSOR
SAVEETHA SCHOOL OF MANAGEMENT
UNIT 1

2. COURSE OBJECTIVES
• TO IMPART KNOWLEDGE ABOUT VARIOUS PROMOTIONAL TOOLS USED IN THE
COMMUNICATION MIX, SUCH AS ADVERTISING, SALES PROMOTION, AND PUBLICITY, TO SELL
PRODUCTS AND SERVICES.
• TO ENABLE THE STUDENTS TO PRACTICE ADVERTISING PLANNING PROCESSES, DETERMINING
ADVERTISING AND PROMOTIONAL GOALS AND OBJECTIVES, CONTROL AND EVALUATION OF
ADVERTISING AND PROMOTIONAL PROGRAMS, AND CONTEMPORARY ISSUES.

3. • UNIT – 1: INTRODUCTION TO ADVERTISING
• ADVERTISING – DEFINITION, FUNCTIONS, & BENEFITS; TYPES OF ADVERTISING; APPROACHES OF ADVERTISING
(DAGMAR & AIDA); SOCIAL, ECONOMIC, AND LEGAL IMPLICATIONS OF ADVERTISEMENTS.
• UNIT – 2: ADVERTISING MEDIA
• ADVERTISING MEDIA – INDUSTRY OVERVIEW AND CONCEPTS; TYPES OF MEDIA; MEDIA PLANNING AND
BUYING.
• UNIT – 3: CREATIVITY IN ADVERTISING
• CREATIVITY – CREATIVE THINKING, CREATIVE PROCESS, CREATIVITY STRATEGY, FACETS OF CREATIVE STRATEGY;
COPYWRITING – COPYWRITING FOR PRINT, RADIO, TELEVISION, AND WEB; COPYWRITING IN A GLOBAL
ENVIRONMENT

4. • UNIT – 4: DESIGN & PRODUCTION
• PRINT ART DIRECTION – ILLUSTRATION & PHOTOS, COLOURS IN PRINT, TYPOGRAPHY, LAYOUT &
DESIGN, AND LAYOUT STAGES; PRINT PRODUCTION – PRINT MEDIA REQUIREMENTS, ART
REPRODUCTION, AND PRINTING PROCESS; TELEVISION ART DIRECTION – VIDEO GRAPHICS, TV &
FILM REQUIREMENTS; BROADCAST PRODUCTION – ANIMATION, STOP MOTION, AND MUSIC &
ACTION; TV PRODUCTION PROCESS – PREPRODUCTION AND POSTPRODUCTION.
• UNIT – 5: SALES PROMOTION
• SALES PROMOTION – INTRODUCTION; CATEGORIES OF SALES PROMOTION – CONSUMER
PROMOTIONS AND TRADE PROMOTIONS; TYPES OF CONSUMER PROMOTIONS; TYPES OF TRADE
PROMOTIONS.

5. • COURSE OUTCOME
• THIS COURSE WILL CREATE AN INSIGHT TO DEVELOP A COMPREHENSIVE KNOWLEDGE ABOUT
PROMOTIONAL TOOLS USED IN THE COMMUNICATION MIX.
• SUGGESTED READINGS
• OGILVY, D. (2013). OGILVY ON ADVERTISING. VINTAGE.
• KAZMI, S. H. H., & BATRA, S. K. (2009). ADVERTISING AND SALES PROMOTION. EXCEL BOOKS INDIA.
• KOTLER, P., KARTAJAYA, H., & SETIAWAN, I. (2016). MARKETING 4.0: MOVING FROM TRADITIONAL
TO DIGITAL. JOHN WILEY & SON

6. INTRODUCTION TO ADVERTISING
• THE WORD ADVERTISING COMES FORM THE LATIN WORD "ADVERTERE MEANING” TO TURN
THE MINDS OF TOWARDS".
• ACCORDING TO WILLIAM J. STANTON, "ADVERTISING CONSISTS OF ALL THE ACTIVITIES
INVOLVED IN PRESENTING TO AN AUDIENCE A NON-PERSONAL, 2 SPONSOR-IDENTIFIED, PAID-
FOR MESSAGE ABOUT A PRODUCT OR ORGANIZATION."
• ACCORDING TO AMERICAN MARKETING ASSOCIATION "ADVERTISING IS ANY PAID FORM OF
NON-PERSONAL PRESENTATION AND PROMOTION OF IDEAS, GOODS AND SERVICES BY AN
IDENTIFIED SPONSOR".

7. MEANING/DEFINITION
• a form of marketing communication used to encourage, persuade, or manipulate
an audience (viewers, readers or listeners; sometimes a specific group) to take or continue to
take some action
• David Ogilvy says – “Advertising is the art and science of building brands through
persuasive communication and positioning them in consumers perception with a constant
vigil on the market situation and consumer expectations.”
• A.G.Krishnamurthy founder of Mudra Advertising Defines - Advertising is a form of
communication that typically attempts to persuade potential customers to purchase or to
consume more of a particular brand of product or service through creative form of
presentation.

10. DEFINING MODERN ADVERTISING
▪Advertising is paid
persuasive
Communication
▪Uses nonpersonal
mass media to reach
broad audiences to
connect an identified
sponsor with a target
audience
Five basic components:
1. Paid communication
2.Sponsor is identified
3.Tries to persuade or influence
4. Reaches a large audience
5. Conveyed through impersonal
mass media

11. MILESTONES IN ADVERTISING

12. ADVERTISEMENT VS PUBLICITY

13. FEATURES OF ADVERTISING
• 1. COMMUNICATION : ADVERTISING IS MEANS OF MASS
COMMUNICATION REACHING THE MASSES. IT IS A NON-PERSONAL
COMMUNICATION BECAUSE IT IS ADDRESSED TO THE MASSES.
• 2. INFORMATION : ADVERTISING INFORMS BUYERS ABOUT THE BENEFITS
THEY WOULD GET WHEN THEY PURCHASE A PARTICULAR PRODUCT.
HOWEVER, THE INFORMATION GIVEN SHOULD BE COMPLETE AND TRUE.
• 3. PERSUASION : THE ADVERTISER EXPECTS TO CREATE A FAVOURABLE
ATTITUDE WHICH WILL LEAD TO FAVOURABLE ACTIONS. ANY
ADVERTISING PROCESS ATTEMPTS AT CONVERTING PROSPECTS INTO
CUSTOMERS. IT IS THUS AN INDIRECT SALESMANSHIP AND ESSENTIALLY A
PERSUASION TECHNIQUE.

14. • 4. PROFIT MAXIMISATION : TRUE ADVERTISING DOES NOT ATTEMPT AT MAXIMISING PROFITS BY INCREASING
THE COST BUT BY PROMOTING THE SALES. THIS WAY IT WON‟T LEAD TO INCREASE THE PRICE OF THE
PRODUCT. THUS, IT HAS A HIGHER SALES APPROACH RATHER THAN THE HIGHER-COST APPROACH.
• 5. NON-PERSONAL PRESENTATION : SALESMANSHIP IS PERSONAL SELLING WHEREAS ADVERTISING IS NON-
PERSONAL IN CHARACTER. ADVERTISING IS NOT MEANT FOR ANYONE INDIVIDUAL BUT FOR ALL. THERE IS
ABSENCE OF PERSONAL APPEAL IN ADVERTISING.
• 6. IDENTIFIED SPONSOR : A SPONSOR MAY BE AN INDIVIDUAL OR A FIRM WHO PAYS FOR THE ADVERTISEMENT.
THE NAME OF REPUTED COMPANY MAY INCREASE SALE OR PRODUCTS. THE PRODUCT GETS GOOD MARKET
BECAUSE OF ITS IDENTITY WITH THE REPUTED CORPORATE BODY.
• 7. CONSUMER CHOICE : ADVERTISING FACILITATES CONSUMER CHOICE. IT ENABLES CONSUMERS TO
PURCHASE GOODS AS PER THEIR BUDGET REQUIREMENT AND CHOICE. RIGHT CHOICE MAKES CONSUMER
HAPPY AND SATISFIED.

15. • 8. ART, SCIENCE AND PROFESSION : ADVERTISING IS AN ART BECAUSE IT REPRESENTS A FIELD OF
CREATIVITY. ADVERTISING IS A SCIENCE BECAUSE IT HAS A BODY OF ORGANISED KNOWLEDGE.
ADVERTISING IS PROFESSION IS NOW TREATED AS A PROFESSION WITH ITS PROFESSIONAL BODIES
AND CODE OF CONDUCT FOR MEMBERS.
• 9. ELEMENT OF MARKING MIX : ADVERTISING IS AN IMPORTANT ELEMENT OF PROMOTION MIX.
ADVERTISING HAS PROVED TO BE OF GREAT UTILITY TO SELL GOODS AND SERVICES. LARGE
MANUFACTURES SPEND CRORES OF RUPEES ON ADVERTISING.
• 10. ELEMENT OF CREATIVITY : A GOOD ADVERTISING CAMPAIGN INVOLVES LOT OF CREATIVITY
AND IMAGINATION. WHEN THE MESSAGE OF THE ADVERTISER MATCHES THE EXPECTATIONS OF
CONSUMERS, SUCH CREATIVITY MAKES WAY FOR SUCCESSFUL CAMPAIGN.

16. OBJECTIVES OF ADVERTISING
• 1. TO INTRODUCE A NEW PRODUCT BY CREATING INTEREST FOR IT AMONG THE PROSPECTIVE CUSTOMERS.
• 2. TO SUPPORT PERSONAL SELLING PROGRAMME. ADVERTISING MAYBE USED TO OPEN CUSTOMERS' DOORS
FOR SALESMAN.
• 3. TO REACH PEOPLE INACCESSIBLE TO SALESMAN.
• 4. TO ENTER A NEW MARKET OR ATTRACT A NEW GROUP OF CUSTOMERS.
• 5. TO LIGHT COMPETITION IN THE MARKET AND TO INCREASE THE SALES AS SEEN IN THE FIERCE COMPETITION
BETWEEN COKE AND PEPSI.
• 6. TO ENHANCE THE GOODWILL OF THE ENTERPRISE BY PROMISING BETTER QUALITY PRODUCTS AND
SERVICES.
• 7. TO IMPROVE DEALER RELATIONS. ADVERTISING SUPPORTS THE DEALERS IN SELLING HE PRODUCT. DEALERS
ARE ATTRACTED TOWARDS A PRODUCT WHICH IS ADVERTISED EFFECTIVELY.
• 8. TO WARN THE PUBLIC AGAINST IMITATION OF AN ENTERPRISE'S PRODUCTS

17. FUNCTIONS AND EFFECTS OF ADVERTISING
• ADVERTISING PERMEATES THE INTERNET, NETWORK TELEVISION, DAILY NEWSPAPERS AND ROADSIDE BILLBOARDS.
PRODUCTS, SERVICES AND IDEAS ARE SOLD THROUGH ADVERTISING, ENABLING BUSINESSES TO ATTRACT CUSTOMERS
FOR THEIR WARES. INTERNET ADVERTISING IS RAPIDLY DISPLACING PRINT ADVERTISING, DUE ITS CONVENIENCE OF
USE, COST EFFECTIVENESS, AND EASE OF DISTRIBUTION.
• IDENTIFYING BRANDS PRODUCTS, SERVICES AND IDEAS ARE SOLD THROUGH BUSINESSES THAT ARE DIFFERENTIATED
BY THEIR BRAND IDENTITIES. BRAND IDENTITY IS COMMUNICATED TO THE PUBLIC VIA ADVERTISING. CONSUMERS BUILD
EMOTIONAL RELATIONSHIPS WITH CERTAIN BRANDS WITH WHICH THEY BECOME INCREASINGLY FAMILIAR THROUGH
THE YEARS, THANKS TO ADVERTISING.
• INFORMATION ADVERTISING SUPPLIES THE NECESSARY INFORMATION TO CONSUMERS SO THAT THEY KNOW WHAT
IS AVAILABLE AND WHERE TO BUY IT. IT BROADCASTS INFORMATION ON PRODUCTS, SERVICES AND IDEAS SOLD ON
THE OPEN MARKET THROUGH A VARIETY OF MEDIA PORTALS. IT REVEALS THE SPECIAL FEATURES BEING SOLD, WHAT
COLOR AND SIZE THE PRODUCT IS AND WHICH STORES CARRY IT.

18. • PERSUASION POWERFUL, VISUAL ADVERTISING PRESENTATIONS COMPEL CONSUMERS TO PURCHASE GOODS,
SERVICES AND IDEAS AS A WAY TO ACHIEVE EMOTIONAL FULFILLMENT. PERSUASION IS THE CORE MISSION OF
ADVERTISING.
• PREVIEWING NEW TRENDS PREVIEWS ABOUT THE VIRTUES OF NEW PRODUCTS, SERVICES AND IDEAS MOTIVATE
CONSUMERS TO OBTAIN THEM BECAUSE THEY DON'T WANT TO BE LEFT OUT. PREVIEWING NEW TRENDS IS A
TECHNIQUE EMPLOYED BY ADVERTISERS THAT CAPITALIZES ON CONSUMERS' DESIRES TO "KEEP UP WITH THE JONES"
BY OWNING THE LATEST AND GREATEST PRODUCT, SERVICE OR IDEA.
• DEMAND THE DEMAND GENERATED BY ADVERTISING, PUBLIC RELATIONS, AND SALES PROMOTION "PULLS" THE
GOODS OR SERVICES THROUGH CHANNELS OF DISTRIBUTION, NOTES "REFERENCE FOR BUSINESS." ONE OF THE
POWERFUL FUNCTIONS OF ADVERTISING IS TO GENERATE CONSUMER DEMAND FOR SPECIFIC PRODUCTS, SERVICES
AND IDEAS THROUGH AD CAMPAIGNS THAT TARGET THE AUDIENCES THAT ARE MOST LIKELY TO BUY THEM."

19. • CUSTOMER BASE CONSISTENT QUALITY ADVERTISING INCREASES CONSUMER LOYALTY FOR A
PRODUCT, SERVICE OR IDEA. ADVERTISING SEEKS TO MAINTAIN THE CURRENT CUSTOMER BASE BY
REINFORCING PURCHASING BEHAVIOR WITH ADDITIONAL INFORMATION ABOUT THE BENEFITS OF
BRANDS. THE GOAL OF ADVERTISING IS TO BUILD AND REINFORCE RELATIONSHIPS WITH
CUSTOMERS, PROSPECTS, RETAILERS AND IMPORTANT STAKEHOLDERS.
• PRICING ADVERTISING DISPLAYS CONSUMER GOODS WITH COMPETITIVE PRICES RELATIVE TO THE
CURRENT MARKET, THUS EDUCATING CONSUMERS ABOUT WHAT THINGS SHOULD COST.
ADVERTISING LETS YOU KNOW WHAT THE COMPETITION IS DOING, WHEN THE NEXT SALE IS, AND
HOW YOU CAN RECEIVE THE LATEST COUPON OR REBATE AND SEEKS TO ASSURE YOU THAT YOU
ARE RECEIVING THE BEST VALUE FOR YOUR MONEY.

20. BENEFITS OF ADVERTISING
• (I) TO THE CUSTOMERS
• CONVENIENCE: TARGETED INFORMATIVE ADVERTISEMENTS MAKE THE CUSTOMER’S DECISION MAKING PROCESS EASIER AS THEY GET
TO KNOW WHAT SUITS THEIR REQUIREMENTS AND BUDGET.
• AWARENESS: ADVERTISING EDUCATES THE CUSTOMERS ABOUT DIFFERENT PRODUCTS AVAILABLE IN THE MARKET AND THEIR FEATURES.
THIS KNOWLEDGE HELPS THE CUSTOMERS COMPARE DIFFERENT PRODUCTS AND CHOOSE THE BEST PRODUCT FOR THEM.
• BETTER QUALITY: ONLY BRANDS ADVERTISE THEMSELVES AND THEIR PRODUCTS. THERE ARE NO ADVERTISEMENTS OF UNBRANDED
PRODUCTS. THIS ENSURES BETTER QUALITY TO THE CUSTOMERS AS NO BRAND WANTS TO WASTE MONEY ON FALSE ADVERTISING.
• (II) TO THE BUSINESS
• AWARENESS: ADVERTISING INCREASES THE BRAND AND PRODUCT AWARENESS AMONG THE PEOPLE BELONGING TO THE TARGET
MARKET.
• BRAND IMAGE: CLEVER ADVERTISING HELPS THE BUSINESS TO FORM THE DESIRED BRAND IMAGE AND BRAND PERSONALITY IN THE
MINDS OF THE CUSTOMERS.

21. • PRODUCT DIFFERENTIATION: ADVERTISING HELPS THE BUSINESS TO DIFFERENTIATE ITS
PRODUCT FROM THOSE OF COMPETITORS’ AND COMMUNICATE ITS FEATURES AND
ADVANTAGES TO THE TARGET AUDIENCE.
• INCREASES GOODWILL: ADVERTISING REITERATES BRAND VISION AND INCREASES THE
GOODWILL OF THE BRAND AMONG ITS CUSTOMERS.
• VALUE FOR MONEY: ADVERTISING DELIVERS THE MESSAGE TO A WIDE AUDIENCE AND TENDS
TO BE VALUE FOR MONEY WHEN COMPARED TO OTHER ELEMENTS OF PROMOTION MIX.
• III) TO THE COMPANY:

22. • REDUCES PER UNIT COST: THE WIDE APPEAL OF ADVERTISEMENTS INCREASES THE DEMAND OF THE PRODUCT WHICH BENEFITS THE
ORGANIZATION AS IT CAPITALIZES ON THE ECONOMIES OF SCALE.
• HELPS IN BRAND BUILDING: ADVERTISEMENTS WORK EFFECTIVELY IN BRAND BUILDING. BRANDS WHO ADVERTISE ARE PREFERRED OVER
THOSE WHICH DON’T.
• HELPS IN LAUNCHING NEW PRODUCT: LAUNCHING A NEW PRODUCT IS EASY WHEN IT IS BACKED BY AN ADVERTISEMENT.
• BOOSTS UP EXISTING CUSTOMERS’ CONFIDENCE IN THE BRAND: ADVERTISEMENTS BOOSTS UP EXISTING CUSTOMERS’ CONFIDENCE IN
THE BRAND AS THEY GET A FEELING OF PRIDE WHEN THEY SEE AN ADVERTISEMENT OF THE PRODUCT OR THE BRAND THEY USE.
• ATTRACTS NEW CUSTOMERS: AN ATTRACTIVE ADVERTISEMENT HELPS THE BRAND IN GAINING NEW CUSTOMERS AND EXPANDING
BUSINESS.
• EDUCATES THE CUSTOMERS: ADVERTISEMENTS INFORM THE CUSTOMERS ABOUT DIFFERENT PRODUCTS EXISTING IN THE MARKET AND
ALSO EDUCATES THEM IN WHAT THEY SHOULD LOOK FOR IN AN APT PRODUCT

23. TYPES OF ADVERTISING
1. PRODUCT – RELATED ADVERTISING
• A. PIONEERING ADVERTISING
• B. COMPETITIVE ADVERTISING
• C. RETENTIVE ADVERTISING
2. PUBLIC SERVICE ADVERTISING
3. FUNCTIONAL CLASSIFICATION
• A. ADVERTISING BASED ON DEMAND INFLUENCE LEVEL.
• A. PRIMARY DEMAND (STIMULATION)
• B. SELECTIVE DEMAND (STIMULATION)
• B. INSTITUTIONAL ADVERTISING
• C. PRODUCT ADVERTISING
a. INFORMATIVE PRODUCT ADVERTISING
b. PERSUASIVE PRODUCT ADVERTISING
c. Reminder-Oriented Product Advertising
4. Advertising based on Product Life Cycle
A. Consumer Advertising
B. Industrial Advertising
5. Trade Advertising
A. Retail Advertising
B. Wholesale Advertising
6. Advertising Based on Area of operation
A. National advertising
B. Local advertising
C. Regional advertising
7. Advertising according to Medium Utilized

24. • 1. PRODUCT – RELATED ADVERTISING IT IS CONCERNED WITH CONVEYING INFORMATION ABOUT AND SELLING A
PRODUCT OR SERVICE.
• PRODUCT ADVERTISING IS OF THREE TYPES
• A. PIONEERING ADVERTISING
• B. COMPETITIVE ADVERTISING
• C. RETENTIVE ADVERTISING
• I. PIONEERING ADVERTISING THIS TYPE OF ADVERTISING IS USED IN THE INTRODUCTORY STAGES IN THE LIFE CYCLE OF
A PRODUCT. IT IS CONCERNED WITH DEVELOPING A “PRIMARY” DEMAND. IT CONVEYS INFORMATION ABOUT, AND
SELLING A PRODUCT CATEGORY RATHER THAN A SPECIFIC BRAND. FOR EXAMPLE THE INITIAL ADVERTISEMENT FOR
BLACK AND WHITE TELEVISION AND COLOUR TELEVISION. SUCH ADVERTISEMENTS APPEAL TO THE CONSUMER’S
EMOTIONS AND RATIONAL MOTIVES.

25. • II. COMPETITIVE ADVERTISING IT IS USEFUL WHEN THE PRODUCT HAS REACHED THE MARKET-
GROWTH AND ESPECIALLY THE MARKET-MATURITY STAGE. IT STIMULATES “SELECTIVE”
DEMAND. IT SEEKS TO SELL A SPECIFIC BRAND RATHER THAN A GENERAL PRODUCT CATEGORY.
IT IS OF TWO TYPES:
• A. DIRECT TYPE: IT SEEKS TO STIMULATE IMMEDIATE BUYING ACTION.
• B. INDIRECT TYPE: IT ATTEMPTS TO PINPOINT THE VIRTUES OF THE PRODUCT IN THE
EXPECTATION THAT THE CONSUMER’S ACTION WILL BE AFFECTED BY IT WHEN HE IS READY TO
BUY. EXAMPLE: AIRLINE ADVERTISING

26. III. RETENTIVE ADVERTISING: THIS MAY BE USEFUL WHEN THE PRODUCT HAS ACHIEVED A FAVOURABLE STATUS IN THE MARKET – THAT IS, MATURITY OR
DECLINING STAGE.
2. PUBLIC SERVICE ADVERTISING THIS IS DIRECTED AT THE SOCIAL WELFARE OF A COMMUNITY OR A NATION. THE EFFECTIVENESS OF PRODUCT SERVICE
ADVERTISEMENTS MAY BE MEASURED IN TERMS OF THE GOODWILL THEY GENERATE IN FAVOUR OF THE SPONSORING ORGANIZATION.
3. FUNCTIONAL CLASSIFICATION ADVERTISING MAY BE CLASSIFIED ACCORDING TO THE FUNCTIONS THAT IT IS INTENDED TO FULFILL.
(i) ADVERTISING MAY BE USED TO STIMULATE EITHER PRIMARY DEMAND OR SELECTIVE DEMAND.
(ii) IT MAY PROMOTE EITHER THE BRAND OR THE FIRM SELLING THAT BRAND.
(iii) IT MAY TRY TO CAUSE INDIRECT ACTION OR DIRECT ACTION.
I. ADVERTISING BASED ON DEMAND INFLUENCE LEVEL
A. PRIMARY DEMAND STIMULATION PRIMARY DEMAND IS DEMAND FOR THE PRODUCT OR SERVICE RATHER THAN FOR A PARTICULAR BRAND. IT IS
INTENDED TO AFFECT THE DEMAND FOR THE TYPE OF PRODUCT, AND NOT THE BRAND OF THAT PRODUCT.
B. SELECTIVE DEMAND STIMULATION THIS DEMAND IS FOR A PARTICULAR BRAND SUCH AS CHARMINAR CIGARETTES, SURF DETERGENT POWDER, OR
VIMAL FABRICS. TO ESTABLISH A DIFFERENTIAL ADVANTAGE AND TO ACQUIRE AN ACCEPTABLE SORT OF MARKET, SELECTIVE DEMAND ADVERTISING
IS ATTEMPTED. IT IS NOT TO STIMULATE THE DEMAND FOR THE PRODUCT OR SERVICE.

27. • II. INSTITUTIONAL ADVERTISING
• INSTITUTIONAL ADVERTISING IS USED EXTENSIVELY DURING PERIODS OF PRODUCT SHORTAGES IN ORDER TO
KEEP THE NAME OF THE COMPANY BEFORE THE PUBLIC. IT AIMS AT BUILDING FOR A FIRM A POSITIVE PUBLIC
IMAGE IN THE EYES OF SHAREHOLDERS, EMPLOYEES, SUPPLIERS, LEGISLATORS, OR THE GENERAL PUBLIC.
• III. PRODUCT ADVERTISING MOST ADVERTISING IS PRODUCT ADVERTISING, DESIGNED TO PROMOTE THE SALE
OR REPUTATION OF A PARTICULAR PRODUCT OR SERVICE THAT THE ORGANIZATION SELLS. INDANE’S
COOKING GAS IS A CASE IN POINT.
A. INFORMATIVE PRODUCT ADVERTISING
B. PERSUASIVE PRODUCT ADVERTISING
C. REMINDER-ORIENTED PRODUCT ADVERTISING

28. • A. INFORMATIVE PRODUCT ADVERTISING THIS FORM OF ADVERTISING TENDS TO CHARACTERIZE THE
PROMOTION OF ANY NEW TYPE OF PRODUCT TO DEVELOP AN INITIAL DEMAND. IT IS USUALLY DONE IN THE
INTRODUCTORY STAGES OF THE PRODUCT LIFE CYCLE. IT WAS THE ORIGINAL APPROACH TO ADVERTISING.
• B. PERSUASIVE PRODUCT ADVERTISING PERSUASIVE PRODUCT ADVERTISING IS TO DEVELOP DEMAND FOR A
PARTICULAR PRODUCT OR BRAND. IT IS A TYPE OF PROMOTION USED IN THE GROWTH PERIOD AND, TO SOME
EXTENT, IN THE MATURITY PERIOD OF THE PRODUCT LIFE CYCLE.
• C. REMINDER-ORIENTED PRODUCT ADVERTISING THE GOAL OF THIS TYPE OF ADVERTISING IS TO REINFORCE
PREVIOUS PROMOTIONAL ACTIVITY BY KEEPING THE BRAND NAME IN FRONT OF THE PUBLIC. IT IS USED IN THE
MATURITY PERIOD AS WELL AS THROUGHOUT THE DECLINING PHASE OF THE PRODUCT LIFE CYCLE

29. 4. ADVERTISING BASED ON PRODUCT LIFE CYCLE
• A. CONSUMER ADVERTISING
• B. INDUSTRIAL ADVERTISING
• A. CONSUMER ADVERTISING MOST OF THE CONSUMER GOODS PRODUCERS ENGAGE IN
CONSUMER PRODUCT ADVERTISING. MARKETERS OF PHARMACEUTICALS, COSMETICS, SCOOTERS,
DETERGENTS AND SOAPS, CIGARETTES AND ALCOHOLIC BEVERAGES ARE EXAMPLES. BARING A
FEW, THESE PRODUCTS ARE ALL PACKAGE GOODS THAT THE CONSUMER WILL OFTEN BUY DURING
A YEAR. THERE IS A HEAVY COMPETITION AMONG THE ADVERTISERS TO ESTABLISH AN ADVANTAGE
FOR THEIR PARTICULAR BRAND.

30. B. INDUSTRIAL ADVERTISING INDUSTRIAL EXECUTIVES HAVE LITTLE CONFIDENCE IN ADVERTISING. THEY RELY ON THIS FORM OF PROMOTION MERELY OUT OF FEAR
THAT THEIR COMPETITORS MAY BENEFIT IF THEY STOP THEIR ADVERTISING EFFORTS. THE TASK OF THE INDUSTRIAL ADVERTISER IS COMPLICATED BY THE MULTIPLE
BUYING INFLUENCE CHARACTERISTICS LIKE, THE DERIVED DEMAND, ETC. THE OBJECTIVES VARY ACCORDING TO THE FIRM AND THE SITUATION. THEY ARE:
➢ TO INFORM,
➢ TO BRING IN ORDERS,
➢ TO INDUCE INQUIRIES,
➢ TO GET THE ADVERTISER’S NAME ON THE BUYER’S LIST OF SOURCES,
➢ TO PROVIDE SUPPORT FOR THE SALESMAN,
➢ TO REDUCE SELLING COSTS,
➢ TO HELP GET ITEMS IN THE NEWS COLUMN OF A PUBLICATION,
➢ TO ESTABLISH RECOGNITION FOR THE FIRM OR ITS PRODUCT,
➢ TO MOTIVATE DISTRIBUTORS,

31. 5. TRADE ADVERTISING
• RETAIL ADVERTISING
• WHOLESALE ADVERTISING
A. RETAIL ADVERTISING THIS MAY BE DEFINED AS “COVERING ALL ADVERTISING BY THE STORES THAT SELL GOODS DIRECTLY TO THE CONSUMING PUBLIC.” IT
INCLUDES, ALSO ADVERTISING BY ESTABLISHMENTS THAT SELL SERVICES TO THE PUBLIC, SUCH AS BEAUTY SHOPS, PETROL PUMPS AND BANKS. ADVERTISING
AGENCIES ARE RARELY USED.
B. WHOLESALE ADVERTISING
• WHOLESALERS ARE, GENERALLY, NOT ADVERTISING MINDED, EITHER FOR THEMSELVES OR FOR THEIR SUPPLIERS. THEY WOULD BENEFIT FROM ADOPTING
SOME OF THE IMAGE-MAKING TECHNIQUES USED BY RETAILERS – THE NEED FOR DEVELOPING AN OVERALL PROMOTIONAL STRATEGY.
6. ADVERTISING BASED ON AREA OF OPERATION IT IS CLASSIFIED AS FOLLOW:
A. NATIONAL ADVERTISING
B. B. REGIONAL ADVERTISING
C. C. LOCAL ADVERTISING

32. A. NATIONAL ADVERTISING THE TERM ‘NATIONAL ADVERTISING’ HAS A SPECIAL CONNOTATION THAT ADVERTISING IS
NOT CONFINED TO ANY GEOGRAPHIC AREA WITHIN THE NATION. THIS TYPE OF ADVERTISING IS UNDERTAKEN MOSTLY
BY A MARKETER OF BRANDED PRODUCT OR SERVICES, SOLD THROUGH DIFFERENT OUTLETS IN THE DISTRIBUTION
CHANNEL, WHEREVER THEY MAY BE LOCATED AND APPEARS IN BOTH NATIONAL AND REGIONAL MEDIA LIKE PRINT,
ELECTRONICS, OUTDOOR ETC.
B. REGIONAL ADVERTISING IT IS GEOGRAPHICAL ALTERNATIVE FOR ORGANIZATIONS. FOR EXAMPLE, AMRIT VANASPATI
BASED IN RAJPURA CLAIMS TO BE THE LEADING HYDROGENATED OIL PRODUCER IN THE PUNJAB. BUT, UNTIL RECENTLY, IT
MAINLY CONFINED ITSELF TO ONE OF THE VEGETABLE OIL BRANDS DISTRIBUTION TO MALIHABAD DISTRICT (IN U.P. NEAR
LUCKNOW).
C. LOCAL ADVERTISING IT IS GENERALLY DONE BY RETAILERS RATHER THAN MANUFACTURERS. THESE ADVERTISEMENTS
SAVE THE CUSTOMER TIME AND MONEY BY PASSING ALONG SPECIFIC INFORMATION ABOUT PRODUCTS, PRICES,
LOCATION, AND SO ON.

33. 7. ADVERTISING ACCORDING TO MEDIUM
THE MOST COMMON CLASSIFICATION OF ADVERTISING IS BY THE MEDIUM USED. FOR EXAMPLE:
TV, RADIO, MAGAZINE, OUTDOOR, BUSINESS PERIODICAL, NEWSPAPER AND DIRECT MAIL
ADVERTISING. THIS CLASSIFICATION IS SO COMMON IN USE THAT IT IS MENTIONED HERE ONLY
FOR THE SAKE OF COMPLETENESS.

34. TODAY’S TASK
Day 1 Activity
Recall your favorite advertisement and explain
it minimum 5 points.
Differentiate between advertising and publicity

35. APPROACHES OF ADVERTISING (DAGMAR & AIDA)
• THE DAGMAR MODEL
• RUSSELL COLLEY CREATED DAGMAR - WHICH STANDS
FOR -‘DEFINING ADVERTISING GOALS FOR MEASURED
ADVERTISING RESULTS’, TO MEASURE OBJECTIVES AT
EACH STAGE OF COMMUNICATION. HE CREATED THIS
FOR THE ASSOCIATION OF NATIONAL ADVERTISERS.
DAGMAR HELPS IN IDENTIFYING THE OBJECTIVES OF
ADVERTISING AND FOCUSES TO MEASURE THE
RESULTS OF AN ADVERTISING CAMPAIGN.
FOLLOWING ARE THE OBJECTIVES OF ADVERTISING
AS PER THIS APPROACH:

36. • OBJECTIVES OF THE DAGMAR APPROACH
A. PERSUADE A PROSPECT TO VISIT THE
SHOWROOM.
B. GROWTH IN MARKET SHARE.
C. IMPROVE SALES TURNOVER.
D. PERFORM COMPLETE SELLING FUNCTION.
E. ADVERTISE A SPECIAL REASON TO BUY.
F. STIMULATE IMPULSE SALES.

37. G. REMIND PEOPLE TO BUY.
H. CREATE AWARENESS ABOUT THE PRODUCT AND BRAND EXISTENCE.
I. CREATE FAVOURABLE EMOTIONAL DISPOSITION TOWARDS THE PRODUCT.
J. IMPART INFORMATION REGARDING BENE¿TS AND DISTINCTIVE FEATURES OF
THE PRODUCT.
K. COMBAT AND OFFSET COMPETITIVE CLAIMS.
L. CORRECT FALSE IMPRESSIONS, WRONG INFORMATION AND OTHER
HINDRANCES TO SALES.
M. AID SALES FORCE WITH SALES PROMOTION AND SELLING ACTIVITIES AND
BOOST THEIR MORALE.
N. ESTABLISH BRAND RECOGNITION AND ACCEPTANCE
• ACCORDING TO RUSSELL COLLEY, THERE ARE
VARIOUS ATTRIBUTES OF WELL-FOUNDED
OBJECTIVES. THESE ARE:
• HAVE A WELL-DEFINED TARGET AUDIENCE OR
MARKET
• CONCRETE AND MEASURABLE
• SPECIFY A TIME FRAME TO ACCOMPLISH THE
OBJECTIVE
• IDENTIFY THE BENCHMARK AND THE DEGREE OF
CHANGE NEEDED TO BRING ABOUT

38. THE AIDA MODEL
• THE AIDA MODEL
• AIDA, A BEHAVIORAL MODEL WAS CREATED BY
STRONG IN 1925 TO DEFINE THE PURPOSE OF
ADVERTISING AS:
• TO CREATE AWARENESS, STIMULATE INTEREST
WITH LEADING THE CONSUMER TO DESIRED
ACTION. THE AIDA MODEL PROPOSES FIVE
COGNITIVE STAGES THROUGH WHICH A
BUYER MOVES TO AND FRO BEFORE FINALLY
PURCHASING THE PRODUCT.

39. • ATTENTION
• THIS CAN BE DONE IN SEVERAL WAYS:
• THROUGH GUERRILLA MARKETING. PLACING ADVERTISEMENTS IN
UNEXPECTED SITUATIONS OR LOCATIONS.
• INNOVATIVE ADVERTISEMENTS.
• CREATING SHOCK ADVERTISEMENTS THROUGH EXAGGERATED IMAGERY
• INTEREST
• THE SECOND STEP IS : CREATING INTEREST IN THE PRODUCT SO THAT IT CAN
CREATE IN TURN IGNITE THE DESIRE FOR THE PRODUCT, AND THIS INDEED IS
VERY DIFFICULT.

40. • DESIRE
• ONCE AN INTEREST IS DEVELOPED IN THE CONSUMER, DESIRE NEEDS TO BE CREATED. THE
ADVERTISERS SHOULD BE ABLE TO CLARIFY THE NEED OF THE PRODUCT IN THE CONSUMERS’ MIND
BY PROVIDING THE BENEFITS AND ITS UNIQUE FEATURES AND ALL OTHER NECESSARY
INFORMATION REQUIRED TO BUY THE PRODUCT.
• ACTION
• THE LAST STEP OF THE AIDA MODEL IS: GETTING THE CONSUMER TO INITIATE ACTION. THE
ADVERTISEMENT SHOULD END WITH A CALL TO ACTION – A STATEMENT THAT IS DESIGNED TO GET
AN IMMEDIATE RESPONSE FROM THE CONSUMER. FOR EXAMPLE, NETFLIX AND MANY OTHER SITES
USE PERSUASIVE TEXT TO CONVINCE THE CONSUMER TO TRY THEIR FREE TRIAL.

44. SOCIAL, ECONOMIC, AND LEGAL IMPLICATIONS OF
ADVERTISEMENTS.
• SOCIAL ROLE OF ADVERTISING:
• DECEPTION IN ADVERTISING:
• THE RELATION BETWEEN THE BUYERS AND SELLERS IS MAINTAINED IF THE BUYERS ARE SATISFIED WITH WHAT THEY SAW IN ADVERTISE AND WHAT
THEY GOT AFTER BUYING THAT PRODUCT. IF SELLER SHOWS A FALSE OR DECEPTIVE IMAGE AND AN EXAGGERATED IMAGE OF THE PRODUCT IN
THE ADVERTISEMENT, THEN THE RELATION BETWEEN THE SELLER AND BUYERS CAN’T BE HEALTHY. THESE PROBLEMS CAN BE OVERCOME IF THE
SELLER KEEP THEIR ADS CLEAN AND DISPLAYS RIGHT IMAGE OF THE PRODUCT.
• THE SUBLIMINAL ADVERTISING:
• CAPTURING THE MINDS OF THE CONSUMERS IS THE MAIN INTENTION OF THESE ADS. THE ADS ARE MADE IN SUCH A WAY THAT THE CONSUMERS
DON’T EVEN REALIZES THAT THE AD HAS MADE AN IMPACT ON THEIR MINDS AND THIS RESULTS IN BUYING THE PRODUCT WHICH THEY DON’T
EVEN NEED. BUT “ALL ADS DON’T IMPRESS ALL CONSUMERS AT ALL TIMES”, BECAUSE MAJORITY OF CONSUMERS BUY PRODUCTS ON BASIS OF
THE PRICE AND NEEDS.
• EFFECT ON OUR VALUE SYSTEM:
• THE ADVERTISERS USE PUFFING TACTICS, ENDORSEMENTS FROM CELEBRITIES, AND PLAY EMOTIONALLY, WHICH MAKES ADS SO POWERFUL THAT
THE CONSUMERS LIKE HELPLESS PREYS BUY THOSE PRODUCTS. THESE ADS MAKE POOR PEOPLE BUY PRODUCTS WHICH THEY CAN’T AFFORD,
PEOPLE PICKING UP BAD HABITS LIKE SMOKING AND DRINKING, AND BUY PRODUCTS JUST BECAUSE THEIR FAVORITE ACTOR ENDORSED THAT
PRODUCT. THIS AFFECTS IN INCREASED THE COST OF WHOLE SOCIETY AND LOSS OF VALUES OF OUR OWN SELVES.

45. • OFFENSIVENESS:
• SOME ADS ARE SO OFFENSIVE THAT THEY ARE NOT ACCEPTABLE BY BUYERS. FOR EXAMPLE, THE ADS OF DENIM JEANS SHOWED GIRLS
WEARING VERY LESS CLOTHES AND MAKING A SEX APPEAL. THESE KINDS OF ADS ARE IRRELEVANT TO THE ACTUAL PRODUCT. BTU
THEN THERE IS SOME ADS WHICH ARE EDUCATIVE ALSO AND NOW ACCEPTED BY PEOPLE. EARLIER ADS GIVING INFORMATION ABOUT
BIRTH CONTROL PILLS WAS CONSIDERED OFFENSIVE BUT NOW THE SAME ADS ARE CONSIDERED EDUCATIVE AND IMPORTANT.
• BUT AT THE LAST, THERE ARE SOME GREAT POSITIVE ASPECTS WHICH HELP
• DEVELOPMENT OF SOCIETY AND GROWTH OF TECHNOLOGIES
• EMPLOYMENT
• GIVES CHOICES TO BUYERS WITH SELF INTEREST
• WELCOMES HEALTHY COMPETITION
• IMPROVING STANDARD OF LIVING.
• GIVE INFORMATION ON SOCIAL, ECONOMICAL AND HEALTH ISSUES.

46. ECONOMIC ROLE OF ADVERTISING
• VALUE OF PRODUCTS:
• THE ADVERTISED PRODUCTS ARE NOT ALWAYS THE BEST PRODUCTS IN THE MARKET. THERE ARE SOME
UNADVERTISED PRODUCTS ALSO PRESENT WHICH ARE GOOD ENOUGH. BUT ADVERTISING HELPS INCREASE
VALUE FOR THE PRODUCTS BY SHOWING THE POSITIVE IMAGE OF THE PRODUCT WHICH IN TURN HELPS
CONVINCING CUSTOMERS TO BUY IT.
• EFFECT ON PRICES:
• SOME ADVERTISED PRODUCTS DO COST MORE THAN UNADVERTISED PRODUCTS BUT THE VICE VERSA IS ALSO
TRUE. BUT IF THERE IS MORE COMPETITION IN THE MARKET FOR THOSE PRODUCTS, THE PRICES HAVE TO COME
DOWN, FOR E.G., CANNED JUICES FROM VARIOUS BRANDS. THUS SOME PROFESSIONAL LIKE CHARTERED
ACCOUNTANTS AND DOCTORS ARE NOT ALLOWED TO ADVERTISE.

47. • EFFECT ON CONSUMER DEMAND AND CHOICES:
• EVEN IF THE PRODUCT IS HEAVILY ADVERTISED, IT DOES NOT MEAN THAT THE DEMAND OR SAY CONSUMPTION
RATES WILL ALSO INCREASE. THE PRODUCT HAS TO BE DIFFERENT WITH BETTER QUALITY, AND MORE VARIETY
THAN OTHERS. FOR E.G., KELLOGG’S CORNFLAKES HAVE VARIETY OF FLAVORS WITH DIFFERENT RANGES TO
OFFER FOR DIFFERENT AGE GROUPS AND NOW ALSO FOR PEOPLE WHO WANT TO LOOSE WEIGHT THUS
GIVING CONSUMERS DIFFERENT CHOICES TO SELECT FROM.
• EFFECT ON BUSINESS CYCLE:
• ADVERTISING NO DOUBT HELPS IN EMPLOYING MORE NUMBER OF PEOPLE. IT INCREASES THE PAY ROLLS OF
PEOPLE WORKING IN THIS FIELD. IT HELPS COLLECTING MORE REVENUES FOR SELLERS WHICH THEY USE FOR
BETTERMENT OF PRODUCT AND SERVICES. BUT THERE ARE SOME BAD EFFECTS OF ADVERTISEMENTS ON
BUSINESS CYCLE ALSO.

48. LEGAL IMPLICATIONS OF ADVERTISEMENTS
• IMPLICATIONS OF ADVERTISEMENTS
• SECTION 292 AND 293 OF IPC, 1860, PROHIBIT THE DISSEMINATION OF ANY OBSCENE MATTER. THE INDIAN POST OFFICE ACT, 1898,
IMPOSE A SIMILAR PROHIBITION ON THE TRANSMISSION OF OBSCENE MATTER THROUGH THE POST. THE CUSTOMS ACT, 1962,
ALLOWS THE DETENTION AND SEIZURE OF ANY OBSCENE MATTER SOUGHT TO BE IMPORTED INTO THE COUNTRY.
• THE YOUNG PERSONS (HARMFUL PUBLICATIONS) ACT, 1956, PROHIBITS THE DISSEMINATION OF PUBLICATIONS DEEMED TO BE
HARMFUL TO PERSONS UNDER THE AGE OF TWENTY YEARS.
• THE INDECENT REPRESENTATION OF WOMEN (PROHIBITION) ACT, 1986, FORBIDS THE DEPICTION OF WOMEN IN AN INDECENT OR
DEROGATORY MANNER IN THE MASS MEDIA.
• THE CHILDREN ACT, 1960, PROHIBITS THE DISCLOSURE OF THE NAME AND ADDRESS AND OTHER PARTICULARS OF ANY CHILD
INVOLVED IN CERTAIN PROCEEDINGS.
• THE EMBLEMS AND NAMES (PREVENTION OF IMPROPER USE) ACT, 1950, FORBIDS THE USE BY ANY PRIVATE PARTY OF CERTAIN NAMES,
EMBLEMS, ETC.
• THE PREVENTION OF INSULTS TO THE NATIONAL HONOUR ACT, 1971, FORBIDS THE BRINGING INTO CONTEMPT OF THE NATIONAL
FLAG OR THE CONSTITUTION OF INDIA IN ANY MANNER.

49. • THE INDIAN PENAL CODE, 1860, PROHIBITS THE PUBLICATION OF MATTERS CONNECTED UNAUTHORIZED
LOTTERIES, WHILE THE INDIAN POST OFFICE ACT, 1898, IMPOSES A SIMILAR PROHIBITION ON THE
TRANSMISSION BY THE POST OF SUCH MATTER. THE INDIAN PENAL CODE, 1860, ALSO PROHIBITS THE
PUBLICATION OF APPEALS USING NATIONAL SYMBOLS FOR FURTHERING THE PROSPECTS OF ANY CANDIDATE
AT AN ELECTION.
• THE DRUGS AND MAGIC REMEDIES (OBJECTIONABLE ADVERTISEMENT) ACT, 1954, PROHIBITS ADVERTISEMENTS
FOR PRODUCTS AND SERVICES CLAIMING TO CURE CERTAIN MEDICAL CONDITIONS.
• THE PRIZE COMPETITIONS ACT, 1955, PROHIBITS THE PUBLICATION OF MATTER WITH UNAUTHORIZED PRIZE
COMPETITIONS, WHILE THE PRIZE CHITS AND MONEY CIRCULATION SCHEMES (BANNING) ACT, 1978, IMPOSES
A SIMILAR PROHIBITION IN RESPECT OF CHITS AND MONEY CIRCULATION SCHEMES

50. LEGAL ISSUES IN ADVERTISING
ADVERTISING IS REGULATED BY VARIOUS LAWS AND REGULATIONS TO PROTECT CONSUMERS FROM DECEPTIVE, FALSE,
OR MISLEADING ADVERTISING. HERE ARE SOME KEY LEGAL ISSUES IN ADVERTISING:
• FALSE ADVERTISING: MAKING FALSE OR MISLEADING CLAIMS ABOUT A PRODUCT OR SERVICE.
• DECEPTIVE ADVERTISING: USING MISLEADING OR AMBIGUOUS LANGUAGE OR IMAGES TO MISREPRESENT A
PRODUCT OR SERVICE.
• COMPARATIVE ADVERTISING: MAKING UNFAIR OR UNTRUE COMPARISONS BETWEEN A PRODUCT OR SERVICE AND A
COMPETITOR’S PRODUCT OR SERVICE.
• ENDORSEMENTS AND TESTIMONIALS: USING ENDORSEMENTS AND TESTIMONIALS WITHOUT DISCLOSING ANY
MATERIAL CONNECTIONS BETWEEN THE ENDORSER AND THE ADVERTISER.
• CHILDREN’S ADVERTISING: ADVERTISING TO CHILDREN IN A WAY THAT IS UNFAIR OR DECEPTIVE, OR THAT TAKES
ADVANTAGE OF THEIR CREDULITY.

51. • ETHICAL ISSUES IN ADVERTISING
• IN ADDITION TO LEGAL ISSUES, ADVERTISING ALSO RAISES ETHICAL CONCERNS. HERE ARE SOME KEY ETHICAL ISSUES
IN ADVERTISING:
• STEREOTYPING: USING STEREOTYPES OR PROMOTING HARMFUL OR OFFENSIVE IMAGES OR IDEAS.
• EXPLOITATION: USING VULNERABLE GROUPS, SUCH AS CHILDREN OR THE ELDERLY, FOR COMMERCIAL GAIN.
• PRIVACY: COLLECTING AND USING PERSONAL DATA WITHOUT THE INDIVIDUAL’S CONSENT.
• CULTURAL SENSITIVITY: USING IMAGES OR LANGUAGE THAT MAY BE OFFENSIVE OR INSENSITIVE TO CERTAIN
CULTURES OR GROUPS.
• ENVIRONMENTAL IMPACT: ADVERTISING PRODUCTS OR SERVICES THAT MAY HAVE A NEGATIVE IMPACT ON THE
ENVIRONMENT.

52. WHAT WOULD YOU DO?
• A LOCAL DEPARTMENT STORE ADVERTISED AN INCREDIBLE PRICE FOR DESIGNER JEANS. THE
EXCELLENT PRICES INSPIRED YOU TO VISIT THE STORE SO YOU COULD STOCK YOUR CLOSET WITH
HIGH-END CLOTHING. YOU ARRIVED AT THE STORE WHEN IT OPENED TO ENSURE YOU WOULD
HAVE A BETTER SELECTION OF THE POPULAR DESIGNER JEANS. UPON ENTERING THE STORE, YOU
WERE SURPRISED TO LEARN THAT IT DID NOT HAVE ANY OF THE ADVERTISED JEANS. WHEN YOU
ASKED THE STORE MANAGER ABOUT THE ADVERTISED SPECIAL, SHE RESPONDED THAT THE STORE
WOULD NOT BE GETTING AN ADDITIONAL SHIPMENT OF THE DESIGNER JEANS. SHE THEN SHOWED
YOU SOME OTHER DESIGNER JEANS SOLD BY THE STORE AT A HIGHER PRICE.
• WHAT WOULD YOU DO? DO YOU THINK THE STORE’S ADVERTISING WAS DECEPTIVE? WHY OR
WHY NOT? HOW CAN YOU HELP PREVENT THE STORE FROM USING THE SAME ADVERTISING
TACTIC AGAIN?

53. • YOUR COMPANY MANUFACTURES POPULAR DESIGNER BLUE JEANS THAT ARE SOLD FOR $100.
A RECENT NEWS REPORT INDICATED YOUR JEANS ARE MANUFACTURED AT SWEATSHOPS IN
ANOTHER COUNTRY WHERE WORKERS EARN ONLY $0.75 PER HOUR. YOUR COMPANY HAS
NOW MOVED PRODUCTION OF THE JEANS TO ANOTHER FACILITY THAT PAYS FAIR WAGES.
HOWEVER, YOUR BRAND IS STILL SUFFERING FROM A BAD REPUTATION.
• AS THE OWNER OF THE COMPANY, WHAT WOULD YOU DO? WHAT WOULD BE THE BEST WAY
TO INFORM CONSUMERS THAT YOUR COMPANY HAS CORRECTED THE PROBLEM? HOW
WOULD YOU PERSUADE CONSUMERS TO BUY YOUR JEANS?